Direction: Read and Select The Best Answer For The Following Questions

Direction: Read and select the best answer for the following questions.
1. It is a contract whereby one of the contracting parties, known as the seller or vendor, obligates himself
to transfer the ownership of and to deliver a determinate thing, and the other party, known as the
buyer or vendee, obligates himself to pay therefore a price certain in money or its equivalent.
a. Contract of Sales
b. Contract of Agency
c. Contract of Partnership
d. Contract of Pledge
2. The following are the essential elements or the requisites of the contract of sale, except
a. Consent of the contracting parties as to determinate thing and price certain in money or its
equivalent
b. Subject matter which should be a determinate thing
c. Price certain in money or its equivalent
d. Delivery of the subject matter
3. 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 merchantability
e. Warranty against sale’s talk
4. The following are only considered accidental elements in the contract of sale, except
a. Place of delivery and payment
b. Time of delivery and payment
c. Terms or conditions of payment
d. Price certain in money or its equivalent
5. The following are the characteristics of a contract of sale, except

a. Principal – It can exist by itself without being dependent upon another contract.
b. Bilateral – Both the contracting parties have obligations to perform.
c. Reciprocal – The cause of the other party is the object of the other party and vice versa.
d. Onerous – Valuable considerations are given by both parties to acquire rights.
e. Commutative – The parties exchange almost equivalent values.
f. Nominate – It has special name given to it by law.
g. Real – It is perfected by delivery of the subject matter.
6. The following are distinctions between sale and dacion en pago, except
a. In sale, there is no pre-existing credit, while in dacion en pago, there is pre-existing credit.
b. A sale creates obligations while dacion en pago extinguishes obligations.
c. In sale, there is greater freedom in fixing the price, while in dacion en pago, there is less
freedom in fixing the price because of the amount of the pre-existing credit which the parties
seek to extinguish.
d. In sale, the cause or consideration is the price from the seller’s point of view, and the delivery
of the object from the buyer’s viewpoint, in dacion en pago, the cause or consideration is the
extinguishment of the obligation, from the debtor’s point of view and the delivery of the
object given in place of the credit, from the creditor’s point of view.
e. A contract of sale is an onerous transfer while dation en pago is considered a gratuitous
transfer.
7. What is the similarity between contract of sale and dacion en pago?

a. The law that governs them
b. The cause of obligation
c. The object of obligation
d. All of the above.
8. The following are the distinctions between sale and payment by cession, except
a. In sale, there is no pre-existing credit while in payment by cession, there are pre-existing
credits.
b. A sale creates obligations while payment by cession extinguishes obligations.
c. In sale, the cause or consideration is the price from the seller’s point of view, and the delivery
of the object, from the buyer’s point of view while in payment by cession, the cause or
consideration is the extinguishment of the obligation from the debtor’s point of view and the
assignment of the things to be sold from the creditor’s point of view.
d. In sale, there is greater freedom in fixing the price while in payment by cession there is less
freedom in fixing the price because of the fixed amount of the pre-existing credits which the
parties seek to extinguish,
e. In sale, the buyer becomes the owners of the property sold to them while in payment by
cession, the creditors do not become the owners of the property assigned to them but are
merely given the right to sell such property and apply the proceeds to their claims.
f. Contract of sale is governed by FRIA of 2010 while cession is governed by Law on Sales.
9. What is the name of the contract if it is for the delivery at a certain price of an article which the vendor
in the ordinary course of business, manufactures or procures for the general market, whether the same
is on hand or not?
a. Contract for a piece of work
b. Contract of pledge
c. Contract of sale
d. Contract of deposit
10. What is the name of the contract of the goods are to be manufactured especially for the customer upon
his special order and not for the general market?
a. Contract for a piece of work
b. Contract of pledge
c. Contract of sale
d. Contract of deposit
11. 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
contracts. Kobe wears 10” basketball shoes which Nike normally manufactures for the general market
while Andrew wears 20” basketball shoes which will be manufactured specially for Andrew. What
contracts are entered into by the parties?
a. Both contracts of sale
b. Both contracts for a 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
12. In sale, the cause or consideration is in money while in barter, the cause or consideration is another
thing. However, where the consideration is partly in money and partly in another money, the
following are the rules to be observed, except
a. The contract shall be one of the 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 thing given as part of the consideration exceeds the monetary consideration.
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 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 thing given as part of the consideration.
13. 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
14. The following are the distinctions between contract of sale and contract to sell, except
a. In contract of sale, ownership passes to the buyer upon delivery while in contract to sell, the
title to the goods does not pass to the buyer until some future time and oftentimes upon
payment of the price.
b. In contract of sale, the risk of loss or damage to the goods upon the delivery is on the buyer,
under the rule “res perit domino”, or the thing perished with the owner, while in contract to
sell, the risk is borne by the seller based on the same principle that the thing perishes with the
owner.
c. In contract of sale, the non-payment of the price is a resolutory condition while in contract to
sell, the payment in full of the price is a suspensive condition.
d. The rule on the double sale applies to contract to sell while contracts of sale are not covered
by rule on double sale.
15. The following are the distinctions between contract of sale and agency to sell, except
a. In sale, ownership passes to the buyer, while in agency to sell, ownership is retained by the
principal.
b. In sale, the buyer pays the seller, while in agency to sell, the buyer pays the agent and the
latter transmits the money to the principal.
c. In sale, the goods are delivered by the seller to the buyer while in agency to sell, it is the
agent who delivers the goods to the final consumer.
d. Contract of sale is never covered by statute of fraud while agency to sell is always covered by
statute of fraud.
16. The following are the requisites of the object of a contract of sale, except
a. It must be within the commerce of men.
b. It must be not contrary to law, morals, good customs, public order or public policy.
c. It must be determinate.
d. It must be owned by the vendor at the time of perfection of contract of sale
17. The object of a contract of sale must be determinate or specific otherwise there is no sale. When is the
thing considered determinate?
a. When it is particularly designated or physically segregated from all others of the same class
at the time the contract is entered into without the necessity of a new or further agreement
between the parties.
b. When it is particularly designated or physically segregated from all others of the same class
at the time the contract is entered into with the necessity of a new or further agreement
c. When it is particularly designated or physically segregated from all others of the same class
at the time the goods are to be delivered into without the necessity of a new or further
agreement between the parties.
d. When it is particularly designated or physically segregated from all others of the same class
at the time the contract is entered into with the necessity of a new or further agreement
18. 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. S bought the car from X on January 10, 2012 and delivered it 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 10, 2012 which is an essential requisite
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.
19. On January 1, 2012, D borrowed from c P100,000 and as a security D mortgaged his land to C. On
January 2, 2012, D sold the same land to X for P50,000 to be delivered on 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 D will pay the amount due to C.
20. Future things or things having a potential existence may be the object of 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 the 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
21. The following are the distinctions between emtio rei speratae and emptio spei, except
a. Emptio rei speratae is a sale of hope or expectancy while emptio spei is the sale of future
thing.
b. In emptio rei speratae the thing expected will definitely come into existence, but its quality or
quantity unknown; while in emptio spei it is not certain that the thing will exist much less its
quantity or quality.
c. Emptio rei speratae is subject to the condition that the thing should exist, so that if it does not,
there will be no contract of sale by reason of the absence of an essential element – subject
matter while in emptio spei produces effects even though the thing does not come into
existence because the subject matter is the hope itself.
d. Sale of future harvest is emptio rei speratae while sale of lottery ticket No. 113 is emptio spei.
22. In case of doubt whether the contract of sale is one of emptio rei speratae or one of emptio spei, how
shall the contract be generally interpreted to?
a. Emptio rei speratae
b. Emptio spei
c. Both A and B
d. Neither A nor B
23. In emptio rei speratae or sale of future things or things having potential existence, what is the effect to
the contract of sale if the said subject matter does not come into existence?
a. The contract becomes ineffective or void for want of subject matter.
b. The seller will never be liable for damages.
c. The contract becomes unenforceable
d. The contract remains to be perfectly valid.
24. S sold a lottery ticket No. 143 to B on January 2, 2012. The draw was already made on January 1,
2012 and the ticket No. 143 did not win. Is the contract of sale between S and B valid?
a. Yes because it involves emptio spei 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 the contract of sale are present.
25. The following goods may become the subject matter of a contract of sale, except
a. Existing goods owned or possessed by the seller.
b. Goods to be manufactured, raised or acquired by the seller after the perfection of the contract
of sale or “future goods”.
c. Goods whose acquisition by the seller depends upon the contingency which may or may not
happen.
d. Vain hope / expectancy or future inheritance.
e. Things subject to the resolutory condition or resolutory period.
26. 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 interests
c. Yes the sole owner of the thing may sell an undivided interest therein and such sale shall
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.
27. There may be sale of an undivided share of a specific mass of fungible goods though the seller
purports to sell and the buyer imports 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. Which of
the following rules is correct?
I. If the quantity, number, weight or measure, of the mass is more than the quantity sold, the parties
shall become co-owners of the mass.
II. If the quantity of the mass is less than the quantity sold, the buyer becomes the owner of the
whole mass, with the seller being bound to make good the deficiency from the goods of the same
kind and quality, unless a contrary intent appears.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
28. S sells to B 200 sacks of rice from a mass stored I the warehouse of S. The mass, however, actually
consist of 300 sacks of tice. 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 for the excess 100 sacks of corn.
c. The sale is valid, thus, 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.
29. 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 additional 20 sacks.
30. It is the sum stipulated as the equivalent of the thing sold, and also every incident taken into
consideration for the fixing of the same, put to the debit of the vendee, and agreed to by him. It is the
cause of contract of sale on the part of the seller.
a. Loan
b. Price
c. Debt
d. Money
31. The following are the requisites of the price in a contract of sale, except
a. It must be certain.
b. It must be real.
c. It must have possible equivalent in money.
d. It must be fictitious.
32. The price of the thing sold must be certain, otherwise, the sale is void by reason of the absence of
meeting of minds between the parties. The following are the instances when the price is certain,
except
a. If the parties have agreed upon a definite amount for the sale.
b. If it be certain with reference to another thing certain.
c. If the determination of the price is left to the judgment of a specified person or persons.
d. If the price is fixed by the court.
e. If 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 is certain.
f. If the price is fixed by one of the contracting parties and not accepted by the other.
33. 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 Philippine Stock Exchange.
34. When may the court fix the price of the contract of sale if the determination of the price is left to the
judgment of a third person?
a. If the third person is unable or unwilling to fix the price.
b. If the third person acted in bad faith or by mistake.
c. If the third person or persons are prevented from fixing the price or terms by the fault of the
buyer or seller.
35. What is the effect to the contract of sale if the determination of the price is left to the judgment of a
third person as such person is unable or unwilling to fix the price?
a. The contract of sale is voidable.
b. The contract of sale is valid and binding.
c. The contract of sale is inefficacious unless the parties subsequently agree upon the price.
d. The contract of sale is rescissible.
36. What is the effect to the contract of sale if the determination of the price is left to the judgment of a
third person where such third person or persons are prevented from fixing the price or terms by fault
of the seller or the buyer?
a. The contract is voidable
b. The contract is unenforceable
c. The party not in fault may have such remedies against the party in fault as are allowed the
seller or the buyer, as the case may be such as filing an action for damages.
d. The contract is rescissible
37. S sold to B a specific good. The price of the good cannot be determined. The good has 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.
38. What is the effect of gross inadequacy of price in a contract of sale?

a. It renders the contract of sale null and void.
b. It renders the contract of sale unenforceable.
c. It does not affect a contract of sale, except as it may indicate a defect in the consent which
makes the contract voidable or except as it may indicate that the intention is another contract.
d. It does not affect a contract of sale even if the parties really intended a donation or some other
act or contract.
39. What is the effect of simulated price in a contract of sale?

a. It renders the contract of sale null and void.
b. It renders the contract of sale voidable.
c. It renders the contract of sale rescissible.
d. It renders the contract of sale unenforceable.
e. It renders the contract of sale as a valid donation even if the requirements of donations or
other agreements are not complied with.
40. When is a contract of sale perfected?

a. Upon delivery of the object of a contract of sale
b. At the moment there is a meeting of minds upon the determinate thing which is the object of
the contract and upon the price certain money or its equivalent.
c. Upon payment of the purchase price.
d. Upon the transfer of ownership or title.
41. 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 sale was left to the discretion of one of the parties, that is, the seller,
and it was not consented by the buyer.
42. Which of the following contracts of sale is null and void?
a. Executory oral sale of real property or any interest therein regardless of the price.
b. Executory oral sale of goods, chattels or things in action the price of which is P500 or more.
c. Sale of a piece of land by the agent in the name of the principal wherein his authority is not in
writing.
d. Sale of a piece of land by a third person in the name of owner but who has not been given any
authority.
43. When is a contract of sale by auction perfected?

a. When the highest bidder gives his bid.
b. When the auction things has been delivered to the buyer.
c. When the auctioneer announces its perfection by the fall of the hammer or in any other
manner.
d. When the bid price has been paid.
44. The following are the rights of the parties in an auction sale, except
a. Before perfection, any bidder may retract his bid.
b. Before perfection, the auctioneer may generally withdraw the goods from the sale unless the
auction has been announced without reservation by auctioneer.
c. After perfection, the winning bidder can retract his bid.
d. After perfection, the auctioneer cannot withdraw the goods.
45. The seller may bid at the auction provided the following requisites are present, except
a. The right to bid must have been reserved expressly by or on behalf of the seller.
b. The right to bid must not be prohibited by law or stipulation.
c. Notice must be given that the sale is subject to a right to bid by or on behalf of the seller.
d. The bid of the seller must be lowest.
46. By bidders of puffers refer to persons employed by the seller to bid in his behalf, the purpose of which
is to raise the price, but the said persons are not in themselves bound by their bids. What is the effect
of employment by the seller of by-bidders or puffers without notice to the other bidders in a perfected
contract of sale by auction?
a. The sale may be considered voidable.
b. The sale is considered null and void.
c. The sale is unenforceable.
d. The sale is rescissible.
47. When is the ownership or title of the thing sold transferred from the seller to the buyer?
a. Upon the perfection of contract of sale.
b. Upon payment of the purchase price.
c. Upon actual or constructive delivery of the thing sold.
d. Upon execution of private instrument or private deed of sale.
48. May the parties agree that full payment of the price will be the act that transfers ownership in a
contract of sale?
a. No because it is contrary to Law on Sales.
b. Yes by reason of liberality of contract.
c. No because it will be unfair to the buyer.
d. Yes but only if there is approval by the court.
49. Which of the following statements concerning bilateral and unilateral promise to buy and/or sell is
incorrect?
a. Bilateral promise takes place when one party promises to buy and the other party promises to
sell a determinate thing at an agreed price.
b. Bilateral promise is reciprocally demandable since this is as good as a perfected contract of
sale.
c. Unilateral promise not accepted by the promissee (policitacion) does not produce any effect.
d. Unilateral promise accepted by the promissee is binding upon the promissor even if it is not
supported by a consideration distinct from the price.
50. It refers to the money given as part of the purchase price and as a proof of perfection of the contract of
sale.
a. Option money
b. Earnest money or Arras
c. Perfect money
d. Component money
51. It refers to the consideration paid for the purpose of holding one to his promise to buy or sell a
determinate thing for a certain period of time, which consideration is separate and distinct from the
purchase price.
a. Option money
b. Earnest money or Arras
c. Perfect money
d. Component money
52. 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.
53. B purchased the car of S for P100,000 payable within 30 days from the date of sale. As a down
payment, B 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. P9,000 because the P1,000 is an earnest money.
54. 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.
55. 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 on 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 the 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.
56. The seller has the duty to preserve the thing after the perfection of contract of sale but before its
delivery. What standard of care should be observed by the seller to preserve the object of contract of
sale?
a. Diligence of a good father of a family or ordinary diligence unless the law or the stipulation
of the parties requires another standard of care.
b. Diligence of a father of a good family unless the law or the stipulation of the parties requires
another standard of care.
c. Extraordinary diligence of a good father of a family unless the law or the stipulation of the
parties requires another standard of care.
d. Extraordinary diligence of a father of a good family unless the law or the stipulation of the
parties requires another standard of care.
57. What is the effect of the complete loss of the object of the contract of sale before the perfection of the
contract of sale or complete loss of the object of contract of sale at the exact amount of perfection of
contract of sale?
a. The seller shall always bear the risks of the loss.
b. The buyer shall pay the purchase price.
c. The buyer shall be liable for the damages.
d. The sale is void or inexistent because the absence of the object.
58. What shall be the remedy of the buyer in case of the partial loss of the object of the contract of sale at
the time of the perfection of the contract of sale?
I. Withdrawal from the contract or rescission.
II. Demanding the remaining part and paying its proportionate price.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
59. After the perfection of the contract of sale, who shall bear the risk of loss of the object of the contract
of sale before the delivery?
a. Buyer because any benefit therefrom during the same period inures to him.
b. Seller because any benefit therefrom during the same period inures to him.
c. Buyer because the ownership of the goods is transferred to the buyer after the perfection of
the contract of sale.
d. Seller because goods remain at the seller’s risk until the ownership of the goods is transferred
to the buyer by actual or constructive delivery.
60. The following are the exceptional instances wherein the goods are at the buyer’s risk notwithstanding
that the ownership is retained by the seller, except
a. If there is an agreement that the buyer shall suffer the risk of loss despite the retention by the
seller of ownership.
b. If ownership of the goods is retained by the seller merely to secure the performance by the
buyer of his obligation under the contract.
c. When actual delivery has been delayed through the fault of the buyer.
d. When there is actual or constructive delivery to the buyer.
61. What is the remedy of the buyer if the goods delivered do not correspond with the sample, description
or sale and description in a sale by sample, sale by description or sale by sample and description?
a. Ask for annulment of contract.
b. Ask for rescission of the contract of sale.
c. Ask for collection of a sum of money.
d. Ask for declaration of nullity of the contract of sale.
62. What contracts are covered by Recto Law?

a. Installment sales of personal property
b. Contract purporting to be leases of personal property with option to buy
c. Either A or B
d. Neither A nor B
63. The following are the alternative remedies (selection of one remedy excludes the other remedies) of
vendor on (1) installment sales of personal property (Recto Law), or (2) contracts purporting to be
leases of personal property with no option to buy, when the lessor has deprived the lessee of the
possession or enjoyment of the thing, except
a. Exact fulfillment of the obligation with the recovery of deficiency, should the vendee or
lessee fail to pay any installment.
b. Cancel the sale or lease should the vendee or lessee fails to pay two or more installments.
c. Foreclose the chattel mortgage on the thing sold, if one has been constituted without right to
recover any deficiency should the vendee fails to pay two or more installments.
d. Action for quanti minoris.
64. S sold his only car to B fir 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, if one has been constituted without right to
recover any deficiency.
d. Foreclose the chattel mortgage on the thing sold, if one has been constituted with right to
recover any deficiency.
65. Using the same data in number 64, if buyer B defaulted in at least two installment after payment of
several installments, what is the effect by the cancellation of the contract of sale by the seller?
a. The buyer is still required to pay the price.
b. The seller may still recover the unpaid price.
c. The buyer must return the thing to the seller and the seller must generally return the
installments already received minus reasonable rent.
d. The buyer and seller cannot agree to the forfeiture of installment already received even if
such agreement is not unconscionable.
66. Using the same data in number 64 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 foreclosure?
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. Yes S can foreclose the chattel mortgage and can recover any deficiency even without
d. Yes S can foreclose the chattel mortgage and can recover any deficiency only if there
67. Using the same data in number 64 and assuming the foreclosure of the chattel mortgage results to
excess, who shall be entitled 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
68. Using the same data in number 64 and assuming B fails to pay two or more installments; can S cancel
the contract of sale?
a. No S cannot cancel the contract of sale.
b. Yes S can cancel the contract of sale but he shall return the installments already received
even without stipulation.
c. Yes S can cancel the contract of sale but he shall return the installments already received
minus reasonable rent.
d. Yes S can cancel the contract of sale and he can retain the installments already received if
there is stipulation that installments received shall not be returned even if that stipulation in
unconscionable.
69. Using the same data in number 64 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?
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.
70. Using the same data in number 64 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
d. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from
71. Using the same data in number 64 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.
72. S sold his ring to B for P50,000 under the following terms: down payment of P30,000 and the balance
payable at month end. As security, B executed a chattel mortgage on the ring. B defaulted in the
payment of the balance. By reason thereof, S foreclosed the chattel mortgage on the ring. However,
only P15,000 was realized in the foreclosure sale. Can S still proceed against B to collect the
deficiency of P5,000?
a. No because Recto Law prohibits recovery of deficiency.
b. Yes if deficiency has been agreed upon contrary to Recto Law.
c. Yes because Recto Law does not apply to sale on straight term and the general rule is that if
the foreclosure sale in chattel mortgage results in deficiency, the same may be recovered by
the creditor.
d. No because recovery of deficiency is only available in execution sale.
73. Sale of real property in installments governed by RA 6552 or Maceda law covers the following,
except
a. Sale of residential property
b. Sale of residential condominium
c. Sale of residential apartments
d. Sale of industrial lots, commercial buildings and sales to tenants under RA 3844
74. Under Maceda Law, the following are the rights of a buyer of residential real property in installments
when he has paid installments of less than 2 years but defaulted in the succeeding installments,
except
a. Right to a grace period of not less than 60 days from the date the installment became due with
no interest.
b. Right to additional 30 days but with interest, after the expiration of the 60-day grace period,
before the seller can cancel the contract by notarial act.
c. Right to sell or assign his rights provided under letter A and B.
d. Right to reinstate the contract by updating the account during the grace period and before
actual cancellation of the contract.
e. Right to pay in advance any installment or the full unpaid balance of the purchase price any
time without interest and to have such full payment of the purchase price annotated in the
certificate of title covering the property.
f. Right to receive the cash surrender value of the payments on the property equivalent to 50%
of the payments made in case the contract is properly cancelled by the seller.
75. Under Maceda Law, which of the following statements concerning the rights of a buyer if residential
real property in installments who has paid at least 2 years installments but defaulted in succeeding
installments is incorrect?
a. He has the right to pay, without additional interest, the unpaid installments due within the
total grace period earned by him which is hereby fixed at the rate of one month grace period
for every one year of installment payments made.
b. He can exercise the right to pay within the grace period allowed by law only once in every 5
years of the life of the contract and its extensions, if any.
c. If the contract is canceled, the buyer shall have the right to the cash surrender value of the
payments on the property equivalent to fifty percent of the total payments made, and, after
five years of installments, an additional five percent every year but not to exceed ninety
percent of the total payments made.
d. The actual cancellation or the demand for rescission of the contract by a notarial act and upon
full payment of the cash surrender value to the buyer.
e. The buyer has the right to suspend payment of any installment at any time.
76. 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 to P180,000, B defaulted on the next
installment. What is the grace period earned by B to pay the defaulted installments without additional
interest?
a. 60 days
b. 30 days
c. 90 days
d. 45 days
interest?
a. 60 days
b. 120 days
c. 90 days
d. 150 days
interest?
a. 60 days
b. 120 days
c. 180 days
d. 150 days
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
80. A sold a residential house and lot at an installment price of P6,000,000 payable in 50years at P10,000
a. P60,000
b. P90,000
c. P120,000
d. P30,000
a. P60,000
b. P90,000
c. P120,000
d. P180,000
per month to B. After payment of total installments amounting to P1,200,000, B defaulted on the next
a. P900,000
b. P840,000
c. P960,000
d. P1,020,000
per month to B. After payment of total installments amounting to P3,000,000, B defaulted on the next
installment. After following the necessary procedures required by law, the contract of sale is
a. P2,900,000
b. P2,700,000
c. P2,850,000
d. P2,500,000
84. Under PD 957 also known as Subdivision and Condominium buyer’s Protective Decree, who shall
pay the Real estate tax and assessment on the lot or unit being developed before the passage of title to
buyer?
a. Developer or owner of the project subject to reimbursement by thy buyer.
b. Owner or developer without recourse to the buyer.
c. Buyer of the unit.
d. Developer and buyer equally.
85. Under PD 957, which of the following statements is correct when the buyer, after due notice to the
owner or developer, desists from further payment due to the failure of the owner or developer to
develop the subdivision or condominium project according to the approved plans and within the time
limit for complying with the same?
a. The installment already paid by the buyer shall be forfeited in favor of the owner or
developer.
b. The buyer may ask for the reimbursement of the total amount paid including amortization
interests but excluding delinquency interests, with interest thereon at the legal rate.
c. The buyer has no right to ask for the reimbursement already paid.
d. The seller can automatically cancel the contract of sale because of the non-payment.
86. Under PD 957, the owner or developer shall deliver the title of the lot or unit to the buyer upon full
payment of the lot or unit. What fee can be collected by the owner/developer from the buyer?
a. Only those required for the registration of the deed of sale in the Registry of Deeds.
b. All expenses of the contract of sale.
c. Expenses of the contract of sale and real property taxes during the pendency of payment.
87. PD 957 also known as Subdivision and Condominium buyer's Protective Decree provides for the
following protection of the buyers, except
a. No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit.
Fees to finance services for common comfort, security and sanitation may be collected only by a
properly organized homeowners association and only with the consent of a majority of the lot or
unit buyers actually residing in the subdivision or condominium project.
b. The owner or developer cannot deny any person free access to any government office or public
establishment located within the subdivision or which may be reached only by passing through'
the subdivision.
c. The owner or developer of a subdivision without access to any existing public road or street
must secure a right of way to a public road or street and such right of way must be developed
and maintained according to the requirement of the government and authorities concerned.
d. The owner or developer of a subdivision project or condominium project shall initiate the
organization of a homeowners association among the buyers and residents of the projects for the
purpose of promoting and protecting their mutual interest and assist in their community
development.
e. The owner or developer has the obligation to pay the real property taxes on the subdivision and
condominium sold even after the transfer of ownership to the buyers.
88. As a general rule, all those who may oblige themselves may enter into a contract of sale. What is the
status of a contract of sale entered into by persons having absolute incapacity such as minors, insane
or demented persons and deaf mutes who do not know how to write with-a capacitated person?
a. Voidable
b. Rescissible
c. Unenforceable
d. Null and void
89. What is the status of a contract of sale entered into by persons, having absolute incapacity such as
minors, insane or demented persons and deaf mutes who do not know how to write with another
incapacitated person?
a. Voidable
b. Rescissible
c. Unenforceable
d. Null and void
90. S, a capacitated person, 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
necessary.
c. Yes even the price is unreasonable.
d. No because the contract of sale is void.
91. As a general rule, what is the status of the contract of sale between 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.
92. As an exception to the general rule, when may the husband and wife validly sell property to each
other?
a. When an absolute separation of property was agreed upon in the marriage settlements.
b. When there has been a judicial separation of property under the Family Code.
c. Either A or B.
d. Neither A nor B.
93. Without the consent of the husband, the wife sold their car, a conjugal/community property to a third
person. What is the status of the contract of sale?
a. It is unenforceable subject to ratification.
b. It is voidable because of vitiation of consent.
c. It is rescissible because of lesion to the husband.
d. It is null and void because of lack of consent of husband but the contract constitutes a
continuing offer to the husband.
94. A and B are legally married and governed by property regime of absolute separation. A sold in
writing his specific car at a price of P10,000 to B after the latter pointed a gun to A. What is the status
of contract of sale?
a. Voidable
b. Void
c. Unenforceable
d. Rescissible
95. The following persons are prohibited from acquiring by purchase, even, at public or judicial auction,
sales in legal redemption, compromise or renunciation, except
a. The guardian, the property of the person or persons under his guardianship.
b. Agents, the property whose administration or sale may have been entrusted to them, unless
the consent of the principal has been given.
c. Executors and administrators, the property of the state under their administration.
d. Public officers and employees, the property of the state or GOCC under their administration.
e. Justices, judges, prosecuting attorneys, clerks of court and other officers and employees
connected with the administration of justice, the property and rights in litigation.
f. Wife, the exclusive or capital property of his husband if there is judicial separation of
property.
96. The following are the obligations of the vendor in a contract of sale, except
a. To transfer the ownership of the thing sold at the time of the perfection of the contract of sale.
b. To deliver the determinate thing sold including the accessions and accessories in the
condition in which they were upon the perfection of the contract.
c. To warrant the thing sold against eviction and hidden defects and unregistered encumbrances.
d. To take care of the thing sold with the diligence of a good father of a family or ordinary
diligence unless the law or the stipulation of the parties requires another standard of care.
97. It is a mode of acquiring ownership whereby the object of the contract is placed in the control and
possession of the vendee, either actually or constructively.
a. Delivery
b. Payment of purchase price
c. Perfection of contract
d. Execution of document
98. The following are the examples of constructive deliveries.

a. Tradition by legal formalites – When the same is made through a public document, the
execution thereof shall be equivalent to the delivery of the thing sold. It applies to both
movable and immovable property.
b. Symbolic delivery (Traditio simbolica or Traditio clavium) – This is delivery that takes
place by delivering the keys of the place or depository where the movable is stored or kept.
c. Traditio longa manu – It is the delivery of a movable by mere consent or agreement of the
parties if the thing cannot be transferred to the possession of the vendee at the time of sale.
d. Traditio brevi manu – It is a delivery that takes place when the vendee is already in the
possession of the thing sold even before the sale and thereafter continues in possession
thereof in the concept of an owner. It applies to movables only.
e. Traditio constitutum possessorium – It is a delivery that takes place when the vendor
continues in possession of the thing sold after the sale but in another capacity such as that of a
lessee or depositary. It applies to both movable and immovable property.
99. S and B entered into a contract of sale of a specific coconut. S and B pointed over the particular
coconut. What type of constructive delivery is present?
a. Traditio simbolica or clavium
b. Traditio longa manu
c. Traditio brevi manu
d. Traditio constitutum possessorium
100. 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. Traditio simnolica or clavium
d. Tradito by legal formalities
101. S and B entered into a contract of sale of a specific car. S delivered the key of the car to B. What
type of constructive delivery is present?
d. Traditio by legal formalities
102. B rented the specific truck of S. After the end of the contract, S sold the property to B. As a result of
sale, B continues to have possession of the property. What type of constructive delivery is present?
d. Traditio constitutum possessorium
103. S sold his house and lot to B. After the sale, B leaseback the property to S. What type of constructive
delivery is present?
d. Traditio consitutum possessorium
104. Intangible assets or incorporeal property cannot be the subject of actual or physical delivery. The
following are the different modes of constructive delivery of incorporeal property or intangible
assets, except
a. By constructive traditio such as execution of the public document.
b. By placing the titles or intangible of ownership in the possession of the vendee such as
delivering the stock certificate covering the shares of stock sold.
c. Through the use by the vendee of his rights with the consent of the vendor such as when the
seller authorizes the buyer of shares of stock to vote during the stockholder’s meeting.
d. Through pledging of the shares of stocks by the pledger to the pledgee.
105. In a sale or return, when is the ownership of the goods transferred to the buyer?
a. Upon payment of purchase price.
b. Upon delivery of the goods.
c. Upon approval by the buyer.
d. Upon return of the goods to the seller.
106. In sale on trial/approval, the ownership of the goods is transferred to the buyer under any of the
following instances, except
a. When the buyer signifies his approval or acceptance of the goods.
b. When the buyer does an act adopting the transaction.
c. When the buyer does not signify his approval or acceptance of the goods but retains the
goods without giving notice of rejection within the time fixed in the contract or within
reasonable time, and such time has expired.
d. When the goods are delivered to the buyer.
107. 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 fire is due to the fault of B.
108. Using the same data in preceding number except the fact 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.
109. When the goods are already delivered to the carrier or other bailee for purpose of transmission to the
buyer, who owns the goods after the receipt by the carrier or other bailee as a general rule?
a. Buyer
b. Seller
c. Carrier
d. Other bailee
110. The following are the exceptional instances wherein the ownership of goods is retained by the seller
despite delivery to carrier or bailee for purpose of transmission to the buyer, except
a. When there is stipulation that ownership is retained by the seller despite delivery to the
carrier or bailee.
b. When by the terms of the bill of lading, the goods are to be delivered to the seller or his agent
or to the order of the seller or his agent.
c. When by the terms of the bill of lading, the goods are to be delivered to the order of the buyer
or his agent but the bill of lading is retained by the seller or his agent.
d. When the seller draws on the buyer a bill of exchange for the price of the goods and transmits
the bill of exchange and the bill of lading to the buyer to secure acceptance or payment of the
bill of exchange, but the buyer dishonors such bill of exchange.
e. When the bill of lading is negotiated to a purchaser for value in good faith.
111. When the goods are sold and delivered by a person who is not the owner thereof, what title is
acquired by the buyer as a general rule?
a. He acquires no better title that the seller had.
b. He acquires a perfectly valid title.
c. He acquires a voidable title.
d. He acquires a rescissible title.
112. The following are the exceptional instances when a non-owner seller may transfer title to the buyer,
except
a. When the sale is made with authority or consent of the owner.
b. When the owner is precluded by his conduct from denying the seller’s authority to sell.
c. When the sale is made under the provisions of any factor’s acts, recording laws or any other
provisions of law enabling the apparent owner to dispose of the goods as if he were the true
owner thereof.
d. When the sale is made under a statutory power of sale or under the order of court of
competent jurisdiction.
e. When the purchase is made in a merchant’s store, or in fairs, or markets.
f. When the sale of personal property is made by a thief or robber to a purchaser in good faith
and for value.
113. S stole the ring of O and sold 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 ring if he will not be prosecuted
114. 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 Pl,000. Which statements is correct?
a. O cannot recover the ring from B even he is willing to reimburse B for Pl,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.
115. 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.
116. 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 or deed of sale, in
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.
117. 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.
118. 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 contracts 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.
119. S, a minor of 17 years, sold his watch for Pl,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 filed. 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.
120. The following are the rules on the place of delivery of the goods in a contract of sale, except
a. Place stipulated in the contract.
b. In case there is no stipulation as to the place of delivery, place fixed by usage or trade.
c. In the absence of a and b, the seller’s place of business if he has one; if none, the seller’s
place of residence.
d. In the case of specific goods, the place where the goods are located at the time of perfection
of contract of sale.
e. In the absence of a and b, the buyer’s place of business if he has one; if none, the buyer’s
place of residence.
121. In case the time for the delivery of goods is not stipulated, what is the time for its delivery?
a. At the end of the month.
b. At the end of the year.
c. At the end of the day.
d. Within reasonable time from the execution of the contract.
122. In the absence of stipulation to the contrary, who shall bear the expenses of delivery and incidental
expenses to putting the goods into a deliverable state?
a. Buyer and Seller equally
a. I only b. Seller
b. II only
c. Neither I nor II
c. Buyer
d. Either I or II d. Government
123. As a general rule, the seller shall deliver the thing sold upon perfection of contract
of sale. The following are the instances when a vendor is not bound to deliver the thing sold after the
perfection of the contract of sale, except
a. If the vendee/buyer has not paid him the price.
b. If no period for payment of the price has been fixed in the contract.
c. If the vendee/buyer loses the right to make use of the period such as becoming insolvent.
d. If a period has been fixed for the payment of the price.
124. What are the rights of the buyer when the quantity or quality of goods delivered from that which the
seller contracted to sell?
I. Reject the goods.
II. Accept the goods and pay the contract of the delivered goods.
a. I only
b. II only
c. Either I or II
d. Neither I or II
125. When the quantity delivered is more than that which the parties agreed upon, the following are the
rights of the buyer, except
a. Accept the goods agreed upon and reject the rest.
b. Accept the whole of the goods delivered and pay for them at the contract rate.
c. Reject the whole of the goods if they are indivisible
d. Reject the whole of the goods if they are divisible
126. When the seller delivers the goods agreed upon but are mixed with goods of different description,
what are the rights of the buyer?
I. Accept the goods agreed upon and reject the rest, if the sale is divisible.
II. Reject the whole of the goods, if the sale is indivisible.
a. I only
b. II only
c. Neither I nor II
d. Either I or II
127. He is one who has not been paid or tendered the whole of the price or who has received a bill of
exchange or other negotiable instruments as conditional payment and the condition under which it
was received has been broken by reason of the dishonor of the instrument, the insolvency of the
buyer, or otherwise. It includes an agent of the seller to whom the bill of lading has been indorsed, or
a consignor or agent who has himself paid, or is directly responsible for the price, or any other
person who is in the position of a seller.
a. Unpaid seller
b. Unsatisfied buyer
c. Satisfied seller
d. Satisfied buyer
128. The following are the rights of the unpaid seller, except
a. Possessory lien, or a lien on the goods or right to retain the goods while he is in possession of
them.
b. Right of stoppage in transitu.
c. Right of resale.
d. Right to rescind the sale.
e. Right to declare the sale null and void.
129. The following are the grounds for the exercise by the unpaid seller of his possessory lien or right to
retain the goods, except
a. Where the goods have been sold without any stipulation as to credit.
b. Where the goods are perishable in nature.
c. Where the goods have been sold on credit, but the credit term has expired.
d. Where the buyer is insolvent.
130. The unpaid seller loses his right to possessory lien on the goods in the following cases or these are
the instances when the unpaid seller can no longer exercise his right to retain the goods, except
a. When the seller obtains judgment or decree for the price of the goods.
b. When the seller delivers the goods to a carrier or other bailee for the purpose of transmission
to the buyer without reserving the ownership in the goods or the right to the possession
thereof.
c. When the buyer or his agent lawfully obtains possession of the goods.
d. By waiver of the possessory lien.
131. It refers to the right of the unpaid seller to resume possession of the goods at any time while they are
in transit, and he will them become entitled to the goods as he would have had if he had never parted
with the possession. This right is available after the unpaid seller has parted with the possession of
the goods and the buyer is or becomes insolvent. .
a. Possessory lien, or a lien on the goods or right to retain them while he is in possession of
them.
b. Right of stoppage in transitu.
c. Right of resale.
d. Right to rescind the sale.
132. What is the ground before the unpaid seller may exercise his right in stoppage in transit?
a. When the goods are perishable in nature
b. When the goods are sold without stipulation as to credit
c. When the buyer is or becomes insolvent
d. When the goods have been sold on credit but the term has expired
133. Right of stoppage in transitu is exercised by obtaining actual possession of the goods or by giving
notice of his claim to the carrier or other bailee in whose possession the goods are. The following are
the effects of the exercise of right of stoppage in transitu, except
a. The goods are no longer in transit.
b. The contract of carriage ceases and the carrier shall be liable as depositary or other bailee.
c. The carrier must deliver the goods to or according to the instructions of the seller.
d. The carrier must deliver the goods to the buyer.
134. When notice of stoppage in transitu is given by the seller to the carrier, or other bailee in possession
of the goods, he must redeliver the goods to, or according to the directions of, the seller. Who shall
pay for the expenses of the delivery?
a. Seller
b. Buyer
c. Seller and buyer proportionately
d. Carrier
135. When are the goods still in transit which will allow the unpaid seller to exercise his right to stoppage
in transitu?
I. From the time they are delivered to the carrier or other bailee for the purpose of transmission to
the buyer, until the buyer or his agent, takes delivery of them from such carrier or other bailee.
II. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of
them, even if the seller has refused to receive them back.
a. I only
b. 11 only
c. Neither I nor II
d. Both I and II
136. The following are the instances when goods are no longer in transit and therefore the unpaid seller
can no longer exercise his right of stoppage in transitu, except
a. If the buyer obtains delivery of the goods before arrival at the appointed destination.
b. If the carrier or other bailee acknowledges to the buyer or his agent, that he is holding the
goods in his behalf, after arrival of the goods at their appointed destination.
c. If the carrier or other bailee wrongfully refuses to deliver the goods to buyer or his agent.
d. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession
of them, even if the seller has refused to receive them back.
137. The following are the grounds for the exercise of right of resale by the unpaid seller, except
a. The goods are of perishable nature.
b. The seller has expressly reserved the right to resell the goods in case the buyer should make
default
c. The buyer has been in default for an unreasonable time.
d. The buyer becomes insolvent.
138. The following are the requisites for right of resale to be available to an unpaid seller, except
a. The buyer has defaulted in the payment of the purchase price.
b. The seller has no right of lien nor has stopped the goods in transitu.
c. Title to the goods has passed on to the buyer.
d. The grounds must be those provided by law.
139. It is not essential to the validity of resale that notice of an intention to resell the goods be given by
the seller to the original buyer. When shall the giving of notice of an intention to resell be relevant in
the exercise by the unpaid seller of right to resell?
a. When the goods are of perishable nature,
b. When the buyer becomes insolvent
c. When the seller has expressly reserved the right to resell the goods in case the buyer should
make default
d. When the buyer has been in default for an unreasonable time.
140. Where shall the reselling be made in case the unpaid seller exercises his right of resale?
a. Public sale
b. Private sale
c. Either public sale or private sale
d. Neither public sale nor private sale
141. The unpaid seller is bound to exercise reasonable care and judgment in making the resale. He cannot,
directly or indirectly, buy the goods. The following are the effects of resale, except
a. The seller shall not be liable to the original buyer for the delivery of the goods.
b. The seller may recover damages from the original buyer for any loss occasioned by the
breach of the contract of sale.
c. The original buyer shall be entitled for any profit made by such resale.
d. The new buyer acquires a good title against the original buyer.
142. The following are the requisites for the right to rescind the sale to be available to an unpaid seller,
except
a. The buyer has defaulted in the payment of the purchase price.
b. The seller has no right of lien nor has stopped the goods in transit.
c. Title of goods has passed on to the buyer.
d. The grounds must be: 1) The seller has expressly reserved the right to rescind the sale in case
the buyer should make default or 2) the buyer has been in default in the payment of the price
for an unreasonable time.
143. The following are the effect of rescission of contract of sale by the unpaid seller, except
a. The seller shall not be liable to the buyer upon the contract of sale.
b. The seller may recover from the buyer damages for any loss occasioned by the breach of
contract of sale.
c. The seller resumes ownership of the goods.
d. The buyer shall pay for the purchase price.
144. Which of the following statements is correct concerning the right of unpaid seller?
a. The unpaid seller’s right of lien or stoppage in transit is not affected by any sale, or other
disposition of the goods which the buyer may have made, unless the seller has assented
thereto.
b. If, however, a negotiable document of title has been issued for goods, no seller’s lien or right
of stoppage in transit shall defeat the right of any purchaser for value in good faith to whom
such document has been negotiated, whether such negotiation be prior or subsequent to the
notification to the carrier, or other bailee who issued such document, of the seller’s claim to a
lien or right of stoppage in transit.
c. Both A and B.
d. Neither A nor B.
145. In a sale of real estate with a statement of its area at the rate of a certain price per unit of measure or
number, the vendor shall deliver the area mentioned in the contract of sale. What is the remedy of
the buyer if the actual area is less than by an area less than 1/10 of that stated in the contract?
a. Ask for proportionate reduction in the price.
c. Either A or B
146. Using the same data in number 145, what is the remedy of the buyer if the actual area is less than by
1/10 or more of that stated in the contract?
b. Ask for the rescission of the contract of sale.
c. Either A or B
147. Using the same data in number 145, what is the remedy of the buyer if the actual area is more than
that stated in the contract?
I. Accept the area stated in the contract and reject the rest.
II. Accept the whole are and pay for them at the contract rate.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
148. Using the same data in number 145, what is the remedy of the buyer if the area is the same but a part
of the immovable is not of the same quality specified in the contract and the inferior value is 1/10 or
less of the price agreed upon?
c. Either A or B
149. Using the same data in number 145, what is the remedy of the buyer if the area is the same but a part
of the immovable is not of the same quality specified in the contract and the inferior value is more
than 1/10 of the price agreed upon?
c. Either A or B
150. In sale of real estate for a lump sum and not at the rate of a certain sum for unit of measure or
number, the vendor is bound to deliver all that it is included within the boundaries stated in the
contract although there be greater or less area or number than that stated in the contract. What
amount shall be paid by the vendee or buyer?
a. The lump sum stipulated in the contract with increase in the price if the area is greater than
the stated in the contract.
b. The lump sum stipulated in the contract with decrease in the price if the area is less than that
stated in the contract.
c. The lump sum stipulated in the contract with no increase or decrease in the price although
there be greater or less area or number than that stated in the contract.
151. Using the same data in number 150, what is the remedy of the buyer if the vendor does not deliver
the area within the boundaries in the contract?
I. Ask for proportionate reduction in the price.
II. Rescind the contract
a. I only
b. II only
c. Neither I nor II
d. Either I or II
152. What is the prescriptive period for the filing the legal action concerning number 145-151?
a. 6 months from the date of delivery
b. 12 months from the date of delivery
c. 3 months from the date of delivery
d. 1 month from the date of delivery
153. The following are the requisites or elements of double sale, except
a. Two or more valid contracts of sale occurred.
b. Two or more contracts of sale must pertain to exact the same subject matter.
c. Two or more buyers at odds over the rightful ownership of the subject matter must each
represent conflicting interest.
d. Two or more buyers at odds over the rightful ownership of the subject matter must each have
brought from the very same seller.
e. Two or more buyers must have all fully paid the price of the contract of sale.
154. Which contract will be covered by the provision on rule on double sale?
a. Contract of sale
b. Contract to sell
c. Both A and B
d. Neither A nor B
155. 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 property 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.
156. 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 thing?
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.
157. 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.
158. In case of double sale of registered or titled immovable property, who among the buyer 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.
159. 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 buyer has the better right?
a. X because he first took 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.
160. Using the same data in number 159 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 took constructive possession in good faith.
161. Using the same data in number 159 but assuming Z and Y are in bad faith, who 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.
162. On March 1, S sold his unregistered lot to X. the deed of sale was in a private instrument. On May 5,
S sold again the said lot to Z in a private instrument. Z immediately registered the sale with Register
of Deeds on May 5. X took actual possession of the lot on May 6. X and Z were not aware of the
sale made to others. Who among the buyer has the better right?
a. X because he has the older title in good faith.
b. Z because he first took constructive possession in good faith.
c. Z because he is the first registrant in good faith.
163. The following are considered natural elements or implied warranties in a contract of sale, except
a. Warranty against eviction
b. Warranty against hidden defects
c. Warranty against undeclared and non-apparent charge or encumbrance or servitude
d. Warranty for merchantability
e. Warranty for sale’s talk or usual exaggeration in trade
164. The following are the effects if the suspensive condition in a contract of sale subject to a suspensive
condition is not fulfilled, except
a. The other party may refuse to proceed with the contract.
b. The non-performance of condition may be treated as a breach of warranty.
c. The other party may waive the performance of the condition.
d. The contract of sale is perfected if the condition is suspensive.
165. The following persons shall not be liable for breach of warranty in a contract of sale, except
a. Sheriff
b. Auctioneer
c. Mortgagee
d. Pledgee
e. Seller
f. Other persons professing to sell by virtue of authority in fact or law.
166. It refers to the deprivation of the vendee of the whole or a part of the thing sold by virtue of a final
judgment based on a right prior to the sale or an act imputable to the vendor.
a. Breach of contract
b. Evasion of sentence
c. Eviction
d. Damages
167. The following are the requisites in order that the seller’s warranty against eviction may be enforced,
except
a. There must be a final judgment depriving the vendee of the whole or part of the thing sold.
b. The vendee must appeal from the decision or judgment depriving him of the thing sold.
c. The deprivation is based on a right prior to the sale or an act imputable to the vendor,
d. The vendor must have been notified of the suit for eviction at the instance of the vendee.
168. When adverse possession of the thing subject of the contract of sale had been commenced before the
sale but the prescriptive period is completed after the transfer, which is correct?
a. The vendor is liable for eviction only if there is expressed warranty for eviction.
b. The vendor is liable for eviction even if there is no expressed warranty for eviction.
c. The vendor is not liable for eviction.
d. The vendor shall always be liable for eviction.
169. Which of the following are other instances when seller is liable for breach of warranty against
eviction?
I. If the property is sold for non-payment of taxes due and not made known to the vendee before the
sale.
II. In case of judicial sales unless otherwise decreed in the judgment.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
170. Which stipulation is considered void?
a. Stipulation exempting a vendor from the obligation to answer for eviction even he is in good
faith.
b. Stipulation exempting a vendor from the obligation to answer for eviction if he is in good
faith.
c. Stipulation exempting a vendor from the obligation to answer for eviction if he acted in bad
faith.
d. Stipulation exempting a vendor from the obligation to answer for eviction because it is
contrary to public policy to waive a natural element.
171. If there is stipulation exempting the vendor from the obligation to answer for eviction and the vendor
acted in bad faith because he had knowledge at the time of the sale of the existence of the fact, to
what extent shall the vendor be liable to the vendee in case of eviction?
I. Value of the thing at the time of eviction.
II. Income or fruits of the thing.
III. Cost of suit caused 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
acted in good faith and the waiver by vendee/buyer is without the knowledge of the risk of eviction
also known as waiver consciente, what shall be the liability of the vendor in case of eviction?
a. Vendor shall be liable for value pf the thingsat the time of eviction plus income or fruits.
b. Vendor shall be liable for value of the thingsat the time of eviction.
c. Vendor shall be liable for value of the things, income or fruits and damages and interest.
d. Vendor shall not be liable for anything.
acted in good faith and the waiver by vendee/buyer is with the knowledge of the risk of eviction also
known as waiver intencionada, what shall be the liability of the vendor in case of eviction?
a. Vendor shall be liable for value of the things at the time of eviction plus income or fruits.
b. Vendor shall be liable for value of the things at the time of eviction.
c. Vendor shall be liable for value of the things, income or fruits and damages and interest.
d. Vendor shall not be liable for anything.
174. In case of doubt or ambiguity, the waiver by the vendee/buyer of the warranty against eviction is
presumed to be
a. Waiver consciente
b. Waiver intencionada
c. Waiver sobrente
d. Waiver alluna
175. 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 extent shall the vendor be liable to the
vendee in case of eviction?
a. I, II and III
176. 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 extent shall the vendor be liable to
the vendee in case of eviction?
a. I, II and III
177. What shall be the remedies of the buyer if the vendee loses, by reason of eviction, a. part of the thing
sold of such importance, in relation to the whole, that he would not have bought it without said part?
I. Rescission of the contract
II. Enforcement of the vendor’s liability for eviction
a. I only .
b. II only
c. Either I or II
d. Neither I nor II
178. It is an encumbrance imposed upon an immovable for the benefit of another immovable belonging to
a different owner.
a. Easement or servitude
b. Mortgage
c. Pledge
d. Lien
179. The following are the requisites for vendor’s liability should the immovable sold be encumbered
with easement or servitude, except
a. The easement must be non-apparent.
b. It must not have been mentioned in the agreement.
c. It must be of such nature that it must be presumed that the vendee would not have
acquired the immovable had he been aware thereof.
d. It must be registered.
180. What is the prescriptive period for the warranty against hidden or non-apparent burden,
encumbrances or servitude on immovable?
a. 6 months from the execution of deed of sale or discovery of encumbrance or burden

b. 40 days from the execution of deed of sale or discovery of encumbrance or burden
c. 1 year from the execution of deed of sale or discovery of encumbrance or burden
d. 3 days from the execution of deed of sale or discovery of encumbrance or burden
181. What are the remedies of the buyer should the immovable sold be encumbered with any non-
apparent easement or within one year from the execution of the deed of sale?
I. Rescission of the contract of sale.
II. Indemnification for damages.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
182. What are the remedies of the buyer should the immovable sold be encumbered with any non-
apparent easement or servitude within one year from the discovery of burden or servitude if the one
year period from the execution of deed of sale has already lapsed?
I. Rescission of the contract of sale
II. Indemnification for damages within one year from discovery of easement.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
183. Which of the following statements is incorrect?

a. Where the buyer, expressly or by implication, makes known to the seller the particular
purpose for which the goods are acquired, and it appears that the buyer relies on the seller's
skill or judgment (whether he be the grower or manufacturer or not), there is an implied
warranty that the goods shall be reasonably fit for such purpose, (warranty for particular
purpose)
b. Where the goods are brought by description from a seller who deals in goods of that
description (whether he be the grower or manufacturer or not), there is an implied warranty
that the goods shall be of merchantable quality, (warranty for merchantable quality)
c. In case of a contract of sale by sample, if the seller is a dealer in goods of that kind, there is
an implied warranty that the goods shall be free from any defect rendering them
unmerchantable which would not be apparent on reasonable examination of the sample.
(warranty for merchantability)
d. In the case of contract of sale of a specified article under its patent or other trade name, there
is warranty as to its fitness for any particular purpose, unless there is a stipulation to the
contrary. (warranty for particular purpose)
184. The following are the requisites for enforcement of vendor’s liability against hidden defects, except
a. The defect must exist after the date of sale.
b. The defect must be hidden.
c. The defect must render the thing unfit for the use for which it is intended or diminishes its
fitness for such use to such an extent that had the vendee been aware thereof, he would not
have acquired it or would have given a lower price for it.
d. The action to enforce it must be made within the period provided by law.
185. Which of the following statements concerning liability of vendor for hidden defects is incorrect?
a. The vendor shall be liable to the vendee for any hidden faults or defects in the thing sold,
even though he was not aware thereof.
b. The vendor shall not be liable if there is a stipulation on exempting him from such defects
and he was not aware thereof.
c. The vendor shall be liable to the vendee for any hidden faults or defects in the thing sold if he
was aware thereof.
d. The vendor shall be liable for hidden defects even there is stipulation exempting him from
such defects if he was aware thereof.
186. This is one of the two remedies of the vendee in case of breach of warranties against hidden defects,
of merchantability, of merchantable quality or fitness for a particular purpose. It refers to the
withdrawal from the contract or rescission.
a. Accion quanti minoris
b. Accion redhibitoria
c. Accion pauliana
d. Accion subrogatoria
187. This is one of the two remedies of the vendee in case of breach of warranties against hidden defects,
of merchantability, of merchantable quality or fitness for a particular purpose. It refers to demanding
a proportionate reduction in the price.
a. Accion quanti minoris
b. Accion redhibitoria
c. Accion pauliana
d. Accion subrogatoria
188. When the thing sold and delivered to buyer contains hidden defect and there is no waiver of the
warranty against hidden defect, when shall the seller be liable for the loss of the thing sold with
hidden defect?
a. The seller shall only be liable if the reason of the loss is the hidden defect.
b. The seller shall only be liable if the reason of the loss is a fortuitous event.
c. The seller shall only be liable if the reason of the loss is the fault of the buyer.
d. The seller shall only be liable regardless of the reason of the loss.
189. What shall be the extent of liability of the vendor in case of loss of the thing with hidden defects
wherein the vendor was aware of the defect and the cause of the loss is the defect?
a. Return the price, refund the expenses of the contract and pay damages.
b. Return the price and refund expenses of the contract.
c. Return the price, refund the expenses of the contract and pay interest of the price.
d. Return the price.
wherein the vendor was not aware of the defects and the cause of the loss is the defect?
a. Return the price, refund the expenses of the contract and pay damages.
b. Return the price and refund expenses of the contract.
c. Return the price, refund the expenses of the contract and pay interest of the price.
d. Return the price.
wherein the vendor was aware of the defect and the cause of the loss is a fortuitous event or the fault
of the vendee?
a. To return the price paid and to pay damages.
b. To return the price paid less the value of the thing at the time of loss and to pay damages.
c. To return the price paid less the value of the thing at the time of loss.
d. To pay damages.
wherein the vendor was not aware of the hidden defect and the cause of the loss is a fortuitous event
or the fault of the vendee?
a. To return the price paid and to pay damages.
b. To return the price paid less the value of the thing at the time of loss and to pay damages.
c. To return the price paid less the value of the thing at the time of loss.
d. To pay damages.
193. What is the prescriptive period of the accion redhibitoria, accion quanti minrois or all other actions
to enforce the seller’s liability for hidden defect?
a. 1year from the delivery of the thing sold.
b. 1 month from the delivery of the thing sold.
c. 6 months from the delivery of the thing sold.
d. 3 months from the delivery of the thing sold.
194. It refers to a defect in an animal and it is of such nature that expert knowledge, even after a
professional inspection has been made, is not sufficient to discover it.
a. Hidden defect.
b. Apparent defect.
c. Known defect.
d. Redhibitory defect.
195. If two or more animals are sold together, whether for a lump sum or for a separate price for each of
them, the redhibitory defect of one shall only give rise to its redhibition. What are the remedies of
the buyer?
I. Accion redhibitoria over the defective animal.
II. Accion quanti minoris.
a. I only
b. II only
c. Neither I nor II
d. Either I or II
196. If the redhibitory defect of one animal shall give rise to the redhibition of all the animals sold,
including the sound one, what shall be the remedy of the buyer?
I. Acction redhibitoria
II. Accion quanti minoris
a. I only
b. n only
c. Neither I nor II
d. Either I or II
197. What is the prescriptive period of redhibitory action in case of animal?

a. 30 days from the delivery of animal to the vendee.
b. 20 days from delivery of animal to the vendee.
c. 40 days from delivery of animal to the vendee.
d. 10 days from delivery of animal to the vendee.
198. In which of the following sale of animals will there be no warranty for hidden defects?
a. Sale of animals at fairs
b. Sale of animal at public auctions
c. Sale of live stocks as condemned
d. Any of the above
199. What is the status of the contract of sale when the animals are suffering from contagious diseases or
when the animals are found to be unfit for the use or service for which they were acquired as stated in
the contract?
a. Void
b. Voidable
c. Rescissible
d. Unenforceable
200. The following are the requisites in order for the vendor to be liable in case the animal dies of disease,
except
a. The disease exists at the time of sale.
b. The disease is the cause of death of the animal.
c. The animal dies within 3 days from time of purchase.
d. The disease is redhibitory.
201. The vendee has the obligation to accept the delivery of the thing sold. The following are the
instances when the buyer is deemed to have accepted the goods, except
a. When he intimates to the seller that he is accepting them.
b. When he does an act in relation to the goods which is inconsistent with the
ownership of the seller.
c. When he pays the purchase price.
d. When he retains the goods after the lapse of a reasonable time without intimating the seller
that he has rejected them.
202. May the seller compel the buyer to accept delivery of goods in installments?
a. No, as a general rule, unless there is a stipulation for installment delivery.
b. No under all instances.
c. Yes, as a general rule, unless there is a stipulation to the contrary.
d. Yes under all instances.
203. If there is stipulation for installment delivery, and the seller makes defective deliveries in respect of
one or more installments, or the buyer neglects or refuses without just cause to take delivery of or
pay one or more installments, what are the remedies of injured party?
I. Refuse to proceed with the contract and sue for damages for breach of the entire contract.
II. Claim compensation for damages if the breach is severable.
a. Either I or II
b. Neither I nor II
c. I only
d. II only
204. May the buyer examine the goods before accepting them?
a. No, as a general rule, unless there is a stipulation for examination.
b. No under all instances.
c. Yes, as a general rule, unless the exceptional cases apply.
d. Yes under all instances.
205. The following are the exceptional instances when the buyer cannot examine the goods before
accepting them, except
a. When there is an agreement that the buyer cannot examine the goods before
accepting them.
b. When there is stipulation that the goods shall not be delivered to the buyer until
he has paid the price.
c. When the goods are marked with the words collect on delivery.
d. When the usage of trade permits examination.
206. The following are the effects when the buyer refuses to accept delivery and the refusal is justified
such as when the quantity is not complete or the goods being delivered are different from that
stipulated, except
a. Buyer has no duty to return goods to the seller unless otherwise agreed.
b. Title to the goods passes to the buyer
c. The buyer shall not be obliged to pay the price.
d. If the buyer constitutes himself as depositary of the goods, he shall be liable as such.
207. The following are the effects when the buyer refuses to accept delivery and the refusal is unjustified,
except
a. Title to the goods passes to the buyer from the moment the goods are placed at
his disposal.
b. The buyer shall be obliged to pay the price.
c. The seller may consign or deposit the determinate thing to the court after valid tender of
payment to the buyer.
d. The buyer shall be considered a depositary.
208. The vendee has the obligation to pay the price of the thing. The time and place of payment of the
price shall be that which is stipulated. In the absence of stipulation, when and where shall the
payment of price be made?
a. At the end of the month and at the residence of the seller.
b. At the perfection of the contract and at the residence of the seller.
c. At the time and place of delivery of the thing.
209. As a general rule, the buyer is not liable to pay interest after the delivery of the goods despite
nonpayment of the price. The following are the instances wherein the buyer shall pay interest for the
period between the delivery of the thing and the payment of the price, except
a. If there is written stipulation or agreement for payment of interest and if the rate is not
provided, it should be 12% before July 1, 2013 and 6% afterwards.
b. If the thing sold produces fruits or income.
c. If the buyer is in default, from the time of judicial or extrajudicial demand for the payment of
the purchase price.
d. If the seller is in default in accepting payment.
210. The following are the grounds for the suspension of the payment of the price by the vendee, except
a. Disturbance in the vendee’s possession or ownership of the thing purchased.
b. Reasonable grounds to fear such disturbance, by a vindicatory action or foreclosure of
mortgage.
c. Loss of the thing due to the fault of the vendee.
211. The following are the instances wherein the right to suspend payment is not available, except
a. If the vendor gives security for the return of the price.
b. If there is reasonable grounds to fear disturbance in the vendee’s possession or
ownership.
c. If it has been stipulated that the vendee shall pay the price notwithstanding the existence of
disturbance or danger.
d. If the disturbance is a mere act of trespass.
212. When shall the vendor be entitled or allowed to sue for immediate rescission of the contract of sale
of immovable?
a. If there are reasonable grounds to fear the loss of the immovable property sold and its
price.
b. If there are reasonable grounds to fear the loss of the immovable property sold.
c. If there are reasonable grounds to fear the loss of the price.
213. In case there is reasonable ground to fear the loss of the immovable property or its price, what shall
be the remedy of vendor?
a. Fulfillment of the contract with damages only.
b. Rescission of the contract with damages only.
c. Immediate rescission of the contract.
d. Fulfillment of the contract or rescission of the contract with damages in either remedy.
214. This agreement is considered void as it is against law and public policy. It refers to an agreement
between the vendor and the vendee in the sale of an immovable that rescission of the contract shall
of right take place if the vendee fails to pay the price at the time agreed upon.
a. Pactum commissorium
b. Pacto de retro sale
c. Pactum agentum
d. Pacto solidarium
215. May the vendee/buyer of an immovable still pay the purchase price after his default in the due date if
the contract of sale stipulates that rescission of the contract shall of right take place if the vendee
fails to pay the price at the time agreed upon?
a. Yes provided the payment is before the demand for rescission judicially or by notarial act
by the seller.
b. No because the contract provides that rescission shall of right take place.
c. Yes even if the contract is cancelled by final judgment.
d. No because the buyer is already guilty of delay.
216. Which of the following are the grounds for immediate rescission of the sale of a movable at vendor’s
option?
I. If at the time of the delivery of the thing, the vendee does not appear to receive the thing.
II. If at the time of the delivery of the thing, the vendee having appeared, does not pay the price, unless
a longer period is stipulated for its payment.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
217. The following are the actions or remedies by the seller for breach of contract of sale of goods
committed by the buyer, except
a. Maintain an action for the price of the goods if the buyer wrongfully neglects or refuses to
pay.
b. Maintain an action for damages if the buyer wrongfully neglects or refuses to accept and pay
for the goods.
c. Rescind the contract if the buyer has repudiated the sale or manifested his inability to perform
his obligation or has committed a breach of contract, where the goods have not been
delivered to buyer.
218. What action shall be filed by the buyer if the seller has breached the contract to deliver specific or
ascertained goods?
a. Bring an action for declaration of nullity of contract.
b. Bring an action for specific performance.
c. Bring an action tor annulment of contract.
d. Bring an action for rescission of contract.
219. In case of breach of warranty by the seller, the buyer may, at his election brings the following
actions, except
a. Accept or keep the goods and set up against the seller the breach of warranty by way of
recoupment or diminution or extinction of the price.
b. Accept or keep the goods and maintain an action against the seller for damages for breach of
warranty.
c. Refuse to accept the goods, and maintain an action against the seller for damages for breach
of warranty.
d. Rescind the sale and refuse to receive the goods or if the goods have already received, return
them or offer to return them to the seller and recover the price of any part thereof which has
been paid.
e. Ask for annulment of the contract of sale plus damages.
220. The following are the modes for extinguishment of contract of sale:
a. No-Co-Me-Re-Pa-Lo-Pre-Re-Ful-An
b. Cancellation of sale of personal property payable in installments
c. Resale of the goods by the unpaid seller
d. Rescission of the sale by the unpaid seller
e. Rescission by the buyer in case of partial eviction.
f. Rescission by the buyer in case of breach of warranty against hidden defects
g. Rescission by the buyer of sale of animals with redhibitory defects
h. Rescission by the buyer of sale of land with non-apparent servitude or encumbrance
i. Rescission by the buyer of sale of land with lacking area or area with poor quality
j. By redemption, whether conventional redemption or legal redemption
221. This type of redemption occurs when the vendor reserved the right to repurchase the thing sold with
the obligation to return to the vendee the price of the sale, expenses of the contract and necessary
and useful expenses made on the thing sold and to comply with other stipulations which may have
been agreed upon. This is applicable in a contract of pacto de retro sale or sale with a right to
repurchase.
a. Legal redemption
b. Conventional redemption
c. Redemption by operation of Law
d. Judicial redemption
222. If no period is stated in the agreement for the exercise of right of redemption in pacto de retro sale of
immovable, what is the prescriptive period of the right?
a. 5 years from the date of the contract.
b. 4 years from the date of the contract.
c. 10 years from the date of the contract.
d. 3 years from the date of the contract.
223. If a period is stated in the agreement for the exercise of right of redemption in pacto de retro sale of
immovable, what is the maximum prescriptive period allowed by the law?
a. 5 years from the date of the contract.
b. 4 years from the date of the contract.
c. 10 years from the date of the contract.
d. 20 years from the date of the contract.
224. If judgment has been rendered by court declaring the contract to be pacto de retro sale of immovable
instead of equitable mortgage, what is the period of redemption allowed to the vendor a retro?
a. 5 years from the rendition of judgment
b. 4 years from the rendition of judgment
c. 10 years from the rendition of judgment
d. 30 days from the rendition of judgment
225. In a pacto de retro sale, the following are the persons against whom the right of repurchase may be
exercised, except
a. Against the vendee a retro or original vendee.
b. Against the several heirs of the vendee a retro for each heir’s share.
c. Against one heir of the vendee a retro for the whole property.
d. Against every possessor whose right is derived from the vendee a retro even if no mention
has made in the second contract of the right to repurchase and even if the right to repurchase
is not recorded in the Registry of Property.
226. In a pacto de retro sale, the following are the rules for redemption:
a. A co-owner of an undivided immovable which is essentially indivisible who sells his share
with a right to repurchase to a third person who subsequently acquires the whole thereof, may
be compelled by the latter to redeem the whole property, if the former wishes to make use of
the right of redemption.
b. If several persons, jointly and in the same contract, should sell an undivided immovable
with a right of repurchase, none of them may exercise this right for more than his respective
sharp.
c. If the person who sold an immovable alone has left several heirs, each heir may redeem only
the part which he may have acquired.
d. In cases of B and C, the vendee may demand that the co-owners or co-heirs come to an
agreement upon the repurchase of the whole thing, and if they fail to do so, the vendee cannot
be compelled to consent to a partial redemption.
e. Each one of the co-owners of an undivided immovable who may have sold his share
separately, may independently exercise the right of repurchase as regards his own share and
the vendee cannot compel him to redeem the whole property.
227. In the exercise of the right of redemption or repurchase, what amount shall be paid by the vendor a
retro to the vendee retro?
a. Price of the sale only
b. Expenses of the contract and other legitimate payments by reason of the sale only
c. Necessary and useful expenses made on the thing sold only
d. All of the above
228. If at the time of the execution of the pacto de retro sale there should be on the land, visible or
growing fruits, who shall be entitled to those fruits which still exist at the time of redemption by
vendor a retro?
a. It shall inure to the benefit of the vendor a retro/redemptioner if no indemnity was paid by the
vendee a retro when the pacto de retro sale was executed.
b. The vendor a retro/redemptioner shall reimburse the amount of the fruits to the vendee a
retro.
c. The fruits shall be prorated to the vendor, a retro and vendee a retro based on the prorated
period of possession.
d. It shall inure to the benefit of the vendee a retro considering that he has previously obtained
possession of the goods.
229. If at the time of the execution of the pacto de retro sale there should be no fruits on the land, who
shall be entitled to those fruits which still exist at the time of redemption by vendor a retro?
a. It shall inure to the benefit of the vendor a retro/redemptioner if no indemnity was paid by the
vendee a retro when the pacto de retro sale was executed.
b. The vendor a retro/redemptioner shall reimburse the amount of the fruits to the vendee a
retro.
c. The fruits shall be prorated to the vendor a retro and vendee a retro based on the prorated
period of possession.
d. It shall inure to the benefit of the vendee a retro considering that he has previously obtained
possession of the goods.
230. Who among the following may use the right of redemption?
I. Vendor a retro or his heirs or assignees
II. Creditor of the vendor after he has exhausted the property of the vendor by virtue of action
subrogatoria
a. I only
b. II only
c. Either I or II
d. Neither I nor II
231. This type of redemption is the right to be subrogated upon the same terms and conditions stipulated
in the contract, in the place of one who acquires a thing by purchase, or dation in payment or by any
other transaction whereby the ownership is transmitted by onerous title. This refers to the right of a
person to repurchase the property transferred by another person by onerous title from the third
person in those exceptional instances allowed by law such as right of repurchase by a co-owner,
adjoining rural lot owner or adjoining urban lot owner.
a. Legal redemption
b. Conventional redemption
c. Voluntary
d. Judicial redemption
232. It refers to the right of adjoining urban land owner to be given the first opportunity to purchase a
piece of urban land about to be resold which is so small and so situated that a major portion thereof
cannot be used for any practical purpose within a reasonable time, having been bought merely for
speculation.
a. Right of legal redemption
b. Right of legal pre-emption
c. Right of first refusal
d. Right of legal repurchase
233. The following are the three instances of legal redemption. Which of the following pertains to legal
preemption?
a. A co-owner of a thing may exercise the right of redemption in case the shares of all the
other co-owners or of any of them, are sold to a third person.
b. If a piece of rural land not exceeding one hectare is alienated, the adjoining owner shall have
the right of legal redemption unless the grantee does not own any rural land.
c. If a small piece of urban land which. Was bought for speculation has been resold, the owner of
the adjoining land has a right of redemption at a reasonable price.
d. If a small piece of urban land is about to be resold, the adjoining owner shall be given the
right to buy the property before it is offered to other.
234. In case there are two or more co-owners who want to exercise the right of legal redemption for a
share in the land sold by a co-owner to a third person, who shall be given the right?
a. All the remaining co-owners on the basis of proportionate share.
b. The first co-owner who want to exercise the right.
c. The co-owner with the smallest share.
d. The co-owner whose intended use of the land in question appears best justified.
235. In case there are two or more co-owners who want to exercise the right of legal redemption for a
share in the land sold by a co-owner to another co-owner, who shall be given the right?
a. All the remaining co-owners on the basis of proportionate share.
b. The first co-owner who want to exercise the right.
c. The co-owner with the smallest share.
d. None of them.
236. In case of legal redemption whereby a co-owner and adjoining rural or urban land owner is present,
who shall be preferred in the exercise of redemption?
a. Co-owner
b. Adjoining rural land owner
c. Adjoining urban land owner
d. Owner with the smallest area
237. A rural land owner sold his land not exceeding 1 hectare (10,000 sqm) to another person who owns
any other rural land. There are two or more adjacent rural land owners who intend to exercise their
right of legal redemption. Who shall be preferred?
a. The adjacent rural land owner with smaller area of lot.
b. The adjacent rural land owner with larger area of lot
c. The adjacent rural land owner whose intended use of the land in question appears best
justified.
d. The adjacent rural land owner which offers the largest amount.
238. An urban land owner sold a piece of land which is so small so small and so, situated that a major
portion thereof cannot be used for any practical purpose within a reasonable time, having been
bought merely for speculation. There are two or more adjacent urban land owners who intend to
exercise their right of legal redemption. Who shall be preferred?
a. The adjacent urban land owner with smaller area of lot.
b. The adjacent urban land owner with larger area of lot
c. The adjacent urban land owner whose intended use of the land in question appears best
justified.
d. The adjacent urban land owner which offers the largest amount.
239. What is the period for the exercise of the right of legal redemption or legal pre-emption by the co-
owner, adjoining rural or urban land owner?
a. Within 30 days from the notice given by the prospective vendor or vendor.
b. Within 60 days from the notice given by the prospective vendor or vendor.
c. Within 90 days from the notice given by the prospective vendor or vendor.
d. Within 1 year from the notice given by the prospective vendor or vendor.
240. In which of the following instances of legal redemption is right of legal pre-emption available?
a. To an adjacent rural land owner when a rural land owner sold his land not exceeding 1
hectare (10,000 sqm) to another person who owns any rural land.
b. To the co-owner when the co-owner sold a portion of the co-owned property.
c. To an adjacent urban land owner when an urban land owner sold a piece of land which is so
small so small and so situated that a major portion thereof cannot be used for any practical
purpose within a reasonable time, having been bought merely for speculation.
d. Any of the above.
241. It is a contract which though lacking in formalities nevertheless shows the real intention of the
parties to create a specific property to secure the performance of an obligation.
a. Contract of sale
b. Real estate mortgage
c. Chattel mortgage
d. Equitable mortgage
242. The following are the instances wherein a contract of sale with a right to repurchase and other
contract purporting to be an absolute sale shall be presumed to be an equitable mortgage, except
a. When the price of a sale with a right to repurchase is unusually inadequate
b. When the vendor remains in possession as lessee or otherwise
c. When the period for the exercise of the right of repurchase is extended
d. When the purchaser retains for himself pa t of the purchase price
e. When the vendor binds himself to pay the real property taxes on the thing sold
f. When the real intention of the parties is that the transaction shall secure the payment of a debt
or the performance of any other obligation
g. When the buyer filed an action for exact fulfillment to collect the balance of the price
243. In case of doubt in construing a contract which has the characteristics of both sale with right to
repurchase and an equitable mortgage, what shall be the general construction of the contract?
a. Absolute sale
b. Pacto de retro sale
c. Equitable mortgage
d. Lease
244. What shall be the remedy of the injured party in cases of contracts presumed to be an equitable
mortgage?
a. Ask for rescission of contract.
b. Ask for annulment of contract.
c. Ask for declaration of nullity of the contract.
d. Ask for reformation of the instrument.
245. It is a contract whereby a person transfers his credit, right or action against a third person to another
person for a consideration which is certain in money or its equivalent.
a. Contract of sale
b. Assignment of credits
c. Contract of agency
d. Negotiation
246. How is a contract of assignment of credit perfected?
a. It is perfected by mere consent being consensual contract.
b. If is perfected by delivery of the instrument evidencing credit being real contract.
c. It is perfected by the written agreement being formal contract.
d. It is perfected by execution of public document evidencing agreement being formal contract.
247. What is the formality required by law for assignment of credit involving personal property to bind
third persons?
a. It must be in writing.
b. It must be in a public instrument.
c. It must be recorded in chattel mortgage registry.
d. It must be recorded in the Registry of Property
248. What is the formality required by law for assignment of credit involving real property to bind third
persons?
a. It must be in writing.
b. It must be in a public instrument.
c. It must be recorded in chattel mortgage registry.
d. It must be recorded in the Registry of Property
249. UST sold its accounts receivable worth P1M from its students to BPI for P900,000. The students
paid UST in the amount of P1M. What is the effect of payment?
a. The students are released from the obligation if they pay UST before the knowledge of the
assignment.
b. The students must still pay BPI the amount of P1M.
c. BPI can no longer recover the P1M from UST.
d. The basis of liability-of UST to BPL is quasi-delict.
250. The following are the warranties of the (assignor) vendor in good faith in assignment of credits
except
a. Existence of the credit at the time of sale
b. Legality of the credit at the time of sale
c. Solvency of the debtor at the time of sale
251. As a general rule, the assignor of credits is not liable for the insolvency of the debtor of the credit.
When may the assignor or vendor in assignment of credits become liable for the insolvency of the
debtor?
a. When it is expressly stipulated that the assignor warrants the solvency of debtor.
b. When the insolvency of debtor was prior to the sale and of common knowledge.
c. Either A or B
d. Neither A nor B
252. In case the assignor in good faith warrants the solvency of the debtor, what is the prescriptive period
of the liability or warranty?
a. 1 year from the maturity date of credit or date of assignment whichever is later.
b. 6 months from the maturity date of credit or date of assignment whichever is later.
c. 40 days from the maturity date of credit or date of assignment whichever is later.
d. 3 days from the maturity date of credit or date of assignment whichever is later.
253. What is the main difference between the warranties of an assignor/vendor of a non-negotiable
promissory note and general indorser of negotiable promissory note?
a. The general indorser guaranties the solvency of maker while an assignor does not guaranty
the solvency of maker.
b. The general indorser warrants the legality of negotiable promissory note while an assignor does
not warrant the legality of the non-negotiable promissory note.
c. The general indorser warrants the existence of negotiable promissory note while an assignor
does not warrant the existence of non-negotiable promissory note.
254. Which of the following statements concerning assignment of credits is incorrect?

a. The assignment of a credit excludes all the accessory rights, such as a guaranty, mortgage,
pledge or preference.
b. The vendor in bad faith shall always be answerable for the payment of all expenses, and for
damages.
c. One who sells an inheritance without enumerating the things of which it is composed, shall
only be answerable for his character.
d. Should the vendor have profited by some of the fruits or received anything from the
inheritance sold, he shall pay the vendee thereof, if the contrary has not been stipulated.
255. It refers to a document of title in which it is stated that the goods referred to in the document will be
delivered to the bearer or to the order of any person named therein.
a. Negotiable promissory note
b. Negotiable bill of exchange
c. Negotiable document of title
d. Negotiable check
256. When may a negotiable document of title be negotiated validly by mere delivery?
a. Where the terms of the negotiable document of title state that the goods are to be delivered
to bearer.
b. Where the terms of the negotiable document of title state that the goods are to be delivered
to the order of a specified person and such person or a subsequent indorsee has indorsed it in
the bank.
c. Where the terms of the negotiable document of title state that the goods are to be delivered
to the order of a specified person and such person or a subsequent indorsee has indorsed it to
be payable to bearer
d. Any of the above
257. May a negotiable document of title which is originally a bearer negotiable document of title be
converted to an order negotiable document of title?
a. No because once an originally bearer negotiable document of title is always a bearer
negotiable document of title even if it is specially indorsed.
b. Yes if there will be special indorsement and therefore it can be negotiated validly by special
indorsement and delivery of the negotiable document of title.
c. No because the law prohibits conversion of an original bearer negotiable document of title to
an order negotiable document of title.
d. Yes if the bearer negotiable document of title is negotiated by mere delivery.
258. Which of the following is true as regards to the difference regarding the negotiation of a negotiable
document of title and negotiable instrument?
a. An originally bearer negotiable instrument is always a bearer negotiable instrument while an
originally bearer negotiable document of title may be converted to an order negotiable
document of title by special indorsement.
b. A negotiable instrument is always payable to bearer while a negotiable document of title is
always payable to order.
c. A negotiable instrument is always payable to order while a negotiable document of title is
always payable to bearer.
d. An originally order negotiable document of title cannot be converted to a bearer negotiable
instrument by blank indorsement while an originally order negotiable document of title can
be converted to a bearer document of title by blank indorsement.
259. What is the nature of the document of title if it contains the words “deliverable to bearer” or
deliverable to the order of a specified person” or “payable to a specified person or his order” if
subsequent party to the instrument placed the words “not negotiable” or “non-negotiable”?
a. The document of title is no longer negotiable and may be assigned by the holder only.
b. The document of title is still negotiable and may be validly negotiated by the holder either
by mere delivery if a bearer negotiable document of title or by indorsement plus delivery if
an order negotiable document of title.
c. The document of title will become a void contract because it violates the law on sales.
d. The document of title will become a negotiable instrument under Act. No. 2031.
260. Which of the following statements is false concerning document of title?

a. An order negotiable document of title can be validly negotiated by its indorsement plus
delivery.
b. A bearer negotiable document of title can be validly negotiated by mere delivery.
c. An order negotiable document of title may be transferred by the holder by mere delivery to a
purchaser or donee but it will be considered as an assignment only but not valid negotiation.
d. A nonnegotiable document of title can be negotiated validly and the indorsement of such
document gives the transferee additional rights.
261. What are the rights acquired by a person to whom a negotiable document of title has been duly
negotiated?
a. Such title to the goods as the person negotiating the document to him had or had ability to
convey to a purchaser in good faith for value and also such title to the goods as the person to
whose order the goods were to be delivered by the terms of the document had or had ability
to convey to a purchaser in good faith for value.
b. The direct obligation of the bailee issuing the document to hold possession of the goods for
him according to the terms of the document as fully as such bailee had contracted directly
with him.
c. Both A and B
d. Neither A nor B
262. What are the rights acquired by a person to whom a document of title has been transferred but not
negotiated?
a. As against the transferor, he acquires title to the goods subject to the terms of any agreement
with the transferor.
b. If the document is non-negotiable, such person also acquires the right to notify the bailee
who issued the document of the transfer thereof,
c. If the document is non-negotiable, to acquire the direct obligation of such bailee to hold
possession of the goods for him according to the terms of the document.
263. If a non-negotiable document of title has been transferred but not negotiated, what may defeat the
title of the transferee to the goods and the right to acquire the obligation of such bailee prior to the
notification to such bailee by the transferor or transferee of a non-negotiable document of title?
a. By the levy of an attachment of execution upon the goods by a creditor of the transferor
b. By a notification to such bailee by the transferor or a subsequent purchaser from the
transferor of a subsequent sale of the goods by the transferor.
c. Either A or B.
d. Neither A nor B.
264. Where a negotiable order document of title is transferred for value by delivery, indorsement of the
transferor is essential for valid negotiation. What is the remedy of the transferee?
a. He may compel the transferor to indorse to him the negotiable document unless a contrary
intention appears.
b. He has no right against the transferor.
c. He will have the rights as if there is valid negotiation even if there is no indorsement.
d. He will have no rights other than that of a transferee.
265. The following are the warranties of a person who for value negotiates or transfers a document of title
by indorsement or delivery, including one who assigns for value a claim secured by a document of
title unless a contrary intention appears, except
a. That the document is genuine.
b. That he has legal right to negotiate or transfer it.
c. That he has knowledge of no fact which would impair the validity of worth of the document.
d. That he has a right transfer the title to the goods and that the goods are merchantable or fit
for a particular purpose, whenever such warranties would have been implied if the contract
of the parties had been to transfer without a document of title the goods represented thereby.
e. That he will answer for any failure on the part of the bailee who issued the document or
previous indorsers thereof to fulfill their respective obligations.
266. Which of the following are considered personal defenses or circumstances that do not impair the
validity of the negotiation of a negotiable document of title as regards to a person to whom the
document was negotiated or a person to whom the document was subsequently negotiated paid value
therefor in good faith without notice of these defects?
a. The fact that the negotiation was a breach of duty on the part of the person making the
negotiation.
b. The fact that the owner of the document was deprived of the possession of the same by loss,
theft, fraud, accident, mistake, duress, or conversion.
c. Either A or B.
d. Neither A nor B.
267. If the goods are delivered to a bailee by the owner or by a person whose act in conveying the title to
them to a purchaser in good faith for value would bind the owner and a negotiable document of title
is issued for them, when may the goods covered by the negotiable document of title be allowed to be
attached by garnishment or otherwise levied under an execution sale?
a. When the negotiable document of title is first surrendered to the bailee.
b. When the negotiation of the document of title is enjoined by the court order.
c. Either A or B.
d. Neither A nor B.
268. When may the bailee of the goods covered by the negotiable document of title be allowed to be
compelled to deliver the actual possession of the goods?
a. When the negotiable document of title is surrendered.
b. When the negotiable document of title is impounded by court.
c. Either A or B.
d. Neither A nor B.
269. What is the remedy available to a creditor whose debtor is the owner of a negotiable document of
title in regard to property which cannot readily be attached or levied upon by ordinary legal process?
a. He shall be entitled to such aid from courts of appropriate jurisdiction by injunction and
otherwise in attaching such document or in satisfying claim by means thereof as is allowed
at law or in equity.
b. He can compel the bailee to deliver the goods to him even if covered by negotiable
document of title.
c. He can ask the court of law to directly attach the goods covered by the negotiable document
of title.
d. He can directly obtain the goods from the bailee without surrendering the negotiable
document of title.
-END-

Direction: Read and Select The Best Answer For The Following Questions

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Direction: Read and select the best answer for the following questions.

5. The following are the characteristics of a contract of sale, except

7. What is the similarity between contract of sale and dacion en pago?

38. What is the effect of gross inadequacy of price in a contract of sale?

39. What is the effect of simulated price in a contract of sale?

40. When is a contract of sale perfected?

43. When is a contract of sale by auction perfected?

62. What contracts are covered by Recto Law?

98. The following are the examples of constructive deliveries.

a. 6 months from the execution of deed of sale or discovery of encumbrance or burden

183. Which of the following statements is incorrect?

197. What is the prescriptive period of redhibitory action in case of animal?

254. Which of the following statements concerning assignment of credits is incorrect?

260. Which of the following statements is false concerning document of title?

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