1.S sold to B a specific car for P100,000 payable in four 7.

Sam sold to Bam a White Westing House

(4) equal monthly installments. In the event that B failed Refrigerator with Motor Number QWERT123 for a price
to pay the first and second monthly installments, what of P10,000.00. It was stipulated in the contract that
would be the right of S against B, if any? Bam will pay only P6,000.00, and for the difference
a. exact fulfillment of the obligation Bam will convey a specific television valued at
b. cancel the sale P4,000.00. In case their intention was not clear, what is
c. demand payment from B the nature of the contract?
d. any of the above 1 point
a. Barter
2. S sold to B a 2019 Toyota Hi-lux with Engine Number b. Partly sale and partly Barter
BAX12123 by pointing it to B. What kind of delivery c. Sale
was made? d. None of the above
a. brevi manu
b. quasi tradition 8. The following are contracts not covered by Maceda
c. constitutum possessorium Law, which is the exception:
d. none of the above 1 point
a. Sale of Industrial Lots
3. Which of the following cannot be the object of the b. Sale of commercial buildings
contract of sale? c. Sale to tenants under the Land Reform Code
a. hereditary right d. Sale of residential Condominium apartments
b. sale of animal
c. land which the seller expects to buy 9. Realty Installment Buyer Protection Act is also
d. none of the above known as:
1 point
4. Ownership of the thing sold: a. Republic Act 6652
a. Is transferred to the buyer upon actual delivery b. Republic Act 6522
b. Is acquired by the buyer upon the perfection of the c. Republic Act 6552
contract d. Republic Act 6562
c. Is transferred to the buyer upon constructive or
actual delivery of the thing 10. Alex transferred to Bert a parcel of land for the
d. none of the above price of P100,000. It was stipulated in the contract that
Bert will pay P40,000 in cash and that for the
5. Ferns ordered for his workers 1,000 pieces of T- difference, he will convey his only Honda TMX, valued
Shirts ranging in size from small to large from the at approximately P60,000. In case the nature of their
Magellan Garments Mfg. Corporation. The specified agreement is not clear, what kind of contract was
sizes, although not then available, are manufactured entered into by the parties?
by the said corporation and consigned to its sales 1 point
outlets regularly. The contract entered into by Ferns a. Contract to Sell
with the Magellan Garments Mfg. Corporation is? b. Contract of Barter
1 point c. Contract of Sale
a. Contract for a piece of work d. Contract for a Piece of Work
b. Contract subject to a resolutory condition
c. A contract of sale 11. Which of the following statement is not correct.
d. None of the above 1 point
a. A contract of sale is perfected when there is the
6. Simon, 16 years old, sold to Bert, of legal age, a concurrence of an offer and acceptance over the price
specific diamond ring for P10,000.00. Later, Bert sold it and over the subject matter
to Xian. Which of the following statements is b. Contract of Sale is perfected upon the arrival of a
incorrect? resolutory condition
1 point c. Auction sale is perfected when the auctioneer
a. Simon has got a voidable title because at the time of announces its perfection by the fall of the hammer.
the sale he is a minor d. Contract of sale is perfected when subject matter
b. Xian, if in good faith, shall become the owner upon comes into existence.
delivery to him
c. Xian, if in bad faith, shall also become the owner 12. The following are characteristics of a contract of
upon delivery to him sale, which is the exception:
d. None of the above 1 point
a. Consensual
b. Principal
c. Onerous d. The vendors is bound to transfer the ownership of
d. Cumulative the thing to the vendee

13. Husband sold a portion of their common property 19. When goods are delivered to the buyer on “sale or
without the consent of his wife. return” for a period of 10 days, ownership of the goods
1 point passes to the buyer
a. Valid 1 point
b. Rescissible a. On perfection of the contract
c. Voidable b. On expiration of 10 days
d. Unenforceable c. On delivery of the goods
e. Void d. When the buyer signifies his acceptance to the seller

14. A sale by the husband of his capital property to his 20. A pacto de retro sale is?
own wife who then paid a valuable consideration 1 point
thereof. a. an Absolute Sale
1 point b. a Sale subject to a suspensive condition
a. Valid c. A sale where ownership is transferred after the
b. Rescissible expiration of the period to redeem
c. Voidable d. A sale subject to a resolutory condition
d. Unenforceable
e. Void 21. Warranty against hidden defect is:
1 point
15. A sale by the husband in favor of his own wife an a. Essential Element
undivided portion of their common property. b. Natural Element
1 point c. Incidental Element
a. Valid d. Material Element
b. Rescissible
c. Voidable 22. A sold to B the former’s horse for P5,000. No date is
d. Unenforceable fixed by the parties for the performance of their
e. Void respective obligations. The obligation of A is:
1 point
16. Contract of Sale entered into by a lawyer in favor of a. To deliver the horse immediately as there is a
his client involving a property subject matter of a perfected contract
litigation. b. To deliver the horse upon payment by B of P5,000
1 point c. To deliver the horse within a reasonable time of two
a. Valid months from the contract of sale
b. Rescissible d. To rescind the contract as there is no time fixed for
c. Voidable the delivery and payment
d. Unenforceable
e. Void 23. Alex, a sugar miller and Bart, a manufacturer and
dealer in whiskey, entered into an agreement whereby
17. Auction Sale won by the wife of a lawyer involving Alex was to deliver sugar worth P15,000 to Bart who
a parcel of land which was the subject matter of a case was to give Alex 200 bottles of whiskey, worth
handled by her husband. P15,000. This contract is
1 point 1 point
a. Valid a. A contract of Barter or Exchange
b. Rescissible b. A contract of sale
c. Voidable c. An agency to sell
d. Unenforceable d. A contract for Services
e. Void
24. Sandra sold to Berta a specific piano. It was agreed
18. Which of the following statement is not true: that Sandra would fix the price a week later. At the
1 point appointed time, Sandra named the price at P6,000.00.
a. The vendor is bound to warrant the object of the Berta agreed. Is the sale perfected?
sale 1 point
b. Ownership is not acquired by the vendee after a. No, because the price was left to the discretion of
delivery one of the contracting parties.
c. The object is delivered when it is placed under the b. No, because at the time of the sale price was not
control and possession of the vendee fixed
c. Yes, because the price fixed by one of the parties 29. A contract which involves goods which vendor
was accepted by the other. manufactures or procures for general consumption is
d. Answer not given a:
1 point
25. Three of the following are implied warranties in a a. Contract of Barter
contract of sale. Which is the exception? b. Contract of Sale
1 point c. Contract for a piece of work
a. Reasonably fit for the purpose they are acquired d. None of the above
b. Right to sell the thing at the time the contract is
perfected 30. A contract where the consideration is partly in
c. Merchantable quality money and partly in kind or thing, and the value of
d. Free from charges or encumbrances not declared or thing is more than the cash value is a:
known to the buyer. 1 point
a. Contract of Sale
26. Xenon stole a fountain pen from Oscar and sold it b. Contract of Barter
to a Bazaar who pays for it in good faith, not knowing it c. Contract for a piece of work
was stolen. The Bazaar then sold it to Berta, a student d. None of the above
1 point
a. The Bazaar having bought it in good faith becomes 31. A contract of sale is perfected when:
the legal owner, and as such, he can transfer 1 point
ownership to Berta a. There is an offer to buy and also an offer sale
b. Ownership passed to Berta because he bought it in a b. There is an offer to sell and an acceptance
merchant store c. There is a unilateral promise to buy or to sell
c. Oscar may recover the fountain pen from Berta d. None of the above
without reimbursement because he is the legal owner
d. Berta cannot become the owner because Xenon, the 32. If the object of the sale is totally lost before the
original seller, is not the owner perfection of the contract of sale:
1 point
27. Smith sold to Bert his only car for P1,000,000. It a. The seller bears the loss
was agreed by both parties that the consideration shall b. The buyer bears the loss
be paid by Bert as follows: P900,000.00 cash and c. Both buyer and seller proportionately bear the loss
P100,000.00 in the form of continuous supply of d. None of the above
Smith’s favorite Johnny Double Black Whiskey for a
period of five years. Their agreement was expressly 33. The object of the sale is deemed lost when:
denominated as exchange. What is the nature of the 1 point
contract? a. If it goes out of the commerce of man
1 point b. It is declared illegal
a. Barter c. It is stolen and it is already beyond recovery
b. Partly sale and partly barter d. All of the above
c. Commodatum
d. Sale 34. Obligations of the vendor are
1 point
28. Beng imports electric fans from China and a. To transfer the ownership
specifically asks for 220 volts fans. The fans arrived b. To deliver the object
duly labelled 220 volts and sell them to the public as c. To warrant the object
such. Later, it turned out that the fans have been d. All of the above
mislabeled by the manufacturer and were only good
for 110 volts. 35. A contract by which the parties exchange goods or
1 point commodities for other goods.
a. Beng is liable to the vendee for any hidden defects in 1 point
the thing sold, even though he was not aware thereof. a. Contract for a Piece of Work
b. Beng is not liable because he was in good faith, and b. Commdatum
this is shown by specifically asking for 220 volts c. Barter
c. Beng is not liable under the principle of Caveat d. None of the above
Emptor
d. Beng is liable because the vendee did not enjoy legal 36. S sold to B his 2011 Porsche Carrera, and leaves to
and peaceful possession of the object of sale B to determine the price. B refuses to fix the price, but
took the car for his use. Which of the following
statements is correct?
1 point 43. Which of the following may not be object of a
a. No sale, because the price is not fixed by the parties contract of sale?
b. There is a sale, B must pay a reasonable price 1 point
c. No sale until a third person fixes the price a. Things with potential existence
d. S may go to court and ask for damages b. The sale of a vain hope or expectancy
c. Future goods
37. The unpaid seller is not entitled to retain d. Goods still to be manufactured
possession of the goods where
1 point 44. An action instituted by a vendee against the vendor
a. The goods have been sold without any stipulation as to nullify the sale due to some vice or defect of the
to credit object of the sale which renders it unfit for the use
b. The goods have been sold on credit, but the term of intended is:
the credit has expired 1 point
c. The buyer is insolvent a. Accion Redhibitoria
d. The possession of the seller on the goods is only as b. Accion Publiciana
agent or bailee for the buyer c. Accion Reivindicatoria
e. None of the above d. Accion Quanti Minoris

38. Three of the following are elements of the vendor’s 45. S sold to B a specific car for P200,000.00 to be paid
right of stoppage in transit. Which is the exception? as follows: P50,000 upon delivery of the car to B, and
1 point the balance at the rate of P5,000 every three months
a. The buyer must be insolvent thereafter. Subsequently, the car got burned while in
b. The goods must be in transit possession of B, without his fault, before the full
c. The seller must be unpaid payment of the balance. Is B obliged to pay the
d. The seller must be in possession of the goods balance?
1 point
39. Three of the following must be given by the seller a. No, because this is an instalment sale, until the
to the buyer if the redemption is to be made. Which is buyer pays the price of the sale, S remains to be owner
the exception? b. No, because this is an instalment sale, until the
1 point buyer pays the price of the sale, S remains to be the
a. Expenses of the contract owner
b. Price of the sale c. Yes, because of the principle “the thing perishes with
c. Necessary expenses on the thing sold the owner”
d. Interest on the price of the sale d. Yes, but S must give another car because of the
principle – “genus non quam peruit”
40. If the price is uncertain:
1 point 46. When the subject matter of the sale is lost after
a. the transaction is void perfection and after delivery, the lost shall be borne by
b. the buyer will pay a reasonable price the:
c. the sale is unenforceable 1 point
d. the price is to be fixed by the court a. Vendor
b. Vendee
41. Three of the following are conditional sale. Which c. Vendetta
is the exception? d. Venta
1 point
a. Sale of expectancy 47. Shunga sold a Toyota Altis with Plate No. XXX 6969
b. Sale with a right to repurchase to Bam. If the said car is lost after perfection and
c. Sale of a vain hope before delivery, the lost shall be borne by:
d. Sale subject to a contingency 1 point
a. Shunga
42. Sale is distinguished from dation in payment in b. Bam
payment is that in Sale: c. Both
1 point d. Each shall bear his own damage
a. There is a pre-existing obligation or credit
b. The cause is the price 48. Shunga offered to sell all the rice grains found in his
c. It is a mode of extinguishment of obligation in the bodega for a consideration of P1M to Bam who agreed
form of payment to purchase the same. Before Shunga could deliver the
d. Answer not given said rice grains, the same perished due to a fortuitous
event. As between Shunga and Bam, who should suffer
the lost?
1 point
a. Shunga
b. Bam
c. Both
d. Each shall bear his own damage
49. Shanta sold a house and lot to Beybi who
immediately took possession after the sale was
consummated. Few months thereafter, Beybi’s
possession was being bothered by Dowterte who
claims to be the real owner of the property that she
purchased from Shanta. Since Beybi is a peace loving
person, she just turned over the possession of the
house and lot to Dowterte. If Beybi will file a complaint
against Shanta for breach of warranty against eviction,
will it prosper?
1 point
a. Yes, because Beybi was deprived of his possession
over the property due to a right which has been
existing before the sale and due to the fault of the
seller.
b. Yes, because Beybi is a buyer for value and in good
faith
c. No, because Shanta was not given the opportunity to
argue with Dowterte
d. No, because the deprivation was not by virtue of a
judicial process.
50. Last January 1, 2019, Shanta sold a lot to Bam
which is covered by Transfer Certificate of Title No.
018-20190011. However, Bam did not register the sale.
Again on February 1, 2019, Shanta sold the same parcel
of Chix who upon obtaining a reliable information
about the previous sale made by Shanta to Bam, she
instantaneously caused the registration of the sale in
her favor with the Registry of Deeds. Who should be
preferred as buyer and why?
1 point
a. Chix since she was the one who first registered the
sale.
b. Bam because there was an automatic registration in
his favor when Chix registered in bad faith the second
sale.
c. Chix since she was the first one who protected her
rights pursuant to the rule – first in time, stronger in
right.
d. Bam because of the rule prius tempore, potior jure.
51. Statement 1. The contract of sale is perfected at
the moment there is a meeting of the minds upon the
thing which is the object of the contract and upon the
price.Statement 2. The parties may stipulate that
ownership in the thing shall not pass to the purchaser
until he has fully paid the price.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
52. Statement 1. Whenever earnest money is given in a
contract of sale, it shall be considered as part of the
price and as proof of the perfection of the
contract.Statement 2. When the sale is made through a
public instrument, the execution thereof shall be
equivalent to the delivery of the thing which is the
object of the contract, if from the deed the contrary
does not appear or cannot clearly be inferred.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
53. Statement 1. Arras is a proof of perfection of the
contract of sale.Statement 2. In the consummation of a
contract of sale, the option money given by the buyer
to the seller is deductible from the purchase price.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
54. Statement 1. Future inheritance just like any other
future properties can be the object of a contract of sale
including hereditary rights.Statement 2. An accepted
unilateral promise to sell is binding on the promisor
ever if the promise is not supported by a consideration
distinct from the price of the sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
55. Statement 1. A mere offer or “solicitation”
produces no legal effect, and creates no legal
bond.Statement 2. The thing must be licit and the
vendor must have a right to transfer the ownership
thereof at the time it is delivered.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
56. Statement 1. The sole owner of a thing may sell an
undivided interest therein.Statement 2. If the price is
simulated, the sale is void, but the act may be shown
to have been in reality a donation, or some other act or
contract.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
 Statement 2. The fixing of the price of the sale can be
57. Statement 1. Emptio rei speratae is the sale of left to the discretion of one of the contracting parties.
thing which is expected to come into existence, the 1 point
quality and quantity of which are unknown.Statement a. Only Statement 1 is TRUE
2. Gross inadequacy of price does not affect a contract b. Only Statement 2 is TRUE
of sale, except as it may indicate a defect in the c. Both Statements are TRUE
consent, or that the parties really intended a donation d. Both Statements are FALSE
or some other act or contract.
1 point 63. Statement 1. A contract of sale is perfected from
a. Only Statement 1 is TRUE the moment there is delivery by the seller to the buyer
b. Only Statement 2 is TRUE of the object of the sale.Statement 2. Contract of sale
c. Both Statements are TRUE must be in writing to be valid.
d. Both Statements are FALSE 1 point
a. Only Statement 1 is TRUE
58. Statement 1. As a general rule, the owner of the b. Only Statement 2 is TRUE
property subject of a public auction cannot employ by- c. Both Statements are TRUE
bidders. Statement 2. The three remedies made d. Both Statements are FALSE
available to the vendor in a contract of sale of personal
property by installments are alternative. 64. Statement 1. The vendee of industrial lots by
1 point installments is entitled to a cash surrender value of
a. Only Statement 1 is TRUE 50% if he had been paying the installments’ due for
b. Only Statement 2 is TRUE more than two (2) years and the sale was subsequently
c. Both Statements are TRUE rescinded.Statement 2. A lawyer is allowed to
d. Both Statements are FALSE purchase the property of his client subject of litigation
during the pendency of the litigation.
59. Statement 1. The benefits under the Maceda Law 1 point
can be availed by a buyer of industrial lots.Statement a. Only Statement 1 is TRUE
2. Sale entered into by a minor involving necessity is b. Only Statement 2 is TRUE
voidable, hence, he should not be ordered to pay for c. Both Statements are TRUE
the consideration. d. Both Statements are FALSE
1 point
a. Only Statement 1 is TRUE 65. Statement 1. The rule of caveat emptor is
b. Only Statement 2 is TRUE applicable in execution sales.Statement 2. The
c. Both Statements are TRUE expenses for registration and execution of the sale
d. Both Statements are FALSE shall always be borne by the vendor.
1 point
60. Statement 1. As a rule, the husband and the wife a. Only Statement 1 is TRUE
cannot sell property to each other.Statement 2. Things b. Only Statement 2 is TRUE
having a potential existence may be the object of the c. Both Statements are TRUE
contract of sale. d. Both Statements are FALSE
1 point
a. Only Statement 1 is TRUE 66. Statement 1. A contract to sell, even if accepted by
b. Only Statement 2 is TRUE the buyer is not an absolute sale.Statement 2. A
c. Both Statements are TRUE contract of sale is valid, even if at the time of sale, the
d. Both Statements are FALSE seller is not the owner of what he is selling.
1 point
61. Statement 1. Things subject to a resolutory a. Only Statement 1 is TRUE
condition may be the object of the contract of b. Only Statement 2 is TRUE
sale.Statement 2. As a rule, lesion does not affect the c. Both Statements are TRUE
validity of a contract of sale. d. Both Statements are FALSE
1 point
a. Only Statement 1 is TRUE 67. Statement 1. In sale by sample, be it understood
b. Only Statement 2 is TRUE that the bulk is like the sample.Statement 2. Eviction
c. Both Statements are TRUE shall take place whenever a final judgment based on a
d. Both Statements are FALSE right prior to the sale or an act imputable to the
vendor, the vendee is deprived of the whole or part of
62. Statement 1. When the consideration of the sale is the thing purchased.
completely fictitious – the contract of sale is void. 1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE sale and the prescriptive period was completed after
c. Both Statements are TRUE the sale.
d. Both Statements are FALSE 1 point
a. Only Statement 1 is TRUE
68. Statement 1. The vendor shall answer for the b. Only Statement 2 is TRUE
eviction even though nothing has been said in the c. Both Statements are TRUE
contract on the subject.Statement 2. The vendee is d. Both Statements are FALSE
bound to accept delivery and to pay the price of the
thing sold at the time and place provided in the 73. Statement 1. The vendor is responsible to the
contract, otherwise, in its absence it should be made at vendee for any hidden faults or defects in the thing
the time and place of delivery of the subject matter. sold, even though he was not aware thereof.
1 point Statement 2. In sale, the obligation of the vendor is
a. Only Statement 1 is TRUE extinguished; while in dation in payment, obligation is
b. Only Statement 2 is TRUE created.
c. Both Statements are TRUE 1 print
d. Both Statements are FALSE a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
69. Statement 1. The only remedy of the seller in sale c. Both Statements are TRUE
of personal property by installment if the buyer’s d. Both Statements are FALSE
failure to pay covers two (2) or more installments is to
cancel the sale.Statement 2. The expenses of 74. Statement 1. Where unpaid seller made part
registration and execution of the sale shall be borne by delivery of the goods, he may exercise his right of lien
the vendor. on the remainder, unless such part delivery has been
1 point made under such circumstances as to show an intent
a. Only Statement 1 is TRUE to waive the lien or right of retention. Statement 2.
b. Only Statement 2 is TRUE The fixing of the price can never be left to the
c. Both Statements are TRUE discretion of one of the contracting parties. However, if
d. Both Statements are FALSE the price is fixed by one of the contracting parties is
accepted by the other, the sale is perfected.
70. Statement 1. In the consummation of a contract of 1 point
sale, the option money given by the buyer to the seller a. Only Statement 1 is TRUE
is deductible from the purchase price.Statement 2. As a b. Only Statement 2 is TRUE
rule, judgment debtor is also responsible for eviction in c. Both Statements are TRUE
judicial sales. d. Both Statements are FALSE
1 point
a. Only Statement 1 is TRUE 75. Statement 1. As a rule, a veterinarian shall be held
b. Only Statement 2 is TRUE liable for damages in case he should fail to discover a
c. Both Statements are TRUE hidden defect in animal. Statement 2. A contract to
d. Both Statements are FALSE sell, even if accepted by the buyer is not an absolute
sale.
71. Statement 1. Waiver intentionada is a voluntary 1 point
renunciation made by the vendee without knowledge a. Only Statement 1 is TRUE
of the risks and with assumption of the consequence of b. Only Statement 2 is TRUE
eviction.Statement 2. If the price is simulated, the sale c. Both Statements are TRUE
is voidable, because the act may be shown to have d. Both Statements are FALSE
been in reality a donation, or some other act or
contract. 76. Statement 1. The unpaid seller is deemed to have
1 point exercised his right of stoppage in transit when he has
a. Only Statement 1 is TRUE given notice of his claim to the carrier who is in
b. Only Statement 2 is TRUE possession of the goods.Statement 2. An implied
c. Both Statements are TRUE warranty as to quality or fitness for a particular
d. Both Statements are FALSE purpose may be annexed by the usage of trade.
1 point
72. Statement 1. The expenses for the execution and a. Only Statement 1 is TRUE
registration of the sale shall be borne by both the b. Only Statement 2 is TRUE
vendor and the vendee, unless there is a stipulation to c. Both Statements are TRUE
the contrary. Statement 2. Vendor is liable for eviction d. Both Statements are FALSE
if the adverse possession has commenced before the
77. Statement 1. The contract of sale is perfected at
the moment there is a meeting of minds upon the
thing which is the object of the contract.Statement 2.
The parties are not allowed to stipulate that ownership
in the thing shall not pass to the purchaser until he has
fully paid the price.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
78. Statement 1. In case the immovable property
subject matter of the sale is encumbered with a non-
apparent burden or servitude, not mentioned in the
agreement, the vendor may ask for rescission or
damages as a remedy. Statement 2. The rule on
equitable mortgage is applicable in transactions
purporting to be an absolute sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
79. Statement 1. If an unpaid seller has lost the right of
possessory lien, he can still make use of the right of
stoppage in transitu provided the goods are still in
transit.Statement 2. The goods are in transit even if it
reached its place of destination and the consignee
refused to receive it and the carrier remains in
possession thereof.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
80. Statement 1. The unpaid seller may exercise the
right of resale when the intended purchaser becomes
insolvent while the goods are in transit and the goods
are of perishable in nature.Statement 2. When the
vendor still regularly pays for the real estate taxes on
the property despite his execution of a Deed of
Absolute Sale, the court is justified in declaring the
transaction as an equitable mortgage.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
81. Statement 1. Title passes to the vendee from the
moment the goods are placed at his disposal and any
stipulation to the contrary is void.Statement 2. The
rule on caveat emptor is applicable on execution sales,
where the sheriff warrants the title of the property
that he will sell in an auction sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
82. Statement 1. A lawyer is prohibited to buy the
properties of his client subject matter of the litigation
as it is against law, morals, and public order.Statement
2. In sale of untitled lands, when the vendee is a buyer
for value and in good faith, any third person who was
prejudiced by the said sale cannot file an action for the
rescission of the sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
83. Xenon purchased on installment basis a Toyota
Camry from Toyota Motors Philippines – Baguio City
Sales Office. Having failed to pay his installments in the
amount of P800,000.00, Toyota Motors Philippines
sued Xenon before the Municipal Trial Court in Cities of
Baguio City for REPLEVIN (it is an action for the
recovery of personal property) which was favorably
granted by the court and directing Sheriff Mar-1 to
seize the unit and sell it in an auction sale to obtain
satisfaction of Xenon’s obligation to Toyota Motors
Philippines. At the auction sale, the Sheriff was able to
sell the Toyota Camry for P500,000.00 leaving a
balance of P300,000.00. Can Toyota Motors Philippines
recover the balance in the amount of P300,000.00 from
Xenon? Explain with legal reason.
1 point
a. No because of the prohibition found in Recto Law
which states that the vendor can no longer recover the
balance.
b. No because the remedy is cumulative
c. Yes, because the remedy availed off was specific
performance, thus, when there was a deficiency he can
still collect said deficiency.
d. Yes, because the vendor did not avail the remedy of
rescission, so the vendor can still collect the unpaid
balance.
e. None of the above.
84. Morris is the registered owner of a ten hectare land
located in Sto. Tomas, Tuba, Benguet and covered by
Transfer Certificate of Title No. T-43215. In 1995 he
sold the entire parcel of land to his good friend Bernie
for a consideration of P10M. In the 2001 National
Elections, their relationship turned sour and they then
became bitter to each other. In the year 2002, Morris
discovered that Bernie has not yet transferred the title
of the ten hectare land that he purchased from him in
1995. Thus, Morris decided to again sell the same
property to his new best friend Edison for a
consideration of P5M with the instruction to
immediately register the sale with the Registry of
Deeds of Benguet. When Edison asked why the need to
register it immediately, Morris then narrated to Edison
what happened between him and Bernie in 1995.
Truly, Edison then immediately registered the sale with
the Registry of Deeds for the Province of Benguet. As
between Bernie and Edison, who has a better title over
the parcel of land covered by TCT No. T-43215. Explain
citing legal reasons.
1 point
a. Edison being the first registrant in good faith.
b. Bernie because the registration of Edison in bad
faith constitutes an automatic registration in his favor.
c. None of the two.
d. Answer or reason not given
85. How about if in question number 84, Bernie
registered the sale in his name after learning the
second sale made by Morris in favor of Edison. As
between Bernie and Edison, who between them has
the better title?
1 point
a. Edison because the registration made by Bernie in
bad faith constitutes an automatic registration of the
sale in his favor.
b. Bernie because his registration being the first buyer
is always considered in good faith
c. Edison because he is the first possessor in good faith.
d. None of the two.
86. Lino entered into a contract to sell with Ramon,
undertaking to convey to the latter one of the five lots
he owns, without specifying which lot it was, for the
price of P1 million. Later, the parties could not agree
which of five lots he owned Lino undertook to sell to
Ramon. What is the standing of the contract?
1 point
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
87. Which phrase most accurately completes the
statement – If at the time the contract of sale is
perfected, the thing which is the object of the contract
has been entirely lost:
1 point
a) the buyer bears the risk of loss.
b) the contract shall be without any effect.
c) the seller bears the risk of loss.
d) the buyer may withdraw from the contract.
88. Can future inheritance be the subject of a contract
of sale?
1 point
(A) No, since it will put the predecessor at the risk of
harm from a tempted buyer, contrary to public policy.
(B) Yes, since the death of the decedent is certain to
occur.
(C) No, since the seller owns no inheritance while his
predecessor lives.
(D) Yes, but on the condition that the amount of the
inheritance can only be ascertained after the
obligations of the estate have been paid.
89. A contract granting a privilege to a person, for
which he has paid a consideration, which gives him the
right to buy certain merchandise or specified property,
from another person, at anytime within the agreed
period, at a fixed price. What contract is being referred
to?
1 point
a) Option Contract
b) Contract to Sell
c) Contract of Sale
d) Lease
90. Michael Fermin, without the authority of Pascual
Lacas, owner of a car, sold the same car in the name of
Mr. Lacas to Atty. Buko. The contract between Atty.
Buko and Mr. Lacas is ---
1 point
a) void because of the absence of consent from the
owner, Mr. Lacas.
b) valid because all of the essential requisites of a
contract are present.
c) unenforceable because Michael Fermin had no
authority but he sold the car in the name of Mr. Lacas,
the owner.
d) rescissible because the contract caused lesion to
Atty. Buko
91. Which of the following contracts is void?
1 point
a) An oral sale of a parcel of land.
b) A sale of land by an agent in a public instrument
where his authority from the principal is oral.
c) A donation of a wrist watch worth P 4,500.00.
d) A relatively simulated contract.
92. Aligada orally offered to sell his two-hectare rice
land to Balane for P 10Million. The offer was orally
accepted. By agreement, the land was to be delivered
(through execution of a notarized Deed of Sale) and
the price was to be paid exactly one-month from their
oral agreement. Which statement is most accurate?
1 point
a) If Aligada refuses to deliver the land on the agreed
date despite payment by Balane, the latter may not
successfully sue Aligada because the contract is oral.
b) If Aligada refused to deliver the land, Balane may
successfully sue for fulfillment of the obligation even if
he has not tendered payment of the purchase price.
c) The contract between the parties is rescissible.
d) The contract between the parties is subject to
ratification by the parties.
93. Knowing that the car had a hidden crack in the
engine, X sold it to Y without informing the latter
about it. In any event, the deed of sale expressly 1 point
stipulated that X was not liable for hidden defects. a. Specific Performance
Does Y have the right to demand from X a b. Right of Possessory Lien
reimbursement of what he spent to repair the engine c. Right of Stoppage in Transitu
plus damages? d. Right of Re-sale
1 point
(A) Yes. X is liable whether or not he was aware of the 98. Unilateral promise to buy or to sell which was not
hidden defect. accepted.
(B) Yes, since the defect was not hidden; X knew of it 1 point
but he acted in bad faith in not disclosing the fact to Y. a. Politication
(C) No, because Y is in estoppel, having changed engine b. Policitacion
without prior demand. c. Policitation
(D) No, because Y waived the warranty against hidden d. Poltitication
defects.
99. Reservation of ownership on the part of the vendor
94. Youngs Town produced sardines in cans known as even when there was delivery of the object as a mere
"Sards." Mylene bought a can of Sards from a store, security for the full payment of the agreed
ate it, and suffered from poisoning caused by a noxious consideration.
substance found in the sardines. Mylene filed a case 1 point
for damages against Acme. Which of the following a. Caveat emptor
defenses will hold? b. Pactum reservati dominii
1 point c. Caveat venditur
(A) The expiry date of the "Sards" was clearly printed d. Res Perit domino
on its can, still the store sold and Mylene bought it.
(B) Mylene must have detected the noxious substance 100. Sale is perfected in the following manner, except?
in the sardines by smell, yet she still ate it. 1 point
(C) Youngs Town had no transaction with Mylene; she a. Upon the delivery of the earnest money
bought the "Sards" from a store, not directly from b. When the auctioneer announces the perfection of
Acme. the auction sale by the fall of the hammer
(D) Youngs Town enjoys the presumption of safeness c. Upon the happening of the suspensive condition in a
of its canning procedure and Mylene has not overcome sale subject to a suspensive condition
such presumption. d. Upon the delivery of the option money
e. When the offeror gained knowledge about the
95. A warranty inherent in a contract of sale, whether acceptance made by the offeree.
or not mentioned in it, is known as the
1 point 101. Statement 1. A lawyer is allowed to purchase the
(A) warranty on quality. property of his client subject of litigation during the
(B) warranty against hidden defects. pendency of the litigation.Statement 2. The rule of
(C) warranty against eviction. caveat emptor is applicable in execution sales.
(D) warranty in merchantability. 1 point
a. Only Statement 1 is TRUE
96. A buyer ordered 5,000 apples from the seller at P20 b. Only Statement 2 is TRUE
per apple. The seller delivered 6,000 apples. What are c. Both Statements are TRUE
the rights and obligations of the buyer? d. Both Statements are FALSE
1 point
(A) He can accept all 6,000 apples and pay the seller at
P20 per apple. 102. Statement 1. The expenses for registration and
(B) He can accept all 6,000 apples and pay a lesser price execution of the sale shall always be borne by the
for the 1,000 excess apples. vendor.Statement 2.A contract to sell, even if accepted
(C) He can keep the 6,000 apples without paying for by the buyer is not an absolute sale.
the 1,000 excess since the seller delivered them 1 point
anyway. a. Only Statement 1 is TRUE
(D) He can cancel the whole transaction since the seller b. Only Statement 2 is TRUE
violated the terms of their agreement. c. Both Statements are TRUE
d. Both Statements are FALSE
97. The right of an unpaid seller to take possession of
the goods if the vendee subsequently becomes 103. Statement 1. A contract of sale is valid, even if at
insolvent after the perfection but before the delivery the time of sale, the seller is not the owner of what he
of the subject matter.
is selling.Statement 2. In sale by sample, be it
understood that the bulk is like the sample.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
104. Statement 1. Eviction shall take place whenever a
final judgment based on a right prior to the sale or an
act imputable to the vendor, the vendee is deprived of
the whole or part of the thing purchased.Statement 2.
The vendor shall answer for the eviction even though
nothing has been said in the contract on the subject.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
105. Statement 1. The vendee is bound to accept
delivery and to pay the price of the thing sold at the
time and place provided in the contract, otherwise, in
its absence it should be made at the time and place of
delivery of the subject matter.Statement 2. The only
remedy of the seller in sale of personal property by
installment if the buyer’s failure to pay covers two (2)
or more installments is to cancel the sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
106. Statement 1. The expenses of registration and
execution of the sale shall be borne by the
vendor.Statement 2. In the consummation of a
contract of sale, the option money given by the buyer
to the seller is deductible from the purchase price.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
107. Statement 1. As a rule, judgment debtor is also
responsible for eviction in judicial sales. Statement 2.
Waiver intentionada is a voluntary renunciation made
by the vendee without knowledge of the risks and with
assumption of the consequence of eviction.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
108. Statement 1. If the price is simulated, the sale is
voidable, because the act may be shown to have been
in reality a donation, or some other act or
contract.Statement 2. The expenses for the execution
and registration of the sale shall be borne by both the
vendor and the vendee, unless there is a stipulation to
the contrary.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
109. Statement 1. Vendor is liable for eviction if the
adverse possession has commenced before the sale
and the prescriptive period was completed after the
sale.Statement 2. The vendor is responsible to the
vendee for any hidden faults or defects in the thing
sold, even though he was not aware thereof.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
110. Statement 1. In sale, the obligation of the vendor
is extinguished; while in dation in payment, obligation
is created.Statement 2. Where unpaid seller made part
delivery of the goods, he may exercise his right of lien
on the remainder, unless such part delivery has been
made under such circumstances as to show an intent
to waive the lien or right of retention.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
111. Statement 1. The parties are not allowed to
stipulate that ownership in the thing shall not pass to
the purchaser until he has fully paid the
price.Statement 2. In case the immovable property
subject matter of the sale is encumbered with a non-
apparent burden or servitude, not mentioned in the
agreement, the vendor may ask for rescission or
damages as a remedy.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
112. Statement 1. The rule on equitable mortgage is
applicable in transactions purporting to be an absolute
sale.Statement 2. If an unpaid seller has lost the right
of possessory lien, he can still make use of the right of
stoppage in transitu provided the goods are still in
transit.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

113. Statement 1. The goods are in transit even if it

reached its place of destination and the consignee
refused to receive it and the carrier remains in
possession thereof.Statement 2. The unpaid seller may
exercise the right of resale when the intended
purchaser becomes insolvent while the goods are in
transit and the goods are of perishable in nature.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

114. Statement 1. When the vendor still regularly pays

for the real estate taxes on the property despite his
execution of a Deed of Absolute Sale, the court is
justified in declaring the transaction as an equitable
mortgage.Statement 2. Legal subrogation is the right to
be substituted upon the same terms and conditions
stipulated in the contract in place of one who acquires
a thing by purchase, donation inter vivos, or other
transaction whereby ownership is transmitted by
ownership title.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

115. Statement 1. Title passes to the vendee from the

moment the goods are placed at his disposal and any
stipulation to the contrary is void.Statement 2. The
rule on caveat emptor is applicable on execution sales,
where the sheriff warrants the title of the property
that he will sell in an auction sale.
1 point
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE