Bachelor of Science in Entrepreneurship

Mid-Term Exam Questionnaire in Law 13 (Law on Sales)

First Semester A.Y. 2023-2024

Name: ___________________________________________ Date: ______________

Year & Section: ___________________________________ Permit #: ___________

This examination consists of three (3) parts; MULTIPLE CHOICE, TRUE OR FALSE and ESSAY.

PART I.

MULTIPLE CHOICE. Choose the letter of the correct answer. Encircle the letter that corresponds your answer.

A sum of money paid, or a thing

1.

delivered upon the making of a

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
1. A sum of money paid, or a thing delivered upon the making of a 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. Down payment b. Earnest Money
c. Reservation Money d. Option Money
2. Parties in a contract of sale.
a. Seller-Buyer; Seller-Purchase; Vendor-Vendie
b. Seller-Buyer; Seller-Purchaser; Vendor-Vendee
c. Seller-Buyer
d. Seller-Sellee; Seller-Purchaser; Vendor-Vendee

On March 1, 2010, S sold and

delivered to B a television set for
P10,000.00 “on sale
or return” giving B up to March 16,
2010 within which to return the
television set. On
March 10,2010, the television set
was burned through no fault of B.
Based on the
foregoing, which of the following
statements is incorrect?
a. B must pay the price of the
television set.
b. S must bear the loss since the time
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
3. It is 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 therefor a price certain in money or its equivalent.
a. contract to sell b. contract on sale
c. sales d. contract of sale
4. One of the characteristics of a contract of sale which doesn’t depend on other contract for existence.
a. Commutative b. Nominate
 c. Principal d. Consensual
5. Refers to the elements which are deemed to exist in certain contracts in the absence of some stipulations.
a. Accidental Elements b. Conditional
c. Subject d. Natural Elements
6. This contract of sale is not subject to any condition.
a. Conditional Contract of Sale b. Contract to Sell
c. Absolute Contract of Sale d. None of the above
7. The object of a contract of sale must be:
a. Determinate b. Licit c. Possible d. All of the above
8. Below are some examples of accidental elements, EXCEPT:
a. Conditions b. Warranty against eviction
c. Penalty d. Interest
9. It shall be considered as part of the price and as proof of the perfection of the contract.
a. Downpayment b. Installment
c. Earnest Money d. Initial Money
10. The stages of a contract of sale are the following, EXCEPT:
a. Negotiation b. Consummation c. Perfection d. Counter-offer
11. Below are examples of determinate things, EXCEPT:
a. McLaren LOL 3276
b. 1 bottle of Kirkland Himalayan Pink Salt sold at SM City Lipa
c. 5 sacks of brown sugar
d. realme cellphone with IMEI1: 863771051548572
12. Two obligations of the seller:
a. to pay the price and deliver the thing
b. to transfer the ownership and deliver the possession of the subject matter
c. to transfer the possession
d. to transfer the possession and pay the price
13. Party who obligates himself to pay for the determinate thing a price certain in money or its equivalent.
a. Seller b. Vendee/Selle/Purchaser
c. Vendee/Buyer/Purchaser d. Buyer
14. Which of the following documents of title requires endorsement and delivery for its negotiation?
a. A warehouse receipt which states that the goods are to be delivered to bearer.
b. A bill of lading which states that the goods are to be delivered to the order of a specified person but such person
indorsed it in blank.
c. A warehouse receipt which states that the goods are to be delivered to bearer but the bearer indorsed it to a
specified person.
d. A bill of lading which states that the goods are to be delivered to a specified person.
15. When the buyer is justified in refusing to accept the goods being delivered to him and has relayed such refusal
to the seller, such refusal produces the following effects, EXCEPT:
a. buyer has no duty to return the goods unless stipulated
b. title to the goods does not pass to the buyer
c. buyer is not obliged to pay the price
d. buyer automatically becomes a depositary of the goods.
16. Statement 1: Whenever earnest money is given in a contract of sale; it shall be considered as part of the price.
Statement 2: Earnest money is given at the time when the sale has not yet been perfected.
a. Only statement 1 is true. b. Both statements are true
c. Only statement 2 is true. d. Both statements are false
17. Statement 1. If the vendee has renounced the right to warranty in case of eviction, and eviction should take
place, the vendor shall only pay the value which the thing sold had at the time of the eviction.
Statement 2: Should the vendee have made the waiver with knowledge of the risks of eviction and assumed its
consequences, the vendor shall not be liable.
a. Only statement 1 is true. b. Both statements are true
c. Only statement 2 is true. d. Both statements are false
18. What are the classes of documents of title?
a. Warehouse receipt, Bill of lading, Promissory note, Check, Dock warrant
b. Negotiable documents
c. Negotiable documents and Non-negotiable documents
d. Non-negotiable documents
19. The following can be considered as PLACE of delivery of the thing sold, EXCEPT:

a. Place stipulated
b. If there is no stipulation, place fixed by
usage or trade
c. In the absence of both, the seller’s place
of business if he has one; If none, the
seller’s
place of residence.
a. Place stipulated
b. If there is no stipulation, place fixed by
usage or trade
c. In the absence of both, the seller’s place
of business if he has one; If none, the
seller’s
place of residence.
a. Place stipulated
b. If there is no stipulation, place fixed by usage or trade
c. Reasonable place
d. In the absence of both, the seller’s place of business if he has one; if none, the seller’s residence.
20. Who bears the expenses of delivery?
a. Buyer b. Seller c. Debtor d. Creditor
21. There is double sale when the following are present, EXCEPT:
a. The two (or more) sales transactions in the issue must pertain to exactly the same subject matter, and must be
valid sales transactions.
b. The two (or more) buyers at odds over the rightful ownership of the subject must each represent conflicting
interests.
c. The two (or more) buyers at odds over the rightful ownership of the subject matter must each have bought from
the very same seller.
d. The two (or more) buyers at odds over the rightful ownership of the subject matter must each represent
conflicting interests.

22. In a contract for the sale of a specific item, what are the effects on the contract when the thing sold has been
lost or destroyed before the transfer of ownership?
a. The contract is void, and both parties are released from their obligations.
b. The seller must provide a replacement item of equal value, and the contract remains valid.
c. The buyer is still obligated to pay the agreed price, but the seller is excused from delivering the lost item.
d. Both parties must negotiate a new contract to account for the loss of the item.
23. In sale of personal property payable in installments, the vendor has the following remedies, EXCEPT:
a. Exact fulfillment of the obligation
b. Cancel the sale should the vendee fail to pay two or more installments
c. Foreclose the real mortgage
d. Foreclose the chattel mortgage
24. As a general rule, minors are incapacitated to enter into contracts except if where ______________ are sold to
them, as a consequence, they shall pay a reasonable price.
a. Necessaries b. Laptop
c. Cars d. Cellphone
25. As a rule, this contract of sale involving a piece of land is void:
a. Between a minor and a capacitated person
b. Between two insane persons who did not act during lucid interval
c. Between first degree cousins
d. Between husband and wife

PART II

True or False. Write “True” if the Statement is True. Write “False” if the statement is false.

______ 26. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment.
______ 27. When a buyer who bought an undivided interest in a thing, he becomes a co-owner of the thing.
______ 28. An agent is liable for the loss of the thing due before perfection
______ 29. 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 a good title to the goods.
______ 30. A thing is lost when it perishes.
______ 31. If the vendor was not aware of the hidden defects during sale, he is obliged to return the price, the interest and
the expenses if paid by the vendee.
______ 32. Sale of future inheritance is valid.
______ 33. A contract of sale is perfected thru a deed of sale.
______ 34. As a general rule, a buyer shall pay the expenses and execution of the sale.
______ 35. The sale of inherited properties is void.
______ 36. As a rule, if price is not ascertained or determined, there is no sale.
______ 37. When goods are delivered to the buyer on “sale or return” for period of seven days, ownership of the goods
passes to the buyer upon delivery of the goods.
______ 38. The principle of Genus nunquam perit means that the thing perishes with the owner.
______ 39. The vendor’s remedies in sale of personal property payable in installments can be performed cumulatively or
successively.
______ 40. If sale of a ticket is for a sweepstake or raffle that has already been drawn is voidable.
_____ 41. Right of redemption refers to the right of an adjoining owner of an urban land to be given preference to the
purchase of a small piece of urban land which is held for speculation before it is offered for sale to others.
_____ 42. A contract of Sale is consensual because it is perfected by mere consent of the parties.
_____ 43. A sale can only be extinguished by redemption.
_____ 44. There is double sale when the same object of sale is sold to different vendees.
_____ 45. A Seller is liable for the loss of the thing after perfection but before its delivery.

PART III
ESSAY. Answer the question in a brief and concise manner. Write your answer in the space/s provided. Answers without
reasons or justifications will not be given credit/s.

46-50. State the basic difference (only in their legal effects) between a contract to sell, on the one hand, and a
contract of sale, on the other. (5 points).

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51-55. Who are the parties or persons that cannot sell and buy property from each other? Explain. (5 points)
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56-60. What will happen to the contract of sale if a determinate thing is entirely lost? (5 points)

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