_1.

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. *
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a. Barter
b. Sales
c. Partnership
d. Agency
 
___2. S sold his only cat to B. Before delivery and payment, the cat gave birth to
a kitten. *
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a. B should pay the fair market value of the kitten.
b. S is entitled to the fruit as he is the owner.
c. B is entitled to the kitten which was born after the perfection of the sale.
 
d. S is entitled to the fruit because it was born before delivery.
 
___3. The essential elements of a contract of sale are the following, except: *
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a. Consent or meeting of the minds
b. Determinate subject matter
c. Written contract
 
d. Price certain in money or its equivalent
 
___4. The stages of a contract of sale are the following, except: *
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a. Negotiation
b. Counter-offer
 
c. Perfection
d. Consummation
 
___5. S offered in writing to sell his house and lot for P1,000,000 to B on January
20, 2017. B requested to give him one month to raise the amount. On January 25,
2017, S informed B that he has raised price to P1,200,000. Can B compel S to
accept the payment to 1,000,000 for the sale of the house and lot? *
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a. No, because the seller can unilaterally fix the selling price.
b. Yes, because the original offer is binding on S.
c. No, because there is as yet no perfected sale.
d. Yes, because of the principle of mutuality of contract.
 
 
___6. Is manifested by the meeting of the offer and the acceptance upon the thing
and the cause which are to constitute the agreement. *
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a. Determinate subject matter
b. Consent or meeting of the minds
 
c. Policitacion
d. Price certain in money or its equivalent
 
___7. A sold to B orally a parcel of land for P300,000. Delivery and payment
were to be made after six months. When the said date arrived, A refused to
deliver the land. Can B compel A to deliver? *
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a. Yes, because the sale has been perfected.
b. Yes, because there was an agreement.
c. No, because the sale although valid is unenforceable.
 
d. No, because the sale is void.
 
___8. Is a continuing offer or contract by which the owner stipulates with another
that the latter shall have the right to buy the property at a fixed price within a
certain time, or under, or in compliance with, certain terms and conditions, or
which gives the owner of the property the right to sell or demand a sale. *
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a. Option
 
b. Earnest
c. Absolute
d. Conditional
 
___9. It is also sometimes called an “unaccepted offer.” *
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a. Option
 
b. Earnest
c. Absolute
d. Conditional
 
___10.It is not a sale of property but a sale of the right to purchase. *
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a. Option
 
b. Earnest
c. Absolute
d. Conditional
 
___11. It is simply a contract by which the owner of property agrees with another
person that he shall have the right to buy his property at a fixed price within a
certain time. *
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a. Option
b. Earnest
c. Absolute
d. Conditional
 
 
___12. Until acceptance, it is not, properly speaking, a contract, and does not vest
transfer, or agree to transfer, any title to, or any interest or right in the subject
matter, but is merely a contract by which the owner of property gives the
optionee the right or privilege of accepting the offer and buying the property on
certain terms. *
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a. Option
b. Earnest
c. Absolute
d. Conditional
 
 
___13. What is the test in determining whether it is a “contract of sale or a mere
option”? *
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a. Whether or not the agreement is valid
b. Whether or not the agreement could be specifically enforced
 
c. Whether or not the agreement is not rescissible
d. Whether or not the agreement is covered by Statute of Frauds
 
___14. It shall be considered as part of the price and as proof of the perfection of
the contract. *
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a. Option money
b. Initial payment
c. Down payment
d. Earnest money
 
 
___15. It constitutes an advance payment and must, therefore, be deducted from
the total price. *
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a. Option money
b. Initial payment
c. Down payment
d. Earnest money
 
 
___16. Is given by the buyer to the seller to bind the bargain. *
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a. Option money
b. Initial payment
c. Down payment
d. Earnest money
 
 
___17. A special mode of payment where the debtor offers another thing to the
creditor who accepts it as equivalent of payment of an outstanding debt. *
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a. Application of payment
b. Cession in payment
c. Dation in payment
 
d. Tender of payment and consignation
 
___18. In order that there be a valid dation in payment, the following are the
requisites, except: *
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a. There must be the performance of the prestation in lieu of payment which may
consist in the delivery of a corporeal thing or a real right or a credit against the
third person
b. There must be some difference between the prestation due and that which is
given in substitution
c. There must be an agreement between the creditor and debtor that the
obligation is immediately extinguished by reason of the performance of a
prestation different from that due
d. There must be performance of the obligation which is based on the liberality
of the first party
 
 
___19. Sale of a thing with potential existence. *
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a. Emptio rei speratae
 
b. Emptio spei
c. Sale of a present thing
d. Void sale
 
___20. Sale of a mere hope or expectancy that the thing will come to existence.
Sale of the hope itself. *
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a. Emptio rei speratae
b. Emptio spei
 
c. Sale of a future thing
d. Unenforceable sale
 
___21. 1. There may be a contract of sale of goods, whose acquisition by the
seller depends upon a contingency which may or may not happen. 11. The sole
owner of a thing may sell an undivided interest therein. *
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a. only 1 is true
b. only 11 is true
 
c. both are true
d. both are false
 
___22. 1. In the case of fungible goods, there may be a sale of an undivided share
of a specific mass, though the seller purports to sell and the buyer to buy a
definite number, weight or measure of the goods in the mass, and though the
number, weight or measure of the goods in the mass is undetermined. 11. Things
subject to a resolutory condition may be the object of the contract of sale. *
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a. Only 1 is true
b. Only 11 is true
c. both are true
 
d. both are false
 
___23. 1. In contract of sale, the buyer receives the goods as owner. 11. In agency
to sell, the agent receives the goods as goods of the principal who retains his
ownership over them. *
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a. Only 1 is true
b. Only 11 is true
c. both are true
 
d. both are false
 
24. 1. If the thing is specially done at the order of another, this is a contract of
sale. 11. If the thing is manufactured or procured for the general market in the
ordinary course of one’s business, it is a contract for a piece of work. *
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a. Only 1 is true
 
b. Only 11 is true
c. both are true
d. both are false
 
25. 1. If the consideration of the contract consists partly in money, and partly in
another thing, the transaction shall be absolutely barter. 11. In order that the price
may be considered certain, it shall be sufficient that it be so with reference to
another thing certain, or that the determination thereof be left to the judgment of a
special person or persons. *
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a. Only 1 is true
b. Only 11 is true
c. both are true
 
d. both are false
Part II
12 of 25 points
 
___1. The requisites of a valid price are the following, except: *
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a. It is not simulated
b. It is certain
c. In money or an equivalent thing
 
d. Manner of payment must be agreed upon
 
___2. I. The mere inadequacy of the price does not affect its validity when both
parties are in a position to form an independent judgment concerning the
transaction. II. Mere alleged inadequacy of the price does not necessarily void a
contract of sale, although the inadequacy may indicate that there was a defect in
the consent, or that the parties really intended a donation, mortgage, or some
other act or contract. *
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a. Only I is true
b. Only II is true
c. both are true
 
d. both are false
 
___3. I. If the price is simulated, the sale is voidable, but the act may be shown to
have been in reality a donation, or some other act or contract. II. If the real price
is not stated in the contract, then the contract of sale is valid but subject to
reformation. *
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a. Only I is true
b. Only II is true
c. both are true
d. both are false
 
 
___4. I. It is the act of payment of price that determines the validity of a contract
of sale. II. Payment of the price affects the perfection of the contract. *
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a. Only I is true
b. Only II is true
c. both are true
d. both are false
 
 
___5. I. The manner of payment of the purchase price is an essential element
before a valid and binding contract of sale can exist. II. Agreement on the manner
of payment goes into the price such that a disagreement on the manner of
payment is tantamount to a failure to agree on the price., *
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a. Only I is true
b. Only II is true
c. both are true
 
d. both are false
 
___6. I. An agreement on the price but a disagreement on the manner of its
payment will not result in consent, thus, preventing the existence of a valid
contract for lack of cause or consideration. II. One of the three essential requisites
of a valid contract is consent of the parties on the object and cause of the contract.
In a contract of sale, the parties must agree not only on the price, but also on the
manner of payment of the price. *
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a. Only I is true
b. Only II is true
c. both are true
 
d. both are false
 
___7. I. The price of securities, grain, liquids, and other things shall also be
considered certain, when the price fixed is that which the thing sold would have
on a definite day, or in a particular exchange or market, or when an amount is
fixed above or below the price on such day, or in such exchange or market,
provided said amount be certain. II. The fixing of the price can be left to the
discretion one of the contracting parties. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___8. I. If the thing or any part thereof has been delivered to and appropriated by
the buyer, he must pay based on the market value. II. In general, a perfected
contract of sale can be challenged on the ground of the seller’s non-ownership of
the thing sold at the time of the perfection of the contract. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___9. I. In a contract of sale, the non-payment of the price is a suspensive
condition which extinguishes the transaction that, for a time existed, and
discharges the obligations created thereunder. II. The ownership of the thing sold
shall not be transferred to the vendee upon the actual or constructive delivery
thereof. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___10. I. The parties in the contract of sale may stipulate that ownership in the
thing shall not pass to the purchaser until he has fully paid the price. II. Payment
of the purchase price is essential to the transfer of ownership as long as the
property sold has been delivered *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___11. A bilateral contract whereby the prospective seller, while expressly
reserving the ownership of the subject property despite delivery thereof to the
prospective buyer, binds himself to sell the said property exclusively to the
prospective buyer upon fulfillment of the condition agreed upon, that is, full
payment of the purchase price. *
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a. Absolute sale
b. Conditional sale
c. contract to sell
 
d. agency to sell
 
___12. I. In a conditional contract of sale, the first element of consent is present,
although it is conditioned upon the happening of a contingent event which may or
may not occur. II. In a contract to sell, upon the fulfillment of the suspensive
condition which is the full payment of the purchase price, ownership will not
automatically transfer to the buyer although the property may have been
previously delivered to him. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___13. A contract by virtue of which A, in consideration of the payment of a
certain sum to B, acquires the privilege of buying from, or selling to, B certain
properties within a limited time at a specified price. *
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a. Contract of sale
b. Contract to sell
c. option contract
 
d. conditional sale
 
___14. It is simply a contract by which the owner of property agrees with another
person that he shall have the right to buy his property at a fixed price within a
certain time. *
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a. Contract of sale
b. Contract to sell
c. option contract
 
d. conditional sale
 
___15. An option is also sometime called: *
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a. Unaccepted offer
 
b. Accepted bid
c. unaccepted bid
d. accepted offer
 
___16. I. For an option contract to be valid and enforceable against the promissor,
there must be a separate and distinct consideration that supports it. II. “An
accepted unilateral promise” can only have a binding effect if supported by a
consideration, which means that the option can still be withdrawn even if
accepted, if the same is not supported by any consideration. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___17. I. The consideration contemplated to support an option must only be
monetary. II. Without consideration that is separate and distinct from the
purchase price, an option contract cannot be enforced. *
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a. Only I is true
b. Only II is true
c. both are true
 
d. both are false
 
___18. When a small quantity is exhibited by the seller as a fair specimen of the
bulk, which is not present there is no opportunity to inspect or examine the
same. *
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a. Sale or return
b. Sale on approval
c. sale by sample
 
d. sale by description
 
___19. Where “a seller sells things as being of a particular kind, the buyer not
knowing whether the seller’s representations are true or false, but relying on them
as true; or as otherwise stated, where the buyer has not seen the article sold and
relies on the description given to him by the seller, or has seen the goods, but the
want of identity is not apparent on inspection.” *
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a. Sale or return
b. Sale on approval
c. sale by sample
 
d. sale by description
 
___20. I. Whether a sale is by sample or description depends upon the facts
disclosing the intention of the parties. II. A seller’s description of the goods
which is made part of the basis of the transaction creates a warranty that the
goods will conform to that description. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___21. A deposit paid by a prospective buyer to show a good-faith intention to
complete the transaction, and ordinarily forfeited if the buyer defaults. *
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a. Option money
b. Earnest money
 
c. consideration
d. bid price
 
___22. I. There must first be a perfected contract of sale before we can speak of
earnest money. II. Earnest money applies to a perfected sale. *
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a. Only I is true
 
b. Only II is true
c. both are true
d. both are false
 
___23. Under the Statute of Frauds, the following contract of sale must be in
writing to be enforceable, except: *
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a. Sale of real property
b. Sale of personal property at a price not less than P500
c. sale of property not to be performed within a year from the date thereof
 
d. sale of an interest in a partnership
 
___24. In a contract of sale of personal property, the price of which is payable in
installments, the vendor may exercise any of the following remedies, except: *
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a. Exact fulfillment of the obligation, should the vendee fail to pay.
b. Cancel the sale, should the vendee’s failure to pay cover any installment.
 
c. Cancel the sale, should the vendee’s failure to pay cover two or more
installments.
d. Foreclose the chattel mortgage on the thing sold, if one has been constituted,
should the vendee’s failure to pay cover two or more installments.
 
___25. I. The expenses for the execution and registration of the sale shall be
borne by the vendor, unless there is a stipulation to the contrary. II. The seller of
movables in installments, in case the buyer fails to pay two or more installments
may elect to pursue either of the following remedies: (1) exact fulfillment by the
purchaser of the obligation; (2) cancel the sale; or (3) foreclose the mortgage on
the purchased property if one was constituted thereon. It is now settled that the
said remedies are cumulative and not alternative. *
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a. Only I is true
b. Only II is true
c. both are true
 
d. both are false