1. Can future inheritance be the subject of a contract of sale?

a.
b.
c.
d.

No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy.
Yes, since the death of the decedent is certain to occur.
No, since the seller owns no inheritance while his predecessor lives.
Yes, but on the condition that the amount of the inheritance can only be ascertained after the obligations of
the estate have been paid.

2. The term of a 5-year lease contract between X the lessor and Y the lessee, where rents were paid from month to
month, came to an end. Still, Y continued using the property with Xs consent. In such a case, it is understood that
they impliedly renewed the lease
a.
b.
c.
d.

from month to month under the same conditions as to the rest.

under the same terms and conditions as before.
under the same terms except the rent which they or the court must fix.
for only a year, with the rent raised by 10% pursuant to the rental control law.

3. An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling
the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale
on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at
the time of the sale. What is the standing of the sale?
a.
b.
c.
d.

Voidable.
Valid.
Void.
Unenforceable.

4. In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a
retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This
is known as
a.
b.
c.
d.

equitable mortgage.
conventional redemption.
legal redemption.
equity of redemption.

5. The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the
performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of
the sale by the court, is known as
a.
b.
c.
d.

accion publiciana.
equity of redemption.
pacto de retro.
right of redemption.

6. X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale.
After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father.
Unwilling to do so, Xs heirs filed an action for specific performance against Y. Will their action prosper?
a.
b.
c.
d.

No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.
No, since the sale cannot under the Statute of Frauds be enforced.
Yes, since X bought the land and paid Y for it.
Yes, after full payment, the action became imprescriptible.

7. A warranty inherent in a contract of sale, whether or not mentioned in it, is known as the
a. warranty on quality.

b. warranty against hidden defects.

c. warranty against eviction.
d. warranty in merchantability.
8. X, who was abroad, phoned his brother, Y, authorizing him to sell Xs parcel of land in Pasay. X sent the title to Y
by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after
receiving payment. What is the status of the sale?
a.
b.
c.
d.

Valid, since a notarized deed of absolute sale covered the transaction and full payment was made.
Void, since X should have authorized agent Y in writing to sell the land.
Valid, since Y was truly his brother Xs agent and entrusted with the title needed to effect the sale.
Valid, since the buyer could file an action to compel X to execute a deed of sale.

9. If A sells his residential house and lot to B, can C foreclose the real estate mortgage?
a. Yes, C can foreclose the real estate mortgage because real estate mortgage creates a real right that attaches
to the property.
b. Yes, C can foreclose the real estate mortgage. It is binding upon B as the mortgage is embodied in a public
instrument.
c. No, C cannot foreclose the real estate mortgage. The sale confers ownership on the buyer, B, who must
therefore consent.
d. No, C cannot foreclose the real estate mortgage. To deprive the new owner of ownership and possession is
unjust and inequitable.
10. X orally offered to sell his two-hectare rice land to Y for P10 Million. The offer was orally accepted. By agreement,
the land was to be deliyered (through execution of a notarized Deed of Sale) and the price was to be paid exactly
one-month from their oral agreement. Which statement is most accurate?
a. If X refuses to deliver the land on the agreed date despite payment by Y, the latter may not successfully sue X
because the contract is oral.
b. If X refused to deliver the land, Y may successfully sue for fulfillment of the obligation even if he has not
tendered payment of the purchase price.
c. The contract between the parties is rescissible.
d. The contract between the parties is subject to ratification by the parties.
11. Which phrase most accurately completes the statement - If at the time the contract of sale is perfected, the thing
which is the object of the contract has been entirely lost:
a.
b.
c.
d.

the buyer bears the risk of loss.

the contract shall be without any effect.
the seller bears the risk of loss.
the buyer may withdraw from the contract.

12. A contract granting a privilege to a person, for which he has paid a consideration, which gives him the right to buy
certain merchandise or specified property, from another person, at anytime within the agreed period, at a fixed
price. What contract is being referred to?
a.
b.
c.
d.

Option Contract
Contract to Sell
Contract of Sale
Lease

13. Which of the following contracts of sale is void?

a. Sale of X's car by Y, X's agent, whose authority is not reduced into writing.
b. Sale of X's piece of land by Y, X's agent, whose authority is not reduced into writing.
c. Sale of X's car by Y, a person stranger to X, without X's consent or authority.

d. Sale of X's piece of land by Y, a person stranger to X, without X's consent or authority.
14. Caveat emptor applies in the following except:
a.
b.
c.
d.

Sales of animals
Double sales
In sheriffs sales
Judicial sales