SALES
1. Which of the
following
characteristic of sale?
a. Bilateral
b. Gratuitous
c. Consensual
d. Nominate
is
not
a
2. A characteristic of a Contract of Sale
which involves exchange of value
a. Commutative
b. Nominate
c. Bilateral
d. Consensual
3. Dacion en Pago as distinguished from sale
a. The object is always existing and
specific.
b. There is greater freedom in fixing the
price.
c. There is no pre-existing obligation.
d. The cause is the price.
4. Sale is distinguished from dation in
payment in that is a sale:
a. There is a pre-existing obligation or
credit.
b. The cause is a price.
c. It is a mode of existing an obligation
in the form of payment.
d. Answer is not given.
5. Ababao and Bancaso entered into a “
Contract to sell “ in private writing
involving a specific parcel of land worth
P2M. Bancaso paid 50% of the purchase
price, balance payable in 3 years. Ababao
delivered the land to Bancaso. What is
the effect of the delivery of tha land
to bancaso?
a. Bancaso is the owner because there was
delivery already.
b. Bancaso can compel Ababao to execute
a deed of sale in public instrument.
c. The partial payment made Bancaso the
owner of the land.
d. Ababao is still the owner because the
price is not yet totally paid.
6. Which is an exception? A sale is a
contract where one of the contracting
parties, called the seller (or vendor),
Obligates himself:
a. The transfer ownership of the object.
b. The deliver a determinate thing.
c. To warrant against eviction and
hidden defects.
d. To pay therefor a price certain in
money or its equivalent.
7. Mimmodto entered the Sugbo Restaurant and
ordered a dozen fresh oyster in their
shell. While eating, Mimmodto noticed an
almost perfect pearl in one of the
shells. He is about to take it when
Maliksi, the restaurant owner, claims the
pearl. To whom does the pearl belong?
a. To Mimmodto because the contract of
sale was already perfected.
b. To Maliksi, because Mimodto has not
yet paid the food he ordered.
c. To the state because the pearl is
considered as a national treasure.
d. To both Mimdoto and Maliksi, each of
them being entitled to half of its
price.
c. Yes, it is sufficient that he be the
owner at the time he is to deliver the
object.
d. Yes, it is valid until annulled.
9. Which of the following may not be object
of a contract of sale?
a. Things having potential existence.
b. The sale of vain hope or expectancy.
c. Future goods.
d. Answers not given
10. There is not be a valid object of sale
a. Future wool that shall grow upon a
sheep.
b. Sale of
human
flesh
for
human
pleasure.
c. The entire rental next month in a 4door apartment.
d. Sale of a lotto ticket that will be
drawn next week.
11. If the seller is not the owner, the sale
is null and void. Which is not an
exception?
a. When the sale of the goods is by his
conduct precluded from denying the
seller’s authority.
b. Where the goods were sold in a
merchant’s store, or in fairs, or
markets.
c. When the seller subsequently acquires
title.
d. When the buyer acquires the property
without knowledge of the bad faith of
the seller.
12. Mr. Marcial Bonifacio orders of his
workers 1,000 pieces of t-shirts ranging
in size from small to large from the
Magellan
Garments
Mfg.
Corp.
The
specified sizes, although not then
available, are manufactured by said
corporation and consigned to it sales
outlets regularly. The contract entered
into by Mr. Bonifacio with the Magellan
Garments Mfg, Corp is an
a. Contract for a piece of work.
b. Contract
subject
to
resolutory
condition.
c. A contract of sale.
d. Answers not given.
13. Aldaba delivers to Baduria a photocopying
machine worth P 50,000 and cash amounting
to P 50,000. The contract is a –
a. Sale
b. Barter
c. Partly barter and partly sale
d. Innominate
14. Abion sold the Bagamasbad a piece of
jewelry at a price of P 20,000. The
contract provides that the Bagamasbad
will give the Abion a microwave oven
worth P 5,000. What is the nature of the
contract?
a. Sale
b. Partly sale partly barter
c. Barter
d. Commodatum
15. Connie transferred to Violeta a parcel of
land for a price of P 100,000; P 30,000
to be paid in cash and for the
difference, she will convey her car worth
P 70,000. What kind of contract is this?
a. Lease contract
b. Contract of sale
8. Silva sold to Bien a land, which os owned
by Canuto. Is the sale valid?
a. No, because Silva does nt have the
right to sells things which he does
not own.
b. No, he should first acquire the title
legally from Canuto before he can sell
it to Bien.
c. Obligation of sale
d. Barter
16. Shaolo and to Balo his land worth P
2,000,000 for P 1,500,000 only, thus
resulting to inadequate price. The sale
is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
17. Sawana offered his car to Bacopa with
understanding that the price shall be at
the descrition of Bacopa. As agreed upon,
Bacopa fixed the price at P 350,000
although its fair market value was P
250,000 only. It is clear therefore that
the price fixed is beneficial to Sawana.
Before acceptance of the price by Sawana,
is there already a sale?
a. No perfected sale as there was no
consent on the price.
b. There was a perfected sale, the amount
was already fixed by the buyer and
will surely be accepted by the seller.
c. Yes because the fixing of the price
by Bacopa is properly authorized by
Sawana.
d. Yes but it is voidable due to mistake
committed by Bacopa in the fixing of
the price.
18. Solera sold and delivered her diamond
ring to Ballesteros. It was agreed upon
that within 10 days Ballesteros will
state and fix the price. On the 10th day,
Ballesteros called upon by telephone
Solera and stated the price at P 20,000
while
Solera
agreed.
Is
the
sale
perfected?
a. No, at the time of sale the price was
not fixed.
b. Yes, at the time of the sale the price
was already known.
c. Yes, the price as stated and fixed by
the buyer was accepted by the seller.
d. No, the price was left to the
discretion of one of the parties.
19. Sotto sells to Buena his 1988 Cougar car,
and leaves Buena to determine the price.
Buena refuses to fix the price but took
the car for his use. Which of the
following statements is correct?
a. No sale because the price is not fixed
by the parties.
b. There is a sale, Buena must pay a
reasonable price.
c. No sale until a third person fixed the
price.
d. Sotto may go to a court and ask for
damages.
20. A case where a contract of sale must not
necessarily be in writing
a. Sale of 100 piculs of sugar at P 400
per picul when there is partial
delivery.
b. Sale where by its term cannot be
performed within one year from the
making thereof.
c. Sale of land.
d. Sale of public auction.
21. Which is not correct? In a sale by
auction
a. The auctioneer may withdraw the goods
before the hammer falls whether or not
the auction has been announced to be
without recourse.
b. The sale is perfected when auctioneer
announces its perfection by the fall
of the hammer.
c. The seller may bid provided such right
was reserved and noticed was given to
the other bidders.
d. Every bidding is merely an offer, and
seller is obligated to transfer
ownership of the things sold.
b. The seller need not be the owner of
the thing sold at the perfection of
the sale.
c. There may be a transfer of ownership
over the thing even if the seller has
not actually delivered the thing sold
to the buyer.
d. In a contract of sale the buyer
becomes the owner of the thing sold
upon full payment of the purchase
price.
23. Secillo offered to sell to Buensalida his
5-door apartment house in Cubao, Quezon
City for P 3 Million. Buensalida agreed
to buy but requested to give him 20 days
to raise the money. After two weeks,
Buensalida informed Secillo that he has
raised the money. However, Buensalida
informed him the he is no longer
interested to sell the property. Can
Buensalida compel Secillo to sell the
property.
a. Yes, because there was a mutual
promise to buy and sell a determinate
thing.
b. Yes, because Buensalida was able to
raise money within the agreed period.
c. No, because the contract of sale has
not yet been perfected.
d. No, because there was only an accepted
unilateral promise to sell.
24. Singalong sold his land to Barganza for
P 500,000, who paid SIngalong the price
in fake 500 pieces of P 1,000 bill. What
is the status of the contract of sale?
a. Voide because the consideration is
fake.
b. Voidable because of the presence of
consideration except that it is fake.
c. Void because the cause is false.
d. Valid because it has a consideration
although it is fake.
25. Barayoga sold his motorcycle to Narcisa.
No date was fixed for the performance of
their
respective
obligations.
The
obligation of Barayoga is:
a. To wait for Narcisa to pay the price
before he delivers the motorcycle.
b. To deliver the motorcycle after
Narcisa demands delivery.
c. To rescind the contract because the
time of performance is not fixed.
d. To deliver the motorcycle as soon as
possible because the sale has been
purchased.
26. Which of the following obligations of the
vendor cannot be waived?
a. To allow the buyer to examine the
goods sold.
b. To transfer the ownership to the
buyer.
c. To pay the expenses of the deed of
sale.
d. To warrant the thing sold.
27. Halk, a taekwando champion, with the
intimidation forced his wife Matatakutin
to sell to him Matatakutin’s properties
worth P 300,000. The sale is
a. Unenforceable, unless the sale was
made in writing.
b. Voidable, because the consent of
MAtatakutin is vitiated.
c. Rescissible, if Matatakutin suffered
therefore before is it accepted, it
may be withdrawn,
22. Which of the following statement is
incorrect?
a. In a contract of sale the full payment
of the price is in the nature of
suspensive condition in that the
a lesion of more than ¼ of the value
of the property.
d. Void, except when the separation of
property was agreed upon in the
marriage settlement or there has been
a judicial separation of property.
28. Which of the following is considered s an
actual delivery?
a. Execution and signing of the deed of
sale.
b. Delivery by the vendor of the key of
the warehouse where the goods are
stored.
c. Placing the title of the ownership in
the hands of the buyer.
d. The goods sold are placed in the
control and possession of the vendee.
29. Which
of
the
following
is
not
constructive delivery in sale?
a. Tradition brevi manu
b. Tradition constitutum possessorium
c. Thing is place in the control and
possession of buyer.
d. Execution of public document.
30. Lucky is a lessee of a store in a shopping
mall. She orally sells/ assigns his right
to Samonte. She then allows Samonte to
occupy the staff. The delivery here is
called
a. Quasi-traditio
b. Actual delivery
c. Tradition longa manu
d. Tradition brevi manu
31. When the delivery takes place by the mere
consent of contracting parties as when
the vendor merely points to the thing
sold which shall thereafter be at the
control and disposal of the vendee if the
thing sold cannot be transferred to the
possession of the vendee at the time of
sale, delivery is effected:
a. By tradition symbolica
b. By tradition longa manu
c. By tradition brevi manu
d. Answers not given
32. Alay-ay sold his house to Bibingka but
continued to posses it as a lessee of the
purchaser.
a. Traditio longa manu
b. Quasi-traditio
c. Tradition constitutum possessorium
d. Tradition brevi manu
33. Which of the following options is not
correct? If Selerio delivered to Bayeran
a television “ on sale or return “
a. The ownership is transferred to
Bayeran upon actual delivery.
b. Bayeran can return the goods even if
he finds nothing wrong with its
quality.
c. The goods are transferred to the buyer
upon constructive or actual delivery
of the thing.
d. The ownership is retained by the
seller.
34. Asantalicio delivered a television to
Barberian on “sale or return “. In this
case, the ownership passes to Barberian
upon
a. Delivery of the television
b. Expiration of the period agreed upon
c. Acceptance
by
Barberian
of
Asantalicio’s offer.
d. Perfection of the sale
35. Ownership
of
the
thing
sold
is
transferred / acquired / retained:
a. Retained by the “ sale or return “
b. Transferred
to
the
buyer
upon
constructive or actual delivery of
absolute deed of sale was executed and
notarized. On January 20, the sale was
registered with the Land Transportation
Office (LTO). On January 25, bayer took
actual possession of the car. When did
Bayer acquire title of the car?
a. On January 10
b. On January 15
c. On January 20
d. On January 25
37. On January 7, 2008, Ariel sells and
delivers to Barabara his car for P
200,000 on a “ sale or return within 10
days “ after delivery. On January 15,
2008, the car was lost through a
fortuitous event. Who bears the loss?
a. Ariel under the principle of “ res
perit domino “
b. Barabara and she must pay the purchase
price.
c. Both Ariel and Barabara jointly.
d. Neither of them because the loss was
due to a fortuitous event.
38. Salvora delivered a computer set Perper
“
on
approval,
on
trial
ot
no
satisfaction “ the ownership passes to
Perper upon
a. Delivery of the things.
b. Meeting of the minds
c. Conception of the sale
d. The return of the things to Salvora.
39. Statement 2: in a sale on return,
ownership passes to the vendee upon the
delivery of the goods; in sale or trial,
ownership does not pass to the buyer
until he accepts the goods.
Statement 1: in sale or return, the risk
of the loss is on the vendor; in sale or
trial, the risk of loss is on the vendee
a. Both statements are true
b. Statement 1 is true, statement 2 is
false
c. Both statement is false
d. Statement 1 is false, statement 2 is
true
40. The Recto Law is applicable on:
a. Sale of car on a straight term
b. Sale of house on instalment were
buyer constituted mortgage on
house.
c. Sale of car on instalment were
buyer constituted a mortgage on
truck
d. None of the above.
the
the
the
his
41. Ara bought a washing machine from Bal on
instalment basis but defaulted in the
payment of two instalments. Which of the
following is not a remedy of Ara?
a. Damages
b. Specific performance only
c. Cancel of sale
d. Foreclose the chattel mortgage and
recover from the buyer the difference
if the proceeds of the sale is less
than the unpaid balance of the
purchase price.
42. Statement 1: in a sale of personal
property in instalment, the seller is
obliged to exercise the remedy of the
foreclosure of the chattel mortgage, if
there be one, in the event that the buyer
fails to pay two or more instalments.
the thing sold.
c. Acquired by the buyer upon perfection
of the contract.
d. Transferred
to
the
buyer
upon
acceptance of the price.
36. Selerio sold to Bayer his Toyota Innova
Car on January 10. On January 15, an
Statement 2: in a sale of personal
property in instalment, if the seller
decided to foreclose but did not actually
sell the property, he may still ask for
specific performance and demand for the
remaining deficiency in the price
a.
b.
c.
d.
True, False
True, True
False, True
False, False
43. Bag bought a refrigerator on Instalment
from Sum and to secure his indebtedness,
Bag executed a chattel mortgage on title
refrigerator in favour of Sum. Upon
default by Bag on his two (2) payments,
the refrigerator was foreclosed and sold
for P 8,000 which was less than the
balance of P 10,000 due to Sum. How much
can Sum still collect from Bag?
a. P 2,000
b. P 8,000
c. P 10,000
d. Nothing
44. One
of
the
following
is
not
an
alternative remedy available to a seller
of personal property on instalment if
buyer defaults.
a. To go to court and ask court to order
delivery of the property.
b. To foreclose the chattel mortgage
c. To sue to specific performance
d. To take possession of the property and
forfeit the amount paid by the buyer.
45. Sad sold to Bad a motor vehicle for P
1.2M to be paid in twelve equal monthly
instalments starting the 15th of February,
2008. To secure the payment of the car,
Bad executed a chattel mortgage on the
subject motor vehicle and furnished a
surely bond issued by Contreras. Bad
failed to pay two instalments. Sad went
after Contreras but was not able to
obtain only ¾ the total amount still due
from Bad. Can Sad still collect the
deficiency from Bad?
a. Sad can still recover the deficiency
from Bad because the amount received
from the surely was only payment protanto of the obligation.
b. Sad can still foreclose the chattel
mortgage
on
the
car
for
the
deficiency.
c. Sad cannot recover the deficiency
anymore applying the Recto Law, that
is, Sad can maintain an action for the
deficiency.
d. Sad can still recover the deficiency
after he forecloses the chattel
mortgage on the vehicle.
46. Which of the following statement is
false:
a. In contract to sell, ownership is not
transferred to the buyer even if there
is a delivery.
b. Stoppage in transitu can be exercised
by the unpaid seller if the buyer is
insolvent and the vendor has not yet
parted with the thing sold.
c. The price is considered certain if it
is
reference
to
another
thing
certain.
d. In a right to resell it is not
necessary that the original buyer is
insolvent.
47. Anthony sold a piece of land to Rolando
binding himself not to sell the same to
another person. On the following day,
Anthony sold the land to Carl who
immediately took possession in good
faith. In the case at bar, the proper
remedy of Rolando is to:
48. Statement 1: if the thing should have
been sold to different buyers, the
ownership should be transferred to the
person whom may have been in the
possession thereof in good faith; if it
should be movable property.
Statement 2: the seller is responsible to
the buyer for any hidden defects or fault
in the thing sold only if he was aware
thereof.
a.
b.
c.
d.
1st statement true, 2 nd statement false
Both statements are false.
1st statement false, 2nd statement true
Both statements are true.
49. Salay, the owner of a parcel of land sold
the same to Basco, a buyer in good faith
but the document was not registered. One
year, he sold it again to Bal who knew
of the first dale but registered the
document and obtained a title over the
land.
a. Basco is not entitled to the land even
if he is a buyer in good faith.
b. Basco is the rightful owner because
the bad faith of Bal renders nothing
but an exercise in futility.
c. Bal being the first registrant is the
rightful owner of the land.
d. The knowledge of the first sale by Bal
is immaterial because the non-action
of Basco plus him in estoppels.
50. Sala sold his land to Bata who began to
possess it. Later Caw, a tranger, sold
the same land to Dau who in good faith
registered the sale in the Registry of
Deeds. Who should be considered as the
owner?
a. Sala
because
the
sale
is
not
registered by Bata.
b. Bata because Dau did not buy it from
the owner of the land.
c. Caw because the sale to Dau is a
second sale.
d. Dau being the registrant in good
faith.
51. Seoul sold a land to Busan. Then, Seoul
became Busan’s tenant. Subsequently,
Seoul sold the same property to Gangnam.
Neither sale was registered. Who is the
rightful owner?
a. Busan being the first buyer in good
faith.
b. Gangnam because the property was sold
to him ny the original owner.
c. Seoul because the sale to Busan and
Gangnam are not registered in the
Registry of Deeds.
d. Busan if he will register the sale
ahead of Gangnam.
52. Soreta sold his land to Biares. Later,
Soreta sold the same land to Baduy.
Biares in turn sold the same land to
Bastos, who took possession of the land
in good faith. Baduy, a purchaser in good
faith, registered the sale in his favour.
Decide:
a. Biares is the owner of the land
because he was the first buyer.
b. Biares is the owner of the land having
registered the sale in good faith.
c. Bastos is the owner of the land being
the transferee of the rights of Biares
and who is in possession in good
faith.
a. Institute an action for the annulment
of the sale to Carl.
b. Institute an action for the recovery
of the land.
c. Institute an action for damages
against Anthony.
d. Answers not given.
d. Bastos is the owner because after
Soreta sold the land to Biares,Soreta
had not more right to transfer
ownership to Baduy, the second buyer.
53. Crystal is the owner of an earring which
was stolen by her housemaid. In one
social gathering, she saw the earrings in
the possession of Fatutina. It was
discovered that the housemaid sold it in
a jewelry store which in turn sold it to
Fatutina, a buyer in good faith. Did the
latter acquire good title to the jewelry?
a. Yes, because it was bought from a
merchant’s store in good faith and in
value.
b. No, because Fatutina did not exercise
diligence is buying the earring.
c. No, because it was sold by a store
which does not possesses authority to
sell it.
d. Yes, because the seller is also a
buyer in good faith.
54. S store a fountain pen from “O” and sold
it to a bazaar who pays for it in good
faith, not knowing it was stolen. The
bazaar then sold it to B, a student,
a. The bazaar having bought it in good
faith becomes the legal owner, and as
such, he can transfer ownership to B.
b. Ownership passed to B because he
bought it in a merchant store.
c. “O” may recover the fountain pen from
B without reimbursement because he is
the legal owner.
d. B cannot become the owner because S,
the original seller, is not the owner.
55. Gwen brought is wristwatch in a watch
repair shop and store for repair. After
it was repaired, the watch repair shop
and store sold it to Mommy Mi, a buyer
in good faith. Can Gwen recover the
wristwatch from Mommy Mi?
a. No, because Mommy Mi is now the lawful
owner of the watch.
b. No, because Mommy M brought it in good
faith and for value.
c. Yes, because the seller was not
authorized by Gwen to sell his watch.
d. Yes, provided he would reimburse
Mommy Mi the amount she have paid to
the merchant’s store.
56. Sayangco sold a residential land to
Bitao. Bitao paid the consideration. When
Bitao wanted to register the sale at the
Register of Deeds, the latter refused to
register it and required the presentation
of the certificate of capital gains tax
payment. What can Bitao do?
a. Bitao may sue Sayangco to refund the
consideration paid by bitao under the
maxim “no one shall enrich himself at
the expense of another“.
b. Bitao cannot compel Sayangco to
return the selling price because the
contract is not enforceable.
c. Bitao may possess the residential
land as a buyer in good faith.
d. Bitao may compel Sayangco to pay the
capital gains tax and secure the
Certificate of Capital Gains Tax
payment.
57. Warranty against hidden defect is:
a. An essential element.
b. Accidental element
c. Natural element
d. None of the above.
58. The following, except one, are the
alternative remedies available to the
buyer in case of breach of warranty by
the seller.
a. Keep the goods and ask for the
damages.
horse suffered an illness and died after
one week. Can Bruno sue Serdan for breach
of warranty against hidden defects?
a. Yes, because it is presumed that the
horse was already ill when sold.
b. No, because Serdan was not arware of
the disease at the time of sale.
c. Yes, because Serdan is in bad faith.
d. No because the disease did not exist
at the time of purchase.
60. In three of the following there is no
warranty against hidden defects of
animals. Which is the exception?
a. Animals sold at fairs.
b. Livestock sold as condemned, declared
known to the buyer.
c. Animals sold at public auction.
d. None of the above.
61. The vendor is responsible to the vendee
for any hidden faults or defects in the
thing sold, even though he was not aware
thereof.
If the thing sold had any hidden fault
at the time of the sale, and should
thereafter be lost by a fortuitous event,
the latter may demand of the vendor the
price which he paid, lee the value which
the thing had when it was lost.
a. True, False
b. True, True
c. False, True
d. False, False
62. Seesy sold to Batok his dog without
knowledge that the animal was suffering
from a disease at the time of the sale.
Is the seller liable for breach of
warranty against redhibitory defect of
animals?
a. Yes, because he sold have known the
defect before selling it to somebody.
b. Yes, if he aware of the hidden fault
or defects.
c. No, because redhibitory defect is
difficult to discover even in case of
professional inspection.
d. No, if there was a stipulation and the
seller was in good faith when he sold
the animals.
63. One of the following is not a remedy
granted to an unpaid seller.
a. Right of stoppage of goods in transit.
b. Right of lien owner the goods.
c. Right of resale.
d. Right to demand a security for the
payment of the price.
64. The buyer has a right to the fruit of the
thing from the time
a. Thing is delivered
b. Contract is perfected
c. Obligation to deliver the thing
arises
d. Fruits are delivered
65. Which of the following statement is not
correct?
a. The vendor is bound to deliver the
thing sold and its accessions and
accessories in the condition in whic
they were upon the perfection of the
contract.
b. All the fruits of the thing sold shall
pertain to the vendor from the day on
which the contract was perfected.
c. The vendor shall not be bound to
b. Refuse to accept the goods and ask for
damages.
c. Rescind the sale and retain the goods.
d. Keep the goods and set up against the
seller by way of recoupment in price.
59. Serdan sold a racing horse to Bruno on
February 14, 2008. After five days, the
deliver the thing sold, if the vendee
does not paid him the price, or if no
period for the payment has been fixed
in the contract.
d. The vendor is bound to transfer the
ownership of and deliver, as well as
warrant the thing which is the object
of the sale.
66. Salcedo sold his horse to Caballo for P
15,000. No payment has ben made and no
date of delivery was agreed upon. Before
the payment and delivery, the horse gave
birth to a pony.
a. Caballo should pay additional amount
for the pony if he wants to have it.
b. Caballo is entitled to the pony which
was born after the perfection of the
sale but before the delivery.
c. Salcedo is entitled to the pony since
Caballo has not yet paid the price.
d. Salcedo is entitled to the pony
because it was born before his
obligation to deliver to horse.
67. Salamanca sold a pig to Bardagol. It was
agreed upon that the payment will be made
one month after delivery. After delivery
but before payment of the price, the pig
delivered ten piglets.
a. Bardagol is entitled to the piglets
because there was already a delivery.
b. Bardagol should pay the price of the
piglets if he wants to have them.
c. The piglets should be with Bardagol
applying the rule that “accessory
follows the principal” but he should
pay Salamanca of its value as an
application of the same principle.
d. Salamanca is entitled to the piglets
due to the nonpayment of the purchase
price.
68. On jJanuary 6, 2008, Pepe sold to Pilar
his dog named Tagpi with the agreement
that delivery shall be on January 15,
2008 and the payment of the rpice will
be on January 31, 2008. If the dog shall
produce offspring, it shall belong to:
a. If before January 6, 2008 it shall
pertain to the seller.
b. If the puppy, Tagpi Jr. Shall be born
on January 10, 2008 it shall still
pertain to the seller.
c. Pilar shall only be entitled to Tagpi
Jr. If the puppy is born on January
20, 2008.
d. If Tagpi Jr. Is born after the sale
but before the delivery, it shall
pertain to Pilar if so stipulated by
the parties.
69. Sebastian sold an automobile to Berdi for
P300,000 payable as follows: P100,000
upon delivery of the car, and the balance
at an amount of P50,000 every month
thereafter. The automobile, however was
burned in the possession of Berdi,
without his fault, before payment of the
balance. Is Berdi obliged to pay the
balance?
a. Yes,
because
the
ownership
was
transmitted to him upon delivery.
b. Yes, but Sebastian should deliver
another automobile to Berdi.
c. No, because the balance is not yet
paid and therefore Sebastian is still
the owner of the automobile.
d. No, the loss is imputable to Sebastian
applying the principle of res perit
domino.
70. Aden sold his only car to Bisco. After
the contract was perfected but before the
delivery, the car was destroyed by a
tsunami. It was totally wrecked. Should
Aden deliver a car similar to his?
a. Yes, because the buyer should not be
71. Sotero and Balbak entered into a contract
whereby Sotero will sell his computer to
Balbak for P20,000. After the perfection
of the contrac, Balbak advanced the
entire
purchase
price
but
it
was
stipulated that the computer shall
delivered at the end of June of the
current year. Before the arrival of the
date, it was completely destroyed without
any fault of Sotero. Can Balbak recover
the P20,000?
a. No, when a thing is lost without fault
of the vendor, he is released from his
obligation to deliver the thing.
b. No, because the contract had already
been perfected.
c. Yes, under the principle of res perit
domino
d. Yes, but the buyer must also bear the
loss. Hence, he can recover P10,000
only.
72. Salando sold to Baybayin his can which is
undergoing body repair at a car repair
shop owned by Celaje. No fixed date for
the performance of their respective
obligations. The obligation of Baybayin
is:
a. To pay the moment Salando delivers the
car.
b. To pay upon demand by Salando.
c. To pay the price immediately because
their obligations are demandable at
once being pure obligation.
d. To rescind the sale because there was
no agreement
as
to
when
their
obligations shall be performed.
73. 1st Statement: the vendor is bound to
transfer the ownership of and deliver as
well as warrant the thing which is the
object of the sale.
2nd Statement: payment of price is
essential to delivery of the thing sold.
a. Both statements are true.
b. Both statements are false
c. 1st Statement is True, 2nd is False
d. 1st statement is False, 2nd is True
74. Which of the following statements is not
correct?
a. Actual delivery of the thing or
payment of the price is not required
for the perfection of the sale.
b. A stipulation that even when the
object is delivered to the buyer,
ownership will not pass until the
price is fully paid is not valid.
c. A sale is consummated upon delivery
of the thing and the payment of the
purchase price.
d. Sales through letters or telegrams
are deemed perfected only when the
seller has received acceptance by the
buyer.
75. Balas buys from Salas 100 cavans of
palay. Which of the following statements
is not correct?
a. If Salas delivers only 90 cavans he
can accept them provided that he can
only be required to pay for the number
of cavans delivered.
b. If Salas delivers only 90 cavans, he
must accept them because it is part
of the quantity contracted.
c. If Salas delivers 120 cavans, Balas
can reject all.
liable for a fortuitous event.
b. Yes,
otherwise
Bisco
will
be
prejudiced of not receiving the
return of his payment.
c. No,
because
the
object
is
determinate.
d. No, even when the seller is guilty of
delay in the delivery of the car.
d. If Salas delivers 120 cavans, he may
accept all, but he must pay for them
at the contract rate.
76. S sold to B a parcel of land for a lump
sum of P50,000. The contract states that
the
area
is
500
square
meters.
Subsequently, it was ascertained that the
areas included within the boundaries is
actually 550 square meters.
a. S is bound to deliver 500 square
meters and B to pay P50,000
b. S is bound to deliver 500 square
meters and B to pay P55,000
c. S or B can rescind the sale because
there is no meeting of minds.
d. None of the above.
77. In Question 76. If the land is contains
445 square meters only. Which of the
following is correct?
a. S is bound to deliver 500 square
meters and B to pay P50,000
b. S is bound to deliver 445 square
meters and B to pay P44,500
c. B may rescind the sale because the
lack in area is more than 1/10 of the
total area.
d. None of the above.
78. Salinel sold to Bobos, per unit of
measure, a parcel of Riceland measuring
2,000 square meters at a price of P500
per square meter. Subsequently it was
ascertained
that
the
area
is
not
measuring 2,000 square meters. Which ofo
the following remedies is available to
Bobos?
a. Ask for rescission if the area is
lacking by 1/10th or more of that
stated.
b. Ask for rescission if the area is
1,000 square meters only.
c. Be
required
to
pay
an
amount
corresponding to 2,000 square meters
even if the area is 1,900 square
meters only.
d. Require Salinel to accept an amount
corresponding to 2,000 square meters
even if the area is 2,100 square
meters.
79. The following options are available to
the buyer of real estate at the rate of
a certain per unit of measure, except:
a. Proportionate reduction in the price
if the lack in the area is less than
1/10;
b. Rescission of sale if the lack in the
area is not less than 1/10;
c. If the area is more than stated in the
contract, accept the area stated in
and reject the rest;
d. Rescind the contract if the area is
more than that stated in the contract.
80. Bolabong bought from Senyang a second
hand motorcycle which upon inspection by
Bolabog had
some patent mechanical
troubles. After the sale, the motorcycle
was bumped on another vehicle due to
defective brakes creating damages to the
motorcycle ad on the other vehicle. Is
Senyang liable fro breach of warranty
against hidden defect?
a. No, because the defect was not hidden
but apparent upon inspection by
Bolabog it being a seconh hand car.
b. Yes, because there was no waiver of
warranty against hidden defect.
c. Yes, because the seller was in bad
faith and she has to pay for the
damage done on the other vehicle.
d. No, because it was fault of Bolabog,
he should have bought a brand-new
motorcycle.
81. Segunda sold
his car
to
Bakekang. No
c. The seller may demand payment first
before delivery of the thing sold.
d. The buyer may demand delivery first
before payment of the price.
82. X sold a parcel of land to Y with the
agreement that the payment is to be made
on Feb. 14, 2009. It was stipulated that
failure to pay on said date. The sale
would automatically be rescinded. Y
failed to pay and asked for extension of
the time pay. Decide:
a. Y may still pay and the sale is not
rescinded id there was no demand yet
for rescission from X.
b. The
sale
is
rescinded
as
per
agreement.
c. The sale is rescinded only after
demand fro payment by the seller.
d. Y may still pay despite rescission of
the sale.
83. Pacto de retro sale is distinguished from
mortgage:
a. There
is
redemption
when
the
principal debt is paid.
b. There is no transfer of possession of
the thing sold.
c. There is no foreclosure unless it is
declared as an equitable mortgage.
d. There is no transfer of ownership of
the thing sold.
84. A stipulation exempting the vendor from
the obligation to answer for eviction
shall be void even if he acted in good
faith.
The
vendor
is
not
liable
for
dispossession due to acts imputable to
the buyer himself.
a. True, False
b. True, True
c. False, True
d. False, False
85. The sale shall not be presumed to be an
equitable mortgage when?
a. The price of the sale is usually
adequate.
b. The vendor remains in possession of
the thing sold.
c. The vendor allows the extension of
time to repurchase the thing sold.
d. The purchaser retains for himself a
part of the purchase price.
86. The vendor is responsible to the vendee
for any hidden faults or defects in the
thing sold, even though he was not aware
thereof.
When the price of a sale which right to
repurchase is unusually inadequate, the
contract shall be presumed to be a pacto
de retro.
a. True, True
b. True, false
c. False, False
d. False, True
87. Where
it
is
stipulated
that
the
repurchase of the property sold could be
made at any time, the repurchase shall be
exercised
a. Within four years from the date of
contract.
b. Within ten years from the date of the
contract.
c. After ten years from the date of the
agreement was made on the time and place
of delivery and payment, hence:
a. The time and place of delivery shall
be at the time and place of payment
of the price.
b. The time and place of delivery and
payment not having been agreed upon,
the sale shall be void.
contract.
d. None of them
88. Where
it
is
stipulated
that
the
repurchase of the property sold could be
made at any time, the repurchase shall be
exercised
a. Within four years from the date
contract.
b. Within ten years from the date of
contract.
c. After ten years from the date of
contract.
d. Within six years from the date of
contract.
of
d. Babol and Cortez have no right of
legal redemption.
the
the
the
89. Sall sold his land to Bay on March 15,
2008 with a right to repurchase. The
contract provides that the land will be
redeemed in March of any year. Until when
Sall can repurchase the property?
a. March 15, 2012
b. March 15, 2018
c. March 15, 2009
d. March 15, 2011
90. If redemption is made, which of the
following will not be paid by the seller
to the buyer?
a. Price paid by the buyer
b. Expenses in the execution of the sales
of contract paid by the buyer.
c. All necessary expenses on the thing
sold and to be redeemed.
d. Interest on the price paid by the
buyer.
91. Abagat, Barra and Caballero, are coowners of an undivided parcel of land.
Barra sold his 1/3 interedt to Caballero
absolutely. Which is correct?
a. Abagat may exercise his right of
redemption on the interest sold by
Barra to Caballero.
b. Abagat cannot exercise the right of
redemption because the sale was made
in favour of a co-owner.
c. The sale made by Barra to Caballero
is void because it was not made in
favour of a stranger.
d. Abagat may redeem only ½ of the
interest sold by Barra to Caballero.
92. Arines, Babagay and Casyao are co-owners
in equal share of parcel of land. Casyao
sold his undivided interest to his son.
Dava, a week later, Arines and Babagay
served notice on Dava of their intention
to redemme the portion sold. However,
Dava refused to allow redemption arguing
thet being the son of Casyao, he was not
a third person in contemplation of the
law with respect to redemption by coowners. Is the refusal of Dava justified?
a. No, the refusal of Dava is not
justified because he is still a third
person as regards redemption by coowners.
b. No,
because
Dava’s
refusal
is
unjustified because co-owners can
redeem the share sold even if not sold
to a third person
c. Yes, justified because he is not a
third person being the heir of Casyao
from whom he will eventually inherit
the share in the land.
d. No, because co-owners can redeem the
share even if sold to a co-owner.
93. Abonal, Babol and Cortez as brothers
purchased from their parents specific
portions of a parcel of land as evidenced
by three separate deeds of sale. Each
deed referring to a particular lot in
meters and bounds. Abonal sold his parcel
of land to De Belen, Baboland Cortez want
to redeem the land. Decide;
94. Servino owns a piece of land and sells
it to Sam with the right of repurchase
within four (4) years from the date of
sale. If Sam sells the property to Rose,
which of the following is false?
a. The sale is valid because things
subject to a resolutory condition
maybe the object of a contract of
sale.
b. Servino can still exercise her right
of redemption against Rose.
c. The sale is void because it is a
conditional sale.
d. Rose
acquires
the
property
but
subject to the right of conventional
redemption.
95. Senso owns a piece of land and sells it
to Bicad with a right or repurchase
within one year from the date of sale.
Can Bicad sell the land he purchased from
Senso to Burat, a third party?
a. Yes, provided that the sale is with
the consent of Senso.
b. No, Bicad is not yet the absolute
owner of the land.
c. Yes, but Sesno can still redeem the
land from Burat.
d. No, third parties that acquire real
property are bound by prior contracts
affecting such property even if the
third person is not a party thereto.
96. Arnesto, Balane and Camposano are coowners of a parcel of land. Arnesto sold
his share to Balane. Can Camposano redeem
the said share from Balane?
a. No, unless he was notified of the sale
prior to its perfection.
b. No, legal redemption applies only if
the interest was alienated by onerous
title to a third person.
c. Yes, because the law frowns upon coownership.
d. Yes, provided he pays Balane the
price, expenses of the sale and
necessary and useful expenseson the
thing sold.
97. Ann and Boy are co-owners of a parcel of
land. Dan owns a parcel of land adjoining
the co-ownership. Ann sold his share to
Char. Both Boy and Dan want to redeem the
share of Ann which is latter sold to
Char.
a. Boy and Dan should equally redeem the
share of Ann.
b. The right of Boy as co-owner is
preferred over Dan who is only an
adjoining owner.
c. Dn should be preferred over Boy in the
redemption from Dan.
d. None of them acquires the right of
redemption.
98. Which of the following is false about
sale with a right to repurchase?
a. Legal redemption ca be effected only
against immovable property.
b. There is transfer of ownership to the
buyer
subject
to
a
resolutory
condition.
c. If several persons, jointly and in the
same
contract,
should
sell
an
undivided immovable with a right to
repurchase, none of them may exercise
this
right
for
more
than
his
a. Both Babol and Cortez may exercise the
right to redemption in a pacto de
retro sale.
b. Either of Babol and Cortez mat do so
if there is right of redemption given
to them by De Belen.
c. Babol and Cortez have the right of
legal redemption.
respective share.
d. The buyer a retro may mortgage the
property because he acquires the
rights of the vendor.
99. Aki owns a parcel of land, which he sells
to Bing with a three year redemption
period. After the second year, Aki dies,
leaving his children Cave, Dave and Eve
as his heirs. Which of the following is
not correct?
a. As Aki can repurchase the whole thing,
so any among Cave, Dave and Eve may
repurchase the whole thing.
b. Cave can redeem his 1/3 share, Dave
his 1/3 share and Eve his 1/3 share
if Bing does not require all of them
or any one of them to redeem the whole
property.
c. Bing may demand that all the co-heirs
come to
an
agreement
upon
the
repurchase of the whole thing sold.
d. Bing cannot be compelled to consent
to a partial redemption.
100.
In 2008, Albia bound himself to
sell to Bolalin his house and lot which
was being rented by another person. If
Bolalin passes the CPA examination on
October 2008. Luckily for Bolalin, he
passed the said examination. However,
Albia sold the said property to Cord in
2008after the agreement was entered into
by Albia and Bolalin. Was the sale valid?
a. The sale was not valid because the
property was already sold by Albia to
Bolalin although it was subject to a
suspensive condition.
b. The same was not valid if Cord was
aware of the promise to sell of Albia
to Bolalin.
c. It was a valid sale because Albia was
still the owner of the house and lot
at the time of the sale but with
resolutory condition.
d. It was a valid sale if the buyer was
in good faith and for value and
without the knowledge of the promise
to sell of Albia to Bolalin.
AGENCY
1. ALing ask his neighbour, Aze to buy some
vegetables for her in the market to which
request the latter agreed. The contract
between them is:
a. Sale
b. Piece of work
c. Agency
d. Contract to Sell
2. Which of the
following is
characteristic of an agency?
a. Principal
b. Nominate
c. Commutative
d. Gratuitous
not
a
3. Statement 1: a contract is needed to have
an agency relationship
Statement 2: the agent owes a fiduciary
duty to the principal
Statement 3: The principal owes a
fiduciary duty to the agent
Which of the above statements is true?
a. Statement 1 only
b. Statement 2 only
c. Statement 3 only
d. Statements 2 and 3
4. Akbahar has been the agent of Pacifico
for the past 3 years in the purchase of
palayvin different provinces in Luzon.
The authority given by Pacifico to
Akbahar provided that Akbahar need not
them from his stock and made it appear
that he bought them from a supplier at
the regular price of P600, which was the
same purchase price of palay in his
earlier transactions.
a. Akbahar must account to Pacifico all
the profits that he obtained from the
transactions.
b. Akhbahar need not account to PAcifico
the profits that he obtained from all
the transactions.
c. Akbahar need not render an accounting
of his transactions because he was not
obligated to do so under the power of
attorney given to him by Pacifico.
d. Akbahar cannot be held liable for
damages because he passed on the palay
to Pacifico at the purchase price of
his previous transactions.
5. Lease of services is distinguished from
agency except on the following.
a. The worker does not represent his
employer.
b. The
implementor
exercises
discretionary powers.
c. Generally, the relationship can be
terminated only at the will of both
parties.
d. It usually involves in two persons.
6. The following distinguished agency from
a negotiorum gestio except
a. Quasi-contract
b. There is
meeting
of
the
minds
expressly or impliedly
c. The legal relation is created by the
parties.
d. One party performs according to the
control of the other.
7. All of the following are characteristics
of an agency to sell, except
a. Receives the goods as the goods of the
principal.
b. The agents deliver the proceeds of the
sale
c. Receives the goods as owner
d. The agent does not warrant the thing
against hidden defects.
8. In
a.
b.
c.
agency, the agent represents
A person who is capacitated.
A person who is incapacitated.
Heirs and creditors of the estate or
the debtor.
d. Judicial court
e. None of the above
9. Pandekoko gave a special power of
attorney to Amay, a 13 year old high
school student, authorizing the latte rto
sell his car. Amay sold the car for
P150,000.
Which
of
the
following
statement is false?
a. The
contract
of
agency
between
Pandekoko and Amay is voidable.
b. The
contract
of
sale
between
Pandekoko and Amay is valid.
c. The
contract
of
sale
between
Pandekoko and Amay is unenforceable.
d. The guardion or parent of Amay can ask
for the annulment of the contract of
agency.
10. Pal, 50 year old, appointed Ams, 16 years
old. As his agent of sell to his necklace
for P12,000. Thereafter, Ams sold the
necklace to Bara for tha said amount.
When Pal learn that the contract price of
the necklace is P20,000 he sought to
render an accounting of his transactions.
One
day,
Akbahar
chanced
upon
a
wholesaler of palay who offered to sell
them to Akbahar at the discounted price
of P500 per sack. Akbahar purchased all
the palay using his own money and stored
them in the warehouse. Every time that
Pacifico needed palay, Akbahar would get
annul the sla eand brought an action to
recover the necklace on the ground that
the sale is voidable because Ams is
minor. Is the action of Pal justified?
a. Yes, because the agent is incapable
of giving consent to the contract.
b. Yes, Bara took advantage of the
minority of the agent.
c. No,
because
the
contract
is
unenforceable
the
agent
having
exceeded his authority.
d. No, because Pal is capable of entering
into a contract.
c. Yes, unless Are habitually engaged in
the business of selling and buying
cars.
d. None, acceptance must always be
expressed.
11. Pogi authorized Panget, a minor, to sell
his car for P1M in cash. Panget sold the
said Car to Ganda on instalment at a
lesser price of P900,000. Pogi is now
repudiating the contract with Ganda on
the ground that he is not bound since
Ganda contracted with the minor who
exceeded his authority. Decide
a. Pogi is liable under the contract
because it is enough that principal
is capacitated since he is the one
entering into the contract.
b. Pogi is not liable for the sale on
instalments since it is unenforceable
because his agent acted beyond its
powers.
c. Pogi is not liable because the agent
is a minor with whom Ganda had
contracted.
d. Pogi is liable provided the sale is
in cash fro P1M.
16. Parra sends a letter to Arro in Iriga
City, authorizing Arro to sell his
specific car for P300,000. No reply is
made by Arro. Is there a presumption of
implied agency between the two?
a. Yes, unless evoked by Parra before
accepted is made.
b. Yes, the failure to reply is an
implied
acceptance
of
implied
consent.
c. O, if Arro is habitually engaged in
the business of buying and selling of
cars.
d. No, as between persons who are absent,
acceptance by the agency cannot be
presumed from the silence of the
agent.
12. Which of the following does not create an
implied agency?
a. Failure to repudiate the agency by the
principal.
b. Silence of the principal
c. Express
authority
given
by
the
principal
d. Principal’s lack of action
13. Mar
Cas,
before
going
to
London,
appointed Jul Cas as his agent administer
his properties in the Philippines.
Afterwards, Jul Cas wrote Mar Cas that he
(Jul Cas) was withdrawing from the agency
because of hailing health. Jul Cas, in
the same letter, said that he appointed
Cas Cas as his substitute and that Mar
Cas should extend new appointment to Cas
Cas. Cas Cas took over the duties of Jul
Cas but Mar Cas did not bother to appoint
Cas Cas ah his agent until Mar Cas death.
Now, Mar Cas’ heirs bought an action
against Cas Cas fro accounting. Cas Cas
raised the defense that he was not
validly constituted as agent of Mar Cas.
In the case at bar, defense is not
tenable because there is
a. An actual agent
b. An implied agent
c. A general agent
d. Answer not given
14. The is not implied agency in the
following
a. The principal delivers his power of
attorney to the agent and the latter
receives it without any objection.
b. The
offeree
writes
a
letter
acknowledging the receipt of te
offer, but offers no objection to the
agency.
c. The offeree begins to act under the
authority conferred upon him.
d. The offeree receives a letter of
authority but did not reply nor acted
within
the
scope
of
authority
conferred upon him.
15. Pare sends a letter to Are in Cavite,
authorizing Are to sell his specific car
for P90,000. If no reply is made by Are,
is there a presumption of implied agency
17. Panta, a resident of Ilocos Norte, wrote
Ali, his friend in Bicol who is engaged
in buying and selling second hand car, to
sell his(Panta) Toyota Corolla Car. Ali
did not reply to the letter.
a. There is implied agency due to nonacceptance of the authority.
b. There is not implied agency because
between persons who are absent, the
acceptance of the agency cannot be
implied from the silence of the agent.
c. There is no implied agency until Ali
starts to act under the authority
conferred upon him.
d. An implied agency is created even
without reply from Ali.
18. The following statements pertain to the
appointment of an agent
I.
If the announcement of appointment
of
an
agent
is
by
special
information, the person appointed
will
be
considered
a
duly
authorized agent with respect to
the
person
who
received
the
special information.
II.
If
the
announcement
of
the
appointment of an agent is made by
public advertisement, such as
publication in a newspaper of
general circulation, the person
appointed will be considered as
agent which regard to any person
who reads the publication.
In your evaluation
statements:
a.
b.
c.
d.
Both
Both
Only
Only
of
statements are
statements are
statement 1 is
statement 2 is
the
foregoing
true
false
true
true
19. Ad Company wrote a letter to Better
educational
Supply
which
introduced
Botoc as its newly authorized agent.
Better Educational Supply then dealt with
the company thru Botoc. After six(6)
months, the authority of Botoc was
revoked without informing the customer of
the
revocation.
Better
Educational
Supply continued to deal with Botoc. Is
Ad Company liable for the act of Botoc?
a. Yes, but until the revocation of the
between two of them?
a. None, because as between persons who
are absent, acceptance of the agency
cannot be presumed from the silence
of the agent.
b. Yes, because no reply was sent; there
is an implied acceptance or implied
consent
agency only.
b. Yes, but effective only from the time
the letter was received until the
authority of the agent was revoked by
the company.
c. Yes, even after the revocation for the
customer was in good faith not having
been
informed
by
circular
or
otherwise of the revocation.
d. No, the company was never become
liable for the acts of Botoc.
20. Top of the Line Corporation published in
the calssififed ads of the Philippine
Daily Inquirer that Chua is its duly
authorized agent to sell its product in
Southern Luzon. After 5 years, the
corporation revoked the authority by
giving notice of revocation to Chua and
publishing a notice of revocation in the
Philippine Star. Despite the revocation,
Chua was still able to sell goods worth
P60,000 to Diana who did not read the
revocation. Should Top of the Line
Corporation deliver the goods?
a. No, it is not obliged to deliver
because
Diana
have
known
the
revocation of Chua’s authority.
b. Yes, because Diana did not read the
revocation of Chua’s authority.
c. Yes, because the revocation was not
binding on
Diana
since
it
was
published in a different newspaper.
d. No, because the notice of revocation
to Chua is sufficient.
21. M Company wrote a circular letter to its
customer introducing a certain A as its
duly authorized agent. X, a customer,
dealt or transacted a business with A.
Later, A’s authority was revoked and was
published in a newspaper of generation
circulation.
Notwithstanding
his
knowledge of such revocation, X continues
to transact business with M Company thru
A. Is M Company still liable for the
agent’s act even after revocation?
a. Yes, because the revocation was not
given in the same way the power was
gained.
b. No more, because the third person (X)
is in bad faith.
c. No, more, because the transaction
that will be entered after revocation
will be void.
d. Answers not given.
22. Pund met Ter and introduced Al as the
agent of Pud. As a result, Ter dealt with
Al. Is Pund liable for the acts of Al
when as a matter of fact, it is not true
that Al is his agent?
a. Yes, for what is created here is an
implied agency.
b. Yes, because Pund created an agency
by estoppel.
c. No, because Al is not really an agent
of Pund.
d. \no, because neither an implied
agency nor an agency by estoppels has
been created among the parties.
23. Pal, a Filipino citizen called his
brother, Ar, by phone, authorizing the
latter to sell his 5—hectare Riceland
located in Nueve Ecija. On the strength
of such authority, Ar sold the land
belonging to his brother. Is the sale
valid?
a. Yes, because the sale has been
authorized by Pal, the owner of the
land.
b. Yes, if the sales instrument is
reduced in writing.
c. No, because the authority to sell must
be reduced in writing.
d. No, because the authority to sell must
b. The authority of B from A is by way
of letter and B sells the land to C
in writing.
c. The authority of B is oral and B sells
the land to C for P50,000 in a written
contract of sale.
d. The authority of B is in writing but
the sale of the land in writing was
made beyond the period expressly set
forth by A.
25. A appoints B to sell his land.
Example 1 – if the authority of B is oral
and B sells the land in writing, the sale
is valid.
Example 2 – if the authority of B is in
writing and B sells the land orally, the
sale is valid.
Which is correct?
a. 1st example is false but 2nd example is
true.
b. Both examples are true.
c. Both examples are false.
d. 1st example is true but the 2nd example
is false.
26. Pan wrote his friend. Ali to sell his
land in Zamboanga City. This land was
purchased by Bal, a third person.. Ali
did not remit the money. Pan now wants
to recover the land from Bal.
a. Pan cannot recover because an agency
by estoppels has been created.
b. Pan can recover because Ali is in bad
faith.
c. Pan can recover because the authority
did not comply with the requisite that
it must be in a special power of
attorney.
d. Pan cannot recover because the sale
is
valid,
the
letter
being
a
sufficient authority.
27.
28. Pene made Arro as his agent for all his
properties. The contract indicates that
“Pene withholds no power from the agent
and that the latter can execute acts
which he considers deem appropriate and
that the agent is given general and
unlimited powers.” Which of the following
acts can be validly done by Arro?
a. To compromise in behalf of Pene.
b. To lease real property to another
person for more than one year.
c. To make customary gifts for charity.
d. To sell or mortgage Pene’s land.
29. P appointed A as his agent with a
generally worded authority stating that
he withholds no power from A and that he
has allowed him absolute and unlimited
powers. Accordingly, A sold P’s house and
lot to X; leased to T an apartment unit
for 2 years; also leased to W, P’s car
for 5 years.
a. All the contract of A with X, T and W
are valid and enforceable.
b. All the contract of A with X, T and W
are unenforceable.
c. The contract with X and T are
unenforceable but the contract with W
is valid and enforceable.
d. The contract with W is unenforceable
but the contract with X and T are
valid and enforceable.
be in a public instrument.
24. A appoints B as his agent to sell his
land. Which of the following is perfectly
valid?
a. The authority of B is in writing and
the sale of the land n favour of C is
oral.
30. Considered
“mere
acts
of
administration”, which an agent is
authorized to do if given an agency
couched in “general term”. Which is the
exception?
a. To sue for the collection of debts and
to engage services of a counsel to
preserve the ownership and possession
of the principal’s property.
b. To give customary gifts for charity
or the employees in the business
managed by the agent.
c. Unregistered lease of real property
to another person for one year.
d. None of the above.
31. Which of these in not an act of ownership
and, therefore, need to be contained in
a special power of attorney for the agent
to possess the same?
a. To make payments which are in the
ordinary course of business.
b. To effect novations which put an end
to obligations contracted before the
agency.
c. To waive an obligation gratuitously.
d. To obligate the principal as a
guarantor.
32. Which of the following constitute an act
of strict domination or ownership?
a. To bind the principal to render some
service without compensation.
b. To sue for the collection of debts.
c. To lease real property to another
person for six months.
d. To make customary gifts for charity.
33. Three of the following requires a special
power
of
attorney.
Which
is
the
exception?
a. Accept inheritance.
b. To waive obligation gratuitously.
c. To bind the principal in a contract
of partnership.
d. None of the above.
34. Which of the following statement is true?
a. In a principal appoints an agent in
writing with respect to the slae of a
piece of land and the latter sold it
to a buyer orally, the contract
between the agent and the buyer is
void.
b. A contract of agency is generally
gratuitous.
c. To lease a personal property to
another person for more than one year
does not require a special power of
attorney.
d. The insolvency of the principal but
not the agent shall extinguish the
agency.
35. If an agents contract in the name of his
principal, exceeding the scope of his
authority, which would be the status and
effect of the contract?
a. Unenforceable
b. Void
c. Voidable
d. Valid
e. None of the above
36. Pera executed a special power of attorney
authorizing Aba to mortgage his land. Aba
sold the same. Is the sale void?
a. Yes, a special power to sell includes
the power to mortgage.
b. Yes, because it is voidable.
c. No, because it is unenforceable
d. No, because it is perfectly valid.
37. A special power to
power to
a. Mortgage
sell includes
the
c. Make
usual
representations
warranty.
d. To deliver the property.
and
39. Which of the following contracts is void?
1st: the agent acting without authority in
behalf of the principal.
2nd: the agent acting without authority
and in behalf of himself.
a.
b.
c.
d.
1st contact only
2nd contract only
Neither 1st nor 2nd contracts
Both 1st and 2nd contracts
40. Without authority with Gon, Killua sold
Gon’s car to Kurapika in behalf of Gon.
a. The transaction is void because
Killua is not authorized by Gon.
b. The contract in unenforceable which
cannot be ratified.
c. Gon is not bound by the transaction
unless he ratifies.
d. Kurapika can have a claim against Gon
because the property belongs to the
latter.
41. The agent, excess of the authority given
to him by his principal enters into a
contract with a third person. If the
principal ratifies the contract, who will
be liable to the third person, if any?
a. Only the principal
b. Only the agent
c. Both the principal and the agent
jointly
d. Both the principal and the agent
solidarily.
42. P appointed A as an agent to sell P’s car
for P500,000. Thru A’s good marketing
style, he was able to sell the car for
P600,000, 50% downpayment, 50% payable in
2 years. Hence,
a. Sale is unenforceable. A must render
an account of his transaction to P up
to P500,000 only.
b. Sale in enforceable. A must render an
account of his transaction to P up to
P600,000 after collection.
c. Sale is enforceable because A sold it
in a manner more advantageous than
that instructed by the principal.
d. Sale is unenforceable because B
exceeded his authority.
43. Ben
authorized
Alf
to
sell
goods
belonging to the farmer. Alf sold the
goods without disclosing the principal.
The buyer is not also aware that Alf is
merely an agent of Ben. Which of the
following statement is correct?
a. Ben is not bound because the agent
acted in his own name.
b. Alf
is
not
bound
because
the
transaction is null and void.
c. Alf is bound because the agent is
authorized, but the buyer cannot
proceed
against
the
undisclosed
principal.
d. The buyer
takes
little
to
the
merchandise but Ben can maintain
successfully an action against him
for the recovery of the goods or for
damages.
44. A, agent of P, in excess of authority
entered into a contract in the name of P
with X who kbew of the lack of authority
and P did not ratify the contract. The
b. Barter
c. Sell on Credit
d. None of the above
38. The power of sell does not carry with it
the power to
a. Find a purchaser or to sell directly.
b. To pledge
contract is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
45. If an agent contracts in the name of his
principal, exceeding the scope of his
authority, what would be the status and
effect of the contract if the other party
knows that he (agent) is unauthorized?
a. Void contract
b. Voidable contract
c. Unenforceable contract
d. Rescissible contract
46. Sunako is the agent of Kyohei, Kyohei
athorized Hiroshi to sell his BMW car on
installemt basis, Nao, the buyer paid the
downpayment,
hence,
the
car
was
deliveres. Nao, however did not pay the
balance, in a suit for collection of sum
of money, Nao interposed the defense that
Kyohei has no personality to sue him
because Sunako did not disclose Kyohei as
the principal.
a. Nao is correct because the contract
deals only with hum and Sunako.
b. The defense of Nao is correct because
the correct procedure is for Kyohei
to collect the balance from Sunako and
for the latter also to collect from
him.
c. Te defense of Nao is not correct
because Sunako dealt with property
belonging to Kyohei.
d. The defense of Nao is not correct
because Sunako is an agent of Kyohei.
47. Conan appointed Sinichi to sell his car
for P300,000. Sinichi sold the car to
Haibara for P300,000 but Sinischi acted
in his name. After delivery Haibara
inspected the car and he found hidden
defects in the car. Can Haibara file an
action against Conan even when Shinichi
acted in his own name?
a. No, under caveat emptor or let the
buyer beware.
b. Yes, because this is a contract
involving a property belonging to the
principal.
c. No, because the agent acted in his own
name.
d. No, because this is unenforceable by
law.
48. By virtue of the existence of an
emergency, the authority of an agent is
correspondingly enlarged in order ti cope
with the exigencies or the necessities of
the moment.
a. Implied agency
b. Agency by estoppels
c. Agency by necessity
d. Agency by ratification
49. One of the following is not a requisite
if agency by necessity.
a. Existence of a very urgent situation.
b. Agent cannot communicate with the
principal
c. The additional power is for the
protection of the principal and
agent.
d. The authority ceases immediately when
no longer needed.
50. Goblin appointed Grim Reaper as agent to
sell his house and lot for P2 < on
instalment basis, Grim Reaper, however,
was able to sell it for the same price
in cash.
a. Grim Reaper is liable to Goblin for
damages due to bad faith.
b. Grim Reaper is liable to Goblin
because
he
had
exceeded
his
authority.
c. Grim reaper is not liable to Goblin
51. Yong authorized Jong to sell his electric
typewriter. He instructed Jong to sell it
for P5,000. Jong offered the lectric
typewriter to Jung, who agreed to buy it
for P6,000. Which of the following
statement is false?
a. Jong cannot sell it to Jung because
the instruction of Yong is to sell it
for P5,000 only.
b. Jong can sell it and deliver for
P6,000 but he is required only to
remit P5,000.
c. Jong should inform Jung that the
selling
price
of
the
electric
typewriter is P5,000.
d. Jong can sell it to Jung and deliver
the total purchase price to Yong.
52. Spongebob appointed Patrick to sell his
car in cash for P1M. Patrick sold for
P1.5
M
on
straight
term
with
a
downpayment of 50% and the balance after
delivery of the car. The contract of sale
us
a. Void sale because it was not made in
cash as instructed by Spongebob.
b. Unenforceable sale because Patrick
exceeded his authority.
c. Voidable because the buyer was misled
as to the price of the car.
d. Valid
because
Patrick
did
not
exceeded his authority since the
contract was advantageous to the
principal.
53. An agent with a general powers of
administration, desirous of improving
the
financial
condition
of
his
principal’s business, sold a piece of
land belonging to his principal for
P1,000,000 which is double the price that
appeared in an inventory prepared by the
principal before leaving the place.
a. The sale is valid because it is
obviously to the advantage of the
principal.
b. The
sale
is
valid
because
no
prohibition was emphasized to sell
the property.
c. The sale is not valid because there
was no clear instruction from the
principal to sell the land.
d. The sale is not valid because an agent
with powers of administration cannot
perform an act of strict dominant
without a special power of attorney.
54. Minam appointed Shin to manage his
businesses in the Philippines while he
was in abroad. Upon Minan’s return he
noticed that his 2006 Toyota Innova car
was sold by Shin to Lee in amount of
P500,000 and the registration has been
transferred to Lee although there was
still a balalnce amounting to P100,000.
Minam demanded from Lee the payment of
the balance where Lee paid him. In this
case
a. The sale of the car is not valid
because Shin acted beyond the scope
of his authority.
b. The sale is valid because it has been
ratified by Minam.
c. The sale is unenforceable because
Shin is not armed with a special power
of attorney.
d. The sale is voidable which can be
ratified by Minam.
55. Mitch appointed George as his agent to a