Contributor: Atty. Areno, R.

Date Contributed: February 2011

1. A, B, and C are co-owners of an undivided parcel of land. A sold his 1/3 interest to C, absolutely. Which is
correct?[A] B may exercise his right or redemption on the interest sold by A to C. [B] B cannot exercise
the right of redemption because the sale was made in favor of a co-owner.[C] The sale made by A to C is
void because it was not made in favor of a stranger. [D] B may redeem only ½ of the interest sold by A to
C.
2. Also known as barter:[A] Do ut des [B] Facio ut des [C] Facio ut facias [D] Do ut facias
3. The Realty Installment Buyer Protection Act applies to all transactions involving the sale or financing of
real estate on instalments but excludes the following, except: [A] Sale or financing of industrial lots [B]
Sale or financing of commercial building [C] The Land Reform Code [D] Sale of residential condominiums
4. After the death of Carl, Allan, Carl’s son, sold his inheritance though its amount has not yet been
determined to Ben for a consideration of P1,000,000. Which is correct? [A] The contract is valid if the
value of the inheritance is equal to 1,000,000. [B] The contract is valid even though nothing remains of
the inheritance to be turned over to Ben. [C] The contract is void as future inheritance cannot be the
object of sale. [D] The contract is unenforceable.
5. On June 6, 2010, X sold for P1M his house and lot to Y. It was agreed that delivery of the house and lot
and the payment therefore would be made on June 30, 2010. Unfortunately, typhoon “Basyang”
completely destroyed the house on June 12, 2010. Which is correct? [A] Y is not required to pay the P1M
since the contract had no subject matter. [B] X must still deliver the lot but is excused from delivering the
house while Y must still pay the P1M. [C] X must still deliver the lot while Y should pay only the amount
equivalent to the value of the lot. [D] X need not deliver the lot while Y need not pay the P1M.
6. One of the following is not an alternative remedy available to a seller of personal property on instalment
if buyer defaults. [A] To go to court and ask the court to order delivery of the property. [B] To foreclose
the chattel mortgage [C] To sue for specific performance [D] To take possession of the property and forfeit
the amount paid by the buyer if stipulated.
7. A stole a watch from P and sold to a “store of watches” which paid for it in good faith, not knowing that it
was stolen. The store then sold it to B. Which is correct? [A] B cannot be considered as the owner
because the original seller (A) is not the real owner. [B] P may recover the watch from B without
reimbursement because he is the legal owner. [C] B is considered the owner because he purchased the
watch in a merchant store. [D] When the watch was sold to the store in good faith, ownership was
transferred therefore it can also transfer ownership to B.
8. A sold his car to B binding himself not to sell the same to another person. On the following day, A sold the
same car to C who immediately took possession in good faith. In the case at bar, the proper remedy of B
is to: [A] Institute an action for the annulment of the sale against C. [B] Institute an action for the recovery
of the car. [C] Institute an action for damages against A [D] Institute an action for recovery of the car plus
damages against C.
9. A took the diamond ring of B without the latter’s consent. A subsequently sold the same to C who had no
knowledge about the circumstances that happened between A and B. C thereafter sold the same ring to
E, the latter was likewise bereft of any knowledge during the sale about the fact that the ring was stolen
 from B by A. B proceeded against E to recover the ring. E contended that he was in good faith when he
bought the ring from C. Who has the better right over the ring? [A] C [B] A [C] E [D] B
10. Goods are deemed in transit [A] When the buyer accepts delivery of the goods upon arrival at destination
[B] When the buyer intercepts and lawfully takes possession of the goods at any point before destination
[C] From the time they are delivered by the seller to a common carrier or other bailee for transmission to
the buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee.
[D] When the carrier or bailee, upon arrival of the goods at destination, acknowledges to the buyer or his
agent that he is holding the goods as bailee for the latter.
11. A sold to B a parcel of land for P1M. The sale was evidenced by an agreement of sale written in Cebuano
dialect. One week later, A sold the same parcel of land to C for P2M which was evidenced by a formal
deed of sale. C, who was aware of the previous sale, immediately took possession and registered the sale
in his favor. Who is the rightful owner?
[A] C because registration is higher in rank in law than possession or title. [B] B because he has the older
title [C] C because she took possession ahead of B [D] A, under the principle res perit domino
12. In a contract of sale of real property by lump sum, when there is a difference between the area and the
boundary: [A] Boundary prevails [B] Area prevails [C] There must be another survey [D] Contract is void
13. A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the
same car to C and immediately effected delivery. On the agreed day of delivery, B did not deliver the car
to A. Which is correct? [A] B can cancel the contract between A and C because the contract between A
and B was perfected ahead of the contract between A and C. [B] B should make a demand to make A in
default. [C]A is liable to B for the value of the car plus damages after B makes a demand [D] A is liable to B
for damages and is in default without need of any demand.
14. A sold her specific car to B for P200,000 payable in 5 equal instalments. A delivered the car to B but a
mortgage was constituted on the car to answer for the unpaid instalments. B paid the first 2 installments
but failed to pay the last 3 installments. A foreclosed the mortgage and sold the property at a public
auction for P100,000. Which is correct? [A] A can recover from B the balance of P20,000 even if there is
no stipulation to that effect. [B] A can recover from B the balance of P20,000 if there is stipulation to that
effect [C] A cannot recover the deficiency only if there is stipulation to that effect.
[D] A cannot recover the deficiency even if there is stipulation to the contrary.
15. Mark purchased from Anthony a parcel of land worth P600,000; P200,000 to be paid in cash and for the
difference, he will convey his car worth P400,000. What kind of contract is this? [A] Lease contract [B]
Contract of sale [C] Contract to sell [D] Barter

Contributor:

Date Contributed: February 2011

1. A form of delivery which takes place when an owner of a car delivers the key of the car to the buyer:[A]
Traditio constitutum possessorium; [B] Traditio clavis;[C] Traditio brevi-manu; [D]Quasi-traditio
2. When goods are delivered to the buyer on “sale or return”, the ownership passes to the buyer:[A] Upon
delivery of the goods [B]Upon the expiration of the period agreed upon [C]Upon acceptance of the buyer if the
seller’s offer [D]Upon perfection of the sale

3. Which of the following may not be the object of a contract of sale?[A] Things having potential existence
[B] Things, the acquisition of which depends upon a contingency which may or may not happen.[C] Vain hope or
expectancy [D]Things subject to a resolutory condition

4. A placed an order with B for one hundred pieces of t-shirts which were then not available manufactured
by B and consigned to its sales outlets regularly. The contract between A and B is:[A] Contract for piece of work [B]
Contract of lease of services [C] Contract of sale [D]Renumeratory contract

5. P orally appointed A as his agent to sell the former’s land. On January 3,2001, A sold the land to B who
forthwith took possession thereof. It turned out however, that on January 1,2001, P, without informing A, had
already sold the same land to C, who up to now has not taken possession of the same land. Neither of the sales
was registered. Whose contract shall prevail? [A] The sale to B for he was first in possession of good faith;[B] The
sale to C for the land was first sold to him by the owner. [C] The sale to B for the agent was duly authorized to sell
the land.[D] The sale to C because the sale to B was void, A was not duly authorized by P.

6. A seller sold to a buyer a piece of jewelry at a price of Php 1M. The contract provides that the buyer will
pay the seller cash of Php.4M and deliver the buyer’s car worth Php.6M. The contract is:[A] Barter [B]
Partly sale and partly barter [C] Sale [D] Commodatum

7. S sold his cat to B for P2,000.00. No payment has been made and the sales document does not provide
for the date of delivery. Before delivery and payment, the cat gave birth to a kitten. [A] B entitled to the kitten
which was born after the perfection of the sale. [B]S is entitled to the fruit as B has not yet paid the price.[C] S is
entitled to the fruit because it was born before his obligation to deliver the cat.[D] B should pay an additional
amount for the kitten to be entitled to it.

8. A sold his land to B who began to posses it. Later, C, a stranger, sold the same land to D who in good
faith registered the sale and thus obtained the title in his name. the owner is:[A]D is the owner for he was the first
to register in good faith.[B]A remains to be the owner because C had no authority to sell.[C] A is still the owner
because B did not register the sale.[D] B is the owner because the owner is his seller and he has taken possession
of the land.

9. S sold to A in a memorandum of agreement of sale his parcel of land. After a week, S sold the same land
to B in a formal deed of sale. Upon buying the land, B who was aware of the sale to A, immediately took possession
thereof and registered the sale in his favor. When informed of the second sale, A subsequently registered an
adverse claim with the Registry of Deeds. The parcel of land shall belong to:[A] A, because he has the older title.
[B] B, because the sale to him was in a formal deed of sale.[C]B, because he first registered the sale in his favor.
[D]B, because he was the first possessor of the land.
10. A husband and his wife were living together under a conjugal partnership of gains. Later, because of a
quarrel, the wife left the husband without judicial approval. They have thus been living apart for more than ten
years. The wife later sold her land to the said husband. Is the sale valid? [A] The sale is valid because the spouses
have been separated for more than ten years.[B] The sale is valid because after separation there is already a
separation of properties between spouses.[C] The sale is void because of the absence of separation of properties
between spouses. [D]The sale is void because the spouses are living apart.