DACION EN PAGO - Ownership of a thing is transferred to the creditor to settle a monetary obligation.

EQUITABLE MORTGAGE - Lacks formalities but nevertheless shows the real intention of the parties to create a
specific property to secure the performance of an obligation.
FUNGIBLE GOODS - They refer to interchangeable goods such as grain, oil, etc. that allow one to be replaced by
another without loss of value.
EARNEST MONEY - Proof of the perfection of a contract of sale.
BAILEE - Includes a warehouseman, carrier or other person who receives the possession or custody of the thing
delivered.
REDHIBITORY EFFECT - Even professional inspection is not sufficient to discover it.
STOPPAGE IN TRANSITU - Exercised by the seller by obtaining actual possession of the goods or by giving notice to
the carrier or other bailee having actual possession of the goods.
WAVER INTENTIONADA - It is made by the buyer with knowledge of the risk of eviction; hence, the seller will not
have any liability if the buyer is evicted.
SALE OF RETURN - Ownership is transferred to buyer upon delivery, but he has the option to revert such ownership to
the seller.
SALE OF TRIAL - Ownership of the thing sold is retained by the seller despite delivery to the buyer, but the latter
agrees to pay the price if he finds the thing satisfactory.
TRADITIO BREVI MANU - Delivery that takes place when the buyer who was in possession of the thing sold at the
time of sale continues in possession of the same as an owner.
ORDER DOCUMENT OF TITLE - Negotiated by indorsement.
AUCTION - Sale of property to the highest bidder.
VENDOR - The party in a contract of sale who is obligated to transfer the ownership of and to deliver a determinate
thing.
OPTION MONEY - The consideration paid for the purpose of holding one to his promise to buy or sell a determinate
thing for a certain period of time, which consideration is separate and distinct from the purchase price.
RELATIVE INCAPACITY - Applies to persons who, under certain circumstances, cannot purchase certain property.
VENDEE - The person obligated to pay the price of the thing purchased.
TRADITIO LONGA MANU - Delivery of a movable by mere agreement of the parties if the thing cannot be transferred
to the vendee at the time of sale.
BEARER DOCUMENT OF TITLE - Negotiated by mere delivery.
WAIVER CONSCIENTE - It is made by the buyer without knowledge of the risk of eviction.
BARTER - The consideration of the contract is another thing.
ABSOLUTE INCAPACITY - Applies to persons who cannot bind themselves in a contract including a contract of sale.
DOCUMENT OF TITLE - A document used as proof of the possession or control of the goods, or authorizing or
purporting to authorize the possessor of the document to transfer or receive, either by indorsement or by delivery, the
goods represented by such document.
RIGHT TO PRE-EMPTION - Right given to an adjoining owner of an urban land to purchase the same ahead of others
if such land is held for speculation.
LEGAL FORMALITIES - Delivery through the execution of a public document.
EVICTION - The deprivation by final judgment of the vendee of the whole or a part of the thing sold based on a right
prior to the sale or an act imputable to the vendor.
FUTURE GOODS - Refer to goods to be manufactured, raised or acquired by the seller.
EMPTIO SPEI - The sale of hope or expectancy.
UNPAID SELLER - Includes one who has received as conditional payment for the goods a negotiable instrument, but
the condition has been broken by reason of the dishonor of the instrument or the insolvency of the buyer.
NECESSARIES - Include everything indispensable for sustenance, dwelling, clothing, medical attendance, education,
and transportation.
STRAIGHT SALE - The balance is payable in its entirety after the payment of an initial sum.
PIECE OF WORK - A contract for the delivery at a certain price of an article to be manufactured specially for the
customer and upon his special order, and not for the general market.
PRICE - The sum stipulated as the equivalent of the thing sold.
LEGAL REDEMPTION - The right to be subrogated upon the same terms and conditions stipulated in the contract, in
the place of one who acquires a thing by purchase or dation in payment, or by any other transaction whereby ownership is
transmitted by onerous title.
WARRANTY AGAINST EVICTION - Seller's undertaking that the buyer shall enjoy legal and peaceful possession of
the thing sold.
PACTUM COMMISSORIUM - A stipulation in a contract of sale involving an immovable that the sale is automatically
rescinded upon failure of the buyer to pay the price.
SYMBOLIC DELIVERY - Delivery of the keys of the place where a movable is kept or stored.
WAREHOUSE RECEIPT - Contract for the storage of goods for a compensation.
ACCION QUANTI MINORIS - Buyer's remedy which involves the proportionate reduction in the price of the thing
purchased,
POLICITACION - A unilateral promise to buy or sell a thing which is not accepted by the promise.
POSSESSORY LIEN - An unpaid seller's right to retain the goods for the price while he is in possession of them.
ACCION REDHIBITORIA - Remedy of buyer to withdraw from the sale and ask for damages.
EASEMENT OR SERVITUDE - An encumbrance imposed upon an immovable for the benefit of another immovable
belonging to a different owner.
BY BIDDERS/PUFFERS - A person employed by the seller or auctioneer to raise the price in an auction sale.
BILL OF LADING - A document issued by a common carrier acknowledging the receipt of the goods and agreeing to
transport and deliver them to a specified place.
CONVENTIONAL REDEMPTION - Right of seller to repurchase the thing sold and the exercise of which was
reserved by the seller at the time of sale.
TRADITIO CONSTITUTUM POSSESSORIUM - Delivery that takes place when the seller continues in possession of
the thing sold after the sale but as lessee, depositary or otherwise.
PAYMENT OF CESSION - The creditors are given the right to sell the debtor's properties and apply the proceeds to
their respective claims.
ASSIGNMENT OF CREDIT - It has for its purpose the transfer to another person of the right to collect the debt.
EMPTIO REI SPERATAE - Sale of an expected thing.

FALSE - Warranty against eviction is inherent in a contract of sale; hence, it is an essential element thereof.
FALSE - Dacion en pago partakes of the nature of a sale; hence, there is more freedom in fixing the price of the thing
conveyed.
FALSE - A contract for a piece of work must comply with the Statute of Frauds. Accordingly, it must be in writing to be
enforceable if the price is P500.00 or more.
FALSE - A sales contract requires the delivery of the thing sold for its perfection.
TRUE - If the consideration received for a thing is another thing and a monetary consideration and the intention of the
parties does not clearly appear, the contract will be considered a contract of barter the if the value of the property
consideration is greater than the monetary consideration .
TRUE - In a contract to sell, the full payment of the price is a suspensive condition which upon fulfillment will require
the execution of a contract of sale.
TRUE - It is not necessary that the vendor of a thing must be the owner thereof at the time of sale as long as he can
transfer its ownership to the buyer upon delivery.
TRUE - The sale of hope or expectancy is valid even if the thing hoped for does not come into existence.
TRUE - If the sale of a piece of land is made through an agent, the authority of the agent must be in writing for the sale to
be valid.
TRUE - In a sale by auction, any bidder may retract his bid before the sale is perfected.
TRUE - If a "by-bidder" or "puffer" is employed by a seller without notice in sale by auction, the sale may be treated as
fraudulent by the buyer.
FALSE - The ownership of the thing sold is transferred upon the perfection of the contract of sale.
TRUE - A unilateral promise to buy or sell a determinate thing at a certain price is binding upon the promissor if the
promise is supported by a consideration distinct from the price.
TRUE - Earnest money is part of the purchase price of a thing; hence, deductible from the total selling price.
TRUE - In sale of personal property payable in installments, the seller may exact fulfillment of the buyer's obligation
when the buyer defaults in the payment of one or more installments.
TRUE - In sale of real property where the buyer has defaulted after paying at least 2 years installments, he shall be
entitled to pay, without additional interest, the unpaid installments due within the grace period earned by him.
FALSE - The purchase by a guardian of the property of the person under his guardianship is valid.
TRUE - The buyer shall be entitled to the fruits of the thing sold from the time of the perfection of the contract.
TRUE - The delivery of incorporeal property may be made through the exercise by the vendee of his rights with the
consent of the vendor.
FALSE - If the goods sold on "sale or return", the risk of loss of the thing sold remains with the seller after its delivery to
the buyer.
FALSE - In "sale on approval", the buyer becomes the owner of the thing upon delivery, but he may revert such
ownership to the seller by returning it.
TRUE - The delivery pf specific goods to a carrier or other bailee for the purpose of transmission to the buyer generally
transfers ownership of the goods to the buyer.
TRUE - When a thing is purchased from a merchant's store, fair or market, the buyer acquires title to the thing although
the seller may have stolen it or acquired it from a thief.
TRUE - A warehouse receipt is also a contract between the warehouseman and the depositor of the goods.
TRUE - A bearer document of title becomes an order document of title if it is specially indorsed.
TRUE - The delivery of an order document of title without any indorsement does not constitute negotiation.
FALSE - A negotiable document of title becomes non-negotiable if it is stamped with the mark "non-negotiable".
TRUE - If the goods sold are in the possession of a third person, the seller is deemed to have delivered the goods to the
buyer if the third person acknowledges to the buyer that he holds the goods in the buyer's behalf.
TRUE - If a period has been fixed for the payment of the price which has not yet arrived, the seller in the meantime is
bound to deliver the thing sold.
FALSE - An unpaid seller exercising his right to resell the goods may buy the goods either directly or indirectly.
TRUE - When an unpaid seller exercises his right to stoppage in transit, the contract of carriage ceases, the carrier
becoming liable as a depository.
TRUE - If real estate is sold for a lump sum, the vendor is bound to deliver all that is included within the boundaries
stated in the contract although the actual area is greater than the stated in the contract.
FALSE - If the same immovable is sold to two or more persons who are all in good faith, ownership shall belong to the
buyer who first paid its price.
FALSE - In order that the buyer may enforce the seller's liability for breach of warranty against eviction, the judgment
depriving the buyer of the thing must first be appealed by the buyer.
TRUE - The vendor's liability for breach of warranty against eviction may be validly waived by the vendee. However, the
vendor will still be liable if the waiver was made by the vendee without knowledge of the risks of eviction.
TRUE - As a rule, the vendor shall not be liable for a non-apparent easement that is recorded in the Registry of Property.
TRUE - The vendor shall be liable generally for any defect on the thing sold even if he was not aware thereof.
TRUE - When animals are sold as a pair, the vendee may ask for the rescission of the sale of both animals although only
one of them suffers from a redhibitory defect.
FALSE - The sale of animals suffering from contagious diseases is voidable.
TRUE - There is no warranty against hidden defects of animals sold at fairs or at public auctions, or of animals sold as
condemned.
FALSE - Acceptance of the goods by the buyer generally discharges the seller from his liability for any breach of
warranty.
FALSE - If the buyer is justified in refusing to accept the goods, he shall be obliged to hold the goods as depositary.
TRUE - The buyer is obliged to pay interest on the price of the goods for the period between the delivery of the goods
and the payment of the price if the thing sold produces fruits or income.
FALSE - The buyer may suspend the payment of the price of the thing purchased by reason of trespass on the thing.
FALSE - A stipulation that the sale of an immovable is automatically rescinded upon the default of the buyer in the
payment of the price is valid.
FALSE - In conventional redemption, the creditors of the vendor may make use of the right of redemption against the
vendee although they have not exhausted the properties of the vendor.
TRUE - In case of doubt, a contract purporting to be a sale with a right to repurchase shall be construed as an equitable
mortgage.
FALSE - For an assignment of credit to be binding against third persons if a movable property is involved, the same must
be in a public instrument and recorded in the Registry of Property.
TRUE - A debtor who has paid his creditor before he learns of the assignment of his debt shall be released from his
liability to the assignee.
FALSE - The debtor's consent is required for the validity of the assignment of the credit made by his creditor to another
person.