BUSINESS LAW ATTY. M.S, Borate Je Quiz - Law on Sales Part | D 1. ima contract of sale, the buyer becomes owner upon delivery of the thing sold as a rule. Non-payment of price is resolutory condition. Ina contract to sell, the buyer becomes owner only after he has fully paid the price. Payment of the price is suspensive condition. a. First statement is true, second is false. ¢. Both are false. - b. First is false, second is true, d. Both are true, b 2. The seller of a thing must have the right to transfer the ownership thereof at the time of the meeting of ‘minds of the parties. The sale of a mere hope or expectancy is deemed subject to the condition that the thing will come inte, existence. It is a sale however of a present thing, that is, the hope itself already existing. a. Both statements are correct, ¢, First 16 correct, Second is incorrect. b, Both are incorrect. 4. First 1s incorrect, second 15 correct. D 3. Asold to B in a private instrument a parcel of land for Php 5,000.00 B now wants A to place the contract iw 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: a. A may not be forced or compelled to execute the public instrument since the sale is unenforceable being in private instrument only. 'b. A cannot required to place the contract in a notarized deed of sale because the contract is wad not being in public instrument. ¢. Aan be required to execute the public instrument only if B has paid the purchase price. d. Abas the obligation to execute the public instrument because the contract of sale 1s enforceable. (Cy % Aigo to B orally 2 parcel of land for P SM. Delivery and payment were to be made four months later. When the said date arrived, A refused to deliver the land. Can B compel A to deliver? Yes, because the sale has been perfected already and obligations of the parties are reciprocally demandable. b. Yes, because there was an agreement to deliver after four months and that should be respected by the parties. cc. No, because the sale slthovahwalicrisunentoreesiie. d. No, because the sale is void, being orally entered int B " A sold to B a particular pencil for P250.00. The sale is oral. It was agreed that the payment and delivery are to be made after two years from the sale. At the stipulated period, A refused to deliver alleging he has ‘no obligation to do $0. Is A correct? a. Yes, because the sale is voidable and cannot be enforced. b. Yes, because the contract is unenforceable it being an oral contract. ¢. No, because the contract is enforceable since the price is less than five hundred pesos. d._No, the contract is valid, binding and therefore must be given effect. _& Abought a car from B who is an insane man, later A sold the same car to C who Was in good fet having ‘no knowledge of the voidable character of the sale. In this case, after delivery: ‘a, C could not acquire title to the thing because his seller A had no ownership to transfer to him because 6 was insane person who was not able to give consent to the sale which is void. b. C cannot acquire title to the thing despite his good faith because the sale by B to A could be annulled since it is voidable sale. c. C acquires good title to the thing as an innocent purchaser for value. His seller's title only vodable which has not been avoided at the time of the sale. C acquires title to the thing but the same may be rescinded after the annulment of the sale between A and B. C F 4 buys from B a piece of land supposed to contain 1,000 sa. m at the rate of P10,000.00 per sa. m. But the land actually contains 1,500 sq.m. Which of the following 1s not included in the rights of A: ‘2. Amay demand the delivery of the entire land with proportionate increase of the price. b. Armay reject the excess of 500 sq. m and accept only the 1,000 sq. m. c. Amay rescind the contract of sale because what was delivered is not in accordance with the contract. ¢. None of the above.8, A buys a land from B at the lump sum of P 1M. In the contract, the area 19 stated to be 1,000 sq. m. The doundaries were mentioned in the contract. It was discovered, however, that the land within the boundaries really contains 1,500 sq. m. Which of the following ts not a right of A? 2. Amay demand the delivery of all the 1,500 sq. m. without any price increase. J, Be 1B refuses to dever all the 2,500 39. m. A may demand proportionate reduction in the price. 2c. Amay rescind the contract of sale if 8 does not deliver all that is included in the boundaries, d. Amay treat the contract as void ab initio because the object is not determinate to its kind. Dd B 4. Eveninthe absence of doubt, a sale with right of repurchase is presumed to an equitable mortgage. In conventional redemption, it is not necessary that the parties agree upon the period within which redemption may be exercised. i a. Both statements are correct. . Both are incorrect. ._ First 1s false, second ts true. 0. First is true, Second 1s incorrect. C_ 32: Abought pair of shoes from a shoe store and repair shop. Tt was later discovered, however, that the shoes did not belong to the store but to a customer who had left the same for repair, Did A acquire good title to the shoes? a. No, because it was sold by the store which is not the owner thereof. b. No, because it is the fault of A in not exercising diligence in buying the shoes as to its real ownership. cc. Yes, because it was bought from a store in good faith for value. d. Yes, because the owner of the shoes was precluded from setting up the want of authonty of the store in selling the shoes, Be Warranty against eviction as well a5 against hidden defect may be waived by the vendee provided the vendor is in good faith. Wave ntenctonaca on te pat ofthe vende Wit abcuely exarpt the vendor from Raby. a. Both statements are false. ¢. First is false, second 15 true. b. Both are true, 4. First is true, second is false, A, 12 In waiver consiente there 1s no warranty against eviction but the seller is sull lable to pay the value of the thing at the time of eviction if eviction takes place. In case of total eviction, the vendee cannot rescind the sale with damages. a. Both statements are correct. . First 1§ correct, second is incorrect. b. Both are incorrect. 4. First is incorrect second is correct. D 13. 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. “@.donates-tis share of the land owned in common to X who #s @ rural landowner. Upon 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? a. Aand B are preferred to D and E to redeem because co-owners have preference to adjoining owners. b. E shall have the right to redeem because he has smaller area of iand than D. c. The first one between A and B to request redemption shall be preferred in case both demand, d. None of them has the nght to redeem because the alienated was got. by onerous.We. B14 Incase-edciomtakes place, the sellers obliged to retun to the buyer the price he paid for the thing sod, In case the thing is lost due to.jts.bidden.dafed, the vendor shall return to the vendee the value at the time of the loss. a. Both statements are true, C. First is false, second is tue, F b. Both are false. d. First is true, second is fale. A 15. In the sale of goods, if the seller delivers more than the quantity agreed upon, the buyer may sescunt the contract of sale. ‘The seller shall have the right of legal redemption only if this right has been agreed upon between the seller and the buyer. . a. Both statements are false. c. First is false, second is true. b. Both are true. G. First is true, second is false. 16. 1f several persons, jointly and in the same contract, should sell an undivided immovable with a right of eo Tepurchase, none of them may exercise this right for more Unan his respective share, of the co-owners of an individual immovable who may have sold his share separately, may Fapandenty exercise the right of repurchase as regards his own share, and the vendee cannot compel whole property. hse Pe eae Both are false. 6, First 15 false, second 1s tue.Be | The Review School of Accountancy Page 3 of 7 47. The creditors of the vendor cannot make use of the right of redemption against the vende, until after they have exhausted the property of the vendor, ‘The vendor is responsible to the vendee for any hidden faults or defects in the thing sold if so stipulated by ‘the parties. a. First statement is false, second is true, . Both statements are false. b. Second statement is false, first is true, 4. Both statements are true. 4 18. Three of the following are remedies of the buyer in case of the breach of warranty by the seller. Which is not included? @. Accept or keep the goods and set up the breach of warranty by way or recoupment or extinction of the price: ._ Rescind the contract of sale and refuse to accept the thing or if already delivered refuser to return the sai ‘c. Accept or keep the goods and claim damages for the breach of warranty; 6. Refuse to accept the goods and claim damages for the breach of warranty. 6 19, In the sale of immovable property, if it has been stipulated that upon failure to pay the price at the time agreed upon, the rescission of the contract shall of right take place, the vendee may sbil pay despite the demand for rescission. In the sale of movable property, the rescission of the sale shall of right take place if the vendee, upon the expiration of the period fixed for the delivery of the thing, should not have appeared to receive it, or having appeared he should not have tendered the price. ‘a. Both statements are correct. . First is incorrect, second is correct. b. Both are incorrect. 4. First is correct, second is incorrect. D 20. B in good faith purchased a diamond ring from C, a friend of his. C gave B a bill of sale. Later on, O identified the ring as the one she had lost about a year before. There is no question as to the truth of O'S allegation. In case: 2. O cannot recover the ring from B because the latter was in good faith when he bought the ring from C. b. O cannot recover the ring from B because it was lost by him (Q) and found by C, therefore C, as finder will be keeper and owner who could transfer ownership to B, an innocent purchaser for value. Cis the one liable to O for damages while 8 becomes owner who could not be disposed being an innocent purchaser for value. 4. O can recover the ring from B even if he is an innocent purchaser for value because C did not have title to convey to B. v 21. X the owner of a certain jewelry delivered though same to Y, “on sale or return” upon a specified period of time. Y sold the said jewelry to Z, but retains the price. Can’X recover the jewelry from 2? a. _X can recover the jewelry from Z being an unpaid seller whose ownership was not transferred to Y upon delivery to him. b, X-can recover the jewelry from Z but after reimbursement of the price paid: c. X cannot recover the jewelry from Z because his seller (Y) has transferred ownership to him, d. X cannot recover the jewelry from Z because it was sold by his agent Y to Z and his only recourse is to Qo after for his falure to remit the payment to him. D_ 22. Asold his piano to 8, who immediately paid the price. Because the piano was at the repair shop at the time of the sale, no delivery was made. While at the seid place, C, a creditor of A, who has filed a suit against him, attached the piano. May B oppose the attachment? @. B may oppose the attachment on the ground that he already was the owner of the same after he immediately paid the price. . B may oppose the attachment because there was already constructive delivery to him of the piano and therefore he is owner of the same. © B may not oppose the attachment because although he is not yet the owner of the piano, he has already paid the price and has preference over the thing than C. 4d. B may not oppose the attachment because he is not yet the owner despite payment of the price as there is no delivery yet. D 23. A sold to B his car. There was no obligation of B as vendee is: 2 To immediately pay the price because their obligations are demandable at once being pure obligation. b. To pay upon demand by the vendor. gee To rescind the sale because there was no agreement as to when their obligations shall be performed. 1» To pay at the time of delivery, ne oe ree ereh fixed date for’ the performance of their respective obligations. TheEEN! RINE MOCULEW SCHOOL GF ACCOUNTANCY Page 40f7 24, P authorized A to sell the former's car. A sold the car to X. Without knowledge of the same car to Z. Which of the two buyers shall be preferred? 7 eres 2. X, being the buyer of a duly authorized agent. c. X, The first registrant in good faith of the sale. b. Z. being the buyer of the principal himself. d. The first possessor in good faith of the car. 25. S sold to 6 his parcel of land valued at P1M only for a measly sum of P.5M because of his poor judgment on the real value of the land and the ability of B to bargain for a low price. ‘The sale therefore is: @. Voidable due to inadequacy of the price. b. Rescissible because S suffered lesion or damage. Presumed equitable mortgage due to the unusually inadequate price. 4d. Valid although may be annulled because of vitated consent of S. 26. In payment of his debt to X, A ceded his one half (1/2) share in a parcel of land he co-owned with B, B therefore: a. Has the right of pre-emption as a co-owner; b. Has the right of redemption as a co-owner. (gal seabmphiom) ¢. Has no right of redemption nor pre-emption since the transfer was not of sale. d. Has the right to compel X to buy his 1/2 share of the land to prevent co-ownership between X and himself. 27. In case of doubt, a sale with a right of repurchase or without a right of repurchase shall be construed as an equitable mortgage. The seller therefore: ‘a. May ask for the reformation of the instrument. . b. May ask for the annulment of the contract. c. May ask the court for the declaration of nullity of the contract. d. Shall be bound to perform his obligation as seller 28. A sold to X his 1/2 share of the parcel of land he co-owns with B. C owns the parcel of land adjoining that of A and B. Both B and C want to redeem the share of A which the latter sold to X. a. Chall be preferred to B in the redemption from X. b. B's right as co-owner excludes that of G, the latter being only an adjoining owner. c. Chas a better right to the redemption as an adjorning owner. d. Band C shall equally redeem the share of A. 29. In a contract to sell of a parcel of land, it was stipulated that upon failure to pay the price at the time agreed upon for payment, the sale is automatically rescinded. Hence, if the buyer fails to pay as agreed upon: 3 The sale shall not be rescinded as @ mater of right and the buyer may stil pay as long as there is 00 demand for rescission. b. The rescission of the contract of sale shall of night take place, c. The rescission of the contract to sell shall of right take place. 4. Contract to sell or contract of sale, rescission of the sale shall of night take place. 30. S sold to B his dog which he knew was afflicted with 2 disease. The parties agreed that thére is no warranty against hidden defect. After delivery, the dog was struck by lightning and thus died. a. Sis not liable to pay B any amount because the dog was lost due to fortuitous event. b. Sis not liable because of the waiver agreed upon between B and himself. ¢. Sis liable to return the price paid by B because the waiver is void. d. Sis lable for the price less the value of the dog at the time of loss. 31. A form of delivery which takes place after the seller of the property continues in possession of said property ‘io longer as owner but as @ mere possessor: a. Traditio constitutum possessorium . Tradito brevi-manu b. Traditio ealis Sous 4. Quasi-traditio 32, When goods are delivered to the buyer on “sale or return”, the ownership passes to the buyer: a. Upon delivery of the goods b. Upon the expiration of the period agreed upon Upon acceptance of the buyer of the sellers offer d. Upon perfection of the sale 1 When things are delivered to the buyer on approval, tial, or satisfaction, the ownership passes to the bu} a. Upon meetings of minds 33. yer: ¢c. Upon conception of the sale {Upon delivery of the things 4. Upon the return of the things to the seller# P orally appointed A as his agent to sell the former's land. On January 3, 2001, A so!d the land to B who forthwith took possession thereof. It turned out however, that on January 1, 2001, P, without informing A, had already sold the same land to C, who up to now has not taken possession of the same land. Neither of the sales was registered. Whose contract shall prevail? 8. The sale to B for he was first in possession in good faith; . The sale to C for the land was first sold to him by the owner. c, The sale to B for the agent was duly authorized to sell the land. d. The sale to C because the sale to B was void, A was not duly authorized by P. 35. S sold to A in a memorandum of agreement of sale his parcel of land. After a week, S sold the same land to B in a formal deed of sale. Upon buying the land, B who was aware of the sale to A, immediately took possession thereof and registered the sale in his favor. When informed of the second sale, A subsequently registered an adverse claim with the Registry of Deeds. The parcel of land shail belong to: a. A, because he has the older tite. b._B, because the sale to him was in a formal deed of sale. c._B, because he first registered the sale in his favor. d._B, because he was the fist possessor of the land. 36. In case of redemption, which of the following will not be paid by the seller to the buyer? ‘2. Expenses incidental to the sale paid by the buyer. b._ Necessary expenses made on the thing sold. ‘c. The consideration of the sale paid by the buyer. d._ The interest on the purchase price. 37. Dacion en pago as distinguished from sale: . ‘a. The object is always existing and specific _¢. There is no pre-existing obligation b. There is greater freedom in fixing the priced. The cause is the price 38. S sold to B his car. There was no fixed date for the performance of their respective obligations. The Obligation of S as vendor is: a. To wait for the buyer to pay the price before he delivers. b. To deliver the immediately since the sale has been perfected. c. To deliver the car after the buyer demands delivery. d._ Rescind the contract for time of performance not fixed. 39. A, B, and C are co-owners of a parcel of land pro-indiviso. A sold his share to B in an absolute deed of sale. Which is correct? a, The deed of sale between A and B is void since it was made not in favor of a third person, B.C may exercise his night of redempton on the interest of A sold to B. ¢._Cmay redeem only ‘2 of the share sold by A to B. d. C.cannot exercise the right of redemption since the sale was made to a co-owner. 40. If the same thing was sold to different buyers, the ownership shall pertain to the one who has taken possession there of in good faith if movabies. T “The seller is liable to the buyer for any hidden defect of the thing sold only if was aware thereof. ¢ a. First statement true, second is false. ¢. Both are true. b. Both are false. 4, First is false, second is true. #4. The buyer has a right to the fruits of the things: ‘a. From the time the fruits have been delivered. b. From the time the obligation to deliver the thing bought arises. ‘c. From the time of perfection of the sale. d._ From the time the thing bought is delivered. 42. S sold his cat to B for P2,000.00. No payment has been made and the sales document does not provide for the date of delivery. Before delivery and payment, the cat gave birth to a kitten. a. B entitled to the kitten which was born after the perfection of the sale. b. Sis entitled to the fruit as B has not yet paid the price. c._ Sis entitled to the fruit because it was born before his obligation to deliver the cat. ._ B should pay an additional amount for the kitten to be entitled to it. 43. S delivered his car to B by way of sale with the understanding that on the day following such delivery S will name and fix the price. The said day came and S telephoned B and stated and fixed the price at Php 1. Is the sale perfected? a. Yes, because the price was named and fixed on the agreed date. 'b. No. The price was left to the discretion of the seller only. Yes, since there was already delivery of the thing sold. 4 No. The price fixed by the seller was not accepted by the buyer.—_— 4 a ee ee 44. Tee of the following are option! money. Which fy the exception? a. Given when contract OF sale 1 pete text D. Given when there is no Contiact oF sale, but aa COnskFeration, ¢. Given (0 bind the offeror ma unilateral ponte Wo Duy OF xe, 4. Given a8 a consaitoration distinct Hon Ue pric, 45. Ina sale, this 1s actual delivery a, Execution and signing of the deed af sale 1. Goods sold ate placed i the contol art parsaeiot of the vendee Delivery by the vendor of the keys to the place where the goods are kept oF stored, dd. The vendee is alteady in possesion of the aoods even before the sale. 46. A and B entered into a contract of laase with option to buy the C@r oF the former for a term of two years. For three months B failed to pay Ue rental ane! by Heason (hero, A reposvessed the car. Hence: a. Acan collext the unpaid rentals for three months, D. Acan collect the unpaid rental, for the dutatinn oF the term of the tease of two years. c. When A deprived B the possenson of the leased (ar, he has no further action against the latter for any Unpaid rentals, 4d. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with ‘option to buy. 47. A offered in writing to sell his house and lot for Php 1M to Bon January 20, 2001. B requested A to gve thim one month to raise the amount, On January 25, 2001 A informed B that he has raised the price to Php 1.5M_ Can B compel A to accept the payment to Php in) for the sale of the house and lot? Yes, because A ts already estopped! By his written offer of Php 1M, Db. Yes, because the one-month option period hay not yet expired. c.- No, because there Is a vel no perferted sale, 4d. No, because the seller has the sole discretion Wn fixing the price with or without the concurrence of the buyer. 48. Which of tne folowing may not be the odject ofa contract of sale? a. Things having potential existence 1b. Things, the acquisiton of which depends upon a contingency which may or may not happen. Vain hope or expectancy . Things subject to a resolutory condition 49. When delivery takes place by mere consent or agreement of the parties as when the vendor merely points to the thing Sold which shail thereafter be at the disposal of the vendee if the thing sold cannot be transferred to the possession of Une venidee upon sale, a. Tradito symoolica © Traditio longa manu b. Tragibo bret manu 4. Traditio constitutum possessonum 50. A placed an order with B for one hundred pieces of T-shirts which were then not avallable but ‘manufactured by B and consigned to its sales outlets regularly, The contract between A and B is: Contract for a prece of work 6, Contract of sale 1b. Contract of Lease of service 4, Renumeratory contract 51. A sold a parcel of land to B. Thereafter, A sold the same land to C who immediately took possession of the land in good faith. In thes case, the proper remedy Of B ts: ‘a ASK for the annulment of the sale to C, File an action in court against C to recover the land. . Institute an action for damages against A for breach of contract. 4. File an action for rescssion of the sale to C due to the damage suffered by him. 52. A seller sold to a buyer a plece of jewelry at a price of Php 1M, The contract provides that the buyer will pay the seller cash of Php .4M and deliver the buyer's car worth Php .6M. The contract is: a. Barter b, Sale ¢. Partly sale and partly barter d. Commodatum, 53, A delivers to B his parcel of land worth Php 1M in exchange for the car of B worth Php .5M and cash in the ‘amount of Php .5M. The contract is: |. Barter b, Sale , Partly sale and partly barter 4. Innominate contract (On January 2, 2001 A sold to B his car with the payment to be made on January 10, 2001. However, on January 6, 2001, A sold the same car to C who immediately took possession thereof. Decide: ‘a. B must wait for January 10, 2001 and sue A for damages. D, B may recover the car from C because the former was first buyer €._ B may claim damages from A for breach of contract of sake ._ Ban file an acon to aninul the sale to C even if 14 In good faith in buying the carReSA: The Review School of Accountancy Page 7 of 7 bs. A contract of sale is unenforceable if it is not in public instrument and it refers to a sale of real property. & +s A sale of a house through an agent whose authority is oral is void. & Both statements are true. . Second is true, first is False. D. Both are faise. . First is true, second is false. ‘86. In case of double sale of real property, the possessor in good faith shall preferred to the registrant but in bad faith. Tn alt cases of double sale, priority is given to the buyer in good faith, that is, whether registrant, possessor ‘or with the oldest title. ‘First statement (s false, second is true. c. Both are false. 1D. First is true, second & false. 4d. Both are true. S7. A sokd his land to B who began to possess it. Later, C, a stranger, sold the same land to D who in good faith registered the sale and thus obtained the title in his name. The owner is: 2 Dis the owner for he was the first to register in good faith. D. A remains to be the owner because C had no authority to sell. Aus sbi the owner because B did not register the sale. 4. Bis the owner because the owner is his seller and he has taken possession of the land. ‘SS. S sold iss land to B. Then S became B's tenant on the land. Subsequently, S sold the same land to C. ‘Neither sale was registered. Who should be the owner? S remains to be the owner because neither of the contracts of sale was registered. b. Cis the owner because the possession of the land was not transferred to B as buyer thereof. © Bis the owner since he bought the land from S as owner thereof and has possession of the same. 4. $ retains the ownership of the land because he still has possession, 59. A sold his land to B. Later, A sold the same land to C. 8 in turn sold the same land to D, who took ‘Possession of the land in good faith. C, a purchaser in good faith, registered the sale in his favor, Decide: @ Bis the owner of the land because he was the first buyer. D. Cis the owner of the land having registered the sale in good faith. Dis the owner of the land being the transferee of the rights of B and who is in possession in good faith. d. Dis the owner because after A sold the land to B, A had no more right to transfer ownership to C, the second buyer. a ‘8. A husband and his wife were living together under a conjugal partnership of gains. Later, because of a quarrel, the wife left the husband without judicial approval. They have thus been living apart for more than ten years. The wife later sold her land to the said husband. Is the sale valid? a. The sale 1s valid because the spouses have been separated for more than ten years. b. The sale is valid because after separation there is already a separation of properties between spouses. c. The sale is void because of the absence of separation of properties between spouses. 4. The sale is void because the spouses are living apart.ELON The Review School of Accountancy Wiel. No. 735-9807 & 734-3989 wusness LAW Atty. M.S. Bonafe Jr. QUIZ ON SALES - PART IT A 1 $ 2 dD 3 Oo 4 1 D . 6. C2. 8 pos B10. po o- D obtained from C a loan amounting to P50,000.00, the same being secured by @ mortgage on D’s lot. Thereafter, C assigned his credit right to T with notice to D. based on the foregoing facts, which of the following statements is incorrect? ‘2. T cannot collect from D if D does not give his consent to the assignment. b. T can collect from D. D’s consent to the assignment is not required. T.can collect from D and D cannot pay, T can foreclose the mortgage on the lot. d. The notice to D of the assignment is sufficient. D must make his payment to T and no longer to C. A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, show the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as: Legal mortgage. b. Equitable mortgage. _c. Conventional mortgage. _d. Voluntary Mortgage If a movable property is sold separately to two or more different vendees, ownership shall belong to the Person: ‘. Who in good faith first paid the purchase price in full. b. Who in good faith first recorded the sale in the Registry of Property. Who in good faith presents the oldest title. 4. Who in good faith first took possession of the property. A contact of sale is perfected: a. Upon compliance with the requirements of the law as to form. (Gelemn Coydacf) b. Upon delivery of the object of the contract. (sal correct) ‘c._Upon the meeting of the minds on the thing which ts the object of the contract and upon the price. d. Upon demand. A contract of sale is not a: ‘a. Principal contract. Nominate contract _c. Consensual contract The following may not be valid objects of a contract of sale except: a. Objects outside the commerce of men . Future goods b. Ihcrt things, d. Impossible service “This is a 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. Real contract a. Traditio longa manu ¢. Traditio constitutum possessorium b. Traditio brevi manu Gd, Delivery to common carer When the goods are delivered to the buyer, the ownership thereof passes to the buyer ‘a. Sale on approval —_b, Sale or return ¢. Sale on trial 4d. Contract to sell S promised to sell his car to B for P 200,000.00 aivirig B 30 days to decide. B accepted the promise of S and informed S that he (8) would make known his decision before the lapse of 30 days. He also gave S P 2,000.00 as consideration so that $ would hold on to his promise. The contract entered into between S and Band the consideration given by B to S 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 sale and reservation money, respectively. Refer to No. 9. ‘&. S may withdraw his offer to sell before the lapse of 30 days by informing B, 9. S may not withdraw his offer before the lapse of 30 days. ©. S may withdraw the offer by returning the amount of P 2,000.00 that was paid to him by B. > dS may withdraw his offer even before the lapse of 30 days if a favorable price, ie., more than P 200,000.00, is offered to him by another prospective buyer. ‘The Recto Law applies to which of the following examples of sale? ‘a Sale of a car on straight term. b. Sale of house and lot on installment, (acca, Jaw) Sale of car on installment where the buyer constituted a mortgage on his truck . Sale of a piano on installments where the buyer constituted a chattel mortgage on the piano.g 12. S sold to B a lot through a deed of absolute sale duly acknowledged before a notary public. Three ‘same lot to X, also through a deed of sale duly acknowledged before a notary public. had the sale registered with the Register of Deeds. Neither B nor X was aware of the sale made by S to the ‘and neither took physical possession of the lot. Who is the present owner of the lot? B, because he was the first purchaser In good faith. X, because he registered the sale in good faith. x Neither B nor X. . 5, as tong as he does not surrender physical possession of the lot. 13. B purchased from S a laptop computer worth P 100,000.00. The terms of sale provide for a down payment. ‘of P 20,000.00 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. Theses remedies are available to S except one. Which is it? ‘a. Cancel the sale. b. Exact fulfilment of the obligation. ¢. 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. 14. S and B entered into a contract whereby S transferred to B a specific piano for the price of P 80,000.00, while B gave to S cash of P 30,000.00 and a diamond ring worth P50,000.00. What kind of contract was entered into between S and 6? ‘a. Acontract of barter. b. Acontract of sale. c.The contract is partly a contract of barter and partly a contract of sale. 4. The contract is an innominate contract because the intention of the parties cannot be determined. 15, One of the distinctions between option money and eamest money is that eamest money is; ‘@, The consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time. b. Not part of the purchase price. c. Proof of the perfection of the contract of sale. d. Paid before the perfection of the contract of sale. 16, this refers to the warranty of the seller that he has the right to sell the thing at the time when ownership is ‘to pass, and which can be enforced if the buyer is deprived of the property sold by a final judgment in court. a. Warranty against hidden defects. c. Warranty against eviction, b. Warranty of merchantable quality. d. Warranty of possession. 17. P, who was in Hong Kong, made an overseas call to a, his friend, to sell P’s lot in Quezon City immediately ‘as P needed cash. Accordingly, A Sold the lot to B. the deed of sale as in a public document. The sale of P’s fot is: a. Valid b. Rescissible c. Unenforceable d. Void 18, One of the distinctions between a contract of sale and a contract for a piece of work is that a contract for a piece of work: a. IS not governed by the Statue of fraud. rs Refers to a contract for the delivery goods which are manufactured in the ordinary course of | business although the same are not available. ] Has for its parties the vendor and the vendee. felt 4. Has for its consideration the price of the thing. 19. A and B are co-owners of a rurall lot not exceeding 1 hectare. The lot is surrounded on its four sides as follows: on the North, by the road; on the East, by the lot of X consisting of 2 hectares; on the south; by the lot of ¥ consisting of 2 Ys hectares; and on the West, by Z's lot consisting of 2% hectares. A seits his undivided interest in the agricultural tot to T, who owns several hectares of rural land in the area. Who has the right of egal redemotion over the undivided intrest nthe lat sold by ADT? a bx cy az 20. Tt is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to induce the buyer to purchase the same, relying on such promise or affirmation. 2. Condition —_b. False representation ‘¢ Warranty 4. Seller's talk 21. In one of the folowing cases, the ownership of the thing object of the contract is transferred to the other party upon delivery. ‘a. Contract to sel b. Agency to sell ¢. Sale or return d. Sale on approvalc Cc ce 22. Under the "Realty Installment Buyer Act”, the buyer of real estate on installment payments may pay an installment defaulted without additional interest if he ahs paid at least two years of installments. The law is applicable to sales/transactions involving: a. Industrial lots . Residential lots 9. Commercial buildings 4. Sales to tenants under the Land Reform Law. 23. S, the owner of a rent-2-car business, leased one of his cars to B for one month. On the day of the ‘expiration of the lease and while B was stil in possession of the car, B offered to buy the car from S for 200,000.00. Believing the price to be a good one, S readily accepted B's offer and then and there executed a deed of absolute sale in favor of 8 who immediately paid the price in cash. Thereafter, B drove away from place of S. ‘a. The delivery of the car by S to B is by constitutum manu. The delivery of the car by s to B is by fradito longa manu. The delivery of the car by S to B is by fradttoo brev: menu. d. There was no delivery because B should have turned over the possession of the car to S upon the expiration of the lease so that S could make the proper delivery to him upon the expiration of the lease so that S could make the proper delivery to him upon the execution of the contract of sale. 24. B called on S at the shoe factory of S for the latter to make 2 pair of shoes which B would be needing in the play "Romeo and Juliet.” B provided S with the description of the pair of shoes that he wanted since S did not manufacture the kind of shoes that B needed. S quoted a price of P1,000.00 which B agreed to pay upon delivery to him of the par of shoes. Since S and B had been neghbors for 2 long tme, their agreement was sealed with a handshake. ‘a. The contract between S and B becomes enforceable if S had already completed making the pair of shoes. b. The contract between S and B becomes enforceable if B had already paid the amount agreed upon for the work. ‘ €. The contract between S and B is enforceable even ifitis stil executory. (fare of are) 4. The contract cannot be enforced by either party because it was not in writing. 25. Which of the following contracts of sale is void? ‘2. Oral sale of a piece of land made through an agent whose authority 1s 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. ¢. Sale of a piece of land in a private instrument made through an agent whose authority is in a public instrument. 4. Sale of a piece of land in a public instrument made through an agent whose authority is in a private instrument. 26. A contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefore a piece certain in money or its equivalent is a contract of: a. Barter. b. Sales cc. Dacion en pago 4. Mortgage. 27. The following are the essential elements of a contract of sale, except: ‘a. Consent of the contracting parties. b. Subject matter which should be determinate. . Price which is certain in money or its equivalent. 1d. Warranty against evicton and against hidden defects. 28. The following are the characteristics of a contract of sale, except: ‘a. Principal, which means that a contract of sale can exist 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 exchange of a valuable consideration. . Bilateral, which means that both parties are bound reciprocally to each other. 29. One of the following characteristics of dacion en pagois a characteristic of a contract of sale. Which is it? a. There isa pre-existing credit. b. Obligations are extinguished. cc. There is less freedom in fixing the price. d. Ownership of the object is transferred to the other party. 30. The following are characteristics of a contract of sale excepl._one which refers to payment by cession. a. There is no pre-existing credit. The cause or consideration isthe price. There is more freedom in fixing the price. d. Assignee of the property acquires the right to sell the thing but not the ownership thereof.D 8 31. The following items pertain to either a contract of sale Or @ contract to sell 1. Ownership of the thing sold is trarrsferred upon delivery, II. Ownership of the thing is transferred to (he buyer at some future time, * / TIL. The risk of loss is on the buyer, ye IV. The risk of loss ison the seller, Au / Based on the above data, which of the following Is cores t? a. Items I and III pertain to a contract to sell b. Items I ¢. Land IIT pertain to a contract to sell 4. Items II and IV pertain to a contract of sale ve. Items I and III pertain to a contract of sale 32, Which of the following is not a requisite of the object of a contract of sale? a. It must be within the commerce of men, ‘b. It must be licit. ¢. It must be determinate thing. d. Vendor must have the right to transfer the ownemip of the thing at the time of sale. 33. The following items pertain to either emplia re/ speratior cmptio spek I. The sale of a future thing, Il. The sale of hope or expectancy. Il. The sale of present thing. IV. The thing sold must come into existence, Based on the above information, which of the following Is correct? a. Items I and II pertain to emptio ret sperati, G Items II and III pertain to emptio rei sperati. b. Items I and III pertain to emptio spey. , Items TIT and IV pertain to emptio sper. 34. S sells to B 500 sacks of rice at P1,000,00 per sack from the stock then stored in the warehouse of S. Unknown to the partes, the warehouse contains only 480 sacks of rice, What is the status of the contract? a. The sale is void since the quantity available Is kes than 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. ¢. The entire sale is valid up to 500s sacks of rice, B becomes the owner of the whole stock available and S must deliver the deficiency of 20 sacks of tice, d, The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sacks of rice by reason of damage suffered by B. 35. $ sells to B at PSO per litter 300 litters of gasoline stored In his truck's tank which, unknown to the parties, Contains 500 litters. What is the status of the contract of salle between § and 8? a. The sale is void because the quantity available is move than the quantity sold, b. The sale is valid up to 500 litters of gasoline, B must pay for the additional 200 litters. c. The sale is valid up to 300 litters of givioline, B becomes the owner of 3/5 of the whole stock, while S becomes the owner of 2/5 thereof, d. The sale is rescissible because S will suffer lesion of mare than % of the value of the whole stock, 36. The seller must be the owner of the property he sells because he must transfer the ownership thereof to the buyer. The delivery of the thing sold may be by mere agimement of the parties. a. Both statements are true ¢. Both are fave b. Only the first ts true d. Only the second Is true 37. $ and B entered into a contact whereby § transferred to B a npecific car for the price of P200,000.00, white B gave to S P90,000.00 in cash and a diamond ring worth P110,000,00, The heading of the written contract reads "Contract of Sale.” a. The contract is void because the intention of the parties iv void since the value of the diamond ring {is more than the monetary consideration given, b. The contract is a valid Contract of sale os intended by (he parties regardless of whether the monetary consideration is more or less than the value of the property consideration, ¢. The contract is a valid contract of barter since the value of the property given is more than the monetary consideration, The Intention of the partion is material, d. The contract is partly a contract of barter anid partly a canitract of sale,C38. The price in a contract of sale is certain, except: 2. When the parties have fixed or agreed upon a definite amount. . Ifthe price is certain with reference to another thing certain G._ If the fixing of the price is left to the discretion of one of the contracting parties. 4. If the price fixed is that which the thing sold would have on a definite day oF in a particular exchange or market. SP 39. On January 1, S orally sold to B a specific ring for P450.00. The parties agreed that S shall deliver the ring to B on January 5, while B will pay the price on January 7. ‘a. The contract is perfected on January 5, when the ring is delivered by S to B. . The contract is perfected on January 1, when the parties had a meeting of minds on the object and the price. The contract is perfected on January 7, when the price is paid, since both parties would by then have performed their obligations in the contract. 1d. There is no perfected contract because the sale was made orally. B40. Asum of money paid, oF a thing delivered upon the making of @ contract for the sale of goods, to bind the bargain, the delivery and acceptance of which makes the final assent of both pares to the contract. ’2.. Option Money . Earnest Money ——-¢. Reservation Money. Down payment $ 41. orally offered to sel a certain diamond ring to B for P50,000.00. B accepted the offer and to prove that he was in earnest, he gave S 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: 2. S may collect from 8 P 50,000.00. 'b. S may collect from B P 49,000.00. ¢. S cannot enforce payment because the contract was verbal. d. S-cannot enforce payment because there was no contract of sale yet. Cy 42. On June 1, 2006 S sold to B 50 units of machines which were scheduled to arrive from Japan. The sale was evidenced by an invoice identifying each machine by serial number. Each machine was pried at 10,000.00. Unknown to the parties, 30 units were damaged beyond repair by seawater on May 31, 2006, ‘Based on the foregoing, which of the following statements 1s incorrect? 2. B may rescind the whole contract. D._B may demand delivery of the remaining 20 units and pay the price therefore. cS may require payment of the whole shipment from B since S was not aware of the damage ‘caused on the machines at the time of sale. 4. Shas no option to rescind the whole contract or require payment of the remaining 20 units, A 43. It refers to the delivery of the thing sold from hand to hand in case of movables, or the taking of possession with respect to immovable, in the presence and with the consent of the vendor. '2. Actual or real delivery ‘. Tradltio longa manu b.Traditio constitutum pessessorium 4. Tradito brevi manu & S sold to B 20 sacks of corn stored in the warehouse of S. S delivered the keys to the warehouse to B. The delivery made by S to B is known as: a. Constructive delivery by legal formalities «. Traditi longa manu '. Symbolic delivery oF traditio claviurn 4. Traaito brevi manu D- 44, 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. re bead Use by the vendee of his nghts, with the debtor's consent. d. Execution of private instrument. ‘45. Which of the following statements on the transfer of ownership of the thing in “sale on tnal” is incorrect? ‘2. Ownership of the thing is transferred to the vendee when he signifies his approval or acceptance to the vendor. 'b. Ownership of the thing is transferred to the vendee when he does an act adopting the transaction, Ownership of the thing is transferred to the vendee if the time fixed for the return of the thing has ‘expired and the vendee retains the thing without giving notice of rejection or acceptance to the Ownership of the thing is transferred to the vendee upon delivery. 46. On March 1, 2006 S sold and delivered to B a television set for P10,000.00 “on sale or return” giving B up to March 16, pats ya ighich to return the televison set. On March 16, 2006, the television set was ough no fault of B. Based on the foregoing, which of the following statements is incorrect? 2. S does not have to replace the tv set. ° |B S must bear the loss since the time for the return of the television set had not yet expired. © The ownership of the television set was transferred to 8 upon delivery to him. d, B must bear the loss of the television setReSA: The Review School of Accountancy Page 6 of 6 47. 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. @ 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 cover two or more installments but he may no longer recover any deficiency after the foreclosure sale... 48. T stole a ring belonging to O. Subsequently, the ring was offered for sale.at a'puble-cuetion where X, who was not aware that the ring was stolen, bought it. A few weeks later, O saw the ring and recognized it as his. Based on the foregoing information, which of the following statements is correct? a. O may recover the ring from X without reimbursing X since O was unlawfully deprived of the ring. b, O may recover the ring from X but he has to reimburse X since X acquired title to the nae ©. _O may no longer recover the ring even if he is willing to reimburse X. 4. X did not acquire ttle to the ring since the auctioneer had no valid title thereto. 49, Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires title to the goods. Such acquisition of title has the following requisites, except: a. The buyer must have bought the goods in good faith. b. The buyer must have bought them for value, cc. The buyer bought them without notice of the seller's defect of title. 1d. The seller is in good faith. 50. R, S and T are co-owners of an undivided parcel of land. R sold his 1/3 interest to T in a deed of absolute sale. Which is correct? a. S may exercise the right of redemption on the interest sold by R to T. b. S cannot exercise the right of redemption. C. The sale made by R to Tis voidable. d. S may redeem only % of the interest sold by R to T.ee Oe a ee eee Vashi LAW Autry. M$. Bonate Jr. QUIZ ON SALES ~ PART IIT AL. Using the preceding number, Suppose, instead of seting his interest to B, A sold it to D, who can ‘exercise the right of resemngtion? a GonBandC Bhatt C Cbut not B d. A, Band C s ry | | Wich of the following carck te an cbyect of a contract of sale 2, Incorporeal property b. Young of animal not yet concerved at the bme of perfection © Land which the seller excects to buy d. Object outside the commence of man A 3. Aoffered tor saie to 8 29 cavans of wagwag rce and fixed the price per cavan at P10 over the price offered at Y's store in Quinta Market. The price 1s 2, Nol certain because the price at Quinta Market is not stated b. Certain because it has grt refererce tc another thing which ts certain c Certain because there a price ceting for pace of nce d. Not certain so the court may fix the once A offers to & 100 electnc fans for P0,000 payabse in 60 cays with 12% interest per annum. B accepted the offer by telegram pronded that interest reduced to 6%. If there is 2 no further communication between A and B relating to the terms a. The contract 1s perfected because of the acceptance by B b, There 1s no contract yet between A and 8 because B made a counter offer The contract ss perfected uncer the terms of A d, There ts no contract yet uniess 8 grves earnest money © 5. A owns 50 mango trees beanng fruits, ready for ha-vest. She sold all the fruits of all the trees to 8 who paid 100,000. A told B that he can harvest her fruts anyome he likes and pointing at the mango trees. For legal Purposes, A has fulfiled her obligation to deliver the mango fruits to B by a. Traditio beew-manu ©. Tradite longa-manu b. Tradivo symbotica 4. Tradito constitutum possessorium |) & A'sda her speatic car to B for P200,000 payabie m 5 equal instalments. A delivered the car to B but a mortgage was Constituted on the car to answer for the urpad installments B pad the first 2 installments but failed to pay the last 3 installments, A foreciosed the mortgaged property and sovd it at pubic auction for P100,000. Which is correct? a. A can recover from B the balance of P20,000 even if there Is no stipulation to that effect b. A.can recover from B the baiance of P20,000 if there is stipulation to that effect €. A ccannot recover the deficency exest € there is stpulation to that effect 4. A cannot recover the deficency even #f there s svpulabon to the contrary % 7. Quinership of the thing sold 1s 2. Retained by the setter in “saie or return” Transferred to the buyer upon constructive or actual delivery of the thing sold © Acquired by the buyer upca perfection of the contract 4. Transferred to the buyer upon accegtance of the price + 8. sold his horse to 2 for P50,000. No payment has yet been made and the sales document does not prowde the date Of deiwery, Before deivvery and payment the horse gave birth to a colt. Which 1s correct? a. Zis entitled to the colt which wes born after the perfection of the contract b. Vis entitled to the fruit (colt) as Z has not paid the price yet Ys entitied to the (colt) because it was born before his obligation to deliver arses 5. Z should pay additonal amount for the colt to be entited to it 2 9. Acontract of sale 1s in the stage of concestion whea 2. There 5 meeting of the minds &._The parties come to an agreement 1b. Negotiations are in progress 6. The contract's perfected P10. A seller sold to a buyer a piece of jeneiry a a price of F20,000, The contract provides that the Buyer wll pay the Seiler Cash-PY5,000 and for the balance, the Buyer mil give the Seiler a mucro oven worth P5,000. What is the nature A the contract? a. Sale c Barter b. Partly sale and partly barter 6. CommodatumReSA: The Review School of Accountancy Page zora A. 110A te guard of, od 8 house ad wt worth 80,00 fr #240 00, Te cant can Be rccaed barase of adeasy ct ce 'b. The contract cannot be rescinded because there Is no fraud, mistake or undue influence c. The contract cannot be rescinded because all the elements of the contract are prevent S. The contoct can be raced by A CU 12.°R leased to 8 a BLS&t for two years at a leased rental fee of P1,000 per month and signed an option in favor of B to buy the TV set at the end of the term of the lease at P60,000. All rental fees paid are to be considered as partial payment of the sale. After 12 months 8 was able to pay the rental fees for 9 months and was in arrears for three months. A terminated the lease contract and repossessed the generator. The comequence of the transacbon 15 a. A.can collect the rental fees for three months which are in arrears: b. Accan collect the rental fees for the unexpired 12 months of the lease contract c. When A took possession on the generator, he has no further action against B C. 33. S sold to B a parcel of land for PIM, 8 paid S PIM in fate bills. The sale 2. Void because there was no valid cause or consideration, the bills being fake. b. Voidable only since there was consideration but due to fraud B delivered fake peso bills, c. Valid sale because of valid cause of PIM price 4. Void because of false cause which is the counterfeit currency. ‘D_ 14. The buyer is obliged to pay interest on the price from the time of delivery of the thing sold up to the time of payment in three of the following instances, except: ‘2. Should it have been stipulated . Should the thing produce fruits or income c. Should the vende be in default in the payment of the price. d. Should the vendee be insoivent. © 45, The seller is liable for express warranty only if there is stipulation on the warranty T If it is stipulated that there is no warranty against hidden defect, the seller ts still liable for the value of the thing lost due to the hidden defect. F 2. Both statements are false. First is true, second is false. b. Both are true. d. First is false, second is true. A, 16. Waiver consciente and intencionada apply both to hidden defect and eviction. Rescission of the sale may be resorted to by the vendee in case of total enction# 2. Both statements are fake. C. First fs true, second is false. b. Both are tre. d. First is false, second fs true, B 17.$ sold to B a water pump with brand name ‘Higopka’. After delivery, it was discovered that the pump does not function well prompting B to complain. Therefore: ‘a. B does not have the right to complain for breach of warranty against hidden defect because the thing has a brand name when sokd; 'b. B has the right to complain for breach of warranty against hidden defect despite the thing being sold under a patent or trade name. | Sis not liable fro hidden defect even if the thing sold is unfit for the particular purpose for which it is sold; 4d. Sis fable for hidden defect only if it was stipulated. (18. Implied warranties as provided by law are enforceable only if so agreed upon by the seller and buyer in a contract of sale. Even if there is waiver of warranty against eviction and eviction should take place the seller is lable to pay the value at the time of the sale. ‘a. First statement is true, second is false; ¢. Both are fake; b. Second is true, first is false; 4. Both are true, D 19. B bought on instalment a car and executed a chattel mortgage on the same in favor of the seller S as security for the unpaid balance of the price. They agreed that B shall be liable for any deficiency that may arise after foreclosure of mortgage. B failed to pay two installments, S filed a case for collection of the unpaid balance and attached the car and other assets of B. ; ‘a. S cannot attach the other assets of B because B has no deficiency liability under the Recto law. b. Scan attach the car and other assets of B because the Recto Law applies only in case of foreclosure of real mortgage; c. S.cannot go after the other assets of B as this is provided for under the Recto Law in case of the seller exacting specific performance of the buyer's obligation to pay. 4d. Scan attach all the assets of B in exacting fulfilment of B's obligation to pay. | |20. S Sold to B a dog on January 10, 2002. Two days after delivery, the dog suffered some illness which caused its Geath. 'B is now suing S for breach of warranty against hidden defect because the dog died within three days after Gelivery. Decide. Sis lable because the disease existed within three days after purchase. b. Sis not hable if he was not aware of the disease, which caused the death of the dog | Sis table if he were in bad faith. 4d. Sis not liable because the disease did not exst at the time of purchase. 21, In contract to sell, the buyer becomes owner upon delivery of the thing sold. T In contract of sale, the buyer becomes owner upon payment of the price. F a. Both statements are true; . First statement false, second is true; b. Both are false; d. Second is false, first is true. 22. A contract of sale may be absolute or conditional. In pacto de retro sale, the repurchase is suspensive condition that will give rise to a sale. In case the thing to be sold is not on hand but still to be raised, acquired or manufactured, the contract is one for a piace of work and not sale, ‘2. First statement is false, second is true; c, Both are false statements; b. Second is false, first is true; d. Both are true. sf 3 MS deposted his goods inthe warehouse of W who Issued to O a warehouse receipt stating that the goods are to be delivered to bearer. Thereafter, A obtained possession of the warehouse receipt from D in exchange for what A Claimed to be a bar of gold, which, however, was discovered by D to be fake. D demanded the retum of the warehouse receipt from A but the same had already been negotiated by A to H who purchased the document for ‘value, in good faith and without notice that D was deprived possession thereof by fraud. The negotiation by A to H is: a. Voidable. b. Valid. ¢. Void. 4d. Rescissible. A, 24. purchased a pair of leather shoes from the store of S. shortly after leaving the store, B decided to return and t Q D requested S, the owner, to place a protective rubber covering on the sole of each shoe. Since the job required at least 30 minutes to complete, 8 left the store of S to shop at the neighboring stores. When he returned to the store Of S after 30 minutes, the pair of shoes was nowhere to be found. It turned out that C, a sales clerk, had sold the pair of shoes that B bought to X, another customer. ‘a. X acquired ownership of the pair of shoes earlier bought by B. b. X did not acquire ownership of the pair of shoes earlier bought by B. cB remained the owner of the pair of shoes that he had bought despite its sale to X. 4. S reacquired ownership of the pair of shoes when it was brought to him for additional work. 25. $ sold 500 shares of stock of San Manuel Corporation to B at P50.00 per share, The transfer of the ownership of the shares of stock may be made through any of the following means, except: ‘a. Execution of the sale in a public instrument, b. The giving by S to B of the power to vote in the stockholders’ meeting of San Manuel Corporation and its actual exercise thereof by B. c. The endorsement by S of the stock certificate covering the 500 shares of stock and its placing it in the possession of B. 4d. The issuance by S of the official receipt for the full payment of the purchase price of the shares by B. 26. On July 5, 2006 A sold for P2M her house and lot to B. It was agreed that delivery of the house and lot, and the payment therefore would be made on August 1, 2006. Unfortunately, € negligently set the house on fire on July 26, 2006 and the house was completely destroyed. Which is correct? ‘a. Bis not required to pay the P900,000 since the contract had no subject matter b. A must still deliver the lot but is excused from delivering the house, while B must still pay the P2M cA must still deliver the lot while B should pay only the amount equivalent to the value of the lot d. A need not deliver the lot while B need not pay the P2M 27. If immovable property should have been sold to different vendees, the ownership shall be transferred to the person ‘a. Who have first taken possession in good faith b. Who presents the oldest title in good faith ‘c.Who in good faith first recorded it in the Registry of Property d. Who have paid in good faith the purchase price in full 28. Using the preceding number, if movable property, it shall belong to the person ‘a. Who have paid in good the purchase price in full 'b. Who have in good faith first recorded it in the Registry of Property c._Who presents the oldest ttle in good faith d. Who have first taken possession in good faith1D 29, action by the vende against the vendor to nulity the sale due to some vices or defects which render the object of sale unfit for the use intended or knowledge of which, tie vendee would not have bought the thing a. Accion quant! minoris Action pauliane b. Accion reinvidicatoria d, Redhibilitory action AA 30. Action to seek a corresponding reduction In price by reason of some vices or defects in the thing purchased a. Accion quanti minoris ¢. Accion pauliana b. Action reinvidicatorla d, Redhibilitory action B31. The redhibitory action based on the faults or defects animals must be brought within ‘a. 30 days from delivery to the vendee —_¢. 45 days from delivery to the vendee b. 40 days from delivery to the verddee +ankd. 6 months from delivery to the vendee —* fi CL 32. Incontract of sale, if the price is absolutely simulated, the sate is a. Unenforceable b. Voidable Void d. Rescissible D_ 33. Ina 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 fulfilment of the obligation, should the vende fail to pay any installment Cow o. mere) b. Cancel the sale, should the vendee’s failure to pay cover two or more installments . 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 4d. Rescind the sale should the vendee fail to pay any installment 1D. 34, The right of the seller to stop goods In transit, upon discovering that the buyer does not have the funds to pay for the ‘goods a. Pre-emptive right c. Voting right b. Appraisal right 4. Right of stoppage in transitu 4 A. 35. A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of agreement of sale, One week | later, A sold the same parcel of land to C for P4M, This is evidenced by a formal deed of sale. Upon buying the property, C, who was aware of the first sale, immediately took possession of the lot. When informed of the second : sale, B subsequently registered an adverse claim property. Later, C registered the deed of sale in her favor. The parcel of land shall belong to ‘a. B because he has got an older tide. _C because he isthe first to take possession D.C because he is the fist to register 4d. No one as both sales are void * B 36. voluntary renunciation made by the buyer of his right to warranty against eviction where in case the buyer is evicted, nr the seller is liable to the value of the thing at the tine of eviction 2. Waiver intentionada Waiver cursunada b. Waiver consciente 4. Waiver inocente A. 37. Using the preceding number, where the seller is no longer liable $ ‘a. Waiver intentionada c. Waiver cursunada 3 'b. Waiver consciente d, Waiver inocente | D 38.-A contract of sale whereby the seller acquires the right to redeem or repurchase the object of the sale from the buyer 3 within a certain period agreed upon j ‘a. Equitable mortagage Onsale or return 3 b. - Absolute sale d. acto de retro sale i 1) 39. A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the same car to C immediately effected delivery. On the day agreed upon, A did not deliver the car to B. Which is correct? ‘a. B can cancel the contract between A and C, because the contract between A and B was perfected ahead of the contract between A and C b, B should make a demand to make A in default . Als liable to B for the value of the car plus damages after B makes a demand d. Ais liable to B for damages and is in default without need of any demand © 40. A sold to B her RJ guitar. It was agreed that A would fix the price a week later. At the agreed time, A named the price P10,000. B agreed. Was the sale perfected? ‘a, No, because the price was left to the discretion of one of the contracting parties b. No, because at the time of sale the price was not fixed c. Yes, because the price fixed by one of the parties was accepted by the other d._ Yes, because there was agreement that A would fix the price ee ee Bhan ined tr48.2. Right to sel the thing atthe ime of perfection of the contract ae Reasonably fit for the purpose they are acquired Merchantabie in quality a Free from charges ot encumbrances not declared or known to the buyer 42. ater ne “Seath of C, A, C’s son, sold his inheritance though its amount has not yet been determined to B for a ‘consideration ef P1,000,000. which is correct? ‘a, The contract is valid if the value of inheritance is at least equal to P1,000,000 'b, The contract is valid even though the inheritance to be turned over to B is les than PM ‘¢. The contract is void as future inheritance cannot be the object of sale 4d. The contract is unenforceable © 43. A stele a feuntain pen from P and sold it to B Merchandise a “store for 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? 2. Cannot be considered as the owner because the orignal sles (A) snot the real owner bP may recover the fountain pen from C without reimbursement because he is the legal owner . C became the owner because he purchased the pen from a merchant store d. C became the owner regardiess whether the seller is a tore for pens or not because C bought it in good faith, 1D 44. when goods are deliver to the buyer on “sale or return” for period of seven days, ownership of the goods passes to the buyer ‘a. Upon perfection of the contract b. Upon acceptance by the buyer of the offer of the seller c._ Upon expiration of seven days d., Upon delivery of the goods D. 45: Quast-traditio is equivalent to ‘2. Tradito longa-manu ¢. Traditio constitutum possessorium b. Traditio brevi-manu d. Buyer has the title of ownership A 46. B imported radios from Japan and asked for 220 volts capacity. The radios arrived clearly labeled 220 volts and B sold them to the public as such. Later a customer complained that the radios have been mislabeled by the ‘manufacturer and that they were good only for 110 vols. a. Bisliable to the vendees for any hidden defects even though he is not aware D. Bis not liable because he is in good faith Bis not liable under the principle of "caveat emptor” or let the buyer beware j d, The vendees may hold the manufacturer liable but not B because B spectically asked for ReSA: The Review School of Accountancy Page 5of5 A) 41, Nat an implied warranty in a contract of ste } 220 volts ; B 47. 11 redemption is to be made by the seler, one of the following need not be given to the buyer : 2. Expenses of the contract Necessary expenses on the thing sold . Interest on the price of the sale 4. Price of the sale £4. Not an element of the sellers right of stoppage in transitu 2. The good must be in transit The seller must be in possession of the goods : b. The buyer must be insolvent - d. The seller must be unpaid 1D 49. A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B and the balance at 10,000 per month until full payment of the purchase price. Later the car gets burned in the possession of B through fortuitous event before full payment of the balance. Is B obliged to pay the balance? t ‘a, No, because the car was lost through fortuitous event and without B's fault, hence B's | ‘obligation is extinguished b. No, because the loss should be borne by the seller as this an installment sale so until the buyer pays the full amount of the price of the sale, A remains to be the owner Yes, but A must give another car to B because of the principle "genus nunquam peruit” or generic thing never perishes . Yes, because of the principle "res perit domino” or the thing perishes with the owner 8 50. A, B& Care co-owners of an undivided parcel of land, A sold his 1/3 interest to B absolutely. Which is correct? a. C may exercise his right of redemption on the interest sold by A to B b. Can not exercise the right of redemption because the sale was made in favor of a co- owner . The sale made by A to B is void because it was not made in favor of a stranger d. C may redeem only ¥ of the interest sold by A to B