BUSINESS LAW: SALES MCQ REVIEWER

1. 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 therefor a price certain in money or its
equivalent is a contract of:
a. Barter
b. Sales
c. Dacion en pago
d. Mortgage
2. The following are the essential elements of a contract of sale, except:
a. Consent of the contracting parties
b. Subject matter which should be determinate
c. Price which is certain in money or its equivalent
d. Warranty against eviction and against hidden defects
3. One of the following characteristics of dacion en pago is also a characteristic of a contract of sale.
Which is it?
a. There is a pre-existing credit
b. Obligations are extinguished
c. There is less freedom in fixing the price
d. Ownership of the object is transferred to the other party
4. The following are characteristics of a contract of sale except for one which refers to payment by
cession. Which characteristics refers to payment by cession?
a. There is no pre-existing credit
b. The cause or consideration is the price
c. There is more freedom in fixing the price
d. Assignee of the property acquires the right to sell the thing but not the ownership thereof
5. The following are the characteristics of a contract of sale, exept:
a. Principal, which means that a contract of sale can stand by itself
b. Real, which requires the delivery of the object of the contract of sale for its perfection
c. Onerous, where rights are acquired in exchange of a valuable consideration
d. Bilateral, which means that both parties are bound reciprocally to each other
6. A sum of money paid, or a thing delivered upon the making of a contract for the sale of goods, to
bind the bargain, the delivery and acceptance of which makes the final assent of both parties to
the contract.
a. Option money
b. Earnest money
c. Reservation money
d. Down payment
7. Delivery of incorporeal property may be made through any of the following means, except:
a. Execution of a public instrument
b. Placing the titles of ownership in the possession of the vendee
c. Use by the vendee of his rights, with the debtor’s consent
d. Execution of the private property
8. Three of the following are the requisites in order that an unpaid seller may exercise his right of
stoppage of transitu. Which is not?
a. The seller is unpaid
b. The seller has not parted with the possession of the goods
 c. The goods are in transit
d. The buyer is or becomes insolvent
9. This refers to an encumbrance imposed upon an immovable for the benefit of another immovable
belonging to a different owner.
a. Easement or servitude
b. Real estate mortagage
c. Pledge
d. Chattel mortgage
10. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in:
a. Sale on approval
b. Sale or return
c. Sale on trial
d. Contract to sell