Multiple Choice ( No explanation needed)

#1.

Who can negotiate a negotiable document of title?

• the owner of the negotiable document of title
• any person to whom possession of the document has been entrusted by the owner, if by the terms of the document the bailee issuing the document undertakes to deliver the goods to the order of the person to whom the possession or custody of the document has been entrusted
• any person to whom the custody of the custody has been entrusted by the owner, if a the time of such entrusting the document is in such form that it may be negotiated by delivery
• all of the above

#2.

S sold to B his 1/2 share of the parcel of land he co-owns with R. T owns the parcel of land adjoining that of S and R. Both R and T want to redeem the share of S which the latter sold to B.

• R and T can equally redeem the share of S
• R's right as co-owner excludes that of T, the latter being only an adjoining owner
• T shall be preferred to R in the redemption from B
• T has a better right to the redemption as an adjoining owner

#3.

I. A contract to sell may not be considered as a contract of sale because the second essential element is lacking.

II. In contract to sell, what the seller agrees or obliges himself to do is to fulfill his promise to sell the subject property when the entire amount of the purchase price is delivered to him.

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

#4.

S sold a parcel of land to B. Subsequently, S sold the same land to C who immediately took possession of the land. In this case, the proper remedy of B is:

• File an action in court against C to recover the land
• Fill an action for rescission of the sale to C due to damage suffered by him
• Institute an action for damages against S for breach of contract
• Ask for rescission of the sale because it is in fraud of creditors

#5.

I. The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price.

II. Assignment of credits and other incorporeal rights are perfected also at the moment there is a meeting of minds.

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

#6.

I. The sale of animals suffering from contagious diseases shall be void.

II. A contract of sale of animals shall also be void if the use or service for which they are acquired has been stated in the contract, and they are found to be unfit therefor.

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

#7.

I. The owners of adjoining lands shall also have the right of redemption when a piece of urban land, the area of which does not exceed one hectare, is alienated, unless the grantee does not own any urban land.

II. Whenever a piece of rural land which is so small and so situated that a major portion thereof cannot be used for any practical purpose within a reasonable time, having been bought merely for speculation, is about to be re-sold, the owner of any adjoining land has a right of pre-emption at a reasonable price.

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

#8.

The vendor is not bound to deliver the thing sold because the vendee has lost the right to make use of the term in the following instances, except:

• when the vendee violates any undertaking, in consideration of which the seller agreed to the period
• when after the obligation has been contracted, the vendee becomes insolvent, unless he gives a guaranty or security for the debts
• when the vendee does not furnish the guaranties
• when by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous event they disappear, unless the vendee immediately give new ones equally satisfactory

#9.

It is an agreement by virtue of which the owner of a credit, known as the assignor, by a legal cause, such as sale, dacion en pago, exchange or donation, and without teh consent of the debtor, transfers his credit and accessory rights to another, known as the assignee, who acquires the power to enforce it to the same extent as the assignor could enforce it against the debtor.

• Waiver of rights
• Assignment of credit
• Stipulation pour autrui
• Barter

#10.

Except for one, the following are the effect of buyer's justifiable refusal to accept delivery

• it is sufficient that the buyer notifies the seller that he refuses to accept the goods
• the buyer has no obligation to return the goods to the seller
• there will be legal pledge or pledge by operation of law
• if the buyer voluntarily constitutes himself a depositary of the goods, he shall be liable as such

#11.

S sold to B in writing a parcel of land for P5M. B now wants S to place the contract in a public instrument so that B could register the sale with the Registry of Deeds and secure the Transfer Certificate of Title in his name. Decide:

• S has the obligation to execute the public instrument because the contract of sale is enforceable
• S may not be forced or compelled to execute the public instrument since the sale is unenforceable
• S can be required to execute the public instrument only if B has fully paid the purchase price
• S cannot be required to place the contract in a notarized deed of sale because the contract is voidable

#12.

I. If two or more animals are sold together, whether for a lump sum or for a separate price for each of them, the redhibitory defect of one shall only give rise to its redhibition, and not that of the others.

II. There is no warranty against hidden defects of animals sold at fair or at public auctions, or of live stock sold as condemned.

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

#13.

I. A person who does not have actual possession of the thing sold cannot transfer constructive possession by the execution and delivery of a public instrument.

II. As a general rule, the execution of a public instrument amounts to a constructive delivery of the thing subject of a contract of sale.

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

#14.

I. A contract of sale is a consensual contract, thus, is perfected by delivery.

II. A contract of sale is perfected by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.

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

#15.

I. If at the time the contract of sale is perfected, the thing which is the object of the contract has been entirely lost, the contract shall still be valid.

II. if the thing should have been lost in part only, the vendee may choose between withdrawing from the contract or specific performance.

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

#16.

I. Sale by itself does not transfer or affect ownership; the most that sale does is to create the obligation to transfer ownership.

II. The perfection of a contract of sale should not, however, be confused with its consummation. In relation to the acquisition and transfer of ownership, it should be noted that sale is not a mode, but merely a title.

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

#17.

In a contract of sale of personal property, the price of which is payable in installments, the vendor may exercise any of the following remedies, except:

• Cancel the sale, should the vendee's failure to pay cover any installment
• Cancel the sale, should the vendee's failure to pay cover two or more installments
• Exact fulfillment of the obligation, should the vendee fail to pay
• Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendee's failure to pay cover two or more installments

#18.

S sold his only car with plate number XYZ123 to B. There was no fixed date for the performance of their respective obligations. The obligation of S as vendor is:

• to deliver the car within a reasonable time
• to deliver the car after one month
• to wait for the buyer to pay the price before he delivers
• to pay the damages if the car was not delivered within one month

#19.

S offered in writing to sell his house and lot for P1M to B on January 20, 2021. B requested to give him one month to raise the amount. On January 25, 2021, S informed B that he has raised the price to P1.2M. Can B compel S to accept the payment of P1M for the sale of the house and lot?

• No, because the seller can unilaterally fix the selling price
• Yes, because the original offer is binding on S
• No, because there is as yet no perfected sale
• Yes, because of the principle of mutuality of contract

#20.

In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants, where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

I. To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

II. If the contract is canceled, the seller shall refund to the buyer thecash surrender value of the payments on the property equivalent to fifty percent of the total payments made, and, after five years of installments, an additional five percent every year but not to exceed ninety percent of the total payments made: Provided, That the actual cancellation of the contract shall take place 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 and upon full payment of the cash surrender value to the buyer.

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