Country: Philippines

1.On Jul. 1, A sold to B a piece of land, payment and delivery to be made on Jul 15. It was stipulated that should payment not be made on Jul 15, the contract would automatically be rescinded.

Statement 1. On Jul 20, B can no longer pay even if there has been no judicial or notarial demand for the recission of the contract.

Statement 2. If on Jul 18, A had made a notarial demand for such a recission then B will not be allowed to pay anymore, and the court may not grant him a new term

a.No. 1 is true, No.2 is false

b.Both are false

c.Both are true

d.No. 1 is false, No. 2 is true

2.Three of the following are the requisites in order that the buyer may enforce the seller's liability for hidden defect.

Which one is not?

a. The defects of the thing sold must not be patent or visible.

b. The defects render the thing unfit for the user which it is intended, or which diminish its fitness for such use

to such an extent that had the buyer been aware thereof, he would not have bought it.

c. The defects must be existing at the time of sale.

d. The defects must be capable of determination by an expert.

3.The following are the alternative remedies except one avail-able to the buyer in case of breach of warranty by the seller

a. keep the goods and ask for damages

b. keep the goods and set up against the seller by way of recoupment in price

c. refuse to accept the goods and ask for damages

d. rescind the sale and retain the goods