Quiz 2

Results
PAGUIO, CARL JUSTINE FONTAMILLAS

Assessment Statistics
60%
54 out of 90 points
54
Out of 90 points
Time for this attempt: 1 hour 28 minutes 23 seconds
1 hour 28 minutes 23 seconds01:28:23
Time for this attempt
Your Answers:
Results for item 1.
1
1 / 1 point
Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the
latter about it. In any event, the deed of sale expressly stipulated that X was not liable for
hidden defects. Does Y have the right to demand from X a reimbursement of what he
spent to repair the engine plus damages?
No, because Y is in estoppel, having changed engine without prior demand.

, Not Selected
Correct answer:
Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to
Y.
No, because Y waived the warranty against hidden defects.

, Not Selected
Yes. X is liable whether or not he was aware of the hidden defect.

, Not Selected
Results for item 2.
2
1 / 1 point
A sold her specific car to B for P200,00 payable in 5 equal installments. A delivered the car
to B but a mortgage was constituted on the car to answer for the unpaid installments. B
paid the first 2 installments but failed to pay the last 3 installments. A foreclosed the
mortgaged property and sold it at public auction for P100,000. Which is correct?
A can recover from B the balance of P20,000 if there is stipulation to that effect.
, Not Selected
A can recover from B the balance of P20,000 even if there is no stipulation to that effect.
, Not Selected
Correct answer:
A cannot recover the deficiency even if there is stipulation to the contrary.
A cannot recover the deficiency except if there is stipulation to that effect.
, Not Selected
Results for item 3.
3
1 / 1 point
A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of
agreement of sale written in the Bicolano dialect. One week later, A sold the same parcel
of land to C for P4M. This is evidenced by a formal deed of sale. Upon buying the property,
C, who was aware of the first sale immediately took possession of the lot. When informed
of the second sale, B subsequently registered an adverse claim to the property. Later, C
registered the deed of sale in her favor. The parcel of land shall belong to:
C because he is the first to take possession.

, Not Selected
Correct answer:
B because he has got an older title.
C because he is the first to register.

, Not Selected
No one as both sales are void.

, Not Selected
Results for item 4.
4
1 / 1 point
The vendor is not bound to make delivery if the vendee has not paid him the price. But if a
period has been fixed for payment, the vendor must deliver the thing sold though the price
be not first paid.
Correct answer:
True
False
Results for item 5.
5
1 / 1 point
Not an element of the seller's right of stoppage in transit:
Correct answer:
The seller must be in possession of the goods.
The buyer must be insolvent.

, Not Selected
The seller must be unpaid.

, Not Selected
The goods must be in transit.

, Not Selected
Results for item 6.
6
1 / 1 point
A document of title in which it is stated that the goods referred to therein will be delivered
to the bearer, or to the order of any person named in such document is a non-negotiable
document of title.
True
Correct answer:
False
Results for item 7.
7
0 / 1 point
Delivery to the carrier is deemed to be a delivery to the buyer even if seller has reserved
the ownership or possession of the goods.
Incorrect answer:
True
Correct Answer:False
False
Results for item 8.
8
0 / 1 point
The Recto Law is applicable:
Incorrect answer:
Sale of house on installment.

Correct Answer:
Sale of car on installment where the buyer constituted a mortgage on his vehicle.
In the foreclosure sale, should the vendee's failure to pay cover two or more installments.
, Not Selected
Sale of car on installment where the buyer constituted a mortgage on his vehicle.
, Not Selected
Sale of car on straight term.

, Not Selected
Results for item 9.
9
1 / 1 point
When the owner of the thing sells it to vendee but continues to have possession or
occupation thereof not as owner but as tenant or lessee, the delivery of such thing is:
Traditio longa manu

, Not Selected
Correct answer:
Traditio constitutum possessorium
Traditio brevi manu

, Not Selected
Traditio symbolica
, Not Selected
Results for item 10.
10
0 / 1 point
General rule: Ownership of the thing sold is acquired only upon perfection of contract of
sale with the buyer.
Incorrect answer:
True
False
11
1 / 1 point
A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000
apples. Which of the following is correct?
He can cancel the whole transaction since the seller violated the terms of their agreement.
, Not Selected
He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them
anyway.
, Not Selected
He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples.
, Not Selected
Correct answer:
He can accept all 6,000 apples and pay the seller at P20 per apple.
12
1 / 1 point
The following, are examples of documents of title to goods. Which is not?
Bill of lading
, Not Selected
Correct answer:
Check
Dock warrant
, Not Selected
Warehouse receipt
, Not Selected
13
1 / 1 point
Where the bill of lading is accompanied by a bill of exchange, the title to the goods is
retained in the seller until the buyer pays or honor the bill of exchange.
Correct answer:
True
False
14
1 / 1 point
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 affected delivery. On the day agreed upon, A did
not deliver the car to B. Which is correct?
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.
, Not Selected
A is liable to B for the value of the car plus damages after B makes a demand.
, Not Selected
Correct answer:
A is liable to B for damages and is in default without need of any demand.
B should make the demand to make A in default.

, Not Selected
15
0 / 1 point
A document of title contained the words “deliver to Mr. X.”
It can be indorsed and delivered.

, Not Selected
If it is indorsed, the indorsement gives the indorsee additional right.

, Not Selected
Incorrect answer:
The document can be negotiated.

Correct Answer:
The document can be assigned.
The document can be assigned.

, Not Selected
16
0 / 1 point
Implied warranty in a contract of sale does not include this:
Incorrect answer:
Free from charges or encumbrances not declared or known to the buyer

Correct Answer:
Right to sell the thing at the time of perfection of the contract
Merchantable in quality
, Not Selected
Reasonably fit for the purpose they are acquired
, Not Selected
Right to sell the thing at the time of perfection of the contract

, Not Selected
17
0 / 1 point
Where the seller or his agent is consignee, the carrier becomes bailee for the buyer.
Incorrect answer:
True
False
18
1 / 1 point
This delivery is by mere consent or agreement of the contracting parties, where the seller
point to the buyer the object of the sale without the need of actually delivering it.
Traditio Brevi Manu

, Not Selected
Quasi-Tradition
, Not Selected
Correct answer:
Traditio Longa Manu
Traditio Constitutum Possessorium

, Not Selected
19
1 / 1 point
G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has
sold all the rice. H meantime delivered the goods to W, a warehouseman, who issued a
warehouse receipt. Without the knowledge of G and W, H negotiated the receipt to P who
acquired it in good faith and for value. P then claimed the goods from W, who released
them. After the rice was loaded on a ship bound for Manila, G invokes his right to stop the
goods in transit due to his unpaid lien. Who has a better right to the rice?
W, since it appears that the warehouse charges have not been paid.
, Not Selected
P, regardless of whether or not he is a purchaser for value and in good faith.

, Not Selected
G, since as an unpaid seller, he has the right of stoppage in transitu.

, Not Selected
Correct answer:
P, since he has superior rights as a purchaser for value and in good faith.
20
1 / 1 point
Statement 1. Delivery (if to be made by seller) must be within a reasonable time, in the
absence of express agreement.
Statement 2. Where the goods at the time of sale are in the possession of a third person,
the seller has not fulfilled his obligation to deliver to the buyer unless and until such third
person acknowledges to the buyer that he holds the goods on the buyer’s behalf.
No. 1 is false; No. 2 is true

, Not Selected
Correct answer:
Both are true
No. 1 is true; No. 2 is false

, Not Selected
Both are false

, Not Selected
21
1 / 1 point
A person who for value negotiates or transfers a document of title by endorsement or
delivery, including one who assigns for value a claim secured by a document of title unless
a contrary intention appears, warrants the following, except one. Which is it?
Correct answer:
That he has knowledge of a fact which would impair the validity or worth of the document.
That he has a legal right to negotiate or transfer it.
, Not Selected
That he has a right to transfer the title to the goods and that the goods are merchantable or fit for a
particular purpose.
, Not Selected
That the document is genuine.

, Not Selected
22
0 / 1 point
Actions for either rescission of the contract or proportionate reduction of the price must
be brought:
Incorrect answer:
Within six (6) months counted from the perfection of contract.

Correct Answer:
Within six (6) months counted from the day of delivery.
Within six (6) months counted from the day of payment.

, Not Selected
Within six (6) months counted from knowledge of defect.

, Not Selected
Within six (6) months counted from the day of delivery.

, Not Selected
23
0 / 1 point
When, after the lapse of a reasonable time, the buyer retains the goods without intimating
to the seller that he has rejected them, there is:
Incorrect answer:
Qualified acceptance
Correct Answer:
Implied acceptance
Non-acceptance
, Not Selected
Express acceptance
, Not Selected
Implied acceptance
, Not Selected
24
1 / 1 point
Statement 1. If a vendor delivers to the vendee goods of a smaller quantity than what he
contracted to sell, the vendee may reject the goods delivered.
Statement 2. B buys from S 100 cans of tomato sauce. S delivers only 80 cans. B can reject
the goods. But if B accepts the goods knowing that S cannot deliver the remaining 20, he
must pay for the 80 cans at the contract rate, namely, the price fixed for each multiplied
by 80.
Correct answer:
Both are true

, Not Selected
Both are false

, Not Selected

, Not Selected
25
0 / 1 point
S in Manila agrees to ship goods to B at Boac, “F.O.B. Boac.” Before the goods reach Boac,
they are destroyed by a fortuitous event.
Statement 1. S bears the loss, because ownership does not pass till the goods reach Boac.
Statement 2. If the price has been given him, he must return the same.
Statement 3. If no payment has yet been made, he cannot successfully demand the price
from the buyer.
Statements 1 and 3 are true; Statement 2 is false

, Not Selected
All are true
, Not Selected
All are false

, Not Selected
Incorrect answer:
Statement 1 is false; Statements 2 and 3 are true

Correct Answer:
All are true
26
1 / 1 point
A sale is for a lump sum when the thing is sold irrespective of its number or
measure. Here, the mistake in area stated in the contract is immaterial.
Correct answer:
True
False
27
1 / 1 point
Seller sold to Buyer a specific car for P200,000 payable in four equal installments. Seller
delivered the car to Buyer but required Buyer to mortgage it back to Seller to answer for
the unpaid installments. Buyer paid the first installment, but the last three he failed to pay.
Seller foreclosed the mortgaged property and sold it at public auction for P130,000.
Correct answer:
Seller cannot recover the deficiency anymore even if there is stipulation to that effect.
Seller can recover from Buyer part of the balance of P20.000.

, Not Selected
Seller can recover from Buyer the balance of P20.000.

, Not Selected
Seller can recover from Buyer the balance of P20,000 if there is stipulation to that effect.
, Not Selected
28
1 / 1 point
If the redemption is to be made by the seller, one of the following need not be given to the
buyer:
Price of the sale
, Not Selected
Expenses of the contract

, Not Selected
Necessary expenses on the thing sold

, Not Selected
Correct answer:
Interest on the price of the sale

29
0 / 1 point
Unless otherwise agreed, the buyer bears the expenses to place the thing in a deliverable
state – that is in a state where the buyer would, under the contract, be bound to take
delivery of them.
Incorrect answer:
True
False
30
0 / 1 point
Which of the following is not a requisite of double sale?
Two (or more) valid contract of sale.

, Not Selected
Two (or more) sales transactions must pertain to exactly the same subject matter.
, Not Selected
Incorrect answer:
The two (or more) buyers at odds over the rightful ownership of the subject matter must each have
bought from the very same seller.
Correct Answer:
Two (or more) buyers at odds over the rightful ownership of the subject matter with the same interest.
Two (or more) buyers at odds over the rightful ownership of the subject matter with the same interest.
, Not Selected
31
0 / 1 point
Which of the following statements is wrong?
Incorrect answer:
Delivery should be to the vendee or his authorized representative.

Correct Answer:
Delivery can be effected by mere consent.
Intention to deliver is essential.

, Not Selected
Delivery can be effected by mere consent.

, Not Selected
There is delivery when the thing sold is placed in the vendee’s control and possession.
, Not Selected
32
1 / 1 point
Goods are deemed in transit:
Correct answer:
From the time they are delivered by seller to a common carrier or other bailee for transmission to
buyer, up to the time that buyer or his agent takes delivery of the goods from the carrier or bailee.
When the buyer intercepts and lawfully takes possession of the goods at any point before destination.
, Not Selected
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.
, Not Selected
When the buyer accepts delivery of the goods upon arrival at destination.
, Not Selected
33
1 / 1 point
Indorsement of a document of title amounts merely to a conveyance by the indorser, not a
contract of guaranty.
Correct answer:
True
False
34
1 / 1 point
The following are the principal obligations of the vendor, except:
Correct answer:
To pay for the expenses for the transfer of title/ownership.
To warrant against eviction and hidden defects.

, Not Selected
To deliver the thing.

, Not Selected
To transfer ownership of the determinate thing sold.

, Not Selected
To take care of the thing sold pending delivery with proper diligence.
, Not Selected
35
0 / 1 point
A purchaser in good faith for the value of the bill of lading or goods from the buyer will
obtain the ownership in the goods only if the bill of exchange has been honored by the
buyer.
Incorrect answer:
True
False
36
0 / 1 point
Statement 1. S sold to B a car for P1M. The condition for the sale is for B to execute a
chattel mortgage on the thing sold. The term of the sale is for B to pay a down payment of
P200,00 and the balance to be paid on July 15, 2020. However, the balance was not paid
by the buyer so S foreclosed the chattel mortgage on the thing sold. It was sold for
P700,000. S can recover the deficiency.
chattel mortgage on the thing sold. The balance of 800,000 is payable in twenty equal
installments. B defaulted on the succeeding installments. S sued B for the collection of the
balance and the court rendered judgment in favor of S. S by execution of judgment sold
the car for P700,000. S can recover the deficiency.
chattel mortgage on the thing sold. The balance of 800,000 is payable in twenty equal
installments. B defaulted on his 2 or more installments so S foreclosed the mortgage and
sold it for P700,000. S can recover the deficiency.
Incorrect answer:
Only the 3rd statement is False

Correct Answer:
Only the 2nd statement is True
All statements are True

, Not Selected
All statements are False

, Not Selected
Only the 2nd statement is True

, Not Selected
37
1 / 1 point
A owns 50 mango trees bearing fruits, ready for harvest. She told all the fruits of all the
trees to B who paid P100,000. A told B that he can harvest her fruits anytime he likes and
pointing at the mango trees. For legal purposes, A has fulfilled her obligation to deliver the
mango fruits to B by:
Execution of a public instrument

, Not Selected
Correct answer:
Traditio longa manu

, Not Selected
Traditio brevi manu

, Not Selected
38
1 / 1 point
I. The ownership in the thing shall not pass to the purchaser until he has fully paid the price.
II. If at the time the contract of sale is perfected, the thing which is the object of the contract has been partially lost,
the contract shall be without effect.
First statement is false; second statement is true.

, Not Selected
Correct answer:
Both statements are false.
First statement is true; second statement is false.

, Not Selected
Both statements are true.

, Not Selected
39
1 / 1 point
A stole a pencil from B and sold it to C Merchant, a “store for pencils”, which paid for it in
good faith, not knowing it was stolen. C Merchant then sold it to D, a student. Which is
correct?
D became the owner regardless of whether the seller is a store for pencils or not because he bought it
in good faith.
, Not Selected
Correct answer:
D became the owner because he purchased the pencil from a merchant store.
D cannot be considered as the owner because the original seller (A) is not the real owner.
, Not Selected
A may recover the pencil from D without reimbursement because he is the legal owner.
, Not Selected
40
1 / 1 point
I. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment.
II. In case of doubt, a contract purporting to be an equitable mortgage shall be construed as a sale with a right to
repurchase.
Correct answer:

, Not Selected

, Not Selected

, Not Selected
41
1 / 1 point
X sold Y 100 sacks of rice that Y was to pick up from X’s rice mill on a particular date. Y did
not, however, appear on the agreed date to take delivery of the rice. After one week, X
automatically rescinded the sale without notarial notice to Y. Is the rescission valid?
No, since there was no express agreement regarding automatic rescission.

, Not Selected
No, the seller should first determine that Y was not justified in failing to appear.
, Not Selected
Correct answer:
Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can
easily deteriorate.
No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the
goods.
, Not Selected
42
0 / 1 point
S sold his only cat to B. Before delivery and payment, the cat gave birth to a kitten.
Incorrect answer:
B is entitled to the kitten which was born after perfection of the sale.
Correct Answer:
S is entitled to the fruit because it was born before delivery.
B should pay the fair market value of the kitten.
, Not Selected
S is entitled to the fruit because it was born before delivery.

, Not Selected
S is entitled to the fruit as he is the owner.

, Not Selected
43
1 / 1 point
A imported radios from China and asked for 220 volts radios. The radios arrived clearly
labeled 220 volts and A sold them to the public as such. Later the customer complained
that the radios have been mislabeled by the manufacturer and that they were good only
for 110 volts. As a consequence:
A is not liable under the principle of “caveat emptor” or let the buyer beware.
, Not Selected
Correct answer:
A is liable to the vendees for any hidden defects even though he is not aware.
A is not liable because he is in good faith.

, Not Selected
The vendees may hold the manufacturer liable but not V because V specifically asked for 220 volts.
, Not Selected
44
1 / 1 point
Implied warranty not applicable in the following situations, except:
Sale by virtue of authority in fact or law.

, Not Selected
Correct answer:
None of the above.
Sale by a sheriff, auctioneer, mortgagee, pledgee or other person who sells.

, Not Selected
Sale of second hand articles.
, Not Selected
“As is and where is” sale.

, Not Selected
45
1 / 1 point
I. Expenses for the execution and registration of the sale shall be borne by the vendee, unless there is a
stipulation to the contrary.
II. If the same immovable thing should have been sold to different persons, the ownership shall be
transferred to the person who may have taken possession thereof in good faith.

, Not Selected

, Not Selected
Correct answer:

, Not Selected
46
1 / 1 point
Goods are deemed no longer in transit:
If the goods are rejected by the buyer for a valid reason and the carrier or other bailee continues in
possession of them, even if the seller has refused to receive them back.
, Not Selected
From the time they are delivered to a carrier by land, water or air for the purpose of transmission to
the buyer.
, Not Selected
Correct answer:
If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that
behalf.
From the time they are delivered to a bailee for the purpose of transmission to the buyer until the
buyer or his agent in that behalf, takes delivery of them from such bailee.
, Not Selected
47
1 / 1 point
Seller is not liable to the original buyer for any profit made by in the resale of goods. But if
he sells for less than the price, he has a right to sue the original buyer for the balance and
damages – breach of contract of sale.
Correct answer:
True
False
48
0 / 1 point
B bought a refrigerator on installment from S and to secure his indebtedness. B executed a
chattel mortgage on the refrigerator in favor of S. Upon default by B on his two (2)
payments, the refrigerator was foreclosed and sold for P8,000 which was less than the
balance due to S. How much can S still collect from B?
Incorrect answer:
8,000
Correct Answer:
Nothing
Nothing
, Not Selected
10,000
, Not Selected
2,000
, Not Selected
49
1 / 1 point
One of the following is not a remedy granted to an unpaid seller:
Correct answer:
Right to demand a security for the payment of the price
Right of resale
, Not Selected
Right of stoppage of goods in transit

, Not Selected
Right of lien over the goods

, Not Selected
50
0 / 1 point
In one of the following cases, delivery of the goods to a carrier for the purpose of
transmission to the buyer transfers ownership to the latter. Which one is it?
When by the terms of the bill of lading, the goods are to be delivered to the order of the buyer or his
agent but the seller retains the bill of lading.
, Not Selected
When the owner does not reserve the, right of possession or ownership of the thing sold upon delivery
to the carrier.
, Not Selected
Incorrect answer:
When the seller draws a bill of exchange on the buyer for the price of the goods and transmits such bill
of exchange and the bill of lading to the buyer to secure acceptance or payment of the bill of exchange
and the buyer dishonors the bill of exchange.
Correct Answer:
When the owner does not reserve the, right of possession or ownership of the thing sold upon delivery
to the carrier.
When by the terms of the bill of lading, the goods are to be delivered to the seller or his agent.
, Not Selected
51
0 / 1 point
If ownership in the goods has already passed to the buyer, the unpaid seller may no longer
exercise his possessory lien over the said goods.
Incorrect answer:
True
False
52
0 / 1 point
S sold B a laptop; it was shipped on board a carrier. The bill of lading stated that the laptop
is deliverable to the order of B. The bill of lading was sent to B, accompanied by a bill of
exchange which B was supposed to honor.
Statement 1. If B does not honor the bill of exchange, but wrongfully retains the bill of
lading, ownership remains with the seller.
Statement 2. If B sells the bill of lading to X, X can obtain ownership of the goods if he is an
innocent purchaser.
Both are true

, Not Selected
Incorrect answer:

Correct Answer:
Both are true
Both are false

, Not Selected

, Not Selected
53
1 / 1 point
A sold to B orally a parcel of land for P200,000. A effected the delivery of the land. The
payment of the price was to be made three months later. At the end of three-month
period:
B may refuse to pay claiming in his defense the Statute of Frauds.

, Not Selected
B may refuse to pay on the ground that there is no written contract to support the sale.
, Not Selected
B may return the parcel of land to A.

, Not Selected
Correct answer:
A can collect from B because the contract has already been executed.
54
0 / 1 point
I. When the buyer's refusal to accept the goods is without just cause, the title thereto
passes to him.
II. Where the goods are delivered to the buyer, and he refuses to accept them, having the
right to do so, he is not bound to return them to the seller.
Both are false

, Not Selected
Only II is true
, Not Selected
Incorrect answer:
Only I is true
Correct Answer:
Both are true
Both are true

, Not Selected
55
1 / 1 point
Despite the kinds of delivery enumerated by law, the parties to a contract of sale may
agree on other manner of the transfer of possession of the subject of the contract.
Correct answer:
True
False
56
1 / 1 point
In sale, if the goods are mixed with goods of different description, the buyer may accept
the goods which are in accordance with the contract and reject the rest; or, if indivisible,
he may reject the whole of the goods.
Correct answer:
True
False
57
1 / 1 point
I. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void.
II. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold only if he was aware
thereof.

, Not Selected

, Not Selected

, Not Selected
Correct answer:

58
0 / 1 point
The rule on double sale applies to two (2) different contracts of sale made by two (2)
different persons, one of them not being the owner of the property sold.
Incorrect answer:
True
False
59
1 / 1 point
Statement 1. B bought from S 100 cans of tomato sauce, 120 of which arrived. B may
accept 100 and return the 20. If he accepts all of the 120, he must pay for them at the
contract rate, namely, the price per can multiplied by 120.
Statement 2. Where the seller delivers to the buyer the goods agreed upon mixed with
goods of a different description, the buyer may accept the goods which are in accordance
with the contract, and reject the rest. If the subject matter is indivisible, the buyer may not
reject the whole of the goods.
Both are false

, Not Selected
Correct answer:
Both are true

, Not Selected

, Not Selected
60
1 / 1 point
A sold his car to B for P100,000. No date was fixed for the performance of the obligation
of the seller and the buyer. The obligation of A is:
To rescind the contract because there is no time fixed for the delivery.
, Not Selected
To deliver the car only after B writes to X demanding the delivery of the car.
, Not Selected
To deliver the car immediately because the sale is a perfected contract.

, Not Selected
Correct answer:
To deliver the car only after B pays the P100,000.

61
0 / 1 point
An unpaid seller has the following rights, except:
A right of repurchase
, Not Selected
A lien on the goods or the right to retain them for the price while he is in possession of them
, Not Selected
A right to rescind
, Not Selected
Incorrect answer:
In case of insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the
possession of them
Correct Answer:
A right of repurchase
62
0 / 1 point
The vendor is not obliged to make said delivery in the following cases:
In all these cases.

, Not Selected
If no period for the payment has been fixed in the contract.

, Not Selected
If the vendee has not paid him the price.

, Not Selected
Incorrect answer:
Even if a period for such payment has been fixed in the contract — if the vendee has lost the right to
make use of the period and still refuses to pay.
Correct Answer:
In all these cases.
63
1 / 1 point
The transfer of possession of an instrument, whether voluntary or involuntary, by a
person other than the issuer to a person who thereby becomes its holder.
Correct answer:
Negotiation
Endorsement
, Not Selected
Assignment
, Not Selected
Delivery
, Not Selected
64
1 / 1 point
An individual who temporarily gains possession, but not ownership, of a good or other
property. He is entrusted with the possession of the good or property by another.
Bailor
, Not Selected
Carrier
, Not Selected
Consignee
, Not Selected
Consignor
, Not Selected
Correct answer:
Bailee
65
0 / 1 point
Which of the following statements on the obligations of the vendee is false?
If no stipulation as to the place of payment and delivery, vendee to pay at the residence of the vendor.
, Not Selected
Vendee is not required to pay the price before the thing is delivered in the absence of an agreement to
the contrary..
, Not Selected
Incorrect answer:
If only time for delivery of the thing sold has been fixed in the contract, vendee is required to pay even
before the thing is delivered to him.
Correct Answer:
If no stipulation as to the place of payment and delivery, vendee to pay at the residence of the vendor.
If stipulated, vendee is bound to accept delivery and to pay the price at the time and place designated.
, Not Selected
66
1 / 1 point
When a small quantity is exhibited by the seller as a fair specimen of the bulk, which is not
present and there is no opportunity to inspect or examine the same.
Correct answer:
Sale by sample
Sale by description
, Not Selected
Sale on approval
, Not Selected
Sale or return
, Not Selected
67
0 / 1 point
A sold his horse to B for P80,000. No payment has yet been made and the sales document does not provide
the date of delivery. Before delivery and payment the horse gave birth to a baby horse, which is correct?
A is entitled to the (baby horse) because it was born before his obligation to deliver arises.
, Not Selected
B should pay additional amount for the baby horse to be entitled to it.
, Not Selected
A is entitled to the fruit (baby horse) as Y has not paid the price yet.
, Not Selected
Incorrect answer:
B is entitled to the baby horse which was born after the perfection of the contract.
Correct Answer:
A is entitled to the fruit (baby horse) as Y has not paid the price yet.
68
1 / 1 point
Y sold his only car to Z for P600,000 to be paid as follows: P300,000 upon delivery of the
car to Z and the balance at P20,000 per month until full payment of the purchase price.
Later, the car gets burned in the possession of Z through fortuitous event and without Z’s
fault, before full payment of the balance. Is Z obliged to pay the balance?
Correct answer:
Yes, because the principle “res perit domino” or the thing perishes with the owner.
No, because the loss should be borne by the seller as this an installment sale so until the buyer pays the
full amount of the price of the sale, Y remains to be the owner.
, Not Selected
Yes, but Y must give another car to Z because of the principle “genus nunquam perit” or generic thing
never perishes.
, Not Selected
No, because the car was lost through fortuitous event and without Z’s fault, hence Z’s obligation is
extinguished.
, Not Selected
69
1 / 1 point
Documents of title refer to both goods and money.
True
Correct answer:
False
70
0 / 1 point
S, a minor, sold his car to B, a person of majority age. B, in turn, sold the car to C who acted
in good faith.
Which of the the following statements is false.
Minor is incapable of giving a consent to a contract.

, Not Selected
Incorrect answer:
C acquires a valid title to the car after its delivery if the contract between S and B had not yet been
annulled.
Correct Answer:
The contract of sale between B and C is void independent of the status of the sale between S and B.
The contract of sale between S and B is voidable or annullable.

, Not Selected
The contract of sale between B and C is void independent of the status of the sale between S and B.
, Not Selected
71
0 / 1 point
Ownership of the thing sold is:
Retained by the seller in “sale or return”.

, Not Selected
Transferred to the buyer upon constructive or actual delivery of the thing sold.
, Not Selected
Incorrect answer:
Acquired by the buyer upon perfection of the contract.

Correct Answer:
Transferred to the buyer upon constructive or actual delivery of the thing sold.
Transferred to the buyer upon acceptance of the price.

, Not Selected
72
0 / 1 point
There is no transfer of ownership in the following, except in:
Contract to sell
, Not Selected
Contract of sale by installment

, Not Selected
On sale or return
, Not Selected
Incorrect answer:
Implied reservation of ownership

Correct Answer:
On sale or return
Sale on approval, trial or satisfaction

, Not Selected
73
0 / 1 point
On September 10, 2017, Errol sold a piece of land to Felix in a public instrument. On
September 11, 2017, Felix paid for the price. On September 12, 2017, Felix took
possession of the land. On September 13, 2017, Felix registered the public instrument.
Under the circumstances given, Felix became the owner on:
September 11, 2017
, Not Selected
Incorrect answer:
September 13, 2017

Correct Answer:
September 10, 2017
September 10, 2017

, Not Selected
September 12, 2017

, Not Selected
74
0 / 1 point
Statement 1. F.O.B. at the place of shipment. Here, the buyer must pay the freight.
Statement 2. F.O.B. alongside (the vessel). Here, from the moment the goods are brought
alongside the vessel, the buyer must pay for the freight or expenses.
Statement 3. F.O.B. at the place of destination. Here, the seller must pay the freight.
Incorrect answer:
All are false

Correct Answer:
Statements 1 and 2 are false; Statement 3 is true
Statements 1 and 2 are false; Statement 3 is true

, Not Selected
Statements 1 and 3 are true; Statement 2 is false

, Not Selected
All are true

, Not Selected
75
0 / 1 point
The delivery of incorporeal things/properties or rights is effected by either of the
following, except:
Incorrect answer:
By the execution of a public instrument

Correct Answer:
Real or actual delivery
By the placing of titles of ownership in the possession of vendee

, Not Selected
Real or actual delivery

, Not Selected
By allowing vendee to use his rights as new owner

, Not Selected
76
0 / 1 point
If movable property should have been sold to different vendees, the ownership shall
belong to the person:
Who have first taken possession in good faith.

, Not Selected
Who have paid in good the purchase price in full.

, Not Selected
Incorrect answer:
Who presents the oldest title in good faith.

Correct Answer:
Who in good faith first recorded it in the Registry of Property.

, Not Selected
77
0 / 1 point
In a contract of sale, of personal property, the price of which is payable in installments, the
vendor may exercise any of the following remedies, except:
Exact fulfillment of the obligation, should the vendee fail to pay any installment.
, Not Selected
Incorrect answer:
Cancel the sale, should the vendee’s failure to pay cover two or more installment.
Correct Answer:
Rescind the sale should the vendee fail to pay any installment.
Rescind the sale should the vendee fail to pay any installment.
, Not Selected
Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s
failure to pay cover two or more installments.
, Not Selected
78
1 / 1 point
The seller of goods is deemed to be an unpaid seller:
Statement 1. When the whole of the price has not been paid or tendered.
Statement 2. When a bill of exchange or other negotiable instrument has been received as
conditional payment, and the condition on which it was received has been broken by
reason of the dishonor of the instrument, the insolvency of the buyer, or otherwise.
Statement 1 is true; Statement 2 is false

, Not Selected
Correct answer:
Both statements are true
Both statements are false

, Not Selected
Statement 1 is false; Statement 2 is true

, Not Selected
79
1 / 1 point
If immovable property should have been sold to different vendees, the ownership shall be
transferred to the person:
Who presents the oldest title in good faith.

, Not Selected
, Not Selected
Correct answer:
Who in good faith first recorded it in the Registry of Property (Registry of Deeds).
Who have paid in good faith the purchase price in full.

, Not Selected
80
1 / 1 point
Retention of the bill of lading prevails over buyer’s possession of goods as such retention
is equal to the retention of a lien by seller after the property has passed to the buyer.
Correct answer:
True
False
81
0 / 1 point
The seller’s lien prevails against the rights of a purchaser value in good faith to whom the
document has been indorsed.
Incorrect answer:
True
False
82
0 / 1 point
S sold a parcel of land to B. Later, S sold the same land to C who, in good faith, first
registered the deed of sale.
Which of the statements is not correct?
The ownership belongs to C.

, Not Selected
Incorrect answer:
In double registration, the title should remain in the name of the person first securing registration in
good faith.
Correct Answer:
The ownership would not belong to C if B is in actual possession of the land.
The remedy of B is to sue S for breach of warranty against eviction.

, Not Selected
The ownership would not belong to C if B is in actual possession of the land.

, Not Selected
83
1 / 1 point
I. Should the vendee’s failure to pay, cover two or more installments, the vendor may foreclose the chattel
mortgage on the thing sold but he shall have no further action against the purchaser to recover any unpaid
balance of the price, except if there is an agreement to the contrary.
II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection.

, Not Selected

, Not Selected
Correct answer:

, Not Selected
84
1 / 1 point
The three (3) basic main functions of a bill of lading are, except:
It serves as a document of title to the goods.

, Not Selected
Correct answer:
It consists of an order in writing for payment of the goods.
It contains or evidences the terms of the contract of carriage.

, Not Selected
It is a conclusive receipt that the goods have been loaded.

, Not Selected
85
1 / 1 point
The sale of a determinate thing (like land) includes all its accessions (like house thereon)
and accessories even though they may not have been mentioned.
Correct answer:
True
False
86
1 / 1 point
Quasi-traditio is equivalent to:
Correct answer:
Execution of a public instrument
Traditio longa manu

, Not Selected

, Not Selected
Traditio brevi manu

, Not Selected
87
1 / 1 point
Effected when the object of sale is already in the possession of the vendee at the time of
sale so that delivery need no longer be made is:

, Not Selected
Traditio symbolica
, Not Selected
Correct answer:
Traditio brevi manu
Traditio longa manu

, Not Selected
88
1 / 1 point
I. The creditors of the vendor cannot make use of the right of redemption against the
vendee, until they have exhausted the property of the vendor.
II. Sale is a real contract because delivery is necessary to transfer ownership to the buyer.
Correct answer:

, Not Selected

, Not Selected

, Not Selected
89
1 / 1 point
A leased to B ten (10) Freezers for two (2) years at a lease rental fee of P2,000 per month
and signed an option in favor of B to buy the freezers at the end of the term of the lease at
P100,000. All rental fees paid are to be considered as partial payment of the sale. After 12
months, B was able to pay the rental fee for nine (9) months and was in arrears for three
(3) months. A terminated the lease contract and repossessed the freezers. The
consequence of the transaction is:
A can collect the rental fees for three months which are in arrears.
, Not Selected
A can collect the rental fees for the unexpired 12 months of the lease contract.
, Not Selected
A, in terminating the lease and repossessing the freezers, is obliged to refund the 9 months rental fee,
paid by B even if there is a stipulation to the contrary.
, Not Selected
Correct answer:
When A took possession of the freezers, he has no further action against B.

90
0 / 1 point
Car is lost or destroyed without fault of the seller (assuming he is not guilty of delay and
there is no contrary stipulation that he shall be liable), the obligation to deliver is
extinguished and the buyer shall be obliged to pay the price if he has not paid it.
True
Incorrect answer:
False
Correct Answer:True

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PAGUIO, CARL JUSTINE FONTAMILLAS

No, because Y is in estoppel, having changed engine without prior demand.

No, because Y waived the warranty against hidden defects.

Yes. X is liable whether or not he was aware of the hidden defect.

A cannot recover the deficiency even if there is stipulation to the contrary.

A cannot recover the deficiency except if there is stipulation to that effect.

C because he is the first to take possession.

B because he has got an older title.

C because he is the first to register.

No one as both sales are void.

The seller must be in possession of the goods.

The buyer must be insolvent.

The seller must be unpaid.

The goods must be in transit.

Sale of house on installment.

Sale of car on straight term.

Traditio longa manu

Traditio constitutum possessorium

Traditio brevi manu

A is liable to B for damages and is in default without need of any demand.

B should make the demand to make A in default.

It can be indorsed and delivered.

If it is indorsed, the indorsement gives the indorsee additional right.

The document can be negotiated.

The document can be assigned.

Free from charges or encumbrances not declared or known to the buyer

Right to sell the thing at the time of perfection of the contract

Traditio Brevi Manu

Traditio Longa Manu

Traditio Constitutum Possessorium

P, regardless of whether or not he is a purchaser for value and in good faith.

G, since as an unpaid seller, he has the right of stoppage in transitu.

No. 1 is false; No. 2 is true

Both are true

No. 1 is true; No. 2 is false

Both are false

That the document is genuine.

Within six (6) months counted from the perfection of contract.

Within six (6) months counted from the day of payment.

Within six (6) months counted from knowledge of defect.

Within six (6) months counted from the day of delivery.

Both are true

No. 1 is true; No. 2 is false

Both are false

No. 1 is false; No. 2 is true

Statements 1 and 3 are true; Statement 2 is false

All are false

Statement 1 is false; Statements 2 and 3 are true

Seller can recover from Buyer part of the balance of P20.000.

Seller can recover from Buyer the balance of P20.000.

Expenses of the contract

Necessary expenses on the thing sold

Interest on the price of the sale

Two (or more) valid contract of sale.

Delivery should be to the vendee or his authorized representative.

Intention to deliver is essential.

Delivery can be effected by mere consent.

To pay for the expenses for the transfer of title/ownership.

To warrant against eviction and hidden defects.

To deliver the thing.

To transfer ownership of the determinate thing sold.

Only the 3rd statement is False