BM1808

Name: DATE: SCORE:

I. MULTIPLE CHOICE (5 items x 2 points)

Encircle the letter of the correct answer.

1. What is the prescriptive period for filing the legal action concerning the sale of real estate for a lump
sum?
a. Six (6) months from the date of c. Three (3) months from the date of
delivery delivery
b. One (1) year from the date of d. Forty (40) days from the date of
delivery delivery

2. In case of double sale of personal property, who among the buyers shall be preferred?
a. Person who has the oldest title
b. Person who first took possession of the property in good faith
c. Person who has the latest title
d. Person who first registered the property in good faith

3. Which of the following refers to the deprivation of the vendee of the whole or a part of the thing sold
by virtue of a final judgment based on right prior to the sale or an act imputable to the vendor?
a. Breach of contract c. Eviction
b. Evasion of sentence d. Damages

4. Which of the following is an encumbrance imposed upon an immovable for the benefit of another
immovable belonging to a different owner?
a. Easement c. Pledge
b. Mortgage d. Lien

5. Which refers to a defect in an animal and is of such nature that expert knowledge, even after a
professional inspection has been made, is not sufficient to discover it?
a. Hidden defect c. Unknown defect
b. Apparent defect d. Redhibitory defect

II. TRUE OR FALSE (5 items x 2 points)

Write TRUE if the statement is correct; otherwise, write FALSE on the space provided.
__________ 1. In sale of real property for a lump sum, the buyer can ask for a reduction in the price if the
seller cannot deliver what is stated within the boundaries.
__________ 2. The vendor is responsible to the vendee for any hidden defects in the thing sold only if he was
aware thereof.
__________ 3. If the same thing should have been sold to different vendees, the ownership shall be
transferred to the person who may have first taken possession thereof in good faith, if it
should be immovable property.
__________ 4. If the seller acted in good faith, and there was no stipulation exempting him from liability, the
vendor shall be liable for damages and interests.

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__________ 5. As a general rule, in the absence of express or implied agreement of the parties, acceptance
of the goods by the buyer shall not discharge the seller from liability in damages or other legal
remedies for breach of any promise or warranty in the contract of sale.
III. SITUATIONAL (5 items x 3 points)
Read and analyze the following situations. Encircle the letter of the correct answer.
1. On July 1, S sold a specific parcel of land to X in a public document. On July 5, S sold the land again to
Y in a private instrument and took physical possession of the land. On July 9, S sold again the same to
Z who registered the sale in the Register of Deeds. Neither X, Y, nor Z was aware of the sale made to
the other two (2) buyers. Who is the owner of the parcel of land?
a. X, because he was the first purchaser
b. Y, because he took physical possession
c. Z, because he registered the sale
d. S, because the multiple sales he made rendered each sale a void contract

2. Julian bought a CD player from a store owned by Jem at the mall for P500.00. When Julian used the
CD player using a DVD, the player destroyed the DVD. It turned out that Jem was aware that the CD
player only accepts pirated CDs from China as it was made in China. What is the liability of Jem?
a. He should return the price plus interest thereon and reimburse the expenses of the contract
incurred by Julian.
b. He is liable to Julian who may elect between withdrawing from the contract and demanding a
proportionate reduction of the price, with damages in either case.
c. He must return the price less the value of the thing at the time of loss.
d. He must bear the loss, return the price, and refund the expenses of the contract with damages.

3. S sold his lot with an area of 100 square meters to B at a selling price of P1,000 per square meter. After
delivery of the lot, B discovered that the actual area is only 93 square meter. What is the legal remedy
available to B?
a. B may ask for a proportionate reduction in the price and must pay P93,000.
b. B can ask for the cancellation of the contract of sale.
c. Either a or b
d. Neither a nor b

4. Using the information in the preceding number, except that the actual area is 89 square meter, what
is the legal remedy of B?
a. B may ask for a proportionate reduction in the price and must pay P93,000.
b. B can ask for the cancellation of the contract of sale.
c. Either a or b
d. Neither a nor b

5. On June 1, Hayley sold her specific laptop to Jeremy in a private instrument wherein Jeremy already
paid the price of P10,000. On June 3, Hayley sold again and delivered the said laptop to Kellin, who
does not know about the previous sale with Jeremy. Kellin has not yet paid the price of the laptop.
Who has a better right over the specific laptop?
a. Hayley, because Kellin has not yet paid the price
b. Jeremy, because he is the first constructive possessor in good faith
c. Jeremy, because he has paid the price in full
d. Kellin, because he is the first possessor in good faith

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IV. ESSAY (5 points)

Answer the following item on the space provided.

1. Explain the rules of preference in case of double sale of immovables.

Rubric for scoring:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting 3
details, and factual scenarios
Grammar Used correct grammar, punctuation, 1
spelling, and capitalization.
Organization of ideas Expressed the points in clear and logical 1
arrangement of ideas in the paragraph
TOTAL 5

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