Reference: Law on Sales by De Leon, Obligation and Contracts by De Leon, Notes in Business Law by De Leon

For number 1 to 5 determine if:

A.voidable B. unenforceable C. rescissible

D. void or inexistent E. valid

1. An contract of sale involving a parcel of land not notarized.

2. An oral contract of sale involving a laptop sold for Php 5,000.00.

3. Sale of young animal infected with food and mouth disease.

4. Sale of a conjugal property by the husband with the consent of wife.

5. Sale of stolen things at the merchant store .

For number 6 to 20 determine if:

A. Both statements are true

B. First statement is false, second statement is true

C. First statement is true, second statement is false

D. Both statements are false.

6. 1 st - Things subject to a resolutory condition may not be the object of a contract of

sale

2 nd -The vendor is liable for hidden defects although nothing has been said in the

contract

7. 1 st - Sale, as a general rule, is an aleatory contract

2 nd -Gross inadequacy in the price render a sale void

8. 1 st - In a contract for a piece of cork, the goods are manufactured for a specific

person

2 nd - Warranty against eviction and hidden defects are stipulations in the contract

of sale

9. 1 st - Sale is a bilateral, onerous and preparatory contract

2 nd - The assignment of credit includes all accessory rights such as a guaranty,

mortgage, pledge or preference

10. 1 st - Where the goods are delivered to the buyer "on sale or return", the buyer

becomes the owner of the goods.

2 nd - Generally possession in good faith of an immovable property for 10 years is

equivalent to ownership.

11. 1 st - Whenever option money is given in a contract of sale, it shall be considered

as part of the price and as proof of perfection of the contract

2 nd - Assignment of credit is governed by the law on sales

12. 1 st - Sale of future inheritance is valid as future things may be the object of the

contract

2 nd - A contract to sell, even if accepted by the buyers is not absolute sale

13. 1 st - The fixing of the price in a sale is at the option of the seller

2 nd - Bilateral promise to sell is binding on the promissory even if the promise is

not supported by a consideration distinct from the price of the sale

14. 1 st - A contract of sale is perfected from the moment of meeting of the minds

2 nd - As a general rule in a contract to sell, ownership passes to the buyer upon

actual or constructive delivery.

15. 1 st - In the consummation of the contract of sale, the earnest money given by the

buyer to the seller will be deducted from the purchase price.

2 nd - The vendor need not be the owner of the thing sold at the time the sale is

perfected.

16. 1 st - In case of double sale of immovable property, the ownership shall belong to

the person acquiring it who in good faith first recorded it in the Registry of

Property.

2 nd - Conventional redemption is based upon the stipulation of the parties, while

legal redemption is based on law.

17. 1 st - The parties can stipulate that ownership in the thing shall not pass to the

purchaser until he has fully paid the price

2 nd - Ownership is transferred to the buyer upon delivery.

18. 1 st - The vendor is bound to deliver the thing sold excluding all accessions and

accessories

2 nd - An earnest money is evidence of a perfected contract of sale

19. 1 st - All rights not made intransmissible by law or stipulation may be the object of

sale

2 nd - Things to be a valid object of a contract of sale must always be in existence

at the time of conception of a contract

20. 1 st - Dation en pago is governed by the law on sales

2 nd - The vendor must be the owner of the thing sold or authorized by the real

owner at the time of perfection of the contact of sale.

PART II. MULTIPLE CHOICE

21. The following are the characteristics of a contract of sale, except:

a. Principal, which means that a contract of sale can be stands by itself

b. Real, which requires the delivery of the object of the contract of sale for its

perfection

c. Onerous, where rights are acquired in exchanged of a valuable consideration

d. Bilateral, which means that both parties are bound reciprocal to each other

22. One of the following characteristics of dacion en pago is also a characteristics of a

contract of sale. Which it is?

a. There is a pre existing credit

b. Obligation is extinguished

c. There is less freedom in fixing the price

d. Ownership of the object is transferred to the other party

23. Rosario sell to Mercedes 500 sacks of rice at P1000.00 per sacks from the stock

then stored in the warehouse of Rosario. Unknown to the parties, the warehouse

contains only 480 sacks of rice. What is the status of the contract between Rosario

and Mercedes?

a. The sale is void since the quantity available is less that the quantity sold

b. The sale is valid up to 480 sacks of rice but void as to the deficiency of 20

sacks of rice

c. The entire sale is valid up to 500 sacks of rice. Mercedes becomes the owner

of the whole stock available and Rosario must deliver the deficiency of 20

sacks of rice

d. The sale is valid up to 480 sacks of rice but recissible as to the deficiency of

20 sacks of rice by reason of damage suffered by Mercedes

24. The price is a contract of sale is certain, except:

a. When the parties have fixed or agreed upon definite amount

b. It the price is certain with reference to another thing certain

c. If the fixing of the price is left to the discretion of one of the contracting parties

and the price fixed is not accepted by the other party

d. If the price fixed is that which the thing sold would have on a definite day or in a

particular exchange market

25. A sum of money paid, or thing delivered upon the making of a contract for the

sale of goods, to bind the bargain, the delivery and acceptance of which makes the

final assent of both parties to the contract.

a. Option money

b. Earnest money

c. Reservation money

d. Down payment

26. A orally offered to sell a certain diamond ring to B for P50,0000.00. B accepted

the offer and to prove that he was in earnest, he gave A P1,000.00, the parties

agreed that the delivery of the ring and the payment of the price would be made

30 days later. On due date:

a. A may collect from B P50,000.00

b. A may collect from B 49,000.00

c. A cannot enforce payment because the contract was not reduced to writing

d. A cannot enforce payment because there was no contract of sale yet.

27. Delivery of incorporeal property may be made through any of the following

means, except

a. Execution of a public document

b. Placing the titles of ownership in the possession of the vendee

c. Use by the vendee of his rights, with the debtor's consent

d. Execution of private instrument

28. One of the following statements on the transfer of ownership of the thing "sale on

trial" is incorrect. Which is it?

a. Ownership of the thing is transferred to the vendee when he signifies his approval

or acceptance to the vendor.

b. Ownership of the thins is transferred to the vendee when he does an act adopting

the transaction

c. Ownership to the thing is transferred to the vendee if the time for the return of the

thing has expired and the vendee retains the thing without giving notice of

rejection or acceptance to the vendor

d. Ownership of the things is transferred to the vendee upon delivery.

29. In one of the following cases, delivery of the goods to a carrier for the purpose of

transmission to the buyer transfer ownership to the latter. Which one is it?

a. When by the terms of the bill of lading, the goods are to be delivered to the seller

or his agent

b. When by the terms of the bill of lading, the goods are to be delivered to the order

of the buyer or his agent but the seller retains the bill of lading

c. When the seller draws a bill of exchange on the buyer for the price of the goods

and transmits such bill of exchange and the bill of lading to the buyer to secure

acceptance or payment of the bill of exchange and the buyer dishonors the bill of

exchange.

d. When the owner does not reserve the right of possession or ownership of the thing

sold upon delivery to the carrier.

30. 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:

a. Exact fulfillment of the obligation, should the vendee fail to pay any number of

installments

b. Cancel the sale, should the vendee's failure to pay cover two or more installments

c. Foreclose the chattel mortgage on the property if the vendee's failure to pay cover

two or more installments and recover any deficiency after the foreclosure sale if

they have stipulated it.

d. Foreclose the chattel mortgage on the property if the vendee's failure to pay

covers two or more installments but he may no longer recover any deficiency

after the foreclosure sale.

31. Three of the following are requisites in order that an unpaid seller may exercise

his rights of stoppage of transit. Which one is not?

a. The seller is unpaid

b. The seller has not parted with the possession of the goods

c. The goods are in transit

d. The buyer is or becomes insolvent.

32. Sayson sold a registered piece of land to Gallin on May 1, 2011 in a public

instrument. On May 3, 2011, Sayson sold in a private instrument the same piece

of land to Melo, who took physical possession of the land. Neither buyer was

aware of the sale made to the other.

a. The land belongs to Galin

b. The land belongs to Melo

c. The land still belongs to Sayson, because both sales are void

d. The land should be divided equally between Galin and Melo to give effect to both

sales.

33. This refers to the implied warranty on the part of the seller that he has the right to

sell the thing at the time when ownership is to pass, and that the buyer from that

time shall have and enjoy legal and peaceful possession of the thing.

a. Warranty against hidden defects

b. Warranty against eviction

c. Warranty of ownership

d. Warranty of possession

34. This refers to an encumbrance imposed upon an immovable for the benefit of

another immovable belonging to a different owner.

a. Easement or servitude

b. Pledge

c. Real Estate Mortgage

d. Chattel Mortgage

35. This refers to the right of an adjoining owner of an urban land to be given

preference to the purchase of a small piece of urban land which is held for

speculation before it is offered for sale to other

a. Right of subrogation

b. Right of redemption

c. Right of pre-emption

d. Right of repurchase

36. A kind of mortgage which, although lacking some formality, from of words, or

requisites prescribed by law, shows the intention of the parties to charge real

property as security for debt and contains nothing impossible or contrary to law is

known as:

a. Legal Mortgage

b. Equitable Mortgage

c. Conventional Mortgage

d. Voluntary Mortgage

37. It is a contract by virtue of the terms of which the parties thereto promise and

obligate themselves to enter into another contract at a future time, upon the

happening of certain events, or the fulfillment of certain conditions

a. Contract of adhesion

b. Contract of option

c. Contract of Sale

d. Proforma Contract

38. A contract of sale is not a:

a. Principal Contract

b. Nominate Contract

c. Consensual Contract

d. Real Contract

39. This kind of symbolic delivery where the vendor remains in possession of the

property sold, such as by virtue of a lease agreement with the vendee.

a. Traditio longa manu

b. Traditio brevi manu

c. Traditio constitutum possessorium

d. Delivery to common carrier

40. When the goods are delivered to the buyer, the ownership thereof passes to the

buyer in

a. Sale on approval

b. Sale or return

c. Sale on trial

d. Contract to sell

41. Jerry promise to sell his car to Bunny for P200,000.00 giving Bunny 30 days to

decide. Bunny accepted the promise of Jerry and informed Jerry that that he

(Bunny) would make known his decision before the lapse of 30 days. He also

gave Jerry P2,000.00 as consideration so that Jerry would hold on to his promise.

The contract entered into between Jerry and Bunny and the consideration given by

Bunny to Jerry are known as:

a. Option contract and option money, respectively

b. Contract of sale and earnest money, respectively

c. Contract of sale and down payment, respectively

d. Contract of sell and reservation money, respectively

42. B purchased from S a laptop computer worth P100,000.00 the terms of sale

provide for a down payment of P20,000.00 with the balance payable in 8 equal

monthly installments. To secure the balance, S required B to execute a chattel

mortgage on the laptop computer and a real mortgage on B's lot. B complied with

all the requirements but defaulted in the payment of the third and fourth

installments. These remedies are available to S except one. Which is it?

a. Cancel the sale

b. Exact fulfillment of the obligation

c. Foreclose the real mortgage and thereafter recover any deficiency from B

d. Foreclose the chattel mortgage and thereafter foreclose the real mortgage in case

of deficiency

43. S and B entered into a contract whereby S transferred to B a specific piano for the

price of P80,000.00, while B gave to S cash of P30,000.00 and a diamond ring

worth P50,000.00. What kind of contract was entered into between S and B?

a. A contract of barter

b. A contract of sale

c. The contract is partly a contract of barter and partly a contract of sale

d. The contract is an innominate contract because the intention of the parties cannot

be determined.

44. P, who was in Hongkong, made an overseas call to A, his friend, to sell P's lot in

Pasay City immediately as P needed cash. Accordingly, A sold the lot to B. The

deed of sale was in a public document. The sale of P's lot is:

a. Valid

b. Rescissible

c. Unenforceable

d. Void

45. Which of the following contract of sale is void?

a. Oral sale of a piece of land made though an agent whose authority is in a public

instrument

b. Sale of a piece of land in a public instrument made through an agent whose

authority was given orally by the principal

c. Sale of a piece of land in a private instrument made through an agent whose

authority is in a public instrument

d. Sale of a piece of land in a public instrument made through an agent whose

authority is in a private instrument

46. The unpaid seller, in addition to his right to retain the goods while he is in

possession of them, has the following rights, except:

a. The right of stoppage in transit

b. The right to resell the goods

c. The right to rescind the sale.

d. The right to bid when the goods are resold

47. It refers to the right which the vendor reserves to himself to repurchase the thing

sold, with the obligation to reimburse the vendee of the price, the expenses of the

contract any other legitimate payments made thereof and the necessary and useful

expenses made on the thing sold.

a. Conventional redemption

b. Legal redemption

c. Equity of redemption

d. Right of pre-emption

48. Also known as barter:

a. do ut des

b. facio ut des

c. facio ut facias

d. do ut facias

49. Dacion en pago as distinguished from sale:

a. the object may be future goods

b. there is a greater degree of freedom in fixing the price

c. there is a pre-existing obligation

d. the cause is the price

50. Angela needs a size 8 of Air23 shoes available to the public for her boyfriend

Angelo, but the same is not available so she purchased an order for one. On the

other hand, Angelo placed an order for size 6 of a purple dancing shoes for

Angela which is not ordinary manufactured by the company. Which is correct?

a. Both are contract of sale

b. Both are contract for piece of work

c. First is a contract of sale, second is a contract for a piece of work

d. First is a contract for a piece of work, second is a contract of sale

51. 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.

a. Exact fulfillment of the obligation, should the vendee fail to pay nay installment

b. Cancel the sale, should the vendee's failure to pay cover two or more installments

c. Foreclose the chattel mortgage in the thing sold, if one has been constituted

should the vendee's failure to pay cover two or more installments

d. Rescind the sale should the vendee fail to pay any installment

52. X placed an order for 500 pieces white collared shirts ranging in size from small

to extra large from XYZ Garments Corp. the specified sizes, although not then

available, are manufactured by the said corporation and consigned to its sales

outlets regularly. Their contract is:

a. Contract for a piece of work

b. Contract of sale

c. Contract to sell

d. Contract of agency to sell

53. Mark purchased from Anthony a parcel of land worth P600,000.00; P200, 000 to

be paid in cash and for the difference, he will convey his car worth P400,000.00.

What kind of contract is this?

a. Lease contract

b. Contract of Sale

c. Contract to sell

d. Barter

54. Andy sold and delivered his HP laptop to Bert. It was agreed upon that within 10

days Bert will state and fix the price. On the 9 th day, Bert call up Andy and stated

the price at P20,000.00 to which Andy agreed. Is the sale perfected?

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

b. Yes, at the time of the sale the price was already known

c. Yes, the price stated and fixed by the buyer was accepted by the seller

d. No, the price was left to the discretion of one the parties

55. The state's right to take away private property to public purposes upon payment

of just compensation, which is governed by special law:

a. Escheat

b. Power of Taxation

c. Eminent Domain

d. Police Power

56. Judges cannot buy properties:

a. in litigation under their jurisdiction

b. owned by another lawyer

c. located within the city or municipality where he resides

d. of all kinds

57. Which if the following cannot be an object of a contract of sale

a. Sale of credit

b. Young of animal not yet conceived at the time of perfection

c. Land which the seller expects to buy

d. Vain hope

58. An oral contract of sale involving a calculator sold for P450.00 is:

a. voidable

b. rescissible

c. unenforceable

d. valid

59. Ownership of the thing sold is transferred/acquired/retained

a. Retained by the seller in ''sale or return"

b. Transferred to the buyer upon constructive or actual delivery of the thing sold

c. Acquired by the buyer upon perfection of the contract

d. Transferred to the buyer upon acceptance of the price

60. Goods are deemed in transit

a. From the time they are delivered by the seller to a common carrier or other bailee

for transmission to the buyer, up to the time that the buyer or his agent takes

delivery of the goods from the carrier or bailee.

b. When the buyer intercepts and lawfully takes possession of the goods at any point

before destination

c. When the buyer accepts delivery of the goods upon arrival at destination

d. When the carrier or bailee, upon arrival of the goods at destination, acknowledges

to the buyer or his agent that he is holding the goods as bailee for the latter.

61. Warranty against hidden defects is:

a. Essential Elements

b. Accidental Elements

c. Natural Elements

d. Common Elements

62. Mark purchased from Anthony a parcel of land worth P1,200,000.00; P800,

000.00 to be paid in cash and for the difference, he will convey his car worth

P400,000.00. What kind of contract is this?

a. Lease contract

b. Contract of Sale

c. Contract to sell

d. Barter

63. Earnest Money is:

a. Given when there is no contract of sale

b. Given only when there is a perfected contract of sale

c. Given to bind the offerer in a unilateral promise to sell or to buy

d. Given as a separate consideration from the purchase price

64. There is contract of sale:

a. When the goods are delivered to a distributor on consignment

b. When the goods are delivered to a person on charge account

c. When goods are delivered to an agent to be sold by him and the agent where the

former retains the manufacturer of the goods

d. When the manufacturer delivers the goods to an agent where the former retains

the ownership and dictates the term of the sale

65. Which of the following is not a characteristic of a contract of sale?

a. Bilateral

b. Gratuitous

c. Consensual

d. Nominate

66. 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:

a. Exact fulfillment of the obligation, should the vendee fail to pay any installment

b. Cancel the sale, should the vendee's failure to pay cover two or more installments

c. Foreclose the chattel mortgage in the thing sold, if one has been constituted

should the vendee's failure to pay cover two or more installments

d. Rescind the sale should the vendee fail to pay any installment.

67. Share of stock sold may be delivered by:

a. actual tradition

b. tradition longa manu

c. tradition brevi manu

d. quasi tradition

68. X offered for sale Y 1,000 cavans of dinorado rice and fixed the price per cavan at

P10.00 over the price at rice stall #31 at Divisoria Market. the price is:

a. Not certain because the price at Divisoria Market is not stated

b. Certain because it has got reference to another thing which is certain

c. Certain because there is a price ceiling for the price of rice

d. Not certain so the court may fix the price

69. A stole a fountain pen from P and sold it to a "store of pens", which paid for it in

good faith, not knowing it was stolen. The store then sold it to B, a reviewee,

which is correct?

a. B cannot be considered as the owner because the original seller (A) is not the real

owner

b. P may recover the fountain pen from B without reimbursement because he is the

legal owner

c. B is considered the owner because he purchased the pen in a merchant store

d. When the fountain pen was sold to the store in good faith, ownership was transferred therefore it can also transfer the ownership to B.

70. A sold his car to B binding himself not to sell the same to another person. On the

following day, A sold the same car to C who immediately took possession in good

faith. In the case at bar, the proper remedy of B is to:

a. Institute an action for the annulment of the sale against C

b. Institute an action for the recovery of the car

c. Institute an action for damages against A

d. Institute an action for recovery of the car plus damages against C.