Final Pre-Board Examination

Part – 5
Regulatory Framework for Business Transaction

1. Sheldon offered to sell his house and lot to Penny for P1, 500, 000. Penny was convinced
and accepted the same. Penny gave P500 and given 30 days to make good the balance of
the price. Before the expiration of the 30 days, Sheldon withdrew and returned Penny’s
P500 because he found a new buyer who would pay twice. In this case,
a. Sheldon validly withdrew the offer since it is within the 30 day period
b. Sheldon cannot validly withdraw the offer since there was an option money of P500
that’s given
c. Sheldon validly withdrew the offer since he is still the owner thereof pending delivery
d. Sheldon cannot validly withdraw the offer since there was already a perfected
contract of sale

2. In this kind of contract of sale, upon happening of the condition, the buyer will have the
right to compel the seller to execute a deed of absolute sale;
a. Absolute sale
b. Conditional sale
c. Contract to sale
d. None of the choices

3. Mr. Sang-il Kim, who owns a local grocery store, sold to Arnold “Kimchee” Han 1, 000
sacks of rice for P1, 000 per sack. On delivery date, however, Mr. Kim delivered 1,100
sacks. In this case, which of the following is not an available remedy for Kimchee?
a. Agreed the quantity upon and reject the rest
b. Accept the quantity delivered and pay at the contract rate
c. Reject the whole if the contract is indivisible
d. Reject the whole and ask for damages

4. In this right of an unpaid seller, possessory lien or stoppage in transit is required;

a. Right of Resale
b. Rescission
c. Both a and b
d. Neither a and b

5. Any affirmation of fact or any promise by the seller relating to the thing, if the natural
tendency of such affirmation or promise is to induce the buyer to purchase the same, and
of the buyer purchased the thing relying thereon;
a. Condition
b. Express Warranty
c. Advertisement
d. Marketing Disclosure