Final Exam

Sales

For items 1-5. Please answer the following question in this format.

A. Answer with yes, no or it depends.

B. Give the basis

C. Apply in the instant question

Sample:

Q: A sold his BMW Car worth 5M for only 500K. Is the gross inadequacy of price affect the contract
of Sale?

A. No. The law provides that Gross inadequacy of price does not affect a contract of sale except as it
may indicate a defect in the consent or that the parties really intended a donation or some other
act or contract. In the given question, consent is not vitiated and the seller did not intend to donate
the BMW.

1. X offered to sell his property to Y, giving him a period of one (1) month to accept the offer. Y gave
100php as option money. Before the period expires, X sold the property to Z. What is the
consequences of such sale?

2. ABC Corporation, a dealer in appliances, sold to Mr. T a TV for P20,000.00 payable on installment
basis at a rate of P1,000.00 per month. Mr. T executed a chattel mortgage over the thing sold. When
Mr. T defaulted in the payment of his obligation, ABC Corp foreclosed the mortgage. At the sale, only
10,000.00 was realized. Can the seller recover deficiency? Why?

3. X Stole the ring belonging to Y and sold it to Z. Supposed Y finds it in the possession of Z, can she
recover it from Z? Why?

4. X and Y entered into a contract of sale of 1000 tons of rice. Can X deliver only 500 tons? Why?

5. A is indebted to B for 10,000. B pledge his ring worth 15K. Under their contract, in case B defaulted,
the ring will be automatically appropriated by A. Is the stipulation valid?

For items 6-10. Define, enumerate or distinguished

6. What may be the object of a contract of sale?

7. What are the remedies of a seller of movable payable on installment basis in case the buyer
defaults in the payment of his obligation?

8. What are the rights of unpaid seller?

9. What is equitable mortgage?

10. Distinguish Sale or Return and Sale on Approval.