QUIZ-LAW ON SALES
1. One ofthe following characteristics of dacion en pago is a characteristic of
a contract of sale. Which is it?
a. There is pre-existing credit
b. Obligations are extinguished.
c. There is less freedom in fixing the price.
d. Ownership ofthe object is transferred to the other party.^
2. The following are the characteristics ofa contract ofsale, except:
a. Principal, which means that a contract ofsale can exist by itself
b. Real, which requires the delivery ofthe object ofthe 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.2
3. The following are the essential elements ofa contract ofsale, except:
a. Consent ofthe contracting parties
b. Subject matter which should be determinate
j
whichagainst
is certain
in money
or its equivalent
d. Warranty
eviction
and against
hidden defectss
4. S sold sh^es ofstock ofX Corporation to B at P2.00 per share.The transfer
ffollowing
if ^ ff mpa
° ^ shares of stock may be made through
means,except:
^ any
j of the
h Th
^ public instrument
mppi?^"f S to B of the power to vote in the stockholder's
. ThP p«^ Corporation and the actual exercise thereof by B.
sharpQ
f'y S of the stock certificate covering the 500
d.
?he r«n ? placing it in the possession of B.
purchas^rthe sh°ares by'lf'
5. Whicha.
f^^wing may not be the object ofa contract ofsale?
Things having potential existence
^ Which
which^mav
things
which depends upon a contingency
may or may not
happen.
e /
Vain hope or expectancy
d. Things subject to a resolutory condition =
6. When the
takes place by mere consent or agreement ofthe parties
as when the vendor merely points to the thing sold which shail thereafter
1 Suggested answer;D
2 Suggested answer:B
3 Suggested answer:D
* Suggested answer:D
5 Suggested answer: C
392
QUIZ-LAW ON SALES
be at the disposal of the vendee if the thing sold cannot be transferred to
the possession ofthe vendee upon the sale?
a. Traditio symbolica
b.
Traditio brevi manu
c. Traditio longa manu
d. Traditio constitutum possessorium®
7. A seller sold to a buyer a piece of jewelry at a price of PI,000,000. The
contract provides that the buyer will pay the seller cash P400,000 and
deliver the buyer's car worth P600,000.The contract is:
a.
Barter
b.
Sale
c. Partly sale partly barter
d. Commodatum^
8. A delivers B his parcel ofland worth P1,000,000 in exchange for the car of
B worth P500,000 and cash in the amount of P500,000.The contract is:
a.
Barter
b.
Sale
c. Partly barter partly sale
d. Innominate contract^
9. 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 obtaine the
title in his name.The owner is:
a.
b.
c.
d.
.
j ..
D is the owner for he was the first to register in good faith.
A remains to be the owner because C had no authority to sell.
A is still the owner because B did not register the sa e.
B is the owner because the owner is his seller and he has taken
possession ofthe land.^
10.S sold to B a shoes with brand name"Adidasnike Armour".After deliver,
it was discovered that the shoes does not function we promp ng
complain. Therefore:
,. r
u
o
u t
a B does not have the right to comp M for breach of warranty
against
againsr niaaen
hidden defect
aeiect because
uctaucw the nght has a brand name when
b.
Itastherightto complain forhreachofwarranty against hidden
defect des^te the thing being sold under a patent name or trade
S IsTot iiahie for hidden defect even if the thing sold is unfit for
the particular purpose for which it is
® Suggested answer:C
7 Suggested answer: B
B Suggested answer: B
'
Suggested answer: D
393
QUIZ-LAW ON SALES
d. S is liable for hidden defect only if it was stipulated.io
11. The buyer is obliged to pay interest on the price from the time of deliveiy
of the thing sold up to the time of payment in three of the following
instances, except:
a. Should it have been stipulated
b. Should the thing produce fruits or income
c. Should the vendee be in default in the payment ofthe price
d. Should the vendee be insolventii
12. A,guardian of B,sold B's house and lot worth P480,000 for P 240,000.
?'
be rescinded
because
ofinadequacy
b. The contract
contractcan
cannot
be rescinded
because
there isofnoprice.
fraud,
mistake or undue influence.
c. The contract cannot be rescinded because all the element ofthe
contract are present
d. The contract can be rescinded by A.12
13. A contract ofsale is in stage ofconception when:
a. There is meeting ofthe minds.
b. Negotiations are in progress.
c. The parties come to an agreement
d. The contract is perfected."
14. Ownership ofthe thing sold is
a. Retained by the seller in "sale or return"
b. Transferred to the buyer unon
, ,,
the thing sold.
'constructive or actual delivery of
c. Acquired by the buyer upon perfection ofthe contract
d. Transferred to the buyer upon acceptance ofthe ^ce »
r ered the cVr^B
= equalon
installments.
Aa delivered
car to B but?™
but a mortgage was constituted
the car to
answer for the unpaid installments B paid the first 2 Installments but
failed to pay the last3 mstallmente.A foreclosed the mortgaged property
and sold It at public auction for PIOO.OOO.Which Is corrert'
a. A can recover from B the balance of P20,000 even If there Is no
Stipulation to that effect
b. A can recover from B the balance of P20, 000 If there Is
Stipulation to that effect.
c. A cannot recover the deficiency except If there Is stipulation to
that effect.
10 Suggested answer: B
Suggested answer: D
12 Suggested answer: A
13 Suggested answer: B
14 Suggested answer: B
394
QUIZ-LAW ON SALES
d. A cannot recover the deficiency even ifthere is stipulation to the
contrary.15
16. 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 ofthe land because he was the first buyer.
b. C is the owner ofthe land having registered the sale in good faith.
c. D is the owner ofland being the transferee ofthe 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.^®
17. A sold to B in a private instrument a parcel of land for P5,000. 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. A cannot be required to place the contract in a notarized deed of
sale because the 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 ofsale is enforceable.^^
18. A bought a pair of shoes from a shoe store and repair shop. It was later
discovered, however, that the shoes did not belong to the store but a
customer who had left the same for repair. Did A acquire good title to the
shoes?
a. No, because it was sold by the store which is not the owner
thereof.
b. No,because it is the fault ofA in notexercising diligence in buying
the shoes as to its real ownership.
c. Yes, because it was bought from a store in good faith and for
value.
d. Yes, because the owner of the shoes was precluded from setting
up want of authority ofthe store in selling the shoes.^®
19. 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.
15 Suggested answer: D
16 Suggested answer: B
"Suggested answer:D
Suggested answer:C
395
QUIZ- LAW ON SALES
A donated his share of the land owned in common to X who is a rural
landowner. Upon the proper notice of the 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
land than D.
c. The first one between A and B to request redemption shall be
preferred in case both demand.
d. None ofthem has the right to redeem because the land alienated
was not by onerous title.i^
20. X,the o^er ofa certain jewelry,delivered it to Y,"on sale or return"upon
a speafied period of time. V sold the said jewelry to Z, but retains the
price. Can X recover the jewelry from Z?
a. X can recover the jeweliy from Z being an unpaid seller whose
ownership was not transferred to Y upon delivery to him.
. X can recover the jewelry from Z but after reimbursement of the
price paid.
C. X cannot i-ecover the jewelry from Z because his seller Y has
transferred ownership to him.
d. X cannot recover the jewefty from Z because it was sold by his
i-h
only recourse is to go after Y for his failure to
remit the pa5nnent to him.20
21. Which ofthe follo^ng cannot be an object ofa contract ofsale'
a. Incorporeal properly
b. Young ariimal not yet conceived at the time of perfection
c. Land which the seller expects to buy
d. Object outside the commerce of manzi
22. Which is not an element ofthe seller's right ofstoppage in transit?
a. The goods must be in transit.
b. The buyer must be insolvent.
c. The seller must be in possession ofthe goods.
d. The seller must be unpaid.22
23. Ifredemption is to be made by the seller,one ofthe followine need not be
given to the buyer.
a. Expenses ofthe contract
b. Interest on the price ofthe sale
"Suggested answer; D
20 Suggested answer: C
21 Suggested answer:D
22 Suggested answer: C
396
QUIZ-LAW ON SALES
c. Necessary expenses on the thing sold
d.
Price ofthe sale23
24. Not an implied warranty in a contract ofsale:
a. Wght to sell the thing at the time of perfection ofthe contract
b. Reasonably fitfor the purpose for which they are acquired
c. Merchantable in quality
d. Free from charges or encumbrances not declared or known to
the buyer24
25. A contract of sale whereby the seller acquires the right to redeem or
repurchase the object of the sale from the buyer within a certain perio
agreed upon.
a. Equitable mortgage
b. Absolute sale
c. On sale or return
d. Facto de retro sale^s
26. The right of the seller to stop goods in transit upon discovering that the
buyer does not have the funds to pay for the goods.
a. Pre-emptive right
b. Appraisal right
c. Voting right
d. Right ofstoppage in transitu^e
27. In case of doubt, a sale with a right to repurchase or without a right to
repurchase shall be construed as an equitable mortgage. The se er
therefore:
a. May ask for the reformation ofthe instrument.
b. May ask for the annulment of the contract.
c. May ask the court for the declaration of nullity ofthe contrac
d. Shall be bound to perform his obligation as seller.^^
28. A sold to X his % share of the parcel of land he co-owns with B. C owns
the parcel ofland adjoining that of A and B. Both B and C wantto redeem
the share of A which the latter sold to X.
a. C shall be 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.28
23 Suggested answer: B
Suggested answer; A
^ Suggested answer: D
26 Suggested answer: D
22 Suggested answer: A
Suggested answer: B
397
QUIZ-LAW ON SALES
29. If immovable property should have been sold to different vendees, the
ownership shall be transferred to the person
a. Who have first taken possession in good faith.
b. Who presents the oldest title in good faith.
c. Who in good faith first recorded it in the Registry of Property.
d. Who have paid in good faith the purchase price in full.29
30. Action by the vendee against the vendor to nullify the sale due to some
vices or defects which render the object ofsale unfit for the use intended
or knowledge to which,the vendee would not have bought the thing.
a. Accion quanti minoris
b. Accion reinvindicatoria
c.
Accion pauliana
d. Redhibitory action^o
31. Action to seek a corresponding reduction in price by reason ofsome vices
or defects in the thing purchased.
a. Accion quanti minoris
b. Accion reinvindicatoria
c. Accion pauliana
d. Redhibitory action3i
-ust be
a. 30 days from delivery to the vendee
b. 40 days from delivery to the vendee
c. 45 days from delivery to the vendee
d. 6 months from delivery to the vendee^z
33. In contract ofsale, if the price is absolutely simulated the sale ic
a.
Unenforceable
b. Voidable
c. Void
d. Rescissible23
34. In a contract of sale of personal property, the price which is navable in
instaiiments, the vendor may exercise any of the following remedies,
except:
a. Exact fulfillment of the obligation, should the vendee fail to pay
any installment.
"Suggested answer: C
Suggested answer: D
Suggested answer: A
32 Suggested answer: B
33 Suggested answer: C
398
QUIZ-LAW ON SALES
b. Cancel the sale, should the vendee's failure to pay cover two or
more installment.
c. Foreclose the chattel mortgage on the thing sold,if one has been
constituted should the vendee's failure to pay cover two or more
installments.
d. Rescind the sale should the vendee fail to pay any installment34
35. This special form of pa5anent is conveyance ofthe ownership ofthe thing
as accepted equivalent of performance.
a. Dacion in payment or dacion en pago
b. Assignment of property or cession en pago
c. Application of payment
d. Tender of payment and consignation's
36. X sold his car to Y for P50,000. No date was fixed for the performance of
the obligation ofthe seller and the buyer.The obligation ofX is:
a. To deliver the car immediately because the sale is a perfected
contract.
b. To deliver the car only after Y writes to X demanding the delivery
ofthe car.
c. To deliver the car after Y pays X the P 50,000.
d. To rescind the contract anytime.'®
37. Unless there is stipulation to the contrary,the expenses for the execution
or registration ofthe sale shall be borne by:
a. The vendee
b. The vendor
c. The vendee and the vendor
d. The agent or broker'^
38. Y sold his horse to Z for P50,000. No payment has yet been made and the
sales document does not provide the date ofdelivery. Before delivery and
payment,the horse gave birth to a baby horse.
a. Z is entitled to the baby horse which was bom after the
perfection ofthe contract
b. Y is entitled to the fruit(baby horse) as Z has not paid the price
yet
c. Y is entitled to the fmit(baby horse) because it was bora before
his obligation to deliver the horse.
d. Z should pay additional amount for the baby horse to be entitled
to it"
Suggested answer D
Suggested answer A
^Suggested answer:C
Suggested answer: B
38 Suggested answer:A
399
QUIZ-LAW ON SALES
39. Mr.S sold his car to Mr.G for P150,000. No date is fixed by the parties for
the performance of their respective obligations. The obligation of Mr. S
is:
a. To deliver the car immediately as there is a perfected contract
b. To deliver the car upon payment of Mr. G of P150,000.
c. To rescind the contract since there is no time fixed for the
delivery and pa5mient ofthe car.
d. To deliver the car within a reasonable time after the demand of
Mr. G.39
40. Mr. R and Mr.V are good fiiends. Mr. R sold and delivered his car to Mr.
V. It was agreed and understood that on Sunday, Mr.R will name and fix
the price ofthe car. Sunday came. Mr. R called Mr. V by telephone and
stated and fixed the price at P150,000. Is the sale perfected?
a. Yes. The price was stated and fixed on the date agreed upon.
b. No. The price was left to the discretion ofthe seller.
c. No. At the time ofthe sale,the price is notfixed.
d. No. The price fixed by the seller was not accepted by the
buyer.4o
41. Mr. G sold his owner-type jeep to Mr.M for P100,000. There was no fixed
date for the performance of the obligations of Mr. G and Mr. M. The
obligation of Mr. G is:
a. To deliver the jeep immediately as there is a perfected contract
b. To wait for Mr. M to pay P100,000 and deliver the jeep.
c. To rescind the contract because no time is fixed for the
performance oftheir respective obligations.
^ jeep
Mr. M demands for the deliveiy ofthe
42. Mr. B sold a parcel of land to Mr. J for P200,000. Mr. B delivered the
J d?f
needed a Deed ofSale. Whatcan Mr.
a. Mr.J may compel Mr.B to execute a Deed of Sale.
* contract
cannot
compel
Mr. B to refund the P200,000 because the
is not
enforceable.
^ Mother"
^
enriching himself at the expense of
d. Mr.J can possess and utilize the land as a buyer in good faith.42
39 Suggested answer; B
^Suggested answer: D
Suggested answer: B
Suggested answer: A
400
QUIZ-LAW ON SALES
43. The buyer of a thing has the right to the fhiits ofthe thing.
a. From the time the thing bought is delivered.
b. From the time the sale is perfected.
c. From the time the obligation to deliver the thing bought arises
d.
From the time the fruits are delivered.^^
44. Three ofthe following are option money. Which is the earnest money?
a. Given when contract ofsale is perfected
b. Given when there is no contract ofsale
c. Given to bind the offer or in unilateral promise to sell or buy
d. Given as a separate consideration from purchase price'^^
45. In a sale,this is actual delivery
a. Execution and signing ofthe sales document
b. When the goods sold are placed in the control and possession of
the buyer.
c. Delivery by the seller to the buyer ofthe key where the goods are
kept
d. The buyer is already in actual possession ofthe goods.'*^
46. In a sale, the buyer is entitled and has the right to the fruit of the thing
sold from the time:
a.
b.
c.
d.
The obligation to deliver the thing sold arises
The sale is perfected
The thing sold is delivered
The fhiit ofthe thing sold is delivered^s
47. In distinguishing earnest money from option money,earnest money is:
a.
Given when there is no contract ofsale.
b. Given only when there is a perfected contract ofsale
c. Given to bind the oflferor in a unilateral promise to sell or buy
d. Given as a separate consideration from the purchase price'^^
48. A form ofdelivery which takes place after seller ofthe property continues
in possession of said property no longer as owner but as a mere
possessor:
a. Traditio constitum possessorium
b. Traditio symbolica
c.
Traditio brevi manu
d. Quasi-traditio'^s
Suggested answer: B
** Suggested answer:A
Suggested answer: B
^Suggested answer: B
Suggested answer: B
Suggested answer: A
401
QUIZ-LAW ON SALES
49. When goods are delivered to the buyer on "sale or return" for a period of
seven days; ownership ofthe goods passes to the buyer
a. Upon delivery ofthe goods
b. Upon expiration ofseven days
c. Upon acceptance by the buyer ofthe offer ofthe seller
d. Upon perfection''^^
50. A sold B a parcel of land for P30,000. The sale is evidenced by a
memorandum of agreement of sale. One week later, A sold the same
parcel ofland to C for P40,000 which was evidenced by a formal deed of
sale. Upon bu3dng the property, C, who was aware of the first sale,
immediately took possession of the land and registered the deed of sale
in her favor with the Registry of Deeds. When informed of the second
sale, B subsequently registered an adverse claim to the property. The
parcel ofland shall belong to:
a. B, because she has got an older title
b. C, because the sale was made on a formal deed ofsale
c. C,because she is the first to register the deed ofsale
d. C, because she is the first to take possession ofthe land^o
51. In case ofredemption,which ofthe following will not be paid by the seller
to the buyer?
a. Expenses incidental to the sale paid by the buyer
b. All necessary expenses on the thing sold and to be redeemed
c. The consideration ofthe sale paid by the buyer
d. Interest on the price paid by the buyer^^
52. Dacion en pago as distinguished from sale
a. The object is always existing and specific
b. There is a greater degree offreedom in fixing the price
c. There is no pre-existing obligation
d. The cause is the price^^
53. When things are delivered to the buyer on approval,trial, or satisfaction,
the ownership passes to the buyer:
a. Upon delivery ofthe things
b. Upon meeting of minds
c. Upon conception ofthe sale
d. Upon return ofthe things to the seller^s
54. P orally appointed A as his agent to sell the former's land. On Januaiy 3,
2018, A sold the land to B who forthwith took possession thereof. It
Suggested answer: A
so Suggested answer: A
51 Suggested answer: D
Suggested answer: A
Suggested answer: B
402
QUIZ-LAW ON SALES
turned out however,that on January 1,2018,P,without informing A,had
already sold the same to land to C. Neither of the sales was registered.
Whose contract shall prevail?
a.
b.
c.
d.
The sale to B for he was the first in possession in good faith.
The sale to C for the land was first sold to him by the owner.
The sale to B for the agent was duly authorized to sell the land.
The sale to C because the sale to B was void, A was not duly
authorized by
55. On January 1, S orally sold to B a specific ring for P4,500. 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 the object and price.
c. The contract is perfected on January 7 when the price is paid,
since both parties would then have performed their obligations
in the contract
d. There is no perfected contract because the sale was made
orally.55
56. The price in a contract of sale is certain except:
a. When the parties have fixed or agreed upon a definite amount.
b. Ifthe price is certain with reference to another thing certain.
c. Ifthe fixing ofthe price is left to the discretion ofone ofthe
contracting parties.
d. Ifthe price fixed is that which the thing sold would have on a
definite day or in a particular exchange or market^®
57. S and B entered into a contract whereby S transferred to B a specific car
for the price of P200,000,while B gave to S P90,000 cash and a diamond
ring worth PI10,000. 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 ofsale as intended by the parties
regardless ofwhether the monetary consideration is more or less
than the value ofthe property consideration.
c. The contract is a valid contract of barter since the value of the
property is more than the monetary consideration.The intention
ofthe parties is immaterial.
s* Suggested answer: D
ss Suggested answer: B
Suggested answer: C
403
QUIZ-LAW ON SALES
d. The contract is partly a contract of barter and partly a contract of
sale57
58. A,B and C are co-owners ofa parcel ofland pro-indivlso. A sold his share
to B in an absolute deed of sale. Which is correct?
a. The deed ofsale between A and B is void since it was made not in
favor of a third person.
b. C may exercise his right of redemption on the interest of A sold
to B.
c. C may redeem only
ofthe share sold by A to B.
d. C cannot exercise the right of redemption since the sale was
made to a co-owner.^s
59. S sold his cat to B for P2,000. 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 is entitled to the kitten which was bom after the perfection of
the sale.
b. S is entitled to the fruit as B has not yet paid the price.
c. S in entitled to the fruit because it was born before his obligation
to deliver the cat.
d. B should pay an additional amountfor the kitten to be entitled to
it59
60. A and B entered into a contract of lease with option to buy the car of the
former for a term of two years. For three months B failed to pay the
rentals and by reason thereof,A repossessed the car. Hence,
a. A can collect the unpaid rentals for three months.
b. A can collect the unpaid rentals for the duration ofthe term ofthe
lease oftwo years.
c. When A deprived B the possession of the leased car, he has no
further action against the latter for any unpaid rentals.
d. A shall return the rentals without deductions to B by virtue ofthe
rescission ofthe contract oflease with option to buy.^®
61. A offered in writing to sell his house and lot for Php IM to B on Januaiy
20,2018. B requested to give him one month to raise the amount On
Januaiy 25,2018, A informed B that he has raised the price to Php 1.5M.
Can B compel A to accept the payment ofPhp IM for the sale ofthe house
and lot?
a. Yes,because A is already estopped by his written offer ofPhp IM.
b. Yes, because the one month option period has not yet expired.
c. No,because there is as yet no perfected sale.
Suggested answer: B
58 Suggested answer: D
59 Suggested answer: A
50 Suggested answer: C
404
QUIZ-LAW ON SALES
d. No, because the seller has the sole discretion in fixing the price
with or without the concurrence ofthe buyer.^^
62. S sells to B at P50 per liter 300 liters ofgasoline stored in his truck tank,
which is unknown to the parties contains 500 liters. What is the status
ofthe contract ofsale 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 liters of gasoline. B must pay for the
additional 200 liters.
c. The sale is valid up to 300 liters ofgasoline.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 %
ofthe value ofthe whole stock.62
63. Which ofthe following is not a requisite ofthe object ofa 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 rightto transfer the ownership ofthe thing
at the time of sale.^^
64. The following are characteristics ofa contract ofsale except one which
refers to the 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 ofthe property acquires the right to sell the thing but
not the ownership Aereof.®'^
65.1. A Contract to Sell does not sell a thing or property, it sells the right to
buy property.
II. A conditional sale is a sale subject to the happening or performance of
a condition,such as payment ofthe full price or the performance ofother
prestation to give,to do or not to do.
a. Only 1 is true
b. Only 11 is true
c.
Both are true
d. Both are false^s
61 Suggested answer: C
62 Suggested answer: C
63 Suggested answer:D
66 Suggested answer: D
66 Suggested answer: C
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QUIZ- LAW ON SALES
66. X granted Y the exclusive right to sell his furniture, the price is payable
within 120 days from the delivery,and promising Y a commission of20%
on all sales. After the delivery of the furniture to Y, but before he could
sell any of them, Y's store was completely burned without his fault,
together with all of X's furniture. Is Y liable for the lost furniture?
a. No,because the contract between X and Y is an agency to sell.
b. Yes,because the contract between X and Y is a contract of sale.
c. No,because Y is an agent
d. No,because delivery here did not transfer ownership.®^
67. On July 1, 2018,X sold a parcel of registered land to Y. On July 14,2018,
he sold the same land to Z. Who has the better right if the first sale is
registered ahead ofthe second sale? Y has knowledge ofthe sale to Z.
a. Z has a better right because knowledge of Y of the second sale
makes Y in bad faith.
b. Z has a better right because he is in good faith.
c. Neither of Y and Z has a better right
d. Y has a better right even though Y knew ofthe second sale.^^
68. On July 1, 2018,X sold a parcel of registered land to Y. On July 14,2018,
he sold the same land to Z. Who has the better right if the second sale is
registered ahead ofthe first sale. Z has knowledge ofthe sale to Y?
a. Z has a better right because knowledge of Y of the second sale
makes Y in bad faith.
b. Z has a better right because he is in good faith.
c. Neither ofY and Z has a better right.
d. Y has a better right as Z knew ofthe second sale.®®
69. X Corp. has dealt business with Y Corp. for five years. All through the
years, X Corp. accumulated an indebtedness of P1,000,000 with Y Corp.
Upon demand,X Corp. paid Y Corp.by check the amount owed which was
however dishonored for insufficiency offunds. For and in consideration
of P800,000, Y Corp. assigned the credits to Z Corp. who brought suit
against X Corp.for the recovery of the amount owed which later on was
moved for dismissal by X Corp.on the ground that X Corp. has not agreed
for subrogation. Decide.
a. X Corp. is correct. This is a case of subrogation which needs its
consent being the debtor.
b. X Co^. is not correct because this is a case of an assignment of
credit The debtor's consent is not essentialfor the validity ofthe
assignment
^ Suggested answer: B
"Suggested answer: D
Suggested answer: D
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QUIZ-LAW ON SALES
c. X Corp. is not correct because this is a case of an assignment of
credit However, assignment of credit needs the consent of the
debtor.
d. This is a valid assignment of credit However, Z Corp. did not
acquire a right to sue in his own name.^^
70. X and Y were co-owners of a parcel of land. Last March 31, 2018, when
she paid her realty estate tax,X discovered that Y had sold her share to Z
on July 10, 2017. The following day,X offered to redeem her share from
Z but the latter replied that X's right to redeem has already prescribed.Is
Z correct or not?
a. Z is not correct. X can still enforce her right of legal redemption
as a co-owner because the law gives X 30 days from written
notice ofthe sale by Y to exercise his right oflegal redemption.
b. Z is not correct. X can still enforce her right of legal redemption
as a co-owner because the law gives X 60 days from written
notice ofthe sale by Y to exercise his right oflegal redemption.
c. Z is correct because X's right to redeem has already prescribed
because the law gives X 30 days from date of the sale by Y to
exercise his right oflegal redemption.
d. Z is correct because X's right to redeem has already prescribed
because the law gives X 60 days from date of the sale by Y to
exercise his right oflegal redemption^o
71. S sold his car to B who issued postdated check in full payment therefor.
Before the maturity ofthe check,B sold the car to C who later sold it to D.
When presented for payment, the check was dishonored by the drawee
bank for the reason that B had already closed his account even before he
issued his check.S sued to recover the car from D alleging thatS had been
unlawfully deprived ofit by reason of B's deception.Is S correct?
a. Yes, S is correct B is not the owner; thus, C cannot acquire the
title ofthe car.
b. Yes,S is correct, as the non-pa5mient ofthe price in a contract of
sale renders ineffective the obligation to deliver.
c. No, S is not correct because the perfection of the sale and the
delivery of the car was enough to allow B to have a right of
ownership over the car, which can be lawfully transferred to C.
d. Yes, S is correct because the obligation to deliver a thing is not
different from the obligation to pay its price.^^
72. Spouses H and W wanted to sell their house. They found a prospective
buyer, X. W negotiated with X for the sale of the property. They agreed
on a fair price ofP2,000,000.X sent W a letter confirming his intention to
^ Suggested answer: B
™ Suggested answer: A
"Suggested answer: C
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QUIZ-LAW ON SALES
buy the property. Later, another couple B and C, offered a similar house
at a lower price of P1.5 Million. X prepared a deed of sale. However, W
was not able to sign it because she was abroad. On her return,she refused
to sign the document saying she changed her mind. W filed suit for
nullihcation ofthe deed of sale. Decide.
a. The contract ofsale was perfected. The consent ofW has already
been given, as shown by her agreement ofthe price ofthe sale.
b. The contract ofsale was not perfected because consent cannot be
given by implication.
c. The contract of sale was not perfected because there is no clear
d.
agreement as to price.
None ofthe above.^2
73. X, owner of a parcel of land, sold it to Y. But the deed of sale was not
registered. One year later, X sold again the parcel of land to Z, who
succeeded to register the deed and to obtain a transfer certificate of title
over the property in his own name. Who has the better right over the
parcel ofland?
a. Y has a better right over the parcel ofland because he is in good
faith.
b. Z has a better right over the parcel of land being the first to
register the sale.
c. Y has a better right over the parcel of land because he is the first
buyer.
d. Z has a better right over the parcel of land because he is first
possessor.73
74. X sold a parcel of land to Y on January 1, 2002, pa5mient and delivery to
be made on February 1, 2002. It was stipulated that if the payment was
not to be made by Y on February 1, 2002, the sale between the parties
would automatically be rescinded.Y failed to pay on February 1,2002 but
offered to pay three days later, which payment X refused to accept,
claiming that their contract of sale had already been rescinded. Is X's
contention correct?
a. X is correct because the contracting parties may establish such
clauses, terms and conditions as they may deem convenient
provided that it is not contrary to law, morals, good customs,
public order or public policy.
b. X is not correct because the law does not favor a contracting
party who is in bad faith.
c. X is not correct because in the sale ofimmovable property, even
though it may have been stipulated that upon failure to pay the
price at the time agreed upon the rescission of the contract shall
ofright take place,the vendee may pay,even after the expiration
Suggested answer; A
"Suggested answer: B
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QUIZ-LAW ON SALES
ofthe period,as long as no demand for rescission ofthe contract
has been made upon him.
d.
None ofthe above.^'^
75. B offers to buy S's property under the following terms and conditions:
P1,000,000 purchase price; 10% option money; the balance payable in
cash upon the clearance of the property of all illegal occupants. The
option money is promptly paid and S clears the property of illegal
occupants in no time at all. However, when B tenders' pa5mient of the
balance and ask S for the deed of absolute sale, S suddenly had a change
of heart, claiming that the deal is disadvantageous to him as he has found
out that the property appreciated in value. B seeks specific performance
but S contends that he has merely given B an option to buy and nothing
more, and offers to return the option money which B refuses to accept
Decide.
a. S is correct because there was no binding agreement of sale as
there was an option contract
b. S is correct as the amount paid shall not be considered as part of
the price. It is not a proof of perfection ofthe contract
c. S is not correct because there was a binding agreement of sale,
not just an option contract.
d. S is correct that his refusal to proceed with the sale is because the
contract is financially disadvantageous to him.^^
76. On January 2,2016,A and B entered into a contract whereby A sold to B
a parcel of land for and in consideration of P1,000,000. A reserved to
himself the right to repurchase the same. Because they were friends, no
period was agreed upon for the repurchase of the property. Until when
must A exercise his right ofrepurchase?
a. A can exercise his right of repurchase within 3 years from the
date ofthe contract.
b. A can exercise his right of repurchase within 4 years from the
date ofthe contract
c. A can exercise his right of repurchase within 5 years from the
date ofthe contract
d. A can exercise his right of repurchase within 6 years from the
date ofthe contract's
^
77. Ssold asecond hand to B for 1,000,000.The agreement between S and
B was that half of the purchase price or 500,000 shall be paid upon
dehveiy of Ae car to B and the balance,or P500,000,shall be paid in five
equal monthly installments ofP100,000 each.The car was delivered to B
Suggested answer: C
"Suggested answer: C
Suggested answer: B
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QUIZ-LAW ON SALES
and B paid the amount ofP500,000 to S. Less than one month thereafter,
the car was stolen from B's garage with no fault on B's part and was never
recovered. Is B legally bound to pay the unpaid balance of P500,000?
a. No, because B did not yet fully pay the balance to S,
notwithstanding deliveiy.
b. No, because B was not negligent or B was not at fault when the
car was lost
c. Yes, because it was agreed upon that B will pay in five equal
monthly installments.
d. Yes, because the ownership of the car sold was acquired by B
from the moment it was delivered to him.^^
"Suggested answer: D
410