Business Law

Sales, credit, Pledge, specials laws

1.)A sold to B the former's horse for P5,000. No date is fixed by the parties for the performance of their respective obligations. The obligation of A is

a. To deliver the horse upon payment by B of P5,000

b. To rescind the contract as there is no time fixed for the delivery and payment

c. To deliver the horse within a reasonable time of two months from the contract date

d. To deliver the horse immediately as there is a perfected contract

2.)A sold to B a parcel of land for P30,000. The sale is evidenced by a memorandum of agreement of sale written in Cebuano dialect. One week later, A sold the same parcel of land to C for P40,000 which was evidenced by a formal deed of sale. Upon buying the property, C, who was aware of the first sale, immediately took possession of the land and registered the deed of sale in her favor with the Register of Deeds. When informed of the second sale, B subsequently registered an adverse claim to the property. The parcel of land shall belong to

a. C, because she is the first to take possession of the land

b. C, because the sale was made on a formal deed of sale

c. C, because she is the first to register the deed of sale

d. B, because she has got an older title

3.)In a pledge created by operation of law, after payment of the debt and expenses, the reminder of the price of the sale in auction shall be delivered to the obligor, pledgor being entitled to the excess. If a credit which has been pledge becomes due before it is redeemed, the pledge may collect and receive the amount due and apply the same to the payment of his claim with the excess going to the pledgor

a. First is false, second is true

b. Both statements are true

c. First is true, second is false

d. Both statements are false

4.)A refrigerator sold by description, but although the description was correct (as described in the brochure), the machine would not work properly. The buyer refused to pay the balance of the purchase price. Is the refusal of the buyer correct?

a. No, he must pay since the sale was by description and the description is correct

b. Yes, but buyer will have to return the refrigerator and ask for the return of the cash advanced by him

c. Yes, because the machine would not work properly as intended

d. Answer not given above

5.)Mr. Ayco offered to sell his land to Mr. Cruz for P100,000. Mr. Cruz accepted the offer and paid Mr. Ayco the purchase price. Mr. Ayco delivered the owner's duplicate of the Transfer Certificate of title of the land. Mr. Cruz wants to register the land in his name but the Register of Deeds asks Mr. Cruz for the Deed of Sale. What can Mr. Cruz do?

a. He may occupy and use the land as a buyer in good faith

b. He may compel Mr. Ayco to execute the Deed of Sale because the contract is valid

c. He cannot compel Mr. Ayco to return the payment because the contract is unenforceable

d. He may sue Mr. Ayco to return the purchase price under the legal principle that no one may enrich himself at the expense of another

6.)D is indebted to C in the amount of P200,000 and delivers to C his diamond ring by the way of pledge. If D sells the same diamond ring to T, when will T acquire ownership of the same?

a. From the time T pays the price to D

b. From the time C consents to the sale between D and T

c. From the time T obtains actual possession of the diamond ring

d. From the time the sale is perfected between D and T

7.)Which of the following statements is true and correct?

a.)Unless otherwise agreed upon by the parties, the sale of the mortgaged property extinguishes in full the obligation of the mortgagor to the mortgagee

b.) In both pledge and mortgage the creditor is entitled to deficiency judgment

c.) Pledge and mortgage are considered principal contracts

d.)When the obligation is secured by a pledge or mortgage and it is not paid when due, the pledgee or mortgagee may dispose the collateral even if there is no agreement to that effect between the parties

8.)Mr. Marcelo Cardenas orders for his workers 1,000 pieces of T-shirts ranging in size from small to large from Lapulapu Garments Mfg. Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to its sales outlets regularly. The contract entered into by Mr. Cardenas with the Lapulapu Garments Mfg. Corp. is a

a. Answer not given

b. Contract for a piece of work

c. A contract of sale

d. Contract subject to a resolutory condition

9.)Davidica sold to Elvie her piano. It was agreed that Elvie would fix the price a week later. At the appointed time, Elvie named the price - P900. Davidica agreed. Is the sale perfected?

a. No, because the price was left to the discretion of one of the contracting parties

b. Yes, because the price fixed by one of the parties was accepted by the other

c. answer not given above

d. No, because at the time of sale, the price was not fixed

10.)Cuenca mortgaged his lot and house to Bascon as collateral for the payment of his loan obligation. The mortgage contract stipulates that Cuenca cannot sell the property while the obligation exists. Before the maturity of the mortgage, Diaz offered to buy the property from Cuenca

a. Cuenca cannot sell the property to Diaz because of the agreement not toe sell while the mortgage exists

b. Cuenca cannot sell the property to Diaz unless he pays the loan obligation

c. Cuenca can sell the property to Diaz despite the stipulation in the mortgage contract not to sell

d. Cuenca can sell the property only if Bascon consent to it

11.)A offered to sell a specific BMW car in the amount of P1M. B agreed and gave the downpayment price of P500,000.00. The BMW car shall be delivered a week after the downpayment has been made. Which of the following statements is correct?

a. The contract shall be perfected from the moment of the meeting of the minds

b. The contract shall be deemed perfected upon the payment of the purchase price

c. The contract shall be deemed perfected only upon the delivery of the BMW car

d. The contract shall be deemed perfected once ownership has been transferred to B by executing a deed of sale of motor vehicle

12.)A owes B P100,000 due on December 12, 2020 A mortgaged his house to B as a guaranty for the debt. Shortly, however, the mortgaged house was completely destroyed by typhoon "Nitang." Thereafter, B demanded payment from A on October 28, 2020. Is B's demand valid?

a. No, the obligation is extinguished because the object of the obligation is lost through a fortuitous event

b. Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous event, unless the debtor mortgage another that's equally satisfactory

c. Yes, the debt becomes due at once because, from the tenor of the obligation, the period established is for the benefit of the creditor solely thereby giving the creditor the right to demand performance even before the date stipulated

d. No, the obligation is one with a definite period. Thus, the creditor cannot demand fulfillment of the obligation as such would be prejudicial to the rights of the debtor

13.)D mortgaged his parcel of land to C as security for a loan. Fearing foreclosure of the mortgage due to his inability to pay the loan, D sold the land to X without the consent of C. Is the sale valid?

a. Yes, stipulation prohibiting the sale without the consent of the mortgage shall be void

b. No, unless there was prior consent of the mortgage

c. Yes, provided the mortgage was notified before the sale

d. No, if there was stipulation requiring prior consent