501P FINAL EXAMS (1 – 25 items)

SELECT THE BEST ANSWER. Write the letter only.

1. Statement no.1. If the bill of lading covering the goods sold is by its terms the goods
described therein are deliverable to the order of the seller, and retained by the seller, the
seller has reserved his ownership over the goods.

Statement no.2. If the bill of lading is by its terms the goods described therein are
deliverable to the order of the buyer and retained by the seller, the seller has reserved his
right of possession of the goods as against the buyer.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

2. B bought a pair of shoes from shoe store and repair shop. It was later discovered that the
pair of shoes bought by B belonged to a customer who left it there for repair.

Statement no.1. B acquired ownership provided he acted in good faith.

Statement no.2. B did not acquire ownership because a seller cannot transfer ownership
if he himself has no ownership.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

3. Statement no.1. An unpaid seller loses his possessory lien after he has delivered the
goods to a carrier for the purpose of transmission to the buyer without reserving the
ownership in the goods or the right to the possession thereof.

Statement no.2. The unpaid seller who loses his possessory lien does not lose his lien
for the payment of the purchase price.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true.
D. Both statements are false.

4. Statement no.1. Once the goods have been accepted by the buyer, the seller is no longer
responsible to him for any breach of warranty.

Statement no.2. Acceptance by the buyer does not as a general rule release the seller
from liability for breach of warranty.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

5. A enters into a contract of sale with B respecting 2 immovables for P20,000 the
boundaries are mentioned and the area is 20,000 sq. meters.

Statement no.1. The seller shall suffer a proportionate reduction in price if the area
delivered is less than the area specified in the contract even though the boundaries were
followed.
Statement no.2. The seller shall also be entitled to a proportionate increase in price if the
area exceeds the number specified in the contract.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.
 6. S sells his piece of land to B for P100,000. Consequently, another contract was entered
into between the parties whereby B leases the land to S.

Statement no.1. This contract shall be construed as an equitable mortgage.

Statement no.2. This contract is a contract of sale with leaseback.

A. Statement no.1 is true, statement no.2 is false.

B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

7. A sold his piece of land to B last Nov. 10, 2017.

Statement no.1. S shall repurchase the land within 4 years from date of sale.
Statement no.2. S shall have within 10 years from date of sale or repurchase the land so
long as the period of repurchase shall not exceed 10 years.

A. Statement no.1 is true, statement no.2 is false.

B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

8. A, B, and C are co-owners of rural land with an area of 9 hectares. A sold his undivided
interest to X who does not own rural land.

Statement no.1. B & C cannot legally redeem because the sale was not an absolute sale.
Statement no.2. B & C as co-owners can legally redeem for the purpose of reducing the
number of co-ownership.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true.
D. Both statements are false.

9. Statement no.1. Conventional redemption is a privilege.

Statement no.2. Legal redemption is a right granted by law.
A. Statement no.1 is true, statement no.2 is false.
B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true.
D. Both statements are false.

10. A sold his piece of land to B with a right of repurchase when A has sold his car.

Statement no.1. A can repurchase within 4 years from date of sale.

Statement no.2. A can repurchase within 4 years from the sale of his car.

A. Statement no.1 is true, statement no.2 is false.

B. Statement no.2 is true, statement no.1 is false.
C. Both statements are true. D. Both statements are false.

II. TRUE OR FALSE

11._________ The agent must finish the business already begun on the death of the principal,
should delay entail any danger.

2
12. ________ In case a person declines an agency, he is not bound to observe the diligence of a
good father of a family in the custody and preservation of the goods forwarded to him by the
owner until the latter should appoint an agent to take charge of the goods.

13. _________ Should there be a stipulation that the agent shall advance the necessary funds,
he shall not be bound to do so when the principal is insolvent.

14. _________ In default of principal’s instructions, the agent shall do what a good father of a
family would do as required by the nature of the business.

15. ________ If there being a conflict between the agent’s interests and those of the principal,
the agent is justified to prefer his own interest and not be liable for damages.

16. ________ The agent may appoint a substitute if the principal has not prohibited him from
doing so and he shall be responsible for the acts of the substitute when he was not given the
power to appoint one;

17. _______ The agent owes interest on the sums he has applied to his own use from the day on
which he did so, and on those which he still owes after the extinguishment of the agency.

18. _______ The agent who acts as such is not personally liable to the party with whom he
contracts when he expressly binds himself.

19. _______ If the agent contracts in the name of the principal, exceeding the scope of his
authority, the principal may ratify the contract.

20. ______ If a duly authorized agent acts in accordance with the orders of the principal, the
principal can set up the ignorance of the agent as to circumstances whereof he ought to have
been aware.

ENUMERATION

21 – 23 What are the essential elements of sale?

14 – 25 What are the kinds of sale according to general classifications?

IF YOU ACCEPTED THE LORD JESUS CHRIST IN YOUR HEART TODAY, PLESE WRITE
THE FOLLOWING INFORMATION AT THE END OF YOUR QUIZ ANSWER:

FULL NAME
CELPHONE NO.
ADDRESS
So we can pray for you and you can share your prayer request or seek advice. Rest
assured that your personal info. Will treated as confidential and not for public
consumption. Thank you and God bless. Atty. DC Gonzales