Multiple Choice. (No explanation needed)

#1.

I. Where the ownership of the goods has passed to the buyer and he wrongfully neglects or refuses to pay for the goods, the seller may maintain an action against him for the price of the goods.

II. Where the price is payable on a certain day and the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price although the ownership in the goods has not passed.

• Only II is true
• Both are true
• Both are false
• Only I is true

#2.

I. Legal redemption is intended to maximize co-ownership.

II. The rule on redemption is liberally construed in favor of the original owners of the property and the policy of the law is to aid rather than defeat him in the exercise of his right of redemption.

• Both are false
• Only I is true
• Both are true
• Only II is true

#3.

I. The creditors of the vendor cannot make use of the right of redemption against the buyer, until after they have exhausted the property of the seller.

II. The vendor may bring his action against every possessor whose rights is derived from the buyer, even if in the second contract no mention should have been made of the right to repurchase.

• Both are false
• Only I is true
• Both are true
• Only II is true

#4.

The seller may totally rescind the contract of sale of goods in the following cases, except:

• the buyer has repudiated the contract of sale
• the buyer has manifested his inability to perform his obligations thereunder
• the buyer has committed a breach of the contract of sale
• none of the above

#5.

A person who either has ceased to pay his debts in the ordinary course of business or cannot pay his debts as they become due

• Solvent
• Debtor
• Insolvent
• Bankrupt

#6.

I. In conventional redemption, if there is no period of redemption agreed upon, it shall last 10 years form the date of the contract.

II. In conventional redemption, should there be an agreement, the period cannot exceed 4 years.

• Both are false
• Only II is true
• Both are true
• Only I is true

#7.

When a credit or other incorporeal right in litigation is sold, the debtor shall have a right to extinguish it by reimbursing the assignee for the following, except:

• the interest on the price
• damages
• the price
• the judicial costs

#8.

One of the following is not a warranty of the assignor of credit?

• the existence of the credit at the time of assignment
• the legality of the credit at the time of the assignment unless the assignor sold it as doubtful
• if expressly stipulated or unless the insolvency was prior to the sale and of common knowledge, the solvency of the debtor
• the solvency of the debtor regardless of stipulation

#9.

I. If the thing which is the object of the contract has been entirely lost at the time of perfection of sale, the contract shall be without any effect. The reason is because there is an absence of an essential element, that is, the consent.

II. A this is lost when it perishes or goes out of commerce or disappears in such a way that its existence is unknown or it cannot be recovered.

• Only II is true
• Only I is true
• Both are true
• Both are false

#10.

Until acceptance, it is not, properly speaking, a contract, and does not vest, transfer, or agree to transfer, any title to, or any interest or right in the subject matter, but is merely a contract by which the owner of property gives the optionee the right or privilege of accepting the offer and buying the property on certain terms.

• Conditional
• Option
• Earnest
• Absolute

#11.

I. The buyer of goods is not bound to accept the delivery thereof by installments.

II. The buyer has a reasonable opportunity to examine the goods upon delivery to ascertain whether they are in conformity with the contract before accepting the same.

• Both are false
• Both are true
• Only II is true
• Only I is true

#12.

I. In the case of fungible goods, there may be sale of an undivided share of a specific mass, though the seller purports to sell and the buyer to buy a definite number, weight or measure of the goods in the mass, and though the number, weight or measure of the goods in the mass is undetermined.

II. Things subject to a resolutory condition may be the object of the contract of sale.

• Both are false
• Both are true
• Only I is true
• Only II is true

#13.

I. Under the Maceda Law, in case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.

II. Under the Maceda Law, ifthe buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.

• Both are false
• Both are true
• Only II is true
• Only I is true

#14. These cover everything indispensable for sustenance, dwelling, clothing medical attendance, education and transportation

• necessary expenses
• necessaries
• useful expenses
• expenses of preservation

#15.

I. When the buyer's refusal to accept the goods is without just cause, the title thereto passes to him.

II. Where goods are delivered to the buyer, and he refuses to accept them, having the right to do so, he is not bound to return them to the seller.

• Both are true
• Only II is true
• Only I is true
• Both are false

#16.

I. Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may maintain an action against him for damages for nonacceptance.

II. While labor or expense of material amount is necessary on the part of the seller to enable him to fulfill his obligations under the contract of sale, the buyer repudiates the contract, the buyer shall be liable to the seller for labor performed or expenses made before receiving notice of the buyer's repudiation or countermand.

• Only I is true
• Both are false
• Both are true
• Only II is true

#17.

A, B, and C are co-owners in equal shares of one hectare rural land, the adjoining owners to which are D and E, the latter owning the smaller area. A donated his share of the land owned in common to XX who is a rural landowner. Upon the proper notice of the sale, B, C, D and E sought to exercise the right of legal redemption over the shares sold. Who shall have the right to do so?

• The first one between A and B to request redemption shall be preferred
• None of them has the right to redeem because the land alienated was not by onerous title
• A and B are preferred to D and E to redeem
• E shall have the right to redeem because he has the smallest area

#18.

I. The fixing of the price can never be left to the decision of one of the contracting parties. But a price fixed by one of the contracting parties, if accepted by the other, gives rise to a perfected sale.

II. The parties need not agree on the manner of payment of the price of the property to give rise to a binding and enforceable contract of sale or contract to sell.

• Both are false
• Only I is true
• Only II is true
• Both are true

#19.

I. A contract for a piece of work, labor and materials may be distinguished form a contract of sale by the inquiry as to whether the thing transferred is one not in existence and which would never have existed but for the order of the person desiring it. In such case, the contract is one for a piece of work, not a sale.

II. If the thing subject of the contract would have existed and been the subject of a sale to some other person even if the order had not been given, then the contract is one of sale.

• Only I is true
• Only II is true
• Both are true
• Both are false

#20.

When goods are in such a state that the buyer would, under the contract, be bound to take delivery of them.

• deliverable state
• perishable state
• fungible goods
• non-fungible goods