1. It is a contract whereby one if the parties obligate himself to deliver something to another who on his part, bunds himself to pay therefor a sum of money or its equivalent. a. Contract of sale b. Contract to sell c. Contract for a piece of work d. Contract of barter or exchange 2. It is one of the characteristics of a contract of sale which doesn't depend on other contract for existence. a. Consensual b. principal c. Nominate d. Commutative 3. This contract of sale is not subject to any condition a. Contract to sell b. Conditional Contract of Sale C. Absolute contract of sale D. None of the above 4. The following are essential requisites of a contract of sale. a. Consent b. Object c. Cause d. all of the above 5. Refers to the elements which are deemed to exist in certain contracts even in the absence of some stipulations. a. Natural Elements b. Accidental elements c. absolute d. Conditional 6. Below are some examples of accidental elements except. a. Conditions B. Interest C. Penalty D. Warranty against eviction 7. The object of a contract of sale must be: a. Determinate b. Licit c. possible d. All of the above 8. Sale of a vain hope or expectancy. a. Void b. Valid c. voidable d. Rescissible 9. Things having potential existence a. Void b. Valid c. Voidable D. Rescissible 10. Sale of mere hope or expectancy a. void B. Valid C. Voidable D. Rescissible 11. Sale of future inheritance a. void B. Valid C. Voidable D. Rescissible 12 . The stages of a contract of sale are the ff except: a. Negotiation B. Counter-offer . C. Perfection D. Consummation 13. It shall be considered as part of the price and as proof of the perfection of the contract. a. Option Money B. Initial Payment C. Downpayment D. Earnest Money . 14. When a buyer who bought an undivided interest in a thing, he becomes a co-owner of the thing A. True . B. False C. Somewhat true D. Somewhat false 15. In a sale of a fungible goods, if later on it was discovered that the mass of fungible goods contains less than what was sold, the buyer becomes the owner of the whole mass. A. True . B. False C. Somewhat true D. Somewhat false 16. Things subject to a resolutory condition may be the object of the contract of sale. A. True . B. False C. Somewhat true D. Somewhat false 17. It a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. a contract of agency b. Contract of barter/exchange c contract for a piece of work D. None of the above 18. It is a contract whereby the contractor binds himself to execute a piece of work for the employer in consideration of a certain price or compensation. a contract of agency b. Contract of barter/exchange c contract for a piece of work D. None of the above 19. Contract for a piece of work is not covered in statute of frauds a. True B. False C. Somewhat true D. Somewhat false 20. It is contract whereby one of the parties binds himself to give one thing in consideration of the others promise to give another thing. a contract of agency b. Contract of barter/exchange c contract for a piece of work D. None of the above 21. As a general rule, if price is not ascertained or determined, there is no sale. a. True B. False C. Somewhat true D. Somewhat false 22. The following are instances where price is considered ascertained. a the parties have fixed or agreed upon a definite amount b. It be certain to another thing certain c. The determination of the price is left to the judgement of a specified person/persons. D. All of the above 23. The price fixed by the third person specified by the parties is binding upon them. a. True B. False C. Somewhat true D. Somewhat false 24. If the third person refuses or cannot fix it, the parties may subsequently agree upon the price a. True B. False C. Somewhat true D. Somewhat false 25. If the third person is prevented from fixing the price by fault of the seller or buyer, the party not in fault may obtain redress against a person the party in fault. a. True B. False C. Somewhat true D. Somewhat false 26. If the price is inadequate, it does not affect the contract. Thus, the contract us valid. a. True B. False C. Somewhat true D. Somewhat false 27. What is the effect if the price is simulated or false a. The contract is void b. The contract is valid. C. The contract is rescissible. D. The contract is voidable. 28. The fixing if the price can never be left to the discretion of one of the contracting parties. a. True B. False C. Somewhat true D. Somewhat false 29. When the price haven't been fixed and there has been delivery, the vendee must pay a reasonable price thereof. a. True B. False C. Somewhat true D. Somewhat false 30. It cover the period from the time the prospective contracting parties indicate interest a. Negotiation B. Perfection C. Consummation D. Counter offer 31. It takes place upon the concurrence of the essential elements of the sale which are the meeting of the minds of the parties upon the object and upon the price. a. Negotiation B. Perfection C. Consummation D. Counter offer 32. It is a stage where the parties perform their respective undertakings. a. Negotiation B. Perfection C. Consummation D. Counter offer 33. Sales in public auction is perfected by: a. Fall of the manner b. any other manner c. a or b d. none of the above 34. The seller has the right to bid in the auction provided: a. b. c. d. Such right is reserved Notice was given that the sale is subject to a right to bid on behalf of the seller His right is not prohibited by law All of the above 35. It is only after this that the ownership of the thing sold is transferred to the vendee. a. b. c. Delivery Perfection of the contract Payment d. Cannot be transferred 36. A unilateral promise or offer to sell or to buy a thing which is not accepted creates no juridical effect or legal bound. Such unaccepted offer is called ____________ . a. b. c. d. Policitation Solicitation Redemption Revolution 37. Principle which states that the thing perishes with the owner. a. b. c. d. Res perit domino Genus nunquam perit Negotiorum gestio Solution indebti 38. Who is liable for the loss before perfection a. b. c. d. Seller Buyer Agent Carrier 39. who is liable if the thing is lost at the time of the perfection a. b. c. d. Seller Buyer Agent Contract is void 40. he is liable for the loss of the thing after perfection but before its delivery. a. Seller b. Buyer c. agent d. carrier 41. In the contract of sale of goods by description or by sample, the contract may be rescinded if the bulk of the goods delivered do not correspond with the description or the sample. a. b. c. d. True False Not sure Somewhat true 42. It is money is given by the buyer to the seller to bind the bargain. It is actually a partial payment of the purchase price and is considered as proof of the perfection of the contract. a. b. c. d. Earnest money Option money Bill of exchange Bill of lading 43. A contract of sale may be entered into any form. a. b. c. d. True False Somewhat true Not false 44. The following contracts must be in writing a. b. c. d. Sale of personal property at a price not less than Php 500 Sale of real property Sale of property not to be performed within a year from the date thereof. All of the above 45. In sale of personal property payable in installments, the vendor has the following remedies, a. b. c. d. Exact fulfillment of the obligation Cancel the sale should the vendee fail to pay two or more installments Foreclose the chattel mortgage All of the above 46. Those remedies can be performed cumulatively or successively. a. b. c. d. True False Somewhat true Not sure 47. the rents or installments paid can be forfeited only and only if a. b. c. d. If stipulated After 6 months Can never be forfeited If allowed by law 48. As a general rule, he shall pay the expenses and execution of the sale. a. b. c. d. Seller Buyer Bailee Carrier 49. As a general rule, minors are incapacitated to enter into contracts except if where ______________ are sold to them, as a consequence, they shall pay a reasonable price. a. b. c. d. Necessaries Luxuries Cars Cellphone 50. As a rule, this contract of sale involving a piece of land is void, A. B. C. D. Between a minor and a capacitated person. Between two insane persons who did not act during lucid interval Between first degree cousins Between husband and wife 51. A contract of sale is in the stage of conception when A. B. C. D. There is meeting of the minds Negotiations are in progress The parties come to an agreement The contract is perfect 52. Three of the following are the requisites in order that the vendee may enforce the vendor’s liability in case of eviction. Which one is not? a. There must be a final judgment depriving the vendee of a part or whole of the thing sold. b. The vendee must have appealed from such judgment rendered against him. c. The deprivation of the vendee is based on a right prior to the sale or an act imputable to the vendor. d. The vendor is notified of the suit at the instance of the vendee. 53. Three of the following are the requisites in order that the buyer may enforce the seller’s liability for hidden defects. a. The defects of the thing sold must not be patent or visible. b. The defects render the thing unfit for the use which it is intended, or which diminish its fitness for such use to such an extent that had the buyer been aware thereof he would not bought it. c. The defects must be existing at the time of sale. d. The defects must be capable of determination by an expert. 54. The vendor shall be liable for the death of the animal sold when the following requisites are present, except: a. The disease existed at the time of sale. b. The disease is the cause of the death of the animal. c. The disease must be redhibitory. d. The animal dies within 3 days from the time of purchase. 55. The justified refusal of the buyer to accept the goods produces the following effects, except: a. buyer has no duty to return the goods unless otherwise stipulated. b. title to the goods does not pass on to him. c. buyer shall not be obliged to pay the price. d. buyer is obliged to constitute himself as depositary until he returns the goods. 56. In three of the following cases, the buyer is not entitled to suspend the payment of the price. Which one will give him the right to suspend? a. Disturbance in the possession or ownership of the thing purchased. b. The seller gives him security for the return of the price. c. It has been stipulated that the buyer shall pay the price notwithstanding any disturbance. d. The disturbance is a mere act of trespass. 57. A contract of sale with a right to repurchase and other contracts including a contract purporting to be an absolute sale shall be presumed to be an equitable mortgage in the following cases, except when the: a. price of sale with right to repurchase is unusually inadequate b. vendor remains in possession of the thing sold c. period to repurchase the property is extended d. grantee owns an urban land 58. An owner of a rural land has the right to legal redemption of an adjoining rural land sold if the following requisites are present, except when the: a. adjoining rural land is not separated by any apparent servitudes for the benefit of other estates b. land sold does not exceed one hectare c. grantee owns another rural land d. grantee owns another urban land 59. This refers to the right of an adjoining owner of an urban land to be given preference to the purchase of a small piece of urban land which is held for speculation before it is offered for sale to others. a. Right of subrogation b. Right of redemption c. Right of pre-emption d. Right of repurchase 60. A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, shows the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as: a. legal mortgage b. equitable mortgage c. conventional mortgage d. voluntary mortgage 61.. If a movable property is sold separately to two or more different vendees, ownership shall belong to the person: a. who in good faith first paid the purchase price in full b. who in good faith first recorded the sale in the Registry of Property c. who in good faith presents the oldest title d. who in good faith first took possession of the property 62. . A contract of sale is perfected upon: a. compliance with the requirements of the law as to form b. delivery of the object of the contract c. the meeting of the minds on the thing which is the object of the contract and upon the price d. demand 63. It is a contract by virtue of the terms of which the parties thereto promise and obligate themselves to enter into another contract at a future time, upon the happening of certain events, or the fulfillment of certain conditions. a. Contract of adhesion b. Contract of option c. Contract of sale d. Auto-contract 64. A contract of sale is not a: a. principal contract b. nominate contract c. consensual contract d. impossible service 65. The Recto Law applies to which of the following sale? a. Sale of a care on straight term b. Sale of house and lot on installment c. Sale of car on installment where the buyer constituted a mortgage on his truck d. Sale of a piano on installments where the buyer constituted a chattel mortgage on the piano 66. This refers to the warranty of the seller that he has the right to sell the thing at the time when ownership is to pass, and which can be enforced if the buyer is deprived of the property sold by a final judgment in court. a. Warranty against hidden defects b. Warranty of merchantable quality c. Warranty against eviction d. Warranty of possession 67. One of the distinctions between a contract of sale and a contract for a piece of work is that a contract for a piece of work: a. is not governed by the Statute of Frauds. b. refers to a contract for the delivery of goods which are manufactured in the ordinary course of business although the same are not available. c. has for its parties the vendor and the vendee. d. has for its consideration the price of the thing. 68. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to induce the buyer to purchase the same, relying on such promise or affirmation. a. Condition b. False representation c. Warranty d. Seller’s talk 69. In one of the following cases, the ownership of the object of the contract is transferred to the other party upon delivery. a. Contract to sell b. Agency to sell c. Sale or return d. Sale on approval 70. Which of the following contracts of sale is void? a. Oral sale of a piece of land made through an agent whose authority is in a public document. b. Sale of a piece land in a public instrument made through and agent whose authority was given orally by the principal. c. Sale of a piece of land in a private instrument made through an agent whose authority is in a public instrument. 71. Which of the following documents of title requires endorsement and delivery for its negotiation? a. A warehouse receipt which states that the goods are to be delivered to bearer. b. A bill of lading which states that the goods are to be delivered to the order of a specified person but such person indorsed it in blank. c. A warehouse receipt which states that the goods are to be delivered to bearer but the bearer indorsed it to a specified person. d. A bill of lading which states that the goods are to be delivered to a specified person. 72. In which of the following cases is the seller not obliged to make any payment to the buyer for breach of warranty against eviction? a. When such warranty has not been agreed upon. b. When there was no stipulation exempting the seller from liability. c. When there was a stipulation exempting the seller (who was in good faith) from breach of warranty and the waiver was made by the buyer without the knowledge of the risks of eviction. d. When there was a stipulation exempting the seller (who was in good faith) from breach of warranty and the waiver was made by the buyer with knowledge of the risks of eviction. 73. The buyer is obliged to pay interest for the period between the delivery of the thing sold and the payment of the price of the following cases, except if: a. there is a stipulation to pay interest b. there is no such stipulation but the thing sold produces fruits of income c. the buyer is in default, from the time of judicial or extrajudicial demand for the payment of the price d. none of the foregoing 74. A contract of sale possesses three of the following characteristics. Which is the exception? a. Bilateral, since the parties are bound by reciprocal prestations. b. Commutative, because he parties give almost equivalent values. c. Onerous, since there is an exchange of valuable consideration. d. Real, because the object of sale must be delivered for the perfection of the contract. 75. When the buyer is justified in refusing to accept the goods being delivered to him and has relayed such refusal to the seller, such refusal produces the following effects, except: a. buyer has no duty to return the goods unless stipulated b. title to the goods does not pass to the buyer c. buyer is not obliged to pay the price d. buyer automatically becomes a depositary of the goods. 76. The unpaid seller, in addition to his right to retain the goods while he is in possession of them, has the following rights, except the right: a. b. c. d. of stoppage in trasitu to resell the goods to rescind the sale to bid when the goods are resold 77. One of the following is a natural element of a contract of sale. a. The price of the goods. b. The goods sold. c. The stipulation to pay interest on the purchase price of the goods. d. The seller’s warranty against hidden defects. 78. It refers to the right which the vendor reserves to himself to repurchase the thing sold, with the obligation to reimburse the vendee of the price, the expenses of the contract, any other legitimate payments made therefore and the necessary and useful expenses made on the thing sold. a. Conventional redemption b. Legal redemption c. Equity of redemption d. Right of pre-emption One of the following statements pertaining to a sale by auction is incorrect. Which is it? a. A sale by public auction is perfected when the auctioneer announces its perfection by the fall of the hammer, or in any other manner. b. Before perfection, any bidder may retract his bid. c. Before perfection, the auctioneer may withdraw the goods unless the auction was announced to be without reserve. d. The seller may validly participate in the bidding without prior notice to the bidders. 79. 80. I. The creditors of the vendor cannot make use of the right of redemption against the vendee, until they have exhausted the property of the vendor. II. Sale is a real contract because delivery is necessary to transfer ownership to the buyer. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. Both statements are false 81. I. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment. II. In case of doubt, a contract purporting to be an equitable mortgage shall be construed as a sale with a right to repurchase. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. Both statements are false 82. I. Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods. II. If the vendee has renounced the right to warranty in case of eviction, and eviction should take place, the vendor shall only pay the value which the thing sold had at the time of sale. A. B. C. D. First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false 83. . I. The ownership in the thing shall not pass to the purchaser until he has fully paid the price. II. If at the time the contract of sale is perfected, the thing which is the object of the contract has been partially lost, the contract shall be without effect. A. B. C. D. First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false 84. I. If two or more animals are sold together, whether for lump sum or for a separate price for each of them, the redhibitory defect of one shall give rise to the redhibition of the others. II. There is no warranty against hidden defects of animals sold at fairs or at public auctions or of livestock sold as condemned. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are false 85. I. If the animal sold should die within three (3) days after its purchase, the vendor shall be liable to the vendee. II. The fixing of the price can never be left to the discretion on one of the contracting parties. However, if the price fixed by one of the parties is accepted by the other, the sale is perfected. A. B. C. D. First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false 86. I. If the price is grossly inadequate, the sale is void. II. Whenever option money is given in a contract of sale, it shall be considered as part of the price and a proof of the perfection of the contract. A. B. C. D. First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false 87. Not an element of the sellers right of stoppage in transit A. B. C. D. The goods must be in transit The buyer must be insolvent The seller must be in possession of the goods The seller must be unpaid 88. Quasi-traditio is equivalent to A. B. C. D. Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Execution of a public instrument 89. When goods are delivered to the buyer on “sale or return” for period of seven days, ownership of the goods passes to the buyer A. B. C. D. Upon perfection of the contract Upon acceptance by the buyer of the offer of the seller Upon expiration of seven days Upon delivery of the goods 90. Not an implied warranty in a contract of sale A. B. C. D. Right to sell the thing at the time of perfection of the contract Reasonably fit for the purpose they are acquired Merchantable in quality Free from charges or encumbrances not declared or known to the buyer 91. The seller has the following actions for against the buyer if the latter has committed breach of the contract. a. b. c. d. action for the payment of price damages for the non- acceptance of the goods rescission of the contract all of the above 92. The seller has an action against the vendee for the payment of price with the following requisites. a.When the ownership has passed to the buyer and he wrongfully neglects or refuses to pay for the price b. When the price is payable on a certain day and the buyer wrongfully neglects or refuses to pay such price. c. When the goods cannot be readily resold for a reasonable price. d. All of the above. 93. The seller has the right to enforce damages against the buyer if and only if: a. The buyer without just cause neglects or refuses to pay the price. b. Where the ownership in the goods in the goods has not passed and the seller cannot maintain an action to the price. c. When the goods are not yet identified at the time of the contract. d. All of the above 94. Seller can rescind the contract even before delivery if : a. When the buyer has repudiated the contract of sale b. When the buyer has repudiated has manifested his inability to perform his obligations thereunder. c. when the buyer has committed a breach of the contract of sale. d. all of the above 95. The buyer has the right to specific performance against the seller if he should violate his obligation to make delivery. a.true b. false c. somewhat true d. somewhat false 96. Sales are extinguished by, a. common b. special c. legal or conventional redemption d. all of the above 97. It is the right which the vendor reserves to himself, to reacquire the property sold. a. conventional redemption b. legal redemption c. rescission d. compensation 98. A sale with a right to purchase a. pacto de retro sale b. absolute sale c. conventional redemption d. legal redemption 99. Remedy in equity by means of which a written instrument is made or construed so as to express or to conform to the real intention of the parties when such intention is not expressed in the instrument. a. reformation b. redemption c. remission d. novation 100. What is the limitation when to exercise the right of redemption? a. 4 years b. it shall not exceed 10 years c. after a final judgement, it shall be exercised within 30 days d. all of the above statements are the rules regarding the right to redemption.
