Quiz No.

2
Law on Sales
Which of the following statements is correct?
• a) Offers in interrelated contracts are perfected upon
consent.
• b) Offers in interrelated contracts require a single
acceptance.
• c) Business are definite offers specific acceptance.
• d) Advertisements are only invitations to make
advertisements that require for Bidders proposals and the
advertiser is not bound to accept the highest/lowest bidder,
unless it appears otherwise.
• Answer: D
• The following are void contracts, except:
• a) Pactum commissorium
• b) Pactum de non alienando
• c) Pactum leonina
• d) Pacto de retro

Answer : D
The creditor has the right to the fruits of the thing from the
time:
• a) the thing is delivered.
• b) the obligation to deliver the things arises.
• c) the contract is perfected.
• d) the fruits are delivered.

• Answer: B
Michael Fermin, without the authority of Pascual Lacas, owner
of a car, sold the same car in the name of Mr. Lacas to Atty.
Buko. The contract between Atty. Buko and Mr. Lacas is -
a) void because of the absence of consent from the owner, Mr.
Lacas.
b) valid because all of the essential requisites of a contract are
present.
c) unenforceable because Michael Fermin had no authority but
he sold the car in the name of Mr. Lacas, the owner.
d) rescissible because the contract caused lesion to Atty. Buko.

• Answer: C
• Which of the following contracts is void?
• a) An oral sale of a parcel of land.
• b) A sale of land by an agent in a public instrument where his
authority from the principal is oral.
• c) A donation of a wrist watch worth P 4,500.00.
• d) A relatively simulated contract

Answer: B
The following are solemn contracts (Contracts which must appear in
writing), except:
• a) Donations of real estate or of movables if the value exceeds P
5,000.00.
• b) Stipulation to pay interest in loans.
• c) Sale of land through an agent (authority must be in writing).
• d) Construction contract of a building.

• Ans: d) Construction contract of a building.

Which phrase most accurately completes the
statement – If at the time the contract of sale is
perfected, the thing which is the object of the contract
has been entirely lost:
• a) the buyer bears the risk of loss.
• b) the contract shall be without any effect.
• c) the seller bears the risk of loss.
• d) the buyer may withdraw from the contract.

Answer: B
A buyer ordered 5,000 apples from the seller at P20 per apple. The
seller delivered 6,000 apples. What are the rights and obligations of
the buyer?
(A) He can accept all 6,000 apples and pay the seller at P20 per apple.
(B) He can accept all 6,000 apples and pay a lesser price for the 1,000
excess apples.
(C) He can keep the 6,000 apples without paying for the 1,000 excess
since the seller delivered them anyway.
(D) He can cancel the whole transaction since the seller violated the
terms of their agreement.

Answer: A
Aligada orally offered to sell his two- hectare rice land to Balane for P
10Million. The offer was orally accepted. By agreement, the land was to
be delivered (through execution of a notarized Deed of Sale) and the
price was to be paid exactly one-month from their oral agreement.
Which statement is most accurate?
a) If Aligada refuses to deliver the land on the agreed date despite
payment by Balane, the latter may not successfully sue Aligada because
the contract is oral.
b) If Aligada refused to deliver the land, Balane may successfully sue for
fulfillment of the obligation even if he has not tendered payment of the
purchase price.
c) The contract between the parties is rescissible.
d) The contract between the parties is subject to ratification by the
parties.
Answer: D
A contract granting a privilege to a person, for which he has paid a
consideration, which gives him the right to buy certain merchandise or
specified property, from another person, at anytime within the agreed
period, at a fixed price. What contract is being referred to?

• a) Option Contract
• b) Contract to Sell
• c) Contract of Sale
• d) Lease

• Answer: A
Which of the following expresses a correct principle of law? Choose
the best answer.
• a) Failure to disclose facts when there is a duty to reveal them, does
not constitute fraud.
• b) Violence or intimidation does not
• render a contract annullable if employed not by a contracting party but
by a third person.
• c) A threat to enforce one’s claim through competent authority, if the
claim is legal or just, does not vitiate consent.
• d) Absolute simulation of a contract always results in a void contract.

• Answer: D
Acme Cannery produced sardines in cans known as "Sards." Mylene
bought a can of Sards from a store, ate it, and suffered from poisoning
caused by a noxious substance found in the sardines. Mylene filed a
case for damages against Acme. Which of the following defenses will
hold?
• (A) The expiry date of the "Sards" was clearly printed on its can, still
the store sold and Mylene bought it.
• (B) Mylene must have detected the noxious substance in the sardines
by smell, yet she still ate it.
• (C) Acme had no transaction with Mylene; she bought the "Sards"
from a store, not directly from Acme.
• (D) Acme enjoys the presumption of safeness of its canning procedure
and Mylene has not overcome such presumption.
• Answer: A
A warranty inherent in a contract of sale, whether or
not mentioned in it, is known as the
• (A) warranty on quality.
• (B) warranty against hidden defects.
• (C) warranty against eviction.
• (D) warranty in merchantability.

• Answer: C
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?
• (A) Yes. X is liable whether or not he was aware of the hidden defect.
• (B) Yes, since the defect was not hidden; X knew of it but he acted in bad
faith in not disclosing the fact to Y.
• (C) No, because Y is in estoppel, having changed engine without prior
demand.
• (D) No, because Y waived the warranty against hidden defects.
• Answer: B
Which of the following contracts of sale is void?
• a) Sale of EGM’s car by KRP, EGM’s agent, whose authority is
not reduced into writing.
• b) Sale of EGM’s piece of land by KRP, EGM’s agent, whose
authority is not reduced into writing.
• c) Sale of EGM’s car by KRP, a person stranger to EGM,
without EGM’s consent or authority.
• d) Sale of EGM’s piece of land by KRP, a person stranger to
EGM, without EGM’s consent or authority.
• Answer: B
Can future inheritance be the subject of a contract of sale?
• (A) No, since it will put the predecessor at the risk of harm from a
tempted buyer, contrary to public policy.
• (B) Yes, since the death of the decedent is certain to occur.
• (C) No, since the seller owns no inheritance while his predecessor lives.
• (D) Yes, but on the condition that the amount of the inheritance can
only be ascertained after the obligations of the estate have been paid.

• Answer : C
• Which of the following is not an essential element of a
contract of Sale?

• A. Consent
• B. Determinate Subject Matter
• C. Price Certain in Money
• D. Warranty Against Eviction

• Answer : D
A contract wherein the payment in full of the price is a positive
suspensive condition. Hence, if the price is not paid, it is as if the
obligation of the seller to deliver and to transfer ownership never
became effective and binding.
A. Contract of Sale
B. Contract to Sell
C. Option Contract
D. Contract of Mutuum

Answer: B
• The Seller in a Contract of Sale must be the owner of the thing sold:
• A. True
• B. False

• Answer: False. It is sufficient that he owns the thing upon delivery.