Question 1

 The vendor of personal property payable in installments may exercise all of the
following remedies:
(1) elect fulfillment upon the vendee’s failure to pay;
(2) cancel the sale, if the vendee shall have failed to pay two
or more installments; and
(3) foreclose the chattel mortgage, if one has been constituted, if the vendee shall have
failed to pay two or more installments.
Correct answer: False

Question 2
 _____ is a derivative mode of acquiring ownership by virtue of which one who has the
right and intention to alienate a corporeal thing, transmits it by virtue of a just title to one
who accepts the same.
Correct answer: Tradition

Question 3
 Traditio brevi manu takes place when the vendor continues in possession of the
property sold not as owner but in some other capacity, as for example, when the vendor
stays as a tenant of the vendee.
Correct answer: False

Question 4
 This apply to "sale or return":
Correct answer:
sale subject to a resolutory condition
depends entirely on the will of the buyer
the ownership of the goods passes to the buyer on delivery and subsequent return of
the goods reverts ownership in the seller
the risk of loss or injury rests upon the buyer

Question 5
 In sales of personal property by installments or leases of personal property with option
to buy, the parties may stipulate that the installments or rents paid are not to be
returned.
Correct answer: True
Question 6
 A sale between husband and wife is inexistent and void from the beginning because
such contract is expressly prohibited by law.
Correct answer: True

Question 7
 A document of title in which it is stated that the goods referred to therein will be
delivered to the bearer, or to the order of any person named in such document is a
negotiable document of title.
Correct answer: True

Question 8
 Identify the effect of sale in the following situations:
Correct answer:
The guardian, the property of the person or persons who may be under his guardianship
=> sale shall only be voidable
Agents, the property whose administration or sale may have been entrusted to them,
unless the consent of the principal has been given => sale shall only be voidable,
Executors and administrators, the property of the estate under administration => sale
shall only be voidable,
Public officers and employees, the property of the State or of any subdivision thereof, or
of any government owned or controlled corporation, or institution, the administration of
which has been entrusted to them => sale shall be null and void,
Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other
officers and employees connected with the administration of jus- tice, the property and
rights in litigation or levied upon an execution before the court within whose jurisdiction
or territory t => sale shall be null and void,
Any others specially disqualified by law. => sale shall be null and void

Question 9
 The Maceda Law (Sale of Realty in Installment) applies to sales on installments of
industrial lots, commercial buildings, and sales to tenants under the Code of Agrarian
Reforms.
Correct answer: False
Question 10
 In sale or financing of real estate on installment payments for at least 2 years, in case
of default, the buyer has the right to:
Correct answer:
pay without additional interest, the unpaid installments due within the total grace period
earned by him fixed at the rate of one (1)-month grace period for every one (1) year of
installment payments made ,
Ifthecontractiscancelled,thesellershallrefundtothe buyer the cash surrender value of the
payments on the property equivalent to 50% of the total payments made and, after five
(5) years of installments, an additional 5% every year but not to exceed 90% of the total
payments made ,
sell his right or assign the same before actual cancellation of the contract nd to pay in
advance any unpaid installment anytime without interest and to have such full payment
of the purchase price annotated in the certificate of title covering the property.

Question 11
 The principal obligations of a vendor are:
Correct answer:
to transfer the ownership of the determinate thing sold ,
to deliver the thing, with its accessions and accessories, if any, in the condition in which
they were upon the perfection of the contract ,
to warrant against eviction and against hidden defects ,
to take care of the thing, pending delivery, with proper diligence

Question 12
 _____ are those things which are needed for sustenance, dwelling, clothing, medical
attendance, education and transportation according to the financial capacity of the
family of the in- capacitated person.
Correct answer: Necessaries

Question 13
 The expenses for the execution and registration of the sale shall be borne by the
vendee, unless there is a stipulation to the contrary.
Correct answer: False
Question 14
 The Maceda Law (Sale of Realty in Installment) applies to residential condominium
apartments.
Correct answer: True

Question 15
 Sam sold to Blake 200 sacks of rice at P1,000.00 per sack or for a total price of
P200,000.00, delivery to be made at the place of business of Blake.If Sam delivers only
120 sacks of rice, Blake cannot refuse to accept them, but shall only pay at the rate
agreed upon for the 120 sacks or P120,000.
Correct answer: False

Question 16
 For husband and wife, if there has been a separation of property agreed upon in the
marriage settlements, or when there has been a judicial separation of property decreed
between them by the court, the sales between husband and wife are allowed.
Correct answer: True

Question 17
 A sale between husband and wife is generally treated as valid and binding as long as
there is consent on both parties.
Correct answer: False

Question 18
 Tradition constitutum possessorium is a mode of legal delivery when the vendee has
already the possession of the thing sold by virtue of another title as when the lessor
sells the thing leased to the lessee. Instead of turning over the thing to the vendor so
that the latter may, in turn, deliver it, all these are considered done by action of law.
Correct answer: False

Question 19
 In the case of incorporeal things, delivery is effected:
Correct answer:
by the execution of a public instrument ,
when that mode of delivery is not applicable, by the placing of the titles of ownership in
the possession of the vendee ,
by allowing the vendee to use his rights as new owner with the consent of the vendor

Question 20
 Sam sold his car to Brian. Unknown to both of them, the car has been totally destroyed
when the building it was parked collapsed before they agreed on the sale. In this case,
there is no valid contract of sale for lack of object.
Correct answer: True

Question 21
 _____ must be decreed by competent authority and for public use and always upon
payment of just compensation.
Correct answer: Expropriation

Question 22
 Sam sold his car to Brian. Unknown to both of them, the car has been totally destroyed
when the building it was parked collapsed before they agreed on the sale. In this case,
there is no valid contract of sale for lack of object. However, Brian needs to pay for the
price.
Correct answer: False

Question 23
 As a general rule, all persons, whether natural or juridical, who can bind themselves
have also legal capacity to buy and sell.
Correct answer: True

Question 24
 _____ is a general term comprehending all those acts which, although not conferring
physical possession of the thing, have been held by construction of law equivalent to
acts of real delivery.
Correct answer: Constructive delivery
Question 25
 Generally, the contracts entered into by a minor and other incapacitated persons (e.g.,
insane or demented persons, deaf- mutes who do not know how to write), are voidable.
Correct answer: True

Question 26
 The following persons cannot acquire by purchase, even at a public or judicial auction,
either in person or through the mediation of another:
Correct answer:
The guardian, the property of the person or persons who may be under his
guardianship; ,
Agents, the property whose administration or sale may have been entrusted to them,
unless the consent of the principal has been given ,
Executors and administrators, the property of the estate under administration ,
aliens/foreigners to purchase private agricultural lands ,
The officer conducting the execution sale