Test I: Multiple Choice (20pts)

_B_ __1. S orally offered to sell a certain diamond ring to B for 50,000.00 B accepted the offer
and to prove that he was in earnest, he gave S 1000.00. The parties agreed that the delivery of the
ring and payment of the price would be made 30 days later. On due date:
a. S may collect from B 50,000.00
b. S may collect from B 49,000.00
c. S cannot enforce payment because the contract was not reduced in to writing.
d. S cannot enforce payment because there was no contract of sale yet.

__C___2. On June 1, 2015, S sold to B 50 units of machine which were scheduled to arrive from
Japan, the following day on board the vessel “MT Nippon Maru”. The sale was evidenced by an
invoice, identifying each machine by serial number. Each machine was priced at 10,000.
Unknown to the parties, 30 units were damaged beyond repair by seawater on May 31, 2015.
Based on the foregoing, which of the following statements is incorrect?
a. B may rescind the whole contract.
b. B may demand delivery of the remaining 20 units and pay the price thereof.
c. S may require payment of the whole shipment from B since S was not aware of the damage
caused on the machines at the time of sale.
d. S has no option to rescind the whole contract or require payment of the remaining 20 units.

__B___3. A contract whereby one of the contracting parties obligates himself to transfer the
ownership of and to deliver a determinate thing and the other to pay therefore a price certain in
money or its equivalent is a contract of:
a. Barter
b. Sale
c. Dacion en pago
d. mortgage