RFBT- LAW ON SALES

Pre-test

1. The following are the essential elements or the requisites of the contract of sales, except
a. Consent of the contracting parties as to determining thing and price certain in money or
its equivalent
b. Subject matter which should be determinate thing
c. Price certain in money or its equivalent
d. Delivery of the subject matter
2. The following are the natural elements of the contract of sale, except
a. Warranty against eviction
b. Warranty against hidden defects
c. Warranty against non-apparent and unregistered servitude or encumbrance
d. Warranty against sale’s talk
3. LA Lakers entered into a contract with Nike Inc to provide two pairs of basketball shoes for Kobe
Bryant and Andrew Bynum. No pair was, however, available at the time of perfection of the
contract. Kobe wears 10” basketball shoes which Nike normally manufactures for the general
market while Andrew wears 20” basketball shoes which will be manufactures specially for Andrew.
What contract are entered into by the parties?
a. Both contracts of sale
b. Both contracts for piece of work
c. Contract of sale for Kobe’s shoes and contract for a piece of work for Andrew’s shoes
d. Contract of sale for Andrew’s shoes and contract for a piece of work for Kobe’s shoes
4. In sale, the cause or consideration is in money whole in barter, the cause or consideration is
another thing. However, where the consideration is partly in money and partly in another thing the
following are the rules to be observed, except
a. The contract shall be one of sale or barter depending upon the manifest intention of the
parties.
b. If the intention of the parties does not clearly appear, the contract is one of barter if the
value of the other thing given as part of the consideration exceeds the monetary
considerations.
c. If the intention of the parties does not clearly appear, the contract is one of sale if the
monetary consideration is more than the value of the other thing given as part of the
consideration.
d. If the intention of the parties does not clearly appear, the contract is one of barter if the
monetary consideration is equal to the value of the other things given as part of the
consideration.
5. A and B entered into a contract whereby A will deliver his laptop to B while the latter will deliver
P10,000 and a cellphone with a value of P10,000 to A. What is the name of the contract if the
intention of the parties does not clearly appear?
a. Contract of Barter
b. Contract of Agency
c. Contract of Sale
d. Contract of Pledge
6. On January 1, 2012, S sold to B a specific car owned by X for P50,000. S promised to deliver the car
to B on January 11,2012. Is the contract of sale between S and B valid?
a. No because there is no delivery of the car on January 1,2012 which is an essential
requisites of a contract of sale.
b. No because the seller or vendor shall be the owner of the thing sold at the time of
perfection of contract.
c. Yes even if X is not the owner of the thing sold on January 11,2012 because future thing
can be the object of a contract of sale.
 d. Yes because the vendor need not possess the title to the thing sold at the perfection of the
contract but he must have the right to transfer the ownership of the thing at the time that
the thing is to be delivered.
7. On January 1,2012, D borrowed from C P100,000 and a security D mortgaged his land to C. On
January 2,2012, D sold the same land to X for P50,000 o be delivered in January 5,2012. D failed to
pay the loan. IS the contract of sale between D and X valid?
a. No because D is no longer the owner of the land on January 2,2012
b. No because D is no longer the owner of the land on January 5,2012
c. Yes because D is still the owner of the land although it was mortgaged to C.
d. Yes provided will pay the amount due to C.
8. Future things having a potential existence be the object pf a contract of sale. However, the thing
must come into existence; otherwise, the sale will not be effective for not having a subject matter.
The following future things can be object of a contract of sale, except
a. Wine that a determinate vineyard is expected to produce
b. Milk that a specific female cow may yield during the coming year
c. Next catch of a specific fisherman’s net.
d. Future inheritance of an heir
9. S sold a lottery ticket No. 143 to B on January 2,2012. The draw was already made on January
1,2012 and ticket No.132 did not win. Is the contract of sale between S and B valid?
a. Yes because it involves emptiospei or sale of mere hope.
b. No because the sale of vain hope or expectancy is void.
c. No even if the ticket is considered collector’s item.
d. Yes because the essential elements of contract of sale is present.
10. S is the sole owner of a condominium unit. S sells ½ undivided interest therein to B. Is the contract of
sale valid?
a. No because the object of a contract of sale must be determinate.
b. No because the object of a contract of sale must be whole interest.
c. Yes the sole owner of a thing may sell an undivided interest therein and such sale produce
the effect of making the seller and the buyer co-owners of the thing sold.
d. Yes provided that the condominium unit shall be physically divided.
11. S sells B 200 sacks of rice from a mass stored in the warehouse of S. The mass, however, actually
consist of 300 sacks of rice. Which of the following statements is correct?
a. The sale is null and void because the object is not determinate.
b. The sale is valid provided B will pay the excess 100 sacks of corn.
c. The sale is valid, this. S and B will become co-owners of the whole mass to the extent of 2/3
for B and 1/3 for S.
d. The sale is null and void because there is no consent.
12. S sells to B 300 sacks of yellow corn from a mass stored in the warehouse of S. The mass, however,
actually consists of 280 sacks of yellow corn. Which of the following statements is correct?
a. The sale is null and void because there is no consent.
b. The sale is null and void because there is no determinate object.
c. B becomes the owner of all the 280 sacks and S is bound to deliver additional 20 sacks.
d. B becomes the owner of all the 280 sacks and S is not bound to deliver the additional 20
sacks.
13. The following contracts of sale have prices which are certain and therefore valid. Except
a. S sold to b a specific watch for P2,500 which both parties agreed upon.
b. S sold to B a certain ring of which the price is the salary of the faculty member of La Salle
School.
c. S sold to B a specific car the price of which is subject to determination of X, third person.
d. S sold to B 500 shares of ordinary stocks of BPI at the price equivalent to the closing price of
the ALI’s ordinary shares on April 30,2020 at the Philippines Stock Exchange.
14. S sold to B a specific good. The price of the good cannot be determined. The good has been
delivered to and appropriated by B. What is the obligation of B?
a. B has no obligation because the contract of sale is null and void having no price.
 b. B has no obligation because the contract of sale is inefficacious because the price of the
good cannot be determined.
c. B has the obligation to rescind the contract.
d. B has the obligation to pay a reasonable price which depends on the circumstances of
each particular case.
15. X and Y are good friends. X sold and delivered his car to Y. It was agreed and understood that on
next Sunday X will name and fix the price of the car. Sunday came, X called Y by telephone and
stated and fixed the price at P150,000. Is the contract of sale perfected?
a. No because the purchase price is not yet paid.
b. No because the title is not registered to the buyer.
c. Yes because the car has already been delivered to Y.
d. No because the price of the sale was left to the discretion of one of the parties, that is, the
seller, and it was not consented by the buyer.
16. S promised to sell his car to B for P100,000 giving B one week to decide whether to buy or not. B
accepts the promise and gives a consideration of P1,000 for the one week period. If B decides to
buy the car, how much should B pay to S?
a. P100,000 because the P1,000 is an earnest money.
b. P99,000 because the P1,000 is an option money.
c. P100,000 because the P1,000 is an option money.
d. P99,000 because the P1,000 is an earnest money.
17. B purchased the car of S for P100,000 payable within 30 days from the date of sale. As a
downpayment, G gives S P1,000 upon the execution of their agreement. How much should B pay to
S on the 30th day?
a. P100,000 because the P1,000 is an earnest money.
b. P99,000 because the P1,000 is an option money.
c. P100,000 because the P1,000 is an option money.
d. P99,000 because the P1,000 is and earnest money.
18. When shall the buyer or vendee acquire personal rights over the fruits of the object of a contract of
sale?
a. From the time the object should be delivered.
b. From the time of the perfection of the contract of sale.
c. From the time of the payment of purchase price.
d. From the time of the delivery of the object of the contract of sale.
19. On January 1,2012, Seller and Buyer entered into a contract of sale of a specific cow. The purchase
price shall be paid on January 5,2012 and the cow shall be delivered in January 10,2012. The cow
gives birth on January 4,2012. The cow and its young have been delivered on January 11,2012. Which
of the following statements is correct?
a. The buyer has real right over the cow and its young on January 1,2012.
b. The buyer has personal right over the young on January 10,2012.
c. The buyer has personal right over the young on January 5,2012.
d. The buyer has personal right over the young on January 1,2012 and real right over the cow
and its young on January 11,2012.
20. S sold his only car to B for P100,000 payable in 10 equal monthly installments of P10,000 each, As
security, B executed a chattel mortgage on the car. What is the remedy of S if B fails to pay one
installment?
a. Exact fulfillment of the obligation with recovery for deficiency.
b. Cancel the sale.
c. Foreclose the chattel mortgage on the thing sold, of one has been constituted without right
to recover any deficiency.
d. Any of the above.
21. Using the same date in number 63, if buyer B defaulted in at least two installments after payment of
several installments, may the seller cancel the contract of sale?
a. Yes and the buyer is still required to pay the price.
b. Yes and the seller may still recover the unpaid price.
 c. Yes and the buyer must return the thing to the seller and the seller must generally return the
installments already received minus reasonable rent.
d. Yes and the buyer and seller cannot agree to the forfeiture of installment already received
even if such agreement is not unconscionable.
22. Using the same date in number 63 and assuming B fails to pay two or more installments, can S
foreclose the chattel mortgage on the car and recover any deficiency from the foeclosure?
a. Yes S can foreclose the chattel mortgage but cannot recover any deficiency even if there
is stipulation for the recovery?
b. No S cannot foreclose the chattel mortgage and cannot recover any deficiency.
c. YesS can foreclose the chattel mortgage and can recover any deficiency even without
stipulation for the recover.
d. YesS can foreclose the chattel mortgage and can recover any deficiency only if there
stipulation for the recovery.
23. Using the same date in number 63 and assuming the foreclosure of the chattel mortgage results to
excess, who shall be entitles to the excess?
a. Buyer in the absence of contrary stipulation
b. Seller in the absence of contrary stipulation
c. Government
d. Neither Buyer or Seller
24. Using the same date in number 63 and assuming B fails to pay two or more installment; can S ask for
the exact fulfillment of the obligation and recover any deficiency from the sale by execution?
a. No S cannot ask for the fulfillment of the contract of sale because it is available only when
one installment is not paid.
b. Yes S can ask for the fulfillment of the contract of sale but cannot recover any deficiency
from the sale by execution under any circumstances.
c. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from
the sale by execution even without stipulation.
d. Yes S can ask for the fulfilment of the contract of sale and can recover any deficiency from
the sale only if there is stipulation.
25. Using the same date in number 63 and assuming B fails to pay two or more installments; can S ask for
the exact fulfillment of the obligation and recover any deficiency from the sale by execution through
the foreclosure of chattel mortgage on the car?
a. No S cannot ask for the fulfillment of the contract of sale because it is available only when
one installment is not paid.
b. Yes S can ask for the fulfillment of the contract of sale but cannot recover any deficiency
from the sale by execution under any circumstances.
c. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from
the sale by execution only but not further through foreclose of chattel mortgage because
these are alternative remedies.
d. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from
the sale only if there is stipulation.
26. Using the same date in number 63 except from the fact that the chattel mortgage was executed
over the piano of B and not over his car. S foreclosed the mortgage over the piano and there is
deficiency. Can S recover the deficiency?
a. Yes provided there is stipulation to that effect.
b. Yes even without stipulation to that effect.
c. No because that will be contrary to law.
d. No even without stipulation to that effect.
27. A sold a residential house and lot at an installment price of P6,000,000 payable in 50 years at P10,000
per month to B. After payment of total installments amounting P180,000, B defaulted in the next
installment. What is the grace period earned by B to pay he defaulted installments without additional
interest?
a. 60 days
b. 30 days
 c. 90 days
d. 45 days
28. A sold a residential house and low at an installment price of P6,000,000 payable in 50 years at P10,000
per month to B. After payment of total installments amounting to P120,000, B defaulted on the next
installment. After following the necessary procedures required by law, the contract of sale is properly
cancelled. How much cash surrender value is B entitled from A?
a. P60,000
b. P90,000
c. P30,000
d. P0
29. S a capacitated, sold to B, a minor, a chicken joy. May S demand from B the payment of the
purchase price?
a. No because the contract of sale is voidable since B is an incapacitated person.
b. Yes because even the contract of sale is voidable ideally, the subject matter, food is a
necessary.
c. No because the contract of sale is void.
30. As a general rule, what is the status of the contract of sale between a husband and wife?
a. Voidable because they are suffering from absolute incapacity/
b. Null and void because they are suffering from relative incapacity.
c. Rescissible if there is lesion.
d. Unenforceable if it is not in writing
31. S and B entered into a contract of sale of a specific coconut. S and B pointed over that particular
coconut. What type of constructive delivery is present?
a. Traditiosimbolica or calvium
b. Traditio longa manu
c. Traditiobrevimanu
d. Traditioconstitutumpossessorium
32. S and B entered into a contract of sale of a specific watch. They executed a public instrument over
the sale. What type of constructive delivery is present?
a. Traditiosimbolica or clavium
b. Traditio longa manu
c. Traditiobrevimanu
d. Traditio by legal formalities
33. On January 1, S delivered an electronic calculator to B under a sale or return arrangement. S gave
B up to May 7 to return the electronic calculator. Before May 7, the calculator was destroyed by fire.
Should B pay for the purchase price?
a. No because B is not yet the owner of the calculator.
b. No because the calculator is destroyed through fortuitous event.
c. Yes because B becomes the owner of the calculator upon delivery.
d. Yes if the fires is due to the fault of B.
34. Using the same date in preceding number except the face that the arrangement is a sale on trial or
approval, should B pay the purchase price?
a. No even if the fire is due to the fault of B.
b. Yes even if B signifies his approval before the fire.
c. No if B does not signify his approval before the fire because B is not yet the owner.
d. Yes because B becomes the owner of the calculator upon delivery.
35. S stole the ring of O and sol the same ring to B for P500 who does not have any knowledge that the
ring was stolen. Which of the following statements is correct?
a. B acquires title to the ring if he is a purchaser in good faith.
b. O cannot recover the ring from B if he will not reimburse B for P500.
c. O can recover the ring from B even if he will not reimburse B for P500.
d. B will acquire title to the ting if he will no be prosecuted.
36. Using the same data in preceding number but assuming B was able to purchase the stolen ring at a
public sale in good faith for P1,000. Which statements is correct?
 a. O cannot recover the ring from B even he is willing to reimburse B for P1,000.
b. O can recover the ring from B but he must reimburse B for P1,000
c. B cannot obtain good title from the goods even if he is in good faith.
d. B will have better right than O in any instances.
37. Using the same data in preceding number and suppose the ring found its way in a jewelry store and
it was from that jewelry store that B bought the ring in good faith. Which of the following statements
is true?
a. O can recover the ring from B upon payment of purchase price.
b. B does not acquire title over the ring because it was stolen.
c. B acquires title to the ring because the purchase is made from a merchant’s store, fair or
market.
d. O has better title over the ring as against B.
38. Lebron is the registered owner of a vacant lot. Kevin stole the certificate of title of the registered lot
of Lebron and through connivance with a notary public, he was able to execute a notarized deed
of sale through forging the signature of Lebron. With connivance with a Registry of Deeds, Kevin was
able to transfer the title of the lot to his name. Afterwards, Kevin sold the said lot to Carmelo who
acquired the said lot after inspecting the title and the vacant lot. Carmelo is a purchaser in good
faith and for value. Which of the following statements is correct?
a. The contract of sale between Kevin and Carmelo is void because it is the product of a
previous void contract.
b. Lebron can recover the land from Carmelo because the title acquired by Carmelo is that
of a thief even without reimbursing Carmelo.
c. Lebron can recover the land from Carmelo provided he will reimburse him for the price
Carmelo paid.
d. Lebron cannot recover the land from Carmelo because a forged document of deed of
sale, case of registered lot, can be a root of a valid title if the title is already in the hand of
a purchaser for value and in good faith.
39. Manny, a Filipino, sold his private land to Ippo, a Japanese national. The contract of sale has already
been executed. Which of the following statements is correct?
a. The contract of sale is void because it is violative of Constitutional provision against
ownership of private land by foreigners. Therefore, Manny cannot ask for declaration of
nullity because of principle of pari delicto.
b. The contract of sale is unenforceable because it is violative of Constitutional provision
against ownership of private land by foreigners.
c. Ownership of the land will transfer to Ippo and the contracts can no longer be avoided
since the contract is already executed.
d. Manny can still recover the land by filing an action for declaration of nullity because the
principle of pari delicto is not applicable in the case since it will frustrate the state policy to
reserve the land to Filipinos.
40. Naruto, a Filipino, sold his private land to Hinata, a Japanese national. Afterwards, Hinata sold the
said private land to Kakashi, a Filipino. Which of the following statements is correct?
a. Both contracts of sale are subject to declaration of nullity because they are violative of
Constitutional provision against ownership of private land by foreigners.
b. Both contract of sale are unenforceable because they are violative of Constitutional
provision against ownership of private land by foreigners.
c. Ownership of the land will transfer to Kakashi and the contracts cannot be avoided since
the land is finally with a Filipino.
d. The second contract of sale is void because it is the product of the first contract of sale.
41. S, a minor of 17 years, sold his watch for P1,500.00 to B, 30 years old. The guardian of S was not aware
of the sale; hence, no action for annulment has yet been field. Subsequently, B sold the watch to T,
who acquired it in good faith. Which of the following statements is correct?
a. T acquires no title to the watch because the seller’s title is voidable.
b. T acquires good title to the watch even if he buys it in bad faith.
 c. T acquires good title to the watch even if the voidable title of the seller has been avoided
before the time of sale as long as T acquires the watch in good faith, for value and without
notice of seller’s defect of title.
d. T acquires good title to the watch even if the seller’s title is voidable provided the same has
not been avoided at the time of sale and T acquires the watch in good faith, for value and
without notice of seller’s defect of title.
42. In case of double sale of personal property, who among the buyers shall be preferred?
a. Person who first took possession, actually or constructively, of the properly in good faith.
b. Person who has oldest title.
c. Person who has the latest title.
d. Person who first registered the property in good faith.
43. S sold his ring to B who told S that he would obtain delivery of the ring after 3 days. Before the third
day, S sold the same ring to X who immediately took physical possession of the ring. X was not aware
of the previous sale to B. Who has a better right over the ring?
a. B because he has the older title.
b. B because X has not registered the ring in good faith.
c. X because he first took possession of the ring in good faith.
d. X even if he took possession of the ring in good faith.
44. S sold his watch to B in a public document. However, B informed S that he would obtain actual
delivery of the watch after 3 days. The day after the same to B, S sold the same watch to X in a
private document and X immediately took possession of the watch. X was not aware of the same
to B. Who has a better right over the watch?
a. B because he has the older title.
b. B because he first took constructive possession of the watch in good faith.
c. X because he first took actual possession of the watch in good faith.
d. X because X has not registered the watch in good faith.
45. In case of double sale of registered or titled immovable property, who among the buyers shall be
preferred?
a. Person who in good faith first registered the sale.
b. Person who first took possession in good faith.
c. Person who presents the oldest title in good faith.
d. Person who has the latest title.
46. On May 1, S sold his registered/titled lot to X. The deed of sale was in a private instrument. On May
3, S sold the same lot to Y in a public instrument. On May 5, S sold again the said lot to Z in a public
instrument. Z immediately registered the sale with Register of Deeds on May 5. X took actual
possession of the lot on May 6. X, Y and Z were not aware of the sale made to others. Who among
the buyers has the better right?
a. X because he first tool actual possession in good faith.
b. X because he has the oldest title in good faith.
c. Y because he first took constructive possession in good faith.
d. Z because he is the first registrant in good faith.
47. Using the same data in number 158 but assuming Z is in bad faith, who has the better right?
a. Z because he is the first registrant in bad faith.
b. X because he first took actual possession in good faith.
c. X because he has the oldest title in good faith.
d. Y because he first look constructive possession in good faith.
48. Using the same data in number 158 but assuming Z and Y are in bad faith, whi has the better right?
a. Z because he is the first registrant in bad faith.
b. X because he has the oldest title in good faith.
c. Y because he first took constructive possession in bad faith.
49. Where no warranty against eviction has been agreed upon or there was no stipulation exempting
the vendor from liability and the vendor acted in bad faith, to what extend shall the vendor acted
in bad faith, to what extent shall the vendor be liable to the vendee in case of eviction?
I. Value of the things at the time eviction.
II. Income of fruits of the thing.
III. Cost of suit by eviction.
IV. Expenses of the contract if the vendee has paid them.
V. Damages, interests and ornamental expenses.
a. I, II, and III
b. I, II, III and IV
c. II, III, IV and V
d. I, II, III, IV and V
50. Where no warranty against eviction has been agreed upon or there was no stipulation exempting
the vendor from liability and the vendor acted in good faith, to what extend shall the vendor be
liable to rh vendee in case of eviction?
I. Value of the things at the time eviction.
II. Income of fruits of the thing.
III. Cost of suit by eviction.
IV. Expenses of the contract if the vendee has paid them.
V. Damages, interests and ornamental expenses.
a. I, II and III
b. I, II, III and IV
c. II, III, IV and V
d. I, II, III, IV and V