LAW ON SALES

1. The seller of a thing must have the right to transfer the ownership thereof at the time of the meeting of
minds of the parties.
The sale of a mere hope or expectancy is deemed subject to the condition that it will come into existence. It
is a sale however of a present thing, that is, the hope itself already existing.
a. Both statements are correct
b. Both are incorrect
c. First is correct, second is incorrect
d. First is incorrect, second is correct
2. A sold to B in a private instrument a parcel of land for P5,000.00. B now wants A to place the contract in a
public instrument so that B could register the sale with the Registry of Deeds and secure the Transfer
Certificate of Title in his name. Decide:
a. A may not be forced or compelled to execute the public instrument since the sale is unenforceable being
in private instrument only.
b. To contract is void not being in public instrument.
c. A can be required to execute the public instrument only if B has paid the purchase price.
d. A has the obligation to execute the public instrument because the contract of sale inenforceable.
3. A sold to B orally a parcel of land for P5M. Delivery and payment were to be made four months later. When
the said date arrived, A refused to deliver the land. Can B compel A to deliver?
a. Yes, because the sale has been perfected already and obligations of the parties are reciprocally
demandable.
b. Yes, because there was an agreement to deliver after four months and that should be respected by the
parties.
c. No, because the sale although valid is unenforceable.
d. No, because the sale void, being orally entered into.
4. A sold to B a particular pencil for P250.00. The sale is oral. It was agreed that the payment and delivery are
to be made after two years from the sale. At the stipulated period, A refused to deliver alleging he has no
obligation to do so. Is A correct?
a. Yes, because the sale is voidable and cannot be enforced
b. Yes, because the contract is unenforceable it being an oral contract.
c. No, because the contract in is enforceable since the price id less than five hundred pesos.
d. No, the contract is valid, binding and therefore must be given effect.
5. A bought a car from B who is an insane man, later A sold the same car to C who has in good faith having
no knowledge of the voidable character of the sale. In this case, after delivery:
a. C could not acquire title to the thing because his seller A have no ownership to transfer to him because
B was insane person who has not able to give consent to the sale which is void:
b. C cannot acquire title to the thing despite his good faith because the sale by B could not be annulled
since it is voidable sale.
c. C acquires good title to the thing as an innocent purchaser for value. His seller’s title is only voidable
which has not been avoided at the time of the sale.
d. C acquires title to the thing but the same may be rescinded after the annulment of the sale between A
and B
6. A buys from B a piece of land supposed to contain 1000 sq. m at a rate of P10, 000.00 per sq. m. But the
land actually contains 1, 500 sq. m. Which of the following is not included in the rights of A:
a. A may demand the delivery of the entire land with proportionate increase of the price.
b. A may reject the excess of 500 sq. m. and accept only the 1, 000 sq. m.
c. A may rescind the contract of the sale because what was delivered is not in accordance withthe
contract.
d. None of the above.
7. A buys a land from B at the lump sum of P1M. In the contract, the area is stated to be 1,000 sq. m. The
boundaries were mentioned in the contract. It was discovered, however, that the land within the boundaries
really contains 1,500 sq. m. Which of the following is not right of A?
a. A may demand the delivery of all the 1, 500 sq. m. without any price increase.
b. If B refuse to deliver all the 1, 500 sq. m., A may demand proportionate reduction in the price.
c. A may rescind the contract of sale if B does not deliver all that is included in the boundaries.
d. A may treat the contract as void ab initio because the object is not determinate to its kind.
8. Even in the absence of doubt, a sale with right of repurchase is presumed to an equitable mortgage.
In conventional redemption, it is not necessary that the parties agree upon the period within which
redemption may be exercised.
a. Both statements are correct.
b. First is false, second is true
c. Both are incorrect
d. First is true, second is false
9. Warranty against eviction as well as against hidden defect may be waived by the vendee provided the
vendor is in good faith.
Waiver intencionada on the part of the vendee will absolutely exempt the vendor from liability.
a. Both statements are false
b. Both are true

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 c. First is false, second is true
d. First is true, second is false
10. In waiver consiente there is no warranty against eviction but the seller is still liable to pay the value of the
thing at the time of eviction if eviction takes place.
In case of total eviction, the vendee cannot rescind the sale with damages.
a. Both statements are correct
b. Both are incorrect
c. First is correct, second is incorrect
d. First is incorrect, second is correct
11. A, B and C are co-owners in equal shares of one-hectare rural land, the adjoining owners to which are D and
E, the latter owning the smaller area. A donated his share of land owned in common to X who is a rural land
owner. Upon proper notice of sale, B, C, D, and E sought to exercise the right of legal redemption over the
shares sold. Who shall have the right to do so?
a. A and B are preferred to D and E to redeem because co-owners have preference to adjoining owners
b. E shall have the right to redeem because he has smaller area of the land than D.
c. The first one between A and B to request redemption shall be preferred in case both demand.
d. None of them has right to redeem because the alienated was not by onerous title.
12. In case eviction takes place, the seller is obliged to return to the buyer the price he paid for the thing sold.
In case the thing is lost due to its hidden defect, the vendor shall return to the vendee the value at the time
of the loss.
a. Both statements are true
b. Both are false
c. First is false, second is true
d. First is true, second is false
13. In the sale of goods, if the seller delivers more than the quantity agreed upon, the buyer may rescind
contract of sale.
The seller shall have the right of legal redemption only if this right has been agreed upon between the seller
and the buyer.
a. Both statements are false
b. Both are true
c. First is false, second is true.
d. First is true, second is false
14. If several persons, jointly in the same contract, should sell an undivided immovable with the right of
repurchase, none of them may exercise this right for more than his respective share.
Each one of the co-owners of an individual immovable who may have sold his share separately, may
independently exercise the right of repurchase as regards his own share, and the vendee cannot compel him
to redeem the whole property.
a. Both statements are true
b. Both are false
c. First is true, second is false
d. First is false, second is true
15. The creditors of the vendor cannot make use of the right of redemption against the vendee, until after they
have exhausted the property of the vendor.
The vendor is responsible to the vendee for any hidden faults or defects in the thing sold if so stipulated by
the parties.
a. First statement is false, second is true
b. Second statement is false, first is true
c. Both statements are false
d. Both statements are true
16. Three of the following are remedies of the buyer in case of the breach of warranty by the seller. Which is not
included?
a. Accept or keep the goods and set up the breach of warranty by way or recoupment or extinction of the
price;
b. Rescind the contract of sale and refuse to accept the thing or if already delivered refuser toreturn the
same;
c. Accept or keep the goods and claim damages for the breach of warranty;
d. Refuse to accept the goods and claim damages for the breach of warranty;
17. In the sale of immovable property, if it has been stipulated that upon failure to pay the price at the time
agreed upon, the rescission of the contract shall of the right take place, the vendee may still pay despite the
demand for rescission.
In the sale of movable property, the rescission of the sale shall of right take place if the vendee, upon the
expiration of the period fixed for the delivery of the thing, should not have appeared to receive it, or having
appeared he should not have tendered the price.
a. Both statements are correct
b. Both are incorrect
c. First is incorrect, second is correct
d. First is correct, second is incorrect
18. B in good faith purchased a diamond ring from C, a friend of his. C gave B a bill of sale. Later on, O
identified the ring as the one she had lost about a year ago. There is no question as to the truthfulness of
O’s allegation. In case:
a. O cannot recover the ring from B because the latter was in good faith when he bought the ring from C.
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 b. O cannot recover the ring from B because it was lost by him (O) and found by C, thereof C, as finder will
be keeper and owner who could transfer ownership to B, an innocent purchaser for value.
c. C is the one liable to O for damages while B becomes owner who could not be disposed being an
innocent purchaser for value.
d. O can recover the ring from B even if he is an innocent purchaser for value because C did nothave title
to convey to B
19. X the owner of certain jewelry delivered though same to Y, “on sale or return” upon a specified period of
time. Y sold the said jewelry to Z, but retains the price. Can X recover the jewelry from Z?
a. X can recover the jewelry from Z being an unpaid seller whose ownership was not transferred to Y upon
delivery to him.
b. X can recover the jewelry from Z but after reimbursement of the price paid.
c. X cannot recover the jewelry from Z because his seller (Y) has transferred ownership to him.
d. X cannot recover the jewelry from Z because it was sold by his agent Y to Z and his only recourse is to
go after Y for his failure to remit the payment to him
20. P authorized A to sell the former’s car. A sold the car to X. Without knowledge of the sale to X, P sold the
same car to Z. Which of the two buyers shall be preferred?
a. X, being a buyer of a duly authorized agent.
b. Z, being the buyer of the principal himself.
c. X, the first registrant in good faith of the sale.
d. The first possessor in good faith of the car.
21. S sold to B his parcel of land valued at 1M only for a measly sum of P.5M because of his poor judgement on
the real value of the land and the ability of B to bargain for a low price. The sale therefore is:
a. Voidable due to inadequacy of the price.
b. Rescissible because S suffered lesion or damage.
c. Presumed equitable mortgage due to the unusually inadequate price.
d. Valid although may be annulled because of vitiated consent of S.
22. In a payment of his debt to X, A ceded his one half (1/2) share in a parcel of land he co-owned with B. B
therefore:
a. Has the right of pre-emption;
b. Has the right of redemption as a co-owner.
c. Has no right of redemption nor pre-emption since the transfer was not of sale.
d. Has the right to compel X to buy his ½ share of the land to prevent co-ownership between and himself.
23. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states
that the property is sold absolutely or with a right of repurchase:
a. May ask for the reformation of the instrument.
b. May ask for the annulment of the contract.
c. May ask the court for the declaration of nullity of the contract.
d. Shall be bound to perform his obligation as seller.
24. A sold to X his ½ share of the parcel of land he co-owns with B. C owns the parcel of land adjoining that of
A and B. Both B and C want to redeem the share of A which the latter sold to X.
a. C, shall preferred to B in the redemption from X.
b. B’s right as co-owner excludes that of C, the latter being only an adjoining owner.
c. C has a better right to the redemption as an adjoining owner.
d. B and C shall equally redeem the share of A
25. 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 in 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.
26. 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.
27. S delivered his car to B by way of sale with the understanding that on the day following such delivery S will
name and fix the price. The said day came and S telephoned B and stated and fixed the price at P1M. Is the
sale perfected?
a. Yes, because the price was named and fixed on agreed date.
b. No. The price was left to the direction of the seller only.
c. Yes, since there was already delivery of the thing sold.
d. No. The price fixed by the seller was not accepted the buyer.
28. Three of the following are option of money. Which is the exception?
a. Given when contract of sale is perfected.
b. Given when there is no contract of sale, but as a consideration.
c. Given to bind the offeror in a unilateral promise to buy or sell.
d. Given as a consideration distinct from the price.

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29. In a sale, this is actual delivery:
a. Execution and signing of the deed of sale.
b. Goods sold are placed in the control and possession of the vendee.
c. Delivery by the vendor of the keys to the place where the goods are kept or stored.
d. The vendee is already in possession of the goods even before the sale.
30. When delivery takes place by mere consent or agreement of the parties as when the vendor merely points
to the thing sold which shall thereafter be at the disposal of the vendee if the thing sold cannot be
transferred to the possession of the vendee upon sale:
a. Traditio symbolica
b. Traditio brevi manu
c. Traditio longa manu
d. Traditio constitutum possessorium
31. A placed an order with B for one hundred pieces of T-shirts which were then not available but manufactured
by B and consigned to its sales outlets regularly. The contract between A and B is:
a. Contract for a piece of work
b. Contract of lease of service
c. Contract of sale
d. Renumeratory contract
32. A contract of sale is unenforceable if it is not in public instrument and it refers to a sale of real property.
A sale of a house through an agent whose authority is oral is void:
a. Both statements are true
b. Both are false
c. Second is true, first is false.
d. First is true, second is false
33. In case of double sale of real property, the possessor in good faith shall preferred to the registrant but in
bad faith.
In all cases of double sale, priority is given to the buyer in good faith, that is, whether registrant, possessor
or with the oldest title.
a. First statement is false, second is true.
b. First true, second is false.
c. Both are false.
d. Both are true.
34. A sold his land to B who began to possess 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 an 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.
35. S sold his land to B. Then S became B’s tenant on the land. Subsequently, S sold the same land to C.
Neither sale was registered. Who should be the owner?
a. S remains to be the owner because neither of the contracts of sale was registered.
b. C is the owner because the possession of the land was not transferred to B as buyer thereof.
c. B is the owner since he bought the land from S as owner thereof and has possession of thesame.
d. S retains the ownership of the land because he still has possession.
36. A sold his land to B. Later, A sold the same land to C. B in turn sold the same land to D, who took
possession of the land in good faith. C, a purchaser in good faith, registered the sale in his favor. Decide:
a. B is the owner of the land because he was the first buyer.
b. C is the owner of the land having registered the sale in good faith.
c. D is the owner of the land being the transferee of the rights of B and who is in possession in good faith.
d. D is the owner because after A sold the land to B, A had no more right to transfer ownership to C, the
second buyer.
37. A husband and his wife are 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.
38. D obtained from C a loan amounting to P50,000.00, the same being secured by a mortgage on D’s lot.
Thereafter, C assigned his credit right to T with notice to D. Based on the forgoing facts, which of the
following statements is incorrect?
a. T cannot collect from D if D does not give his consent to the assignment.
b. T can collect from D. D’s consent to the assignment is not required.
c. T can collect from D, and if D cannot pay, T can foreclose the mortgage on the lot.
d. The notice to D of the assignment is sufficient. D must make his payment to T and no longer to C
39. A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law,
show the intention of the parties to charge real property as security for debt and contains nothing
impossible or contrary to law is unknown as:
a. Legal mortgage

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 b. Equitable mortgage
c. Conventional mortgage
d. Voluntary mortgage
40. If a movable property is sold separately to two or more different vendees, ownership shall belong to the
person:
a. Who in good faith first paid the purchase price in full
b. Who in good faith first recorded the sale in the Registry of the Property
c. Who in good faith presents the oldest title
d. Who in good faith first took possession of the property
41. A contact of sale is perfected:
a. Upon compliance with the requirements of the law as to form
b. Upon delivery of the object of the contract
c. Upon the meeting of the minds on the thing which is the object of the contract and upon the price
d. Upon demand
42. A contract of sale is not a:
a. Principal contract
b. Nominate contract
c. Consensual contract
d. Real contract
43. The following may not valid objects of a contract of sale except:
a. Objects outside the commerce of men
b. Illicit things
c. Future goods
d. Impossible service
44. This is kind of symbolic delivery where the vendor remains in possession of the property sold, such as by
virtue of a lease agreement with the vendee.
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Delivery to common carrier
45. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in;
a. Sale on approval
b. Sale or return
c. Sale on trial
d. Contract to sell
46. S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B accepted the promise of S and
informed S that he (B) would make known his decision before the lapse of 30 days. He also gave S
P2,000.00 as consideration so that S would hold on to his promise. The contract entered into between S and
B and the consideration given by B to S are known as:
a. Option contract and option money, respectively.
b. Contract of sale and earnest money, respectively.
c. Contract of sale and down payment, respectively.
d. Contract of sale and reservation money, respectively.
47. Refer to the preceding no.
a. S may withdraw his offer to sell before the lapse of 30 days by informing B.
b. S may not withdraw his offer before the lapse of 30 days.
c. S may withdraw the offer by returning the amount of P2,000.00 that was paid to him by B.
d. S may withdraw his offer even before the lapse of 30 days if a favorable price, i.e., more than
P200,000.00, is offered to him by another prospective buyer.
48. The Recto Law applies to which of the following examples of sale?
a. Sale of a car on a straight term.
b. Sale of house and lot on installment.
c. Sale of car on installment where the buyer constituted a mortgage on his truck.
d. Sale of a piano on installment where the buyer constituted a chattel mortgage on the piano.
49. S sold to B a lot through a deed of absolute sale duly acknowledged before a notary public. Three days later,
S sold the same lot to X, also through a deed of sale duly acknowledge before a notary public. X had a sale
registered with the Registry of Deeds. Neither B nor X was aware of the sale made by S to the other and
neither took physical possession of the lot. Who is the present owner of the lot?
a. B, because he was the first purchaser in good faith.
b. X, because he registered the sale in good faith.
c. Neither B nor X.
d. S, as long as he does not surrender physical possession of the lot.
50. B purchased from S a laptop computer worth P100,000.00. The terms of the sale provide for a down
payment of P20,000.00 with the balance payable in 8 equal monthly installments. To secure the balance, S
required B to execute a chattel mortgage on the laptop computer and a real mortgage on B’s lot. B complied
with all the requirements but defaulted in the payment of the third and fourth installments. These remedies
are available to S except one. Which is it?
a. Cancel the sale.
b. Exact fulfillment of the obligation.

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 c. Foreclose the real mortgage and thereafter foreclose recover any deficiency from B.
d. Foreclose the chattel mortgage and thereafter the real mortgage in case of deficiency.
51. S and B entered into a contract whereby S transferred to B a specific piano for the price of P80,000.00,
while B gave to S cash of P30,000.00 and a diamond ring worth P50,000.00. What kind of contract was
entered into between S and B?
a. A contract of barter.
b. A contract of sale.
c. The contract is partly a contract of barter and partly a contract of sale.
d. The contract is an innominate contract because the intention of the parties cannot be determined.
52. One of the distinction between option money and earnest money is that earnest money is;
a. 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.
b. Not part of the purchase part.
c. Proof of the perfection of the contract of sale.
d. Paid before the perfection of the contract of sale.
53. This refers to the warranty of the seller that has the right to sell the thing at the time when ownership is to
pass, and which can be enforced if the buyer is deprived of the property sold by a final judgement in court.
a. Warranty against hidden defects.
b. Warranty of merchantable quality.
c. Warranty against eviction
d. Warranty of possession.
54. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P’s lot in Quezon City immediately
as P needed cash. Accordingly, A sold the lot to B. The deed of the sale is in a public document. The sale of
P’s lot is:
a. Valid
b. Rescissible
c. Unenforceable
d. Void
55. One of the distinctions between a contract of sale and a contract for a piece of work is that a contract for a
piece of work:
a. Is not governed by the Statue of fraud.
b. Refers to a contract for the delivery goods which are manufactured in the ordinary course of business
although the same are not liable.
c. Has for its parties the vendor and the vendee.
d. Has for its consideration the price of the thing.
56. A and B are co-owners of a rural lot not exceeding 1 hectare. The lot is surrounded on its for side as follows:
on the North, by the road; on the East, by the lot of X consisting of 2 hectares; on the south; by the lot of Y
consisting of 2 ½ hectares; and on the West, by Z’s slot consisting of 2 ¾ hectares. A sells his undivided
interest in the agricultural lot to T, who owns several hectares of rural land in the area. Who has the right of
legal redemption over the undivided interest in the lot sold by A to T?
a. B
b. X
c. Y
d. Z
57. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to
induce the buyer to purchase the same, relying on such promise or affirmation.
a. Condition
b. False representation
c. Warranty
d. Seller’s talk
58. In one of the following cases, the ownership of the thing object of the contract is transferred to the other
party upon delivery.
a. Contract to sell
b. Agency to sell
c. Sale or return
d. Sale on approval
59. Under the “Realty Installment Buyer Act”, the buyer of real estate on installment payments may pay an
installment defaulted without additional interest if he has paid at least two years of installments. The law is
applicable to sales/transactions involving:
a. Industrial lots
b. Commercial buildings
c. Residential lots
d. Sales to tenants under the Land Reform Law.
60. S, the owner of the rent-a-car business, leased one of his cars to B for one month. On the day of the
expiration of the lease and while B was still in possession of the car, B offered to buy the car from S for
executed a deed of absolute sale in favor of B, who immediately paid the price in cash. Thereafter, B drove
away from the place of S.
a. The delivery of the car by S to B is by constitutum manu.
b. The delivery of the car by S to B is by traditio longa manu.
c. The delivery of the car by S to B is by traditio brevi manu.

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 d. There was no delivery because B should have turned over the possession of the car to S upon the
expiration of the lease so that S could make the proper delivery to him upon the expiration of the lease
so that S could make the proper delivery to him upon the execution of the contract of sale.
61. B called on S at the shoe factory of S for the latter to make a pair of shoe which B would be needing in the
play “Romeo and Juliet.” B provided S with the description of the pair of shoes that he wanted since S did
not manufacture the kind of shoes that B needed. S quoted a price of P1,000.00 which B agreed to pay
upon delivery to him of the pair of shoes. Since S and B had been neighbors for a long time, their
agreement was sealed with a handshake.
a. The contract between S and B becomes enforceable if S had already completed making the pair of
shoes.
b. The contract between S and B becomes enforceable if B had already paid the amount agreed upon for
the work.
c. The contract between S and B is enforceable even if it is still executory.
d. The contract cannot be enforced by either party because it was not in writing.
62. Which of the following contracts of sale is void?
a. Oral sale of a piece of land made through an agent whose authority is in a public instrument.
b. Sale of a piece of land in a public instrument made through an agent whose authority wasgiven
orally by the principal.
c. Sale of a piece of land in a private instrument made through an agent whose authority is in a public
instrument.
d. Sale of a piece of land in a public instrument made through an agent whose authority is in a private
instrument.
63. A contract whereby one of the contracting parties obligates himself to transfer the ownership of and to
deliver a determinate thing and the other to pay therefore a piece certain in money or its equivalent is a
contract of:
a. Barter
b. Sales
c. Dacion en pago
d. Mortgage
64. The following are the essential elements of a contract of sale, except:
a. Consent of the contracting parties.
b. Subject matter which should be determinate.
c. Price which is certain in money or its equivalent.
d. Warranty against eviction and against hidden defects.
65. The following are the characteristics of a contract of sale, except:
a. Principal, which means that a contract of sale can exist by itself.
b. Real, which requires the delivery of the object of the contract of sale for its perfection.
c. Onerous. Where rights are acquired in exchange of a valuable consideration.
d. Bilateral, which means that both parties are bound reciprocally to each other.
66. Once of the following characteristics of a contract of sale, except:
a. There is a pre-existing credit.
b. Obligations are extinguished.
c. There is less freedom in fixing the price.
d. Ownership of the object is transferred to the other party.
67. The following characteristics of a contract of sale except one which refers to payment by cession.
a. There is no pre-existing credit.
b. The cause or consideration is the price.
c. There is more freedom in fixing the price.
d. Assignee of the property acquires the right to sell the thing but not the ownership thereof.
68. The following items pertain to either a contract of sale or a contract to sell.
I. Ownership of the thing sold is transferred upon delivery.
II. Ownership of the thing is transferred to the buyer at some future time.
III. The risk of loss is on the buyer after delivery.
IV. The risk of loss is on the seller after delivery.
Based on the above data, which of the following is correct?
a. Items I and III pertain to a contract to sell.
b. Items I
c. I and III pertain to a contract of sale.
d. Items I and III pertain to a contract of sale.
69. Which of the following is not a requisite of the object of a contract of sale?
a. It must be within the commerce of men.
b. It must be licit.
c. It must be determinate thing.
d. Vendor must have the right to transfer the ownership of the thing at the time of sale.
70. The following items pertain to either emptio rei sperati or emptio spei.
I. The sale of future thing.
II. The sale of hope or expectancy.
III. The sale of the present thing.
IV. The thing sold must come into existence.
Based on the above information, which of the following is correct?

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 a. Items I and II pertain to emptio rei sperati.
b. Items II and III pertain to emptio spei.
c. Items II and III pertain to emptio rei sperati.
d. Items III and IV pertain to emptio spei.
71. S sells to B 500 sacks of rice at P1,000 per sack from the stock then stored in the warehouse of S. Unknown
to the parties, the warehouse contains only 480 sacks of rice. What is the status of the contract?
a. The sale is void since the quantity available is less than the quantity sold.
b. The sale is valid up to 480 sacks of rice but void as to the deficiency of 20 sacks of rice.
c. The entire sale is valid up to 500s sacks of rice. B becomes the owner of the whole stockavailable
and S must deliver the deficiency of 20 sacks of rice.
d. The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sacks of rice by reason
of damage suffered by B.
72. S sells B at P50 per litter 300 litters of gasoline stored in his truck’s tank which, unknown to the parties,
contains 500 litters. What is the status of the contract of sale between S and B?
a. The sale is void because the quantity available is more than the quantity sold.
b. The sale is valid up to 500 litters of gasoline. B must pay for the additional 200 litters.
c. The sale is valid up to 300 litters of gasoline. B becomes the owner of 3/5 of the whole stock, while S
becomes the owner of 2/5 thereof.
d. The sale is rescissible because S will suffer lesion of more than ¼ of the value of the whole stock.
73. The seller must be the owner of the property he sells because he must transfer the ownership thereof to the
buyer.
The delivery of the thing sold may be by mere agreement of the parties.
a. Both statements are true.
b. Only the first is true.
c. Both are false.
d. Only the second is true.
74. S and B entered into a contract whereby S transferred to B a specific car for the price of P200,000.00, while
B gave to S P90,000.00 in cash and a diamond ring worth P110,000.00. The heading of the written contract
reads “Contract of Sale.”
a. The contract is void because the intention of the parties is void since the value of the diamond ring is
more than the monetary consideration given.
b. The contract is a valid contract of sale as intended by the parties regardless of whether themonetary
consideration is more or less than the value of the property consideration.
c. The contract is a valid contract of barter since the value of the property given is more than the
monetary consideration. The intention of the parties is immaterial.
d. The contract is partly a contract of barter and partly a contract of sale.
75. The price in a contract of sale is certain, except:
a. When the parties have fixed or agreed upon a definite amount.
b. If the price is certain with reference to another thing certain.
c. If the fixing of the price is left to the discretion of one of the contracting parties.
d. If the price fixed is that which the thing sold would have on a definite day or in a particular exchange or
market.
76. On January 1, S orally sold to B a specific ring for P450. The parties agreed that S shall deliver the ring to B
on January 5, while B will pay the price on January 7.
a. The contract is perfected on January 5, when the ring is delivered by S to B.
b. The contract is perfected on January 1, when the parties had a meeting of minds on theobject
and the price.
c. The contract is perfected on January 7, when the price is paid, since both parties would by then have
performed their obligations in the contract.
d. There is no perfected contract because the sale was made orally.
77. A sum of money paid, or a thing delivered upon the making of the contract for the sale of goods. To bind
the bargain, the delivery and acceptance of which makes the final assent of both parties to the contract.
a. Option money
b. Earnest money
c. Reservation money
d. Down payment
78. S orally offered to sell a certain diamond ring to B for P50,000. B accepted the offer and to prove that he
was in earnest, he gives S P1,000.00. The parties agreed that the delivery of the ring and the payment of
the price would be made 30 days later. On due date:
a. S may collect from B P50,000
b. S may collect from B P49,000
c. S cannot enforce payment because there contract was verbal.
d. S cannot enforce payment because there was no contract of sale yet.
79. On June 1, 2006 S sold to B 50 units of machines which were schedule to arrive in Japan. The sale was
evidence by an invoice identifying each machine by serial number. Each machine was priced at P10,000.
Unknown to the parties, 30 units were damaged beyond repair by seawater on May 31, 2006. Based on the
foregoing, which of the following is incorrect?
a. B may rescind the whole contract.
b. B may demand delivery of the remaining 20 units and pay the price therefore.
c. S may require payment of the whole shipment from B since S was not aware of the damage caused on
the machines at the time of sale.
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 d. S has no option to rescind the whole contract or require payment of the remaining 20 units.
80. It refers to the delivery of the thing sold from hand to hand in case of movables, or the taking of possession
with respect to immovable, in the presence and with the consent of the vendor.
a. Actual or real delivery
b. Traditio constitutum possessorium
c. Tradition longa manu
d. Traditio brevi manu
81. Delivery of the incorporeal property may be made through any of the following means, except:
a. Execution of a public document.
b. Placing titles of ownership in the possession of the vendee.
c. Use by the vendee of his rights, with the debtor’s consent.
d. Execution of private instrument.
82. Which of the following statements on the transfer of ownership of the thing in “Sale on Trial” is incorrect?
a. Ownership of the thing is transferred to the vendee when he signifies his approval or acceptance to the
vendor.
b. Ownership of the thing is transferred to the vendee when he does an act adopting the transaction.
c. Ownership of the thing is transferred to the vendee if the time fixed for the return of the thing has
expired and the vendee retains the thing without giving notice of rejection or acceptance to the vendor.
d. Ownership of the thing is transferred to the vendee upon delivery.
83. On March 1, 2006 S sold and delivered to B a television set for P10,000 “on sale or return” giving B up to
March 16, 2006 within which to return the television set. On March 16, 2006, the television set was burned
through no fault of B. Based on the foregoing, which of the following statements is incorrect?
a. S does not have to replace the tv set.
b. S must bear the loss since the period for the return of the television set had not yet expired.
c. The ownership of the television set was transferred to B upon delivery to him.
d. B must bear the loss of the television set.
84. 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:
a. Exact fulfillment of the obligation, should the vendee fail to pay any number of the installments.
b. Cancel the sale should the vendee’s failure to pay cover to or more installments.
c. Foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more
installments and recover any deficiency after the foreclose sale if they have stipulatedit.
d. Foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more
installments but he may no longer recover any deficiency after the foreclose sale.
85. T stole the ring belonging to O. Subsequently, the ring was offered for sale at the public auction where X,
who was not aware that the ring was stolen, bought it. A few weeks later, O saw the ring and recognized it
as his. Based on the foregoing information, which of the following statements is correct?
a. O may recover the ring from X without reimbursing X since O was unlawfully deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the ring.
c. O may no longer recover the ring even if he is willing to reimburse X.
d. X did not acquire title to the ring since the auctioneer had no valid title thereto.
86. Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the
sale, the buyer acquires title to the goods. Such acquisition of title has the following requisites, except:
a. The buyer must have bought the goods in good faith.
b. The buyer must have bought them for value.
c. The buyer bought them without notice of the seller’s defect of title.
d. The seller is in good faith.
87. R, S and T are co-owners of an undivided parcels of the land. R sold his 1/3 interest to T in a deed of
absolute sale. Which is correct?
a. S may exercise the right of redemption on the interest sold by R to T.
b. S cannot exercise the right of redemption.
c. The sale made by R to T is voidable.
d. S may redeem only ½ of the interest sold by R to T.
88. A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered
at Y’s store in Quinta Market. The price is
a. Not certain because the price at Quinta Market is not stated
b. Certain because it has got reference to another thing which is certain
c. Certain because there is a price ceiling for price of rice
d. Not certain so the court may fix the price
89. A offers to B 100 electric fans for P80,000 payable in 60 days with 12% interest per annum. B accepted the
offer by the telegram provided that the interest is reduced to 6%. If there is a no futher communication
between A and B relating to the terms
a. The contract is perfected because of the acceptance by B.
b. There is no contract yet between A and B because B made a counter offer.
c. There is no contract yet unless B gives earnest money.
d. There is no contract yet unless B gives earnest money.

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90. A owns 50 mango trees bearing fruits, ready for harvest. She sold 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.
a. Traditio Brevi-manu c. Traditio Longa-manu
b. Traditio symbolica d. Traditio costitum possessorium

NOTHING
FOLLOWS

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