BLR 211 - Prelims (1st Semester)
Sale of Industrial Lots
Total points63/115  b. Sale of commercial buildings
I. MULTIPLE CHOICE: Part 1 -
(Q1 to 50)
25 of 50 points
Choose the BEST ANSWER by
clicking the letter that corresponds
to your answer.
4. Ownership of the thing sold:
a. Is transferred to the buyer
upon actual delivery
b. Is acquired by the buyer upon
the perfection of the contract
c. Is transferred to the buyer
upon constructive or actual
delivery of the thing
d. none of the above
6. Simon, 16 years old, sold to Bert,
of legal age, a specific diamond
ring for P10,000.00. Later, Bert
sold it to Xian. Which of the
following statements is incorrect?
a. Simon has got a voidable title
because at the time of the sale he
is a minor
b. Xian, if in good faith, shall
become the owner upon delivery
to him
c. Xian, if in bad faith, shall also
become the owner upon delivery
to him
 
d. None of the above
24. Sandra sold to Berta a
specific piano. It was agreed
that Sandra would fix the price
a week later. At the appointed
time, Sandra named the price
at P6,000.00. Berta agreed. Is
the sale perfected?
a. No, because the price was
left to the discretion of one
of the contracting parties.
b. No, because at the time of
the sale price was not fixed
c. Yes, because the price
fixed by one of the parties
was accepted by the other.
d. Answer not given
48. Shunga offered to sell all
the rice grains found in his
bodega for a consideration of
P1M to Bam who agreed to
purchase the same. Before
Shunga could deliver the said
rice grains, the same perished
due to a fortuitous event. As
between Shunga and Bam, who
should suffer the lost?
a. Shunga
b. Bam
c. Both
d. Each shall bear his own
damage
8. The following are contracts
not covered by Maceda Law,
which is the exception:
a.
c. Sale to tenants under the Land
Reform Code
d. Sale of residential
Condominium apartments
3. Which of the following cannot
be the object of the contract of
sale?
a. hereditary right
b. sale of animal
c. land which the seller expects
to buy
d. none of the above
25. Three of the following are
implied warranties in a contract of
sale. Which is the exception?
a. Reasonably fit for the purpose
they are acquired
b. Right to sell the thing at the
time the contract is perfected
c. Merchantable quality
d. Free from charges or
encumbrances not declared or
known to the buyer.
7. Sam sold to Bam a White
Westing House Refrigerator with
Motor Number QWERT123 for a
price of P10,000.00. It was
stipulated in the contract that Bam
will pay only P6,000.00, and for the
difference Bam will convey a
specific television valued at
P4,000.00. In case their intention
was not clear, what is the nature of
the contract?
a. Barter
b. Partly sale and partly Barter
c. Sale
d. None of the above
35. A contract by which the parties
exchange goods or commodities for
other goods.
a. Contract for a Piece of Work
b. Commdatum
c. Barter
d. None of the above
19. When goods are delivered to
the buyer on “sale or return” for a
period of 10 days, ownership of the
goods passes to the buyer
a. On perfection of the contract
b. On expiration of 10 days
c. On delivery of the goods
d. When the buyer signifies his
acceptance to the seller
18. Which of the following
statement is not true:
a. The vendor is bound to
warrant the object of the sale
b. Ownership is not acquired
by the vendee after delivery
c. The object is delivered
when it is placed under the
control and possession of the
vendee
d. The vendors is bound to
transfer the ownership of the
thing to the vendee
33. The object of the sale is
deemed lost when:
a. If it goes out of the
commerce of man
b. It is declared illegal
c. It is stolen and it is
already beyond recovery
d. All of the above
44. An action instituted by a
vendee against the vendor to
nullify the sale due to some
vice or defect of the object of
the sale which renders it unfit
for the use intended is:
a. Accion Redhibitoria
b. Accion Publiciana
c. Accion Reivindicatoria
d. Accion Quanti Minoris
11. Which of the following
statement is not correct.
a. A contract of sale is perfected
when there is the concurrence of
an offer and acceptance over the
price and over the subject matter
b. Contract of Sale is perfected
upon the arrival of a resolutory
condition
c. Auction sale is perfected when
the auctioneer announces its
perfection by the fall of the
hammer.
d. Contract of sale is perfected
when subject matter comes into
existence.
9. Realty Installment Buyer
Protection Act is also known as:
a. Republic Act 6652
b. Republic Act 6522
c. Republic Act 6552
d. Republic Act 6562
30. A contract where the
consideration is partly in money
and partly in kind or thing, and the
value of thing is more than the cash
value is a:
a. Contract of Sale
b. Contract of Barter
c. Contract for a piece of work
d. None of the above
16. Contract of Sale entered into by
a lawyer in favor of his client
involving a property subject matter
of a litigation.
 a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
23. Alex, a sugar miller and Bart, a
manufacturer and dealer in
whiskey, entered into an agreement
whereby Alex was to deliver sugar
worth P15,000 to Bart who was to
give Alex 200 bottles of whiskey,
worth P15,000. This contract is
a. A contract of Barter or
Exchange
b. A contract of sale
c. An agency to sell
d. A contract for Services
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?
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 b. To deliver the object
in bad faith the second sale.
c. To warrant the object
c. Chix since she was the
first one who protected her
d. All of the above
rights pursuant to the rule –
first in time, stronger in
right. 13. Husband sold a portion of their
common property without the
consent of his wife.
d. Bam because of the rule
prius tempore, potior jure.
a. Valid
29. A contract which involves
goods which vendor b. Rescissible
manufactures or procures for
general consumption is a:
c. Voidable
a. Contract of Barter
d. Unenforceable
b. Contract of Sale
e. Void
c. Contract for a piece of
27. Smith sold to Bert his only car
work
for P1,000,000. It was agreed by
both parties that the consideration
d. None of the above shall be paid by Bert as follows:
P900,000.00 cash and P100,000.00
in the form of continuous supply of
38. Three of the following are
Smith’s favorite Johnny Double
elements of the vendor’s right
Black Whiskey for a period of five
of stoppage in transit. Which is
years. Their agreement was
the exception?
expressly denominated as
exchange. What is the nature of the
a. The buyer must be contract?
insolvent
a. Barter
b. The goods must be in
transit
b. Partly sale and partly barter
c. The seller must be unpaid
c. Commodatum
d. The seller must be in
d. Sale
possession of the goods
21. Warranty against hidden defect
34. Obligations of the vendor
is:
are
a. Essential Element
a. To transfer the ownership
 b. Natural Element d. Cumulative
c. Incidental Element 42. Sale is distinguished from
dation in payment in payment
is that in Sale:
d. Material Element
47. Shunga sold a Toyota Altis with a. There is a pre-existing
Plate No. XXX 6969 to Bam. If the obligation or credit
said car is lost after perfection and
before delivery, the lost shall be b. The cause is the price
borne by:
c. It is a mode of
a. Shunga extinguishment of obligation
in the form of payment
b. Bam
d. Answer not given
c. Both
17. Auction Sale won by the
wife of a lawyer involving a
d. Each shall bear his own parcel of land which was the
damage subject matter of a case
handled by her husband.
14. A sale by the husband of his
capital property to his own wife
who then paid a valuable a. Valid
consideration thereof.
b. Rescissible
a. Valid
c. Voidable
b. Rescissible
d. Unenforceable
c. Voidable
e. Void
d. Unenforceable
26. Xenon stole a fountain pen
from Oscar and sold it to a
e. Void Bazaar who pays for it in good
faith, not knowing it was
12. The following are stolen. The Bazaar then sold it
characteristics of a contract of sale, to Berta, a student
which is the exception:
a. The Bazaar having bought
a. Consensual it in good faith becomes the
legal owner, and as such, he
can transfer ownership to
b. Principal Berta
c. Onerous
b. Ownership passed to Berta
because he bought it in a
merchant store
c. Oscar may recover the
fountain pen from Berta without
reimbursement because he is the
legal owner
d. Berta cannot become the
owner because Xenon, the
original seller, is not the owner
20. A pacto de retro sale is?
a. an Absolute Sale
b. a Sale subject to a suspensive
condition
 c. A sale where ownership is
transferred after the expiration of
the period to redeem
d. A sale subject to a resolutory
condition
36. S sold to B his 2011 Porsche
Carrera, and leaves to 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?
a. No sale, because the price is
not fixed by the parties
b. There is a sale, B must pay a
reasonable price
c. No sale until a third person
fixes the price
d. S may go to court and ask for
damages
41. Three of the following are
conditional sale. Which is the
exception?
a. Sale of expectancy
b. Sale with a right to repurchase
c. Sale of a vain hope
d. Sale subject to a contingency
28. Beng imports electric fans from
China and specifically asks for 220
volts fans. The fans arrived duly
labelled 220 volts and sell them to
the public as such. Later, it turned
out that the fans have been
mislabeled by the manufacturer and
were only good for 110 volts.
a. Beng is liable to the vendee for
any hidden defects in the thing
sold, even though he was not
aware thereof.
b. Beng is not liable because he
was in good faith, and this is
shown by specifically asking for
220 volts
c. Beng is not liable under the
principle of Caveat Emptor
d. Beng is liable because the
vendee did not enjoy legal and
peaceful possession of the object
of sale
40. If the price is uncertain:
a. the transaction is void
 
b. the buyer will pay a reasonable
price
c. the sale is unenforceable
d. the price is to be fixed by
the court
5. Ferns ordered for his
workers 1,000 pieces of T-
Shirts ranging in size from
small to large from the
Magellan Garments Mfg.
Corporation. The specified
sizes, although not then
available, are manufactured by
the said corporation and
consigned to its sales outlets
regularly. The contract entered
into by Ferns with the
Magellan Garments Mfg.
Corporation is?
a. Contract for a piece of
work
b. Contract subject to a
resolutory condition
c. A contract of sale
d. None of the above
10. Alex transferred to Bert a
parcel of land for the price of
P100,000. It was stipulated in
the contract that Bert will pay
P40,000 in cash and that for
the difference, he will convey
his only Honda TMX, valued
at approximately P60,000. In
case the nature of their
agreement is not clear, what
kind of contract was entered
into by the parties?
a. Contract to Sell
b. Contract of Barter
c. Contract of Sale
d. Contract for a Piece of Work
2. S sold to B a 2019 Toyota Hi-lux
with Engine Number BAX12123 by
pointing it to B. What kind of
delivery was made?
a. brevi manu
b. quasi tradition
c. constitutum possessorium
d. none of the above
37. The unpaid seller is not entitled
to retain possession of the goods
where
a. The goods have been sold
without any stipulation as to
credit
b. The goods have been sold on
credit, but the term of the credit
has expired
c. The buyer is insolvent
d. The possession of the seller on
the goods is only as agent or
bailee for the buyer
e. None of the above
46. When the subject matter of the
sale is lost after perfection and after
delivery, the lost shall be borne by
the:
a. Vendor
b. Vendee
c. Vendetta
 d. Venta
1. S sold to B a specific car for
P100,000 payable in four (4) equal
monthly installments. In the event
that B failed to pay the first and
second monthly installments, what
would be the right of S against B, if
any?
a. exact fulfillment of the
obligation
b. cancel the sale
c. demand payment from B
d. any of the above
 
15. A sale by the husband in favor
of his own wife an undivided
portion of their common property.
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
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?
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.
32. If the object of the sale is
totally lost before the
perfection of the contract of
sale:
a. The seller bears the loss
b. The buyer bears the loss
c. Both buyer and seller
proportionately bear the loss
d. None of the above
31. A contract of sale is
perfected when:
a. There is an offer to buy
and also an offer sale
b. There is an offer to sell
and an acceptance
c. There is a unilateral promise to
buy or to sell
d. None of the above
39. Three of the following must be
given by the seller to the buyer if
the redemption is to be made.
Which is the exception?
a. Expenses of the contract
b. Price of the sale
c. Necessary expenses on the
thing sold
d. Interest on the price of the sale
45. S sold to B a specific car for
P200,000.00 to be paid as follows:
P50,000 upon delivery of the car to
B, and the balance at the rate of
P5,000 every three months
thereafter. Subsequently, the car
got burned while in possession of
B, without his fault, before the full
payment of the balance. Is B
obliged to pay the balance?
a. No, because this is an
instalment sale, until the buyer
pays the price of the sale, S
remains to be owner
b. No, because this is an
instalment sale, until the buyer
pays the price of the sale, S
remains to be the owner
c. Yes, because of the principle
“the thing perishes with the
owner”
d. Yes, but S must give another
car because of the principle –
“genus non quam peruit”
43. Which of the following may not
be object of a contract of sale?
a. Things with potential existence
b. The sale of a vain hope or
expectancy
c. Future goods
d. Goods still to be manufactured
22. A sold to B the former’s horse
for P5,000. No date is fixed by the
parties for the performance of their
respective obligations. The
obligation of A is:
a. To deliver the horse
immediately as there is a
perfected contract
b. To deliver the horse upon
payment by B of P5,000
c. To deliver the horse within a
reasonable time of two months
from the contract of sale
d. To rescind the contract as
there is no time fixed for the
delivery and payment
II. Multiple Choice (Part 2: Q51 to
115)
38 of 65 points
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?
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.
57. Statement 1. Emptio rei
speratae is the sale of thing
which is expected to come into
existence, the quality and
quantity of which are
unknown.Statement 2. Gross
inadequacy of price does not
affect a contract of sale, except
as it may indicate a defect in
the consent, or that the parties
really intended a donation or
some other act or contract.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
96. A buyer ordered 5,000 apples
from the seller at P20 per apple.
The seller delivered 6,000 apples.
What are the rights and obligations
of the buyer?
(A) He can accept all 6,000
apples and pay the seller at P20
per apple.
(B) He can accept all 6,000
apples and pay a lesser price for
the 1,000 excess apples.
(C) He can keep the 6,000 apples
without paying for the 1,000
excess since the seller delivered
them anyway.
(D) He can cancel the whole
transaction since the seller
violated the terms of their
agreement.
72. Statement 1. 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.
Statement 2. Vendor is liable for
eviction if the adverse possession
has commenced before the sale and
the prescriptive period was
completed after the sale.
 a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
102. Statement 1. The expenses for
registration and execution of the
sale shall always be borne by the
vendor.Statement 2.A contract to
sell, even if accepted by the buyer
is not an absolute sale.
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.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
65. Statement 1. The rule of
caveat emptor is applicable in
execution sales.Statement 2.
The expenses for registration
and execution of the sale shall
always be borne by the vendor.
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.
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.
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.
a. Only Statement 1 is TRUE
 b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
101. Statement 1. A lawyer is
allowed to purchase the property of
his client subject of litigation
during the pendency of the
litigation.Statement 2. The rule of
caveat emptor is applicable in
execution sales.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
69. Statement 1. 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.Statement 2. The expenses
of registration and execution of the
sale shall be borne by the vendor.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
66. Statement 1. A contract to sell,
even if accepted by the buyer is not
an absolute sale.Statement 2. A
contract of sale is valid, even if at
the time of sale, the seller is not the
owner of what he is selling.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
71. Statement 1. Waiver
intentionada is a voluntary
renunciation made by the
vendee without knowledge of
the risks and with assumption
of the consequence of
eviction.Statement 2. 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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
99. Reservation of ownership
on the part of the vendor even
when there was delivery of the
object as a mere security for
the full payment of the agreed
consideration.
a. Caveat emptor
b. Pactum reservati dominii
c. Caveat venditur
d. Res Perit domino
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:
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.
75. Statement 1. As a rule, a
veterinarian shall be held liable for
damages in case he should fail to
discover a hidden defect in animal.
Statement 2. A contract to sell,
even if accepted by the buyer is not
an absolute sale.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
 c. Both Statements are TRUE
d. Both Statements are FALSE
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?
a) Option Contract
b) Contract to Sell
c) Contract of Sale
d) Lease
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.
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.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
59. Statement 1. The benefits
under the Maceda Law can be
availed by a buyer of industrial
lots.Statement 2. Sale entered
into by a minor involving
necessity is voidable, hence, he
should not be ordered to pay
for the consideration.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
88. Can future inheritance be the
subject of a contract of sale?
(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.
68. Statement 1. The vendor shall
answer for the eviction even though
nothing has been said in the
contract on the subject.Statement 2.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
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?
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.
100. Sale is perfected in the
following manner, except?
a. Upon the delivery of the
earnest money
b. When the auctioneer
announces the perfection of
the auction sale by the fall of
the hammer
c. Upon the happening of the
suspensive condition in a
sale subject to a suspensive
condition
d. Upon the delivery of the
option money
e. When the offeror gained
knowledge about the
acceptance made by the
offeree.
76. Statement 1. The unpaid
seller is deemed to have
exercised his right of stoppage
in transit when he has given
notice of his claim to the
carrier who is in possession of
the goods.Statement 2. An
implied warranty as to quality
or fitness for a particular
purpose may be annexed by the
usage of trade.
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.
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.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
 c. Both Statements are TRUE b. Only Statement 2 is TRUE c. Both Statements are TRUE

d. Both Statements are FALSE
70. Statement 1. In the
consummation of a contract of sale,
the option money given by the
buyer to the seller is deductible
from the purchase price.Statement
2. As a rule, judgment debtor is
also responsible for eviction in
judicial sales.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
c. Both Statements are d. Both Statements are FALSE
TRUE
 
d. Both Statements are
FALSE
104. Statement 1. Eviction shall
take place whenever a final
111. Statement 1. The parties judgment based on a right prior to
are not allowed to stipulate that the sale or an act imputable to the
ownership in the thing shall not vendor, the vendee is deprived of
pass to the purchaser until he the whole or part of the thing
has fully paid the purchased.Statement 2. The vendor
price.Statement 2. In case the shall answer for the eviction even
immovable property subject though nothing has been said in the
matter of the sale is contract on the subject.
encumbered with a non-
apparent burden or servitude,
not mentioned in the a. Only Statement 1 is TRUE
agreement, the vendor may ask
for rescission or damages as a
remedy. b. Only Statement 2 is TRUE

56. Statement 1. The sole owner of c. Both Statements are TRUE

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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
62. Statement 1. When the
consideration of the sale is
completely fictitious – the contract
of sale is void. Statement 2. The
fixing of the price of the sale can be
left to the discretion of one of the
contracting parties.
a. Only Statement 1 is TRUE
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
d. Both Statements are FALSE
67. Statement 1. In sale by sample,
be it understood that the bulk is like
the sample.Statement 2. 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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
103. Statement 1. A contract of sale
is valid, even if at the time of sale,
the seller is not the owner of what
he is selling.Statement 2. In sale by
sample, be it understood that the
bulk is like the sample.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
74. Statement 1. 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. Statement 2. The fixing
of the price can never be left to the
discretion of one of the contracting
parties. However, if the price is
fixed by one of the contracting
parties is accepted by the other, the
sale is perfected.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
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?
a. Rescissible
b. Voidable
c. Unenforceable may be the object of the contract of
sale.
d. Void
a. Only Statement 1 is TRUE
107. Statement 1. As a rule,
judgment debtor is also b. Only Statement 2 is TRUE
responsible for eviction in
judicial sales. Statement 2.
Waiver intentionada is a c. Both Statements are TRUE
voluntary renunciation made
by the vendee without d. Both Statements are FALSE
knowledge of the risks and
with assumption of the
consequence of eviction. 93. Knowing that the car had a
hidden crack in the engine, X sold
it to Y without informing the latter
a. Only Statement 1 is TRUE about it. In any event, the deed of
sale expressly stipulated that X was
not liable for hidden defects. Does
b. Only Statement 2 is TRUE
Y have the right to demand from X
a reimbursement of what he spent
c. Both Statements are to repair the engine plus damages?
TRUE
(A) Yes. X is liable whether or
d. Both Statements are not he was aware of the hidden
FALSE defect.
63. Statement 1. A contract of (B) Yes, since the defect was not
sale is perfected from the hidden; X knew of it but he acted
moment there is delivery by in bad faith in not disclosing the
the seller to the buyer of the fact to Y.
object of the sale.Statement 2.
Contract of sale must be in
writing to be valid.  
(C) No, because Y is in estoppel,
a. Only Statement 1 is TRUE
having changed engine without
prior demand.
b. Only Statement 2 is TRUE
(D) No, because Y waived the
c. Both Statements are warranty against hidden defects.
TRUE
61. Statement 1. Things subject to a
d. Both Statements are resolutory condition may be the
FALSE object of the contract of
sale.Statement 2. As a rule, lesion
does not affect the validity of a
60. Statement 1. As a rule, the contract of sale.
husband and the wife cannot
sell property to each
other.Statement 2. Things a. Only Statement 1 is TRUE
having a potential existence
 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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
64. Statement 1. The vendee of
industrial lots by installments is
entitled to a cash surrender value of
50% if he had been paying the
installments’ due for more than two
(2) years and the sale was
subsequently rescinded.Statement
2. A lawyer is allowed to purchase
the property of his client subject of
litigation during the pendency of
the litigation.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE
91. Which of the following
contracts is void?
a) An oral sale of a parcel of a. Only Statement 1 is TRUE
land.
b. Only Statement 2 is TRUE
b) A sale of land by an agent
in a public instrument where
c. Both Statements are TRUE
his authority from the
principal is oral.
d. Both Statements are FALSE
c) A donation of a wrist
watch worth P 4,500.00. 53. Statement 1. Arras is a proof of
perfection of the contract of
sale.Statement 2. In the
d) A relatively simulated
consummation of a contract of sale,
contract.
the option money given by the
buyer to the seller is deductible
115. Statement 1. Title passes from the purchase price.
to the vendee from the moment
the goods are placed at his
disposal and any stipulation to a. Only Statement 1 is TRUE
the contrary is void.Statement
2. The rule on caveat emptor is b. Only Statement 2 is TRUE
applicable on execution sales,
where the sheriff warrants the
title of the property that he will c. Both Statements are TRUE
sell in an auction sale.
d. Both Statements are FALSE
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
108. Statement 1. If the price is
simulated, the sale is voidable,
c. Both Statements are
because the act may be shown to
TRUE
have been in reality a donation, or
some other act or
d. Both Statements are contract.Statement 2. The expenses
FALSE 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.
a. Only Statement 1 is TRUE
73. Statement 1. The vendor is
b. Only Statement 2 is TRUE
responsible to the vendee for
any hidden faults or defects in
the thing sold, even though he c. Both Statements are TRUE
was not aware thereof.
Statement 2. In sale, the
d. Both Statements are FALSE
obligation of the vendor is
extinguished; while in dation
in payment, obligation is
created.
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 ---
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
97. The right of an unpaid seller to
take possession of the goods if the
vendee subsequently becomes
insolvent after the perfection but
before the delivery of the subject
matter.
a. Specific Performance
b. Right of Possessory Lien
c. Right of Stoppage in Transitu
d. Right of Re-sale
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.
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.
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are
TRUE
d. Both Statements are
FALSE
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.
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
94. Youngs Town produced
sardines in cans known as "Sards."
Mylene bought a can of Sards from
a store, ate it, and suffered from
poisoning caused by a noxious
substance found in the sardines.
Mylene filed a case for damages
against Acme. Which of the
following defenses will hold?
(A) The expiry date of the
"Sards" was clearly printed on its
can, still the store sold and
Mylene bought it.
(B) Mylene must have detected
the noxious substance in the
sardines by smell, yet she still ate
it.
(C) Youngs Town had no
transaction with Mylene; she
 bought the "Sards" from a store, b. Policitacion
not directly from Acme.
c. Policitation
(D) Youngs Town enjoys the
presumption of safeness of its
d. Poltitication
canning procedure and Mylene
has not overcome such
presumption. 95. A warranty inherent in a
contract of sale, whether or not
mentioned in it, is known as
58. Statement 1. As a general rule,
the
the owner of the property subject of
a public auction cannot employ by-
bidders. Statement 2. The three (A) warranty on quality.
remedies made available to the
vendor in a contract of sale of
personal property by installments (B) warranty against hidden
are alternative. defects.

a. Only Statement 1 is TRUE (C) warranty against

eviction. 

b. Only Statement 2 is TRUE

(D) warranty in
merchantability.
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.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

98. Unilateral promise to buy or to

sell which was not accepted.

a. Politication