I. Direction: Read and select the best answer for the following questions.

1. Fill in the blank.. Article 1458. By a contract of sale one of the contracting
parties obligates himself to transfer the _____________ of and to deliver a
determinate thing, and the other to pay therefore a price certain in money
or its equivalent.

a. Ownership
b. Title
c. Possession
d. Dominion

2. The following are the essential elements or the requisites of the contract of
sale, except
a. Consent of the contracting parties as to determinate thing and
price certain in money or its equivalent
b. Subject matter which should be a determinate thing
c. Price certain in money or its equivalent
d. Delivery of the subject matter

3. The following are only considered accidental elements in the contract of

sale, except
a. Place of delivery and payment
b. Time of delivery and payment
c. Terms or conditions of payment
d. Price certain in money or its equivalent

4. Which of the following is necessary for the perfection and validity of

contract of sale?
a. Essential elements
b. Natural elements
c. Accidental elements
d. All of the above

5. The following are the characteristics of a contract of sale, except

a. Real
b. Consensual
c. Nominate and Principal
d. Onerous

6. The following are distinctions between sale and dacion en pago, except
a. In sale, there is no pre-existing credit, while in dacion en pago,
there is pre-existing credit.
b. A sale creates obligations while dacion en pago extinguishes
obligations.
c. In sale, there is greater freedom in fixing the price, while in dacion
en pago, there is less freedom in fixing the price because of the
amount of the pre-existing credit which the parties seek to
extinguish.
d. In sale, the cause or consideration is the price from the seller's
point of view, and the delivery of the object from the buyer's view
point, in dacion en pago, the cause or consideration is the
 extinguishment of the obligation, from the debtor's point of view
and the delivery of the object given in place of the credit, from the
creditor's point of view.
e. A contract of sale is an onerous transfer while dation en pago is
considered a gratuitous transfer.

7. What is the similarity between contract of sale and dacion en pago?

a. The law that governs them
b. The cause of obligation
c. The object of obligation
d. All of the above.

8. True or False. It is not a requirement that the seller is the owner of the
property at the time the contract was perfected, because what is required is
that he is the owner at the time of the delivery.
a. True
b. False

9. The following are the distinctions between sale and payment by cession,
except;
a. In sale, there is no pre-existing credit while in payment by
cession, there are pre-existing credits.
b. A sale creates obligations while payment by cession also
creates an obligations.
c. In sale, there is greater freedom in fixing the price while in
payment by cession there is less freedom in fixing the price
because of the fixed amount of the pre-existing credits which
the parties seek to extinguish.
d. In sale, the buyer becomes the owner of the property sold to
them while in payment by cession, the creditors do not become
the owners of the property assigned to them but are merely
given the right to sell such property and apply the proceeds to
their claims.

10. It is the characteristic of a contract of sale that provides that a

contract of sale creates and imposes reciprocal rights and obligations
between contracting parties.
a. Bilateral
b. Consensual
c. Commutative
d. Nominate

12. RM Co entered into a contract with Jinhit Ent, to provide two original
songs for Kim Namjoon and Jungkook for a price to be determined at
the time of the release of the songs. The songs and its melodies,
however, is not available at the time of perfection of the contracts. What
contracts are entered into by the parties?
a. Both contracts of sale
b. Both contracts for a piece of work
c. Partly contract of sale, and partly a contract for a piece of work.
 d. No contract of sale.

13. In sale, the cause or consideration is in money while in barter, the

cause or consideration is another thing. However, where the
consideration is partly in money and partly in another thing, the
following are the rules to be observed, except

a. The contract shall be one of sale or barter depending upon the

manifest intention of the parties.
b. If the intention of the parties does not clearly appear, the
contract is one of barter if the value of the other thing given as
part of the consideration exceeds the monetary consideration.
c. If the intention of the parties does not clearly appear, the
contract is one of sale if the monetary consideration is more than
the value of the other thing given as part of the consideration.
d. If the intention of the parties does not clearly appear, the
contract is one of barter if the monetary consideration is equal
to the value of the other thing given as part of the
consideration.

14. Suga and IU entered into a contract whereby Suga will deliver his
high-end personalized microphone to IU while the latter will deliver
P50,000 and a cellphone with a value of P50,000 to Suga. What is the
name of the contract if the intention of the parties does not clearly
appear?

a. Contract of Barter
b. Contract of Agency
c. Contract of Sale
d. Contract of Pledge

15. The following are the distinctions between the contract of sale and a
contract to sell, except,

a. In a contract of sale, ownership passes to the buyer upon

delivery while in a contract to sell, the title to the goods does not
pass to the buyer until some future time and oftentimes upon
payment of the price.
b. In a contract of sale, the risk of loss or damage to the goods
upon delivery is on the buyer, under the rule "res perit domino",
or the thing perished with the owner; while in contract to sell,
the risk is borne by the seller based on the same principle that
the thing perishes with the owner.
c. In contract of sale, the non-payment of the price is a resolutory
condition while in contract to sell, the payment in full of the
price is a suspensive condition.
d. The rule on double sale applies to contract to sell while
contracts of sale are not covered by rule on double sale.

16. What is a remedy available to the buyer if the seller breaches the
contract of sale?
a. Rescission
 b. Specific performance
c. Damages
d. All of the above

17. The following are the requisites of a valid subject matter in a contract of
sale, except;
a. It must be certain.
b. It must be licit.
c. It must determinable and determinate.
d. It must not be impossible

18. The following are examples of illicit sales, except;

a. Sale of drugs
b. Sale of future inheritance
c. Sale of a parcel of land
d. Sale of animals suffering from contagious diseases

19. The following are licit sales, except;

a. Sale of fungible goods

b. Sale of perishable goods
c. Sale of chattel
d. Sale of money of legal tender in the Philippines

20. Fill in the blanks. A thing is __________ when it is capable of being

made determinate at the time the contract was entered into without the
necessity of a new or further agreement between the parties.
a. Determinate
b. Determined
c. Determinable
d. Defined

21. Two kinds of impossibility in a valid object of contract of sale:

a. Physical Impossibility and Legal Impossibility
b. Present Impossibility and Licit Impossibility
c. Possible Impossibility and Lawful Impossibility
d. Profit Impossibility and Lack of Impossibility

22. What is the status of a contract of sale of vain hope or expectancy?

a. Valid
b. Voidable
c. Void
d. Unenforceable

23. What is an offer in a contract of sale?

a. A statement of willingness to enter into a contract on
specific terms.
b. A statement of the goods or services being sold.
 c. A statement of the payment terms for the goods or services
being sold.
d. A statement of the quality and quantity of the goods or
services being sold.

24. The following are the requisites of the price in a contract of sale, except
a. It must be certain.
b. It must be real.
c. It must have a possible equivalent in money.
d. It must be fictitious.

25. Which of the following is true of a contract of sale?

a. It must always involve the transfer of goods.
b. It may involve the transfer of goods, services, or both.
c. It may only involve the transfer of services.
d. It may only involve the transfer of intangible property.

26. In a contract of sale, when does the risk of loss pass from the seller to
the buyer?

a. When the goods are identified to the contract.

b. When the goods are delivered to the buyer.
c. When the buyer pays for the goods.
d. When the buyer inspects the goods.

27. An incapacity by reason of the parties’ relation to each other or their

relation to the thing which is the object of the sale.

a. Special Disqualification
b. Relative Incapacity
c. Absolute Incapacity
d. None of the above

28. At what stage in the life of a contract of sale occurs the constructive or
actual delivery of the determinate thing, to the buyer, and the transfer of
the ownership to the latter, and the payment of the purchase price to the
seller?

a. Negotiation
b. Perfection
c. Consummation
d. Termination

29. I. In a contract of sale, the preparatory or negotiation stage begins

from the time the prospective contracting parties indicate their interest in
the contract and ends at the moment of their agreement.

II. In a contract of sale, in the preparatory or negotiation stage, one of the

parties floats an offer to buy or to sell a determinate thing for a price
certain, while the other will give his acceptance.

a. I and II are both true.

 b. I and II are both false.
c. I is true, II is false
d. I is false, II is true.

30. The price of the thing sold must be certain, otherwise, the sale is void
by reason of the absence of a meeting of minds between the parties. The
following are the instances when the price is certain, except

a. If the parties have agreed upon a definite amount for the sale.
b. If it is certain with reference to another thing certain.
c. If the determination of the price is left to the judgment of a
specified person or persons.
d. If the price is fixed by one of the contracting parties but not
accepted by the other contracting party.

31. The following contracts of sale have prices that are certain and
therefore valid, except
a. JK sold to THV a specific watch for P5,000 which both parties
agreed upon.
b. JK sold to THV a certain ring of which price is the salary of
the member of Bigbang.
c. JK sold to THV a specific car the price of which is subject to the
determination of JM, third person.
d. JK sold to THV 500 shares of ordinary stocks of HYBE at the
price equivalent to the closing price of JYP's ordinary shares on
June 13, 2025, at the Philippine Stock Exchange.
32. When may the court fix the price of the contract of sale if the
determination of the price is left to the judgment of a third person?
a. If the third person is unable or unwilling to fix the price.
b. If the third person acted in bad faith or by mistake.
c. If the third person or persons are prevented from fixing the
price or terms by the fault of the buyer or seller.
d. None of the above

33. What is the effect to the contract of sale if the determination of the
price is left to the judgment of a third pet-son and such person is unable
or unwilling to fix the price?
a. The contract of sale is voidable.
b. The contract of sale is valid and binding.
c. The contract of sale is inefficacious unless the parties
subsequently agree upon the price.
d. The contract of sale is rescissible.
34. What is the effect to the contract of sale if the determination of the
price is left to the judgment of a third person, where such third person or
persons are prevented from fixing the price or terms by fault of the seller
or the buyer?
a. The contract is voidable.
b. The contract is unenforceable.
c. The party not in fault may have such remedies against the
party in fault as are allowed the seller or the buyer, as the case
may be such as filing an action for damages.
d. The contract is rescissible,
35. NJ sold to JM a specific good. The price of the good cannot be
determined. The good has been delivered to and appropriated by JM.
What is the obligation of JM?
a. JM has no obligation because the contract of sale is null and
void having no price.
b. JM has no obligation because the contract of sale is inefficacious
because the price of the good cannot be determined.
c. JM has the obligation to rescind the contract.
d. JM has the obligation to pay a reasonable price which
depends on the circumstances of each particular case.
36. What is the effect of gross inadequacy of price in a contract of sale?
a. It renders the contract of sale null and void.
b. In renders the contract of sale unenforceable.
c. It does not affect a contract of sale, except as it may indicate a
defect in the consent which makes the contract voidable or
except as it may indicate that the intention of the parties is
another contract such as donation or loan with equitable
mortgage.
d. It does not affect a contract of sale even if the parties really
intended a donation or some other act or contract.
37. What is the effect of simulated price in a contract of sale?
a. It renders the contract of sale null and void.
b. It renders the contract of sale voidable.
c. It renders the contract of sale rescissible.
d. It renders the contract of sale unenforceable.
e. It renders the contract of sale as a valid donation even if the
formal or solemn requirements of donation or other agreement
for validity of contract are not complied with.

38. In a contract of sale, when is the ownership or title of the thing sold
transferred from the seller to the buyer?
a. Upon the perfection of contract of sale.
b. Upon payment of the purchase price.
c. Upon actual or constructive delivery of the thing sold.
d. Upon execution of private instrument or private deed of
sale.

39. It is manifested by the meeting of the offer and the acceptance upon
the thing and the cause which are to constitute the contract.
a. Consent
b. Confirmation
c. Acceptance
d. Ratification

40. Jimin and Suga are good friends. Jimin sold and delivered his car to
Suga. It was agreed and understood that on next Friday Jimin will name
and fix the price of the car. Friday came, Jimin called Suga by telephone
and stated and fixed the price at P150,000. Is the contract of sale
perfected?
 a. No because the purchase price is not yet paid.
b. No because the title is not registered to the buyer.
c. Yes because the car has already been delivered to Suga.
d. No because the price of the sale was left to the discretion of
one of the parties, that is, the seller, and it was not consented
to by the buyer.

41. Which of the following contracts of sale is null and void?

a. Executory oral sale of real property or any interest therein
regardless of the price.
b. Executory oral sale of goods, chattels or things in action the
price of which is P500 or more.
c. Sale of a piece of land by the agent in the name of principal
wherein his authority is not in writing.
d. Sale of a piece of land by a third person in the name of owner
but who has not been given any authority

42. Which of the following statements concerning bilateral and unilateral

promise to buy and/or sell is incorrect?
a. Bilateral promise takes place when one party promises to buy
and the other party promises to sell a determinate thing at an
agreed price.
b. Bilateral promise is reciprocally demandable since this is as
good as a perfected contract of sale.
c. Unilateral promise not accepted by the promissee (policitacion)
does not produce any effect.
d. Unilateral promise accepted by the promissee is binding
upon the promissor even if it is not supported by a
consideration distinct from the price.

43. It refers to the money given as part of the purchase price and as a proof
of perfection of the contract of sale.

a. Option money
b. Earnest money or Arras
c. Perfect money
d. Component money

44. It refers to 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, in
which consideration is separate and distinct from the purchase price. It is a
proof of the perfection of contract of option.

a. Option money
b. Earnest money or Arras
c. Perfect money
d. Component money

45. Suga promised to sell his car to Jimin for P100,000 giving Jimin one
week to decide whether to buy or not. Jimin accepts the promise and gives
a consideration of P1,000 for the one-week period. If Jimin decides to buy
the car, how much should B pay to S?
 a. P100,000 because the P1,000 is earnest money.
b. P99,000 because the P1,000 is option money.
c. P100,000 because the P1,000 is option money.
d. P99,000 because the P1,000 is earnest money.

46. Jimin purchased the car of Suga for P100,000 payable within 30 days
from the date of sale. As a down payment, Jimin gives Suga P1,000 upon
the execution of their agreement. How much should Jimin pay Suga on the
30th day?
a. P 100,000 because the P1,000 is earnest money.
b. P99,000 because the P1,000 is option money.
c. P100,000 because the P1,000 is option money.
d. P99,000 because the P1,000 is earnest money.

47. When shall the buyer or vendee acquire personal rights over the fruits
of the object of a contract of sale?
a.From the time the object should be delivered.
b.From the time of the perfection of the contract of sale.
c.From the time of the payment of purchase price.
d.From the time of the delivery of the object of the contract of sale.

48. The _______ is bound to transfer the ownership of and deliver, as well
as warrant the thing which is the object of the sale.
a. Vendee
b. Vendor
c. Third-Party
d. None of the above

49. On December 12, 2022, Seller, RM, and Buyer, Jin, entered into a
contract of sale of a specific cow. The purchase price shall be paid on
January 5, 2023 and the cow shall be delivered on January 10,2023. The
cow gives birth on January 4,2023. The cow and its young have been
delivered on January 1,2023. Which of the following statements is
correct?
a. The buyer has real right over the cow and its young on January
1 ,2023.
b. The buyer has personal right over the young on January
10,2023.
c. The buyer has personal right over the young on January 5,2023.
d. The buyer has personal right over the young on January
1,2023 and real right over the cow and its young on January
10, 2023.

50. The seller has the duty to preserve the thing after the perfection of
the contract of sale but before its delivery. What standard of care should
the seller observe to preserve the object of the contract of sale?
a. Diligence of a good father of a family or ordinary diligence
unless the law or the stipulation of the parties requires
another standard of care.
b. The diligence of a father of a good family unless the law or the
stipulation of the parties requires another standard of care.
 c. Extraordinary diligence of a good father of a family unless the
law or the stipulation of the parties requires another standard
of care.
d. Extraordinary diligence of a father of a good family unless the
law or the stipulation of the parties requires another standard
of care.

51. What is the effect of the complete loss of the object of the contract of
sale before the perfection of the contract of sale or the complete loss of
the object of the contract of sale at the exact moment of perfection of the
contract of sale?
a. The seller shall always bear the risks of the loss.
b. The buyer shall pay the purchase price.
c. The buyer shall be liable for the damages.
d. The sale is void or inexistent because of the absence of the
object.

52. What shall be the remedy of the buyer in case of the partial loss of
the object of the contract of sale at the time of the perfection of the
contract of sale?
I. Withdrawal from the contract or rescission.
II. Demanding the remaining part and paying its proportionate
price.

a. I only
b. II only
c. Either I or II
d. Neither I nor II

58. After the perfection of the contract of sale but before the delivery of
the goods to the buyer, who shall bear the risk of loss of the object of the
contract of sale?
a. Buyer because any benefit therefrom during the same period
inures to him.
b. Seller because any benefit therefrom during the same period
inures to him.
c. Buyer because the ownership of the goods is transferred to the
buyer after the perfection of the contract of sale.
d. Seller because goods remain at the seller's risk until the
ownership of the goods is transferred to the buyer by actual
or constructive delivery.

59. After the perfection of the contract of sale and after delivery of the
goods to the buyer, who shall bear the risk of loss of the object of the
contract of sale before the full payment of the price?
a. Buyer because the ownership of the goods is transferred to
the buyer after the delivery.
b. Seller because any benefit therefrom during the same period
inures to him.
c. Buyer because the ownership of the goods is transferred to the
buyer after the perfection of the contract of sale.
 d. Seller because goods remain at the seller's risk until the
ownership of the goods is transferred to the buyer by full
payment of the price.

60. The following are the exceptional instances wherein the goods are at
the buyer's risk notwithstanding that the ownership is retained by the
seller, except
a. If there is an agreement that the buyer shall suffer the risk of
loss despite the retention by the seller of ownership.
b. If ownership (naked title) of the goods is retained by the seller
merely to secure the performance by the buyer of his obligation
under the contract but the beneficial ownership has already
been transferred to the buyer.
c. When actual delivery has been delayed through the fault of the
buyer.
d. When there is actual or constructive delivery to the buyer.
61. What is the remedy of the buyer if the goods delivered do not
correspond with the sample, description, or sale and description in a sale
by sample, sale by description, or sale by sample and description?
a. Ask for annulment of contract.
b. Ask for rescission of the contract of sale.
c. Ask for collection of a sum of money.
d. Ask for declaration of nullity of the contract of sale.
62. What contracts are covered by Recto Law?
a. Installment sales of personal property
b. Contract purporting to be leases of personal property with the
option to buy
c. Either A or B
d. Neither A nor B

63. Under Recto Law, the following are the alternative remedies
(selection of one remedy excludes the other remedies) of the vendor (1)
in case of installment sales of personal property; or of the lessor in case
of (2) contracts purporting to be leases of personal property with the
option to buy, when the lessor has deprived the lessee of the possession
or enjoyment of the thing, except
a. Exact fulfillment of the obligation with the recovery of
deficiency, should the vendee or lessee fail to pay any
installment.
b. Cancel the sale or lease should the vendee or lessee fails to pay
two or more installments.
c. Foreclose the chattel mortgage on the thing sold, if one has been
constituted without right to recover any deficiency should the
vendee or lessee fails to pay two or more installments.
d. Action for quanti minoris.
64. RM sold his only car to Jungkook for P100,000 payable in 10 equal
monthly installments of P10,000 each. As security, Jungkook executed a
chattel mortgage on the car. What is the remedy of RM if Jungkook fails
to pay one installment?
a. Exact fulfillment of the obligation with recovery for
deficiency.
 b. Cancel the sale.
c. Foreclose the chattel mortgage on the thing sold, if one has been
constituted without right to recover any deficiency.
d. Any of the above.
65. Using the same data in number 64, if buyer Jungkook defaulted in at
least two installments after payment of several installments, may the RM
cancel the contract of sale?
a. Yes and Jungkook is still required to pay the price.
b. Yes and RM may still recover the unpaid price.
c. Yes, and Jungkook must return the thing to RM and RM must
generally return the installments already received minus
reasonable rent.
d. Yes and the RM and Jungkook cannot agree to the forfeiture of
installment already received even if such agreement is not
unconscionable.
66. Using the same data in number 64 and assuming Jungkook fails to
pay two or more installments, can RM foreclose the chattel mortgage on
the car and recover any deficiency from the foreclosure?
a. Yes RM can foreclose the chattel mortgage but cannot recover
any deficiency even if there is a stipulation for the recovery.
b. No RM cannot foreclose the chattel mortgage and cannot
recover any deficiency.
c. Yes RM can foreclose the chattel mortgage and can recover any
deficiency even without stipulation for the recovery.
d. Yes RM can foreclose the chattel mortgage and can recover any
deficiency only if there stipulation for the recovery.

67. Using the same data in number 64 and assuming the foreclosure of
the chattel mortgage results in excess, who shall be entitled to the
excess?
a. Jungkook in the absence of contrary stipulation
b. RM in the absence of contrary stipulation
c. Government
d. Neither Buyer or Seller

68. Using the same data in number 64 and assuming Jungkook fails to pay
two or more installments; can RM ask for the exact fulfillment of the
obligation and recover any deficiency from the sale by execution?
a. No RM cannot ask for the fulfillment of the contract of sale
because it is available only when one installment is not paid.
b. Yes RM can ask for the fulfillment of the contract of sale but
cannot recover any deficiency from the sale by
execution under any circumstances.
c. Yes RM can ask for the fulfillment of the contract of sale and
can recover any deficiency from the sale by execution even
without stipulation.
d. Yes RM can ask for the fulfillment of the contract of sale and
can recover any deficiency from the sale only if there is a
stipulation.
69. It includes any bill of lading, dock warrant, "quedan," or warehouse
receipt or order for the delivery of goods, or any other document used in
the ordinary course of business in the sale or transfer of goods, as proof
of the possession or control of the goods, or authorizing or purporting to
authorize the possessor of the document to transfer or receive, either by
indorsement or by delivery, goods represented by such document.
a. Bill of lading
b. Transfer of title
c. Document of title
d. All of the above
70. A sale by __________ is perfected when the auctioneer announces its
perfection by the fall of the hammer, or in other customary manner. Until
such announcement is made, any bidder may retract his bid; and the
auctioneer may withdraw the goods from the sale unless the auction has
been announced to be without reserve.
a. Description
b. Auction
c. Auctioneer
d. Bidding

71. Jhope sold his ring to Jimin for P50,000 under the following terms: down
payment of P10,000 and the balance payable at month end. As security,
Jimin executed a chattel mortgage on the ring. Jimin defaulted in the
payment of the balance. By reason thereof, Jhope foreclosed the chattel
mortgage on the ring. However, only P15,000 was realized in the
foreclosure sale. Can Jhope still proceed against Jimin to collect the
deficiency?
a. No because Recto Law prohibits recovery of deficiency.
b. Yes if deficiency has been agreed upon contrary to Recto Law.
c. Yes because Recto Law does not apply to sale on straight term
and the general rule is that if the foreclosure sale in chattel
mortgage results in deficiency, the same may be recovered by
the creditor.
d. No because recovery of deficiency is only available in execution
sale.
72. Sale of real property in installments governed by RA 6552 or Maceda
Law covers the following, except
a. Sale of residential property
b. Sale of residential condominium
c. Sale of residential apartments
d. Sale of industrial lots, commercial buildings and sales to
tenants of agricultural land under RA 3844

73. Under Maceda Law, the following are the rights of a buyer of residential
real property in installments when he has paid installments of less than 2
years but defaulted in the succeeding installments, except
a. Right to a grace period of not less than 60 days from the date
the installment became due with no interest.
b. Right to additional 30 days but with interest, after the
expiration of the 60-day grace period, before the seller can
cancel the contract by notarial act.
 c. Right to sell or assign his rights provided under letter A and B.
d. Right to receive the cash surrender value of the payments on
the property equivalent to 50% of the payments made in case
the contract is properly cancelled by the seller.

74. Under Maceda Law, which of the following statements concerning the
rights of a buyer of residential real property in installments who has
paid at least 2 years installments but defaulted in succeeding
installments is incorrect?
a. He has the right to pay, without additional interest, the unpaid
installments due within the total grace period earned by him
which is hereby fixed at the rate of one month grace period for
every one year of installment payments made.
b. He can exercise the right to pay within the grace period
allowed by law only once in every 5 years of the life of
the contract and its extensions, if any.
c. The buyer has the right to suspend payment of any installment
at any time.
d. The actual cancellation of the contract shall take place after
thirty days from receipt by the buyer of the notice of
cancellation or the demand for rescission of the contract by a
notarial act and upon full payment of the cash surrender value
to the buyer.

75. Sunghoon sold a residential house and lot at a price of P 10,000,000

payable at P4,000,000 downpayment and the balance of P6,000,000
payable in 50 years at P10,000 per month to Jungwon. After total
payments of P4,240,000 Jungwon defaulted on the next installment.
What is the grace period earned by Jungwon to pay the defaulted
installments without additional interest?
a. 60 days
b. 30 days
c. 90 days
d. 45 days

76. Hee sold a residential house and lot at a price of P10,000,000 payable at
P4,000,000 downpayment and the balance of P6,000,000 payable in 50
years at P 10,000 per month to Jay. After total payments of P4,180,000,
Jay defaulted on the next installment. What is the grace period earned by
Jay to pay the defaulted installments?
a. 60 days
b. 0
c. 3 months
d. 5 months
77. What are the rights of the buyer under Maceda law?
a. The buyer has the right to pay the full balance of the principal
amount at any time without penalty.
b. The buyer is entitled to a grace period of 60 days for the
payment of every installment due, provided that the buyer has
paid at least two years' worth of installments. This means that if
the buyer defaults on an installment payment, he or she has 60
 days from the due date to make the payment without incurring
additional charges or penalties.
c. If the buyer has paid at least two years' worth of installments
but defaults on further payments, the seller must give the buyer
a 30-day written notice to pay the overdue installment. If the
buyer fails to pay within the 30-day period, the seller must give
the buyer a notarized cancellation of the contract and refund to
the buyer the cash surrender value of the payments made.
d. All of the above

78. A sold a residential house and lot at a price of P 10,000,000 payable at

P4,000,000 downpayment and the balance of P6,000,000 payable in 50
years at P 10,000 per month to B. After total payments of P4,180,000, B
defaulted on the next installment. After payment total payments of P4,
120,000, B defaulted on the next installment. After following the
necessary procedures required by law, the contract of sale is properly
cancelled. How much cash surrender value is B entitled from A?
a. P4,060,000
b. P2,160,000
c. P4,000,000
d. P0
79. I.The possession of movable property acquired in good faith is
equivalent to a title.
II. Nevertheless, one who has lost any movable or has been unlawfully
deprived thereof, may not recover it from the person in possession of the
same.
a. I and II are both correct.
b. I and II are both incorrect.
c. I is correct, II is incorrect.
d. I is in correct, II is correct.

80. The thing sold shall be understood as _______________, when it is placed

in the control and possession of the vendee.

a. Consigned
b. Transferred
c. Delivered
d. Accepted

II. Enumerate the following:

1. Essential Elements of Contract of Sale (3)

A. Consent
B. object/subject matter
C. Cause/consideration

2. Requisites of valid price (4)

A. Real
B. Money or its equivalent
C. Certain or ascertainable
D. Manner of payment must be agreed upon

3. Characteristics of Contract of sale (5)

A. Nominate/ Principal
B. Consensual
C. Bilateral
D. Onerous
E. Commutative
F.Aleatory
G. Title

4. Requisites of valid subject matter (3)

a. Licit
B. Determinate/determinable
C. Exusting, future or contingent/ must be possible

5. Obligations of the Vendor (3)

1. Preserve the object of the sale
2. Transfer Ownership
3. Deliver
4. Warrant the Object of the sale against Eviction and HiddenDefects

6. Obligations of the Vendee (2)

A. To accept delivery
B. To pay the price of the things sold at the time and place stipulated in
contract