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Characteristics (2)

1.)
I.
II.

The contract of sale is commutative because the thing sold is considered the equivalent of the price paid
and vice versa. However, contract may be aleatory as in the case of the sale of a hope.
By an aleatory contract, one of the parties or both reciprocally bind themselves to give or to do something
in consideration of what the other shall give or do upon the happening of an event which is uncertain, or
which is to occur at an indeterminate time.
a.
b.
c.
d.

Only statement I is true.


Only statement II is true.
Both statements are true.
Neither statements are true.

2.)
The contract of sale is _____________, because the thing sold is conveyed in consideration of the price and
vice versa.
a.
b.
c.
d.

Onerous
Bilateral
Commutative
Consensual

Kinds of sale (2)


3.)
I.

II.

In sales with assumption of mortgage, the assumption of mortgage is a condition to the sellermortgagors consent to the sale so that without approval by the mortgagee no sale is perfected and the
seller remains the owner and mortgagor of the subject property with the right to redeem in the case of
foreclosure.
A deed of sale is absolute in nature although denominated as a Deed of Conditional Sale in the
absence of any stipulation that the title to the property sold is reserved in the vendee until full payment of
the purchase price nor a stipulation giving the vendee the right to unilaterally rescind the contract the
moment the vendee fails to pay within a fixed period.
a.Only statement I is true.
b.Only statement II is true.
c. Both statements are true.
d.Neither statements are true.

4.)
It is where the sale is not subject to any condition whatsoever and where title passes to the buyer
upon delivery of the thing sold.
a.
b.
c.
d.

Aleatory
Absolute
Conditional
None of the above

Sale vs. other related contracts (2)


5.)
The dispositive part of a deed entitled Deed of Sale of Real Property states: for and in consideration of the
sum of P2,000,000.00, payable under the terms and conditions stated in the foregoing premises, the VENDOR
sells, transfers and conveys unto the VENDEE the property in question as of December 22, 2016, the date of
said document. t is provided that should the VENDEE prior to the full payment of all the amounts
aforementioned, decide to sell or to assign part or all of the aforementioned parcel of land, the VENDOR shall be
informed in writing and shall have the option to repurchase the property. Should the VENDOR herein decide to
repurchase and the property is sold or transferred to a third person, the balance of the consideration herein still
due to the VENDOR shall constitute automatically a prior lien on the consideration. Is the above instrument a
contract to sell?
a. Yes, since the purchase price had not yet been fully paid at the date of transaction.
b. No, it is a deed of sale in which title to the subject land was transferred to the vendee as of the
date of the transaction.
c. Yes, because the transfer of ownership is deferred.
d. No, the contract of sale had not yet perfected.

6.)
It is the sale of a thing not yet in existence subject to the condition that the thing will exist and on failure of
the condition, the contract becomes ineffective and hence, the buyer has no obligation to pay the price.
a.
b.
c.
d.

Emptio rei speratae


Emptio spei
Contract to sell
Dacion en pago

Form of sale (1)


7.)
Gellie orally sold to Kenneith a parcel of land.
a. The sale is valid and enforceable.
b. The sale is void because it must be in writing.
c. The sale is valid, but it is unenforceable because the law requires that it be in writing to be
enforceable.
d. The sale is voidable.

Consent (1)
8.)
Gellie executed two documents: in the first, Gellie agreed to sell and Kenneith agreed to buy, for
P2,500,000.00, 5 hectares of land, which is part and parcel of a bigger lot owned in common by Gellie and her
sister although the boundaries of the 5 hectares would be delineated at a later date and in the second, Gellie
acknowledged receipt as initial payment of P500,000.00. Additional payments of P200,000.00 were made.
Kenneith filed a complaint for specific performance after Gellie returned the amounts paid. Was there perfected
contract of sale between the parties?
I.
II.
III.
IV.

Yes, the initial payment of P500,000.00 clearly showed her consent to the contract.
Yes, the two documents are in themselves considered contracts of sale.
Yes, Gellie is already precluded from rejecting its binding effect.
Yes, with the contract being partially executed, the same is no longer covered by the
requirements of the Statute of Frauds in order to be enforceable
a.
b.
c.
d.

True, False, True, False


False, True, False, False
Ture, False, True, True
False, True, False, True

Object (1)
9.)
Gellie embarked upon the exploration and development of mining claims belonging to Kenneith. Later,
they executed a document wherein Gellie transferred to Kenneith all of Gellies rights and interest over the 5,000
tons of iron ore, more or less that Gellie had already extracted from the mineral claims in consideration of a
down payment of P100,000.00, and the balance of P400,000.00 which will be paid out of the first shipment of iron
ore and of the first amount derived from the local sale of iron ore made from said claims, which amount was
secured by a surety bond executed by Kenneith in favor of Gellie. No sale of the approximately 5,000 tons of iron
ore had been made nor had the P100,000.00 been paid. Is the obligation of Kenneith to pay the remaining
P400,000.00 subordinated to the sale or shipment of the ore as a condition precedent?
a. Yes. It is a condition precedent.
b. No. A contract of sale is normally commutative and onerous: not only does each one of the parties
assume a correlative obligation, but such party anticipates performance by the other from the
very start.
c. Both A and B.
d. None of the above.

Consideration (1)
10.)
Kenneith bought on a partial payment of P50,000.00, evidenced by a receipt, a portion of a subdivision from
Gellie, administrator of the testate estate of her deceased husband. Subsequently, Gellie was authorized by the
court to sell the subdivision. In the meantime, GK, Co. became the new administrator. It sold the lot to another
which sale was judicially approved. Kenneith files a complaint which seeks, among other things, for the quieting of
title over the lot in question. Which of the following statements is incorrect?
a. The requisites for a valid contract of sale are all present, however there was no agreement among
parties.
b. An examination of the receipt reveals that there was a promise to sell.

c. There was merely an acknowledgment of the sum P50,000.00.


d. There was no agreement as to the total purchase price of the land nor to the monthly installments to be
paid by Kenneith.

Warranty against eviction(2)


11.)
Essential elements of warranty against eviction are the following, except:
a.
b.
c.
d.

He is so deprived by virtue of a final judgment.


The judgment is based on a right subsequent to the sale or an act imputable to the vendor
The vendor was summoned in the suit for eviction at the instance of the vendee.
There is no waiver on the part of the vendee.

12.)
It does not give rise to the application of the doctrine of eviction. In this case, the vendee has a direct
action against the intruder in the same way as the lessee has such right.
a.
b.
c.
d.

Disturbance in law
Trespass in fact
Prescription
None of the above

Warranty against hidden defects (1)


13.)
Gellie sold a parcel of agricultural land to GK, Inc. warranting that the land was free from all liens and
encumbrances. GK, Inc., in turn, sold the land to VA, Inc. to which GK, Inc. warranted that the land was free
from all liens, adverse claims, encumbrances, claims of any tenant and/or agricultural workers, whether arising as
compensation for disturbance or from improvements. When Gellie bought the land from the original owner, it was
forced to stop cultivating the land because of the bulldozing caused by VA, Inc.
Gellie filed a complaint against GK, Inc., VA, Inc. for disturbance compensation under the land reform law.
GK, Inc. in return, filed a cross-claim against Gellie in case of a judgment adverse to it while VA, Inc. filed a crossclaim against GK, Inc.
I.

Gellie did not violate her warranty to GK, Inc. The term hidden faults or defects in Art. 1547
pertains only to those that make the object of the sale unfit for the use for which it was intended at
the time of the sale.
Gellie did violate her warranty to GK, Inc. Since the object of the sale by Gellie to GK, Inc. is an
agricultural land, the existing tenancy relationship with respect to the land can be a hidden fault
or defect.
Gellie did not violate since it is not a lien or encumbrance that the vendor warranted did not exist
at the time of the sale.
Gellie did violate the warrant because it is not a relationship which any buyer of agricultural land
should reasonably expect to be present.

II.
III.
IV.

a.
b.
c.
d.

True, True,True, False


False, True, Falsle, True
True, False, True, False
False, Flase, Flase True

Warranty of merchantability and fitness (2)


14,)
Under a contract of sale, Gellie delivered and installed in Kenneiths establishment a computer software. The
software was in perfect accord with the description made in the contract but it did not give the result expected by
Kenneith. Gellie brought action to recover the balance of the purchase price. Kenneith refuse to pay such
balance.
I.
II.
III.
IV.

Kenneiths action in refusing to pay such balance is justifiable considering that he could not use the
machine satisfactorily in his establishment.
Keneniths action is not justifiable given that the inability of Kenneith to use the machine satisfactorily
cannot be attributed to any defect in the machine.
It is not Gellies fault since the machine was strictly in accordance with the specifications.
It is Gellies fault since she did not able to provide service in accordance with the expectation of
Kenneith.
a.
b.
c.
d.

Only statements I and II are true


Only statements II and IV are true.
Only statements II and IV are true.
Only statements I and III are true.

15.)
_________ is a warranty that goods are reasonably fit for the general purpose for which they are sold.
a.
b.
c.
d.

Warranty against eviction


Warranty of fitness
Warranty against hidden defects
Warranty of merchantability

Obligations of the vendor(2)


16.)
Gellie sold sugar to Kenneith. The sugar was delivered by Gellie into Kenneiths warehouse, leaving it entirely
subject to his control. Kenneith, however, failed to make payment after completion of delivery as per agreement. Joon
Jae, a bank, took possession of the sugar pursuant to a contract of pledge entered into between the bank and
Kenneith to secure the latters indebtedness of P100,000.00. Subsequently, Kenneith became insolvent.
I.
II.
III.
IV.

Gellie is still the owner of the sugar as to entitle her to recovery of its possession.
Gellie is not anymore entitled to the recovery of its possession when she delivered the sugar to
Kenneiths warehouse.
Kenneiths failure to pay after completion of delivery as per agreement is the reason why he does not
acquire better right over Gellie.
Gellie doesnt retain ownership because it is difficult to see how she could have divested herself more
completely under the control of the buyer.
a.True, False, True, False
b.False, False, False, True
c. True, False, False, False
d.False, True, False, False

17.)
It is a docrine where the vendor is liable to the vendee for any hidden faults or defects in the thing sold.
a. Caveat emptor
b. Caveat emptour
c. Caveat venditour
d. Caveat venditor

Obligations of the vendee (2)


18.)
Gellie agreed to deliver to Kenneith monthly for a period of twenty years a specified amount of honey and
coconut oil. Gellie failed to make delivery up to a certain date and flatly refused to make any delivery under the
contract. Which of the following statements is incorrect?
a. Kenneith may sue for breach of the entire contract.
b. Kenneith is estopped from claiming for damages since a contract to do several things at several
times is divisible in nature.
c. An unqualified and positive refusal to perform a contract, though the performance thereof is not yet due,
may be treated as a complete breach entitling and requiring the injured party to recover all his damages
in one suit.
d. None of the above.
19.)
The principal obligations of the vendee are the following, except:
a. To accept delivery of the thing sold
b. To pay the price of the thing sold at the time and place stipulated in the contract
c. To put the goods in a deliverable state
d. To bear the expenses for the execution and registration of the sale and putting the goods in a
deliverable state, if such is the stipulation

Kinds of Delivery (1)


20.)
Gellie owed Kenneith money and as security therefor delivered to Kenneith the title papers over three
parcels of land. It was orally agreed that since Gellie had no money, Kenneith was to have the land, permitting
Gellie to cultivate upon condition that, after deducting expenses, of the products was to go to Kenneith. Then
Gellie died and the four parcels were included in the inventory of the estate of Gellie. Kenneith brought action to
exclude them from the inventory. Is there delivery of the property in contemplation of the law?
a. Yes, however the land may not be excluded in the inventory.
b. No, the contract between Gellie and Kenneith must be in writing.
c. Yes, although not writing, the contract is valid and the delivery of the title deeds of the
property was equivalent in its effect to a delivery of the property itself.

d. No, Kenneith must first get the approval from the administration of Gellies estate.

Double Sale (2)


21.)
Gellie, owner of a parcel of land, sold it to Kenneith on June 15, 2015. But the deed of sale was not
registered. On January 26, 2016, Kenneith subsequently sold the land to Kiara. Kiara decided not to
register the land and just sold it to Kris on June 25, 2016 who registered the deed in his name. Without
the knowledge of Kenneith and his subsequent buyers, Gellie sold the same parcel of land to Joon Jae
on June 3, 2016. Joon Jae has knowledge of the previous sale, however the first sale was still
unregistered so he succeeded to register the deed and to obtain a transfer certificate of title over the
property in his own name. Who has better right over the parcel of land?
a.Kiara
b.Kenneith
c. Joon Jae
d.Kris
22.)
On September 15, 2016, Gellie Sold a parcel of land to his friend, Kenneith. On September 30,
2016, she sold the same and to his cousin, Joon Jae. The first sale was registered ahead of the second
sale, with the knowledge of the latter. Which of the following statements are correct:
I.
II.
III.
IV.

The first buyer has the better right since his sale was first to be registered, even though
the first buyer knew of the second sale.
The second buyer is to be preferred for the fact that the first buyer knew of the second
sale at the time of his registration.
The first buyer has the better right since his knowledge of the second sale does not
make him as acting in bad faith for the sale to him was ahead of time.
The second buyer is to be preferred because sale to relatives acquires better right..
a.
b.
c.
d.

True, False, True, True


False, True, False, False
True, False, True, False
False, True, False, True

Right of an Unpaid Seller (1)


23.)
The following are the remedies of an unpaid seller of goods, except:
a.
b.
c.
a.

A lien on the goods or right to retain them for the price while in his possession.
A right of stopping the goods in transitu in case of insolvency of the buyer
A right to reinstate the contract.
A right to rescind the sale.

Negotiable Documents of Title (2)


24.)
I.
II.

One who purchases, therefore, a negotiable document of title issued to a thief acquires no right over the
goods as the thief has no right to transfer, notwithstanding that such purchaser is innocent.
In connection to the statement above, the purchaser cannot acquire a good title where the owner, by his
conduct, is estopped from asserting his title
a.True, True
b.False, False,
c.True, False
d.False True

24.)
It is a contract and a receipt for the transport of goods and their delivery to the person named therein, to
order, or to bearer.
a.
b.
c.
d.

Warehouse Receipt
Quedan
Dock Warrant
Bill of lading

Conventional Redemption (1)


25.)
Gellie, vendor a retro, sold to Kenneith, a Chinese, vendee a retro, a parcel of land. The sale was made in
1932, before the adoption of the old Constitution. No repurchase was made by Gellie. At the expiration of the right
of repurchase, the 1935 Constitution contains a prohibition against aliens owning lands save in cases of
hereditary succession.
I.
II.

The prohibition applies to Kenneith, an alien who acquired the land by sale with pacto de retro
It is not applicable because the nature of a sale with right of repurchase is such that the
ownership over the thing sold is transferred to the vendee upon the execution of the contract
assuming the requirements as to delivery to be present, subject only to resolutory condition that
the vendor exercises his right of repurchase within the period agreed upon by the parties or
prescribed by law.
a.
b.
c.
d.

True, True
False, False
True, False
False, True

Legal Redemption (1)


26.)
Which of the following instances is not an instance of a legal redemption under special laws?
a. Redemption by owner of real property sold for delinquent taxes. The period is within one year from the
date of sale
b. Repurchase by homesteader of homestead sold under the Public Land Act. The period is five years.
c. Redemption by judgment creditor of real property sold on execution. The period is twelve
months.
d. Redemption by mortgagor after mortgaged property has been judicially foreclosed and sold. The period is
ninety days but before confirmation of sale by the court.

Recto Law (1)


27.)
Which of the following statements is incorrect?
I.

A seller of goods on installments does not have any right of action against a third party who, in addition to
the buyers mortgage of the goods sold, furnishes additional security for the payment of said installment
or the purchase price of said goods.
The vendor who has chosen to exact the fulfillment of the obligation in an unpaid balance of an
installment sale is not limited to the proceeds of the sale of the mortgaged goods.

II.

a.
b.
c.
d.

True, True
False, False
True, False
False, True

Maceda Law (2)


29.)
It is the law that lays out a defaulting buyers rights in the Philippines with regards to his purchase of a real estate
property, whether its a condominium unit or a house-and-lot unit in a subdivision development.
a.
b.
c.
d.

Recto Law
Maceda Law
Subdivision and Condominium Buyers Protective Decree
Installment Sales Law

30.)
Which of the following is not an exception to the transactions or sale covered by the Maceda Law?
a. Residential Real Estate
b. Industrial lots
c.

Commercial buildings (and commercial lots by implication)

d. Sale to tenants under agrarian laws