3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

BAM 242_P2 EXAMINATION_(PART 1)

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I. MULTIPLE CHOICE QUESTIONS. 1 point each

Select the letter of the best answer

Expenses in the exercise of the right of stoppage in transitu shall be borne by the
*

a. Carrier

b. Seller

c. Buyer, he being at fault

d. Buyer due to breach of contract

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

When is the contract of sale perfected? *

a. When the seller has transferred ownership of the object by actual delivery, or
constructive delivery, or quasi delivery

b. When the buyer has fully paid the price

c. The moment there is a meeting of minds upon the thing and the price

d. When both seller and buyer have respectively performed their respective
obligations

In which of the following accessory contracts is delivery a requirement for

perfection? *

A. Pledge

B. Real Estate Mortgage

C. Chattel Mortgage

D. None of the above

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

What is the status of a sale between the husband and wife while marriage is
subsisting? *

a. Valid

b. Unenforceable

c. Voidable

d. Void

In a contract of sale of personal property, the price of which is payable in

instalments, thevendor may exercise any of the following remedies, except one: *

a. Cancel the sale, should the vendee’s failure to pay cover two or more instalments

b. Exact fulfilment of the obligation, should the vendee fail to pay

c. Foreclose the chattel mortgage if vendee defaults in two or more instalments and if
proceeds of foreclosure proceedings is deficient, then recover the deficiency if this
isexpressly stipulated in the contract

d. Foreclose the chattel mortgage of the thing sold, if one has been constituted,
should the vendee’s failure to pay cover two or more instalments

e. None of the above

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

Ana sold his dog to Bell for P 45,000. No payment has yet been made and the
sale document does not provide the date of delivery. Before delivery the dog
gave birth to a baby dog *

Bell is entitled to the fruit (baby dog) even she has not been paid the price yet

Bell is entitled to the baby dog which was born after the perfection of the contract

Bell should pay the additional amount for the baby dog to be entitled to it

Ana is entitled to the fruit (baby dog) because it was born before his obligation to
deliver the dog

Statement I. A married woman may guarantee an obligation without the

husband’s consent but the guarantee will be deducted to her separate property.
Statement II. A married woman may guarantee an obligation without the
husband’s consent but the guarantee will be deducted to her conjugal property *

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

The following are essential to a contract of pledge and mortgage, except: *

A. That they be constituted to secure the fulfillment of a principal obligation.

B. That the pledgor or mortgagor be the absolute owner of the thing pledged at the
time the obligation to deliver the same arises.

C. That the persons constituting the pledge or mortgage have the free disposal of
their property, and in the absence thereof, that they be legally authorized for the
purpose.

D. None of the above

If the goods are to be manufactured specially for the customer and upon his
special order, andnot for the general market, the contract is *

a. Sale

b. Piece of work

c. Sale under the Massachusetts rule

d. Piece of work under the New York Rule

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

The following are characteristics of a contract of pledge, except: *

A. Real

B. Accessory

C. Bilateral

D. Subsidiary

Legendairy Corporation (LC) borrowed money from Goliath Bank (GB) in the
amount ofP100M. To secure the payment of the loan, LC executed a real estate
mortgage over its two parcels of land. On due date, LC failed to pay, and GB
caused the extra judicial foreclosure of the mortgage. How long is the
redemption period? *

A. Three months from the foreclosure sale or until registration of the sale, whichever
is earlier

B. Three months from the foreclosure sale

C. One year from the foreclosure sale

D. Ninety days to one hundred twenty days from the foreclosure sale or until a judicial
order of confirmation of the sale

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

Where the seller delivers to the buyer a quantity of goods larger than he
contracted to sell, thefollowing are the legal remedies of the buyer, except one *

a. Buyer may accept the goods included in the contract and reject the rest

b. Buyer may accept the whole of the goods so delivered but must pay them at the
current market rate

c. Buyer may reject the whole of the goods if indivisible

d. None of the above

e. All of the above

Which of the following is incorrect? *

a. The guarantor is will pay only if the principal debtor cannot pay and has no
properties to answer for the obligation

b. Guaranty secures the payment of principal obligation but it can exist without a
principal obligation

c. In a contract of guaranty, the obligation is only on the part of the guarantor in favor
of the creditor.

d. A guaranty is gratuitous, unless there is stipulation to the contrary.

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

When may the vendor and vendee reciprocally demand from each other
performance of the irrespective obligations? *

a. When the parties have signed the contract of sale

b. From the moment of perfection

c. Upon consummation

d. After registration of the contract of sale

The bailee is liable for the loss of the thing even if it should be through fortuitous
event *

a. If the thing loaned has been dlivered with appraisal of its value.

b. If he keeps it longer than the period stipulated or after the accomplishment of the
use for which the commodatum has been constituted.

c. If he lends or leases the hing to a third person, who is not a member of his
household.

d. If, being able to save either the thing borrowed or his own thing, he chose to save
the former.

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

Ownership of the thing sold shall be transferred to the vendee *

a. Upon perfection of the contract

b. Upon the actual or constructive delivery thereof

c. Upon consummation of the contract

d. By stipulation of the parties

Statement I. Object of contarct of commodatum is always non-consumable

thing. Statement II Object of contract of commodatum may be movable &
immovable property Statement III. Consumable thing can be the object of
contract of commodatum if the purpose is for exhibition. *

a. Only I is true

b. I and II are true

c. I and III are true

d. II and III are true

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

Teddy pledged her diamond ring to secure her debt to Bobbie amounting to
P20,000.Teddy was not able to pay the said debt on due date and Bobbie caused
the foreclosure of the pledge. In this case, which of the following is false? *

A. The foreclosure sale will be conducted by a notary public.

B. If the ring sold for P25,000, Teddy would be entitled to the excess if there is
stipulation to that effect

C. If the ring sold for P18,000, Bobbie would be entitled to the deficiency if there is
stipulation to that effect

D. Whether or not the ring was sold for more or less than the amount of the loan, the
loan shall be extinguished.

The following are types of Contract of loan, except: *

a. Contract of Commodatum

b. Contract of Mutuum

c. Simple Loan

d. Contract of deposit

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3/7/22, 3:51 PM BAM 242_P2 EXAMINATION_(PART 1)

A deposit is necessary *

a. when it is made in compliance with a legal obligation

b. when it takes place on the occasion of any calamity, such as fire, storm, flood,
pillage, shipwreck or other similar events.

c. All of the statements are necessary deposit

d. None of the above is a necessary deposit

For the contract of pledge to be valid, it is not necessary that: *

A. The pledge is constituted to secure the fulfillment of a principal obligation.

B. The pledge can appropriate the object of pledge upon default if there is stipulation.

C. The pledge be the absolute owner of the thing pledge.

D. The person constituting the pledge has the free disposal of his property, and in the
absence thereof, that he be legally authorized for the purpose.

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

Whenever earnest money is given in a contract of sale, it shall be considered *

a. As proof that the contract is an option contract supported by a consideration

b. As proof of an accepted unilateral promise to buy or sell

c. As part of the price and proof of the perfection of the contract of sale

d. As evidence of an ongoing negotiation

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

D borrowed P2,000.00 from C on October 15, 1981. The contract is not

evidenced by any writing. It was, however, verbally agreed that the former shall
pay the obligation after expiration of two year and that the rate of interest shall
be 21% per annum. On October 15, 1983, when the obligation became due and
demandable, C demanded from D for the payment of the obligation plus
accumulated interests. D did not pay. Two year later, on October 15, 1985, C filed
a complaint against D for the recovery of the amount of P2,000.00 plus interest
21% per annum to be computed from October 15, 1981. Which of the following is
correct? *

a. The action for collection of principal will prosper because it is not required that it
be in writing.

b. The action for collection of interest will prosper because the principal contract is
valid.

c. The action for collection of interest will not prosper because the interest stipulated
must be in writing

d.. The action for collection of principal wiil not proper bacuase it was agreed verbally

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

A public instrument containing the description of the thing is required in a pledge

in order *

A. To be valid

B. To take effect against third persons

C. To be enforceable

D. To effectively transfer possession

An accessory contract of pledge or mortgage may secure any of the following,

except: *

A. A pure obligation

B. An obligation with a suspensive condition

C. An obligation with a resolutory condition

D. None of the above

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

Which of the following circumstances entitles an unpaid seller of goods to

exercise his right ofstoppage in transitu? *

a. Buyer refuses to pay

b. Buyer fails to pay two or more instalments if price is paid by instalments

c. The negotiable instrument issued by buyer as payment is dishonoured

d. Buyer becomes insolvent

e. Any of the above

J, a capacitated person, sold to C, a minor, a chicken joy. Can J demand from C

the payment of the purchase price? *

No because the contract of sale is voidable since B is an incapacitated person.

Yes because even the contract of sale is voidable ideally, the subject matter, food is a
necessary

Yes even the price is unreasonable.

No because the contract of sale is void

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

The right of a mortgagor in a judicial foreclosure to redeem the mortgaged

property after his default in the performance of the conditions of the mortgage
but before the confirmation of the sale by the court is known as: *

A. Accion publiciana

B. Equity of redemption

C. Right of pre-emption

D. Right of redemption

Harlequin and Diane, members of the Seven Deadly Sins, borrowed P100,000
from Meliodas, their Captain, where their liability is joint. To secure the payment
of the loan, Harlequin gave his spear Chastiefol and Diane gave her war hammer
Gideon by way of pledge. On maturity date, Harlequin paid P50,000 to Meliodas.
In this case, *

A. Meliodas cannot be compelled to return the Chastiefol

B. Harlequin can demand the return of his Chastiefol

C. If the Chastiefol is returned to Harlequin, the loan will be extinguished

D. Diane can demand the return of her Gideon

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

Which rule on price is incorrect? *

a. The fixing of the price can never be left to the discretion of one of the contracting
parties

b. If the price cannot be determined in accordance with the applicable articles in the
law on sale, or in any other manner, the sale is inefficacious

c. In order that the price may be considered certain, it shall be sufficient that is be
with reference to another thing certain or that the determination thereof be left to the
judgment of a specified person/s

d. None of the above

e. All of the above

A borrowed P100,000 from B, and as security, he pledge his ring, cellphone and
laptop. On due date, A paid P70,000. As result, *

A. A can demand the return of one 1 of the things pledged.

B. A can demand the return of any 2 of the things pledged.

C. A can demand the return of the ring.

D. A cannot demand the return of any of the things pledged.

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

Which of the following rules pertaining to price is incorrect? *

a. In order that the price may be considered certain, it shall be sufficient that it be so
with reference to another thing certain, or that the determination thereof be left to the
judgment of a specified person/s

b. If the price is simulated, the sale is voidable if it can be shown that the contract is
in reality a donation or some contract other than sale

c. The fixing of the price can never be left to the discretion of one of the contracting
parties; however, if the price fixed by one of the parties is accepted by the other, the
sale is perfected

d. If the determination of the price is left to the judgment of specified person/s and it
turned out that said person/s acted in bad faith or by mistake, the courts may fix the
price

Which of the following rules on warranty is incorrect? *

a. There is an implied warranty on the part of the seller that he has a right to sell the
thing at the time of perfection

b. There is an implied warranty on the part of the seller that at the time ownership is
to pass, the buyer shall have and enjoy the legal and peaceful possession of the thing

c. The seller warrants that the thing shall be free from any hidden faults or defects

d. There is an implied warranty that the thing is free from any charge or encumbrance
not declared or known to the buyer

e. All of the above

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3/7/22, 3:52 PM BAM 242_P2 EXAMINATION_(PART 1)

The disposal of the property subject to this accessory contract, during the
existence of the contract, cannot be prohibited by the creditor-
pledgee/mortgagee: *

A. Pledge

B. Real Estate Mortgage

C. Chattel Mortgage

D. None of the above

Statement I. If subsequent to the perfection of the pledge, the thing is in the

possession of the pledgor or owner, there is a conclusive presumption that the
same has been returned by the pledge. Statement II . A verbal statement by the
pledge that he renounces or abandons the pledge is sufficient to extinguish the
pledge. *

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

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