Law On Sales Practice Set

Law on Sales
1.Unless there is stipulation to the A. No, the obligation is one with a

contrary the expenses for the definite period, thus the creditor
execution or registration of the sale cannot demand fulfillment of
shall be borne by: the obligation as such would the
prejudicial to the rights of the
A. The Vendee debtor.
B. The Vendor B. No, the obligation is
C. The Vendee and Vendor extinguished because the
D. The agent or broker obligation is lost through a
fortuitous event.
2. A offered to sell his lot to B for C. Yes, the debt becomes due at
P100,000. In his offer to sell it was once because the guaranty was
stated that he is given 60 days to lost even through a fortuitous
prepare the P100,000 and as soon as event. Unless the debtor can
B is ready with the money, A will mortgage another property that
execute a deed of sale. Before the end is equally satisfactory.
of 60 days, A informed B that price of D. Yes, the debt becomes due at
the lot was increased to P120,000. once because, from the tenor
May B, compel A to accept P100,000 benefit is given solely to the
offered previously by A and make him creditor thereby giving the
execute the deed of sale? creditor the right to demand
performance even before the
A. Yes, because A already signed date.
his offer
B. No, For B never signified his 5. Mrs. Go sold and delivered her
acceptance of A’s offer. diamond ring to Mrs. Pat. It was
C. Yes, because there was actual agreed upon that after ten (10) days
meeting of minds of the parties Mrs. Pat will name and fix the price.
D. Answer not any of the above. On the tenth (10th) day, Mrs. Pat called
up by telephone Mrs. Go and stated
3. A wrote a letter to B wherein A the price at P10,000. Mrs. Go agreed.
offered to sell a piece of land to B for IS the sale perfected?
P200,000. B signified his desire to buy
the land. In A’s letter he gives B a A. Yes, the price stated and named
period of two (2) months within to by one of the contracting
produce the P200,000. After 45 days, parties was accepted by the
A told B that the price of the land is other.
now P250,000. Can B compel A to B. No, at the time of the sale the
accept the P200,000 first offered by A price was not fixed.
and execute the deed of sale? C. No, the price was left to the
discretion of one of the parties
A. Yes, because there was actual D. No, at the time of the sale the
meeting of the minds of A’s price is not known.
offer
B. No, for B did not signify his 6. Mr. Sy sold a parcel of land to Mr.
acceptance of A’s offer Tan for P200,000. Mr. Sy delivered the
C. Yes, because A is already transfer Certificate of Title of the land
estoppels by his signed letter to Mr. Tan. Later, Mr. Tan wanted to
D. Yes, because the period of two register the land to his name and he
(2) months has not expired needed a Deed of Sale. What can Mr.
Tan do?
4. Mr. AB owes Mr. CD P150,000 due
on August 1, 2010. Mr. AB executed A. Mr. Tan can compel Mr. Sy to
mortgage in favor of Mr. CD on Mr. execute a Deed of Sale
AB’s building to guarantee the B. Mr. Tan cannot compel Mr. Sy to
obligation. On August 10, 2010, the refund the P200,000 because
mortgage building was totally lost due the contract is not enforceable
to a strong typhoon. On August 12, C. Mr. Tan can sue Mr. Sy
2010, Mr. CD demanded payment enriching himself at the
from Mr. AB. Is Mr. CD’s demand valid? expense of another.
Law on Sales
D. Mr. Tan can possess and utilize B. Partial accomplishment of the
the land as a buyer in good agency.
faith. C. Upon withdrawal of the
principal.
7. Bonds which are not secured by D. Insanity of principal or agent.
any specific mortgage lien of pledge or
corporate property but by the general 12. D pledged his Singer Sewing
corporation are: Machine to C for P8,000. D was unable
to pay the obligation 60 days after it
A. Guaranteed bonds was due. C sold the machine at public
B. Debenture bonds auction for P6,000.
C. Income bonds
D. Redeemable bonds A. C cannot recover the deficiency
of P2,000 even if there is
8. The buyer of a thing has the right stipulation that he can.
to the fruits of the thing: B. C can recover the deficiency of
P2,000 even without
A. From the time the thing bought stipulation.
is delivered C. C cannot recover the deficiency
B. From the time the sale is of P2,000
perfected D. C can recover the deficiency of
C. From the time the obligation to P2,000.
deliver the thing bought arises.
D. From the time the fruits are
delivered.
9. Three (3) of the following are 13. In a sale, the buyer is entitled
option money. Which is the earnest and has the right to the fruit of the
money? thing sold from the time:
A. Given when contract of sale is A. The obligation to deliver the

perfected. thing sold arises
B. Given when there is no contract B. The sale is perfected
of sale. C. The thing sold is delivered
C. Given to bid the offer or in a D. The fruit of the thing sold is
unilateral promise to sell or to delivered.
buy.
D. Given as a separate 14. Mr. AB offered in writing to sell his
consideration from purchase house and lot for P750,000 to Mr. CD
price. on July 1, 2010. Mr. CD requested Mr.
AB to give him 60 days within which to
10. In a sale, this is actual delivery. raise the P750,000. On August 15,
2010 Mr. AB informed Mr. CD that the
A. Execution and signing of the price is raised and now at P1,000,000.
sale document. Can Mr. CD compel Mr. AB to sell his
B. When the goods sold are placed house and lot at P750,000 which was
in the control and possession of offered in writing by Mr. AB?
the buyer.
C. Delivery by the seller to the A. Yes, because Mr. AB is already
buyer of the key where the stopped by his written offer.
goods sold are kept. B. Yes, because the 60 days offer
D. The buyer is already in actual has not yet expired
possession of the goods. C. No, because Mr. CD has not
accepted the offer of Mr AB.
11. This is a mode to extinguish an D. Yes, there was meeting of the
agency: minds.
A. Death of the principal, but the 15. In distinguishing Earnest Money

agency is for the interest of the from Option money, earnest Money is:
principal and agent.
Law on Sales
A. Given when there is no contract B. The sale of a vain hope or
of sale, expectancy
B. Given only when there is C. Future goods
perfected contract of sale. D. Answer not given.
C. Given to bind the offer or in a
unilateral promise to sell or buy 20. When delivery takes place by the
D. Given as a separate mere consent or agreement of the
consideration from the purchase contracting parties as when the
price. vendor merely points to the thing sold
which shall thereafter be at the control
16. Gay appointed May to sell the and disposal of the vended if the thing
former’s car for P200,000. May sold sold cannot be transferred to the
the car to Pam, Pam inspected the car possession of the vendee at the time
and found hidden defects in the car. of sale, delivery is effected:
Can Pam file an action against Gay
even when May acted in her own A. By tradition symbolica
name? B. By traditio longa manu
C. By traditio brevi manu
A. No, under “Caveat Emptor” let D. Answer not given
the buyer beware.
B. Yes, because this is contract 21. The distinction between a chattel
involving property belonging to mortgage and a pledge is that in
the principal chattel mortgage:
C. No, because, May acted in her
own name not of the principal. A. The delivery of the personal
D. No, because the contract of sale property is necessary
is already perfected. B. The registration of the property
in the Registry of Property is not
17. Mr. San authorized Mr. Soy to sell necessary
his car for P200,000 with 5% agent’s C. The excess over the amount
commission. Mr. Soy sold the car to due after foreclosure, goes to
Mr. Dy for P250,000. For how much is the debtor
Mr. Soy accountable to Mr. San? D. Answer not given.
A. P200,000 22. Sale is distinguished from dation in

B. P190,000 payment in that in sale
C. P250,000
D. P240,000 A. There is a pre-existing
obligation or credit
18. B pledged his Rolex to C for B. The cause is the price
P4,000. B failed to pay C the P4,000 C. It is a mode of extinguishing an
on due date. C sold the Rolex watch at obligation in the form of
a public auction to the highest bidder payment.
at P3,500. D. Answer not given.
A. C can recover the deficiency of

P500 from B.
B. C can recover the deficiency of 23. Mr. Mar orders for his workers
P500 even without stipulation. 1,000 pieces of T-shirt ranging in size
C. C cannot recover the deficiency from small to large from RDG
of P500 unless there is Garments Mfg. Corp. The specified
stipulation. sizes, although not then available, are
D. C cannot recover the deficiency manufactured by said corporation and
of P500 even if there is consigned to its sales outlets
stipulation. regularly. The contract entered into by
Mr. Mar with the RDG Garments Mfg.
19. Which of the following may not be Corp. is a:
the object of sale?
A. Contract for a piece of work.
A. Things having potential B. Contract subject to a resolutory
existence condition
Law on Sales
C. A contract of sale Eg for accounting. Eg raised the
D. Answer not given defense that he was not validly
constituted as an agent of Mar. In the
24. Mr. Amado owes the BIR P100,000 case at bar, defense is not tenable
in delinquent taxes and penalties. In because there is:
order to evade the payment of said
liability, he executed a deed of sale of A. An actual agency
his only parcel of land valued for B. An implied agency
P200,000 in favor of his brother Pedro, C. A general agency
where P20,000 was stated as the D. Answer not given
purchase price but the BIR has
evidence that said price had never 27. Maria is authorized by Dulfo to sell
been paid, the purpose of the sale the latter’s washing machine for
being to prevent the BIR to levy upon P5,000 each at 10% commission. One
the land to satisfy the tax liability of day, Dulfo sells one washing machine
Mr. Amado. In this case: to Carla on credit (payable in 90 days)
but for a price of P6,000. If Dulfo does
A. The BIR may not levy upon the not ratify this sale on credit, he can
land because the sale is void collect cash payment from Maria:
B. The BIR without annulling the
sale may levy upon the land of A. P4,500 (P5,000 less P500
Amado pursuant to the commission)
provisions of the National B. P5,000 (the price without
Internal Revenue Code commission)
C. The BIR should first annul the C. P5,400 (P6,000 less P600)
sale before it may levy upon the D. Answer not given
land pursuant to the provisions
of the National Internal Revenue 28. Tony sold a piece of land to Rene
Code. binding himself not to sell the same to
D. Answer not given. another person. On the following day,
Tony sold the land to Carla who
25. Mr. Rene owns a mango tree immediately took possession in good
bearing fruits, ready for harvest. He faith. In the case at bar, the proper
sells all the fruits of that tree to Mr. remedy of Rene is to:
Mar who pays Mr. Rene the sum of A. Institute an action for the
P5,000. Rene tells Mar that he can just annulment of the sale to Carla
harvest the fruits anytime he likes B. Institute an action for the
pointing at the particular tree. For recovery of the land
legal purposes, Rene has fulfilled his C. Institute an action for damages
obligation to deliver the mango fruits against Tony
to Mar by: D. Answer not given
A. Traditio brevi manu 29. Ces kidnapped and tortured Ed for

B. Traditio longa manu refusing to sell his (Ed’s) land to Ces.
C. Traditio simbolica Ed who could no longer bear the
D. Answer not given physical pains inflicted upon him
signed a document of sale in favor of
26. Mar Garci, before going to Spain Ces. This sale is:
appointed Jc Legaspi as his agent to
administer his properties in the A. Void
Philippines. Afterwards, Legaspi wrote B. Voidable
Garci that he ( Legaspi) was C. Valid
withdrawing from the agency because D. Answer not given
of failing health. Legaspi, in the same
letter said that he appointed Eg 30. A sold a residential land to B. B
Legaspi as his substitute and that Mar paid the consideration. When B
should extend a new appointment to wanted to register the sale at the
Eg. Eg took over the duties of Jc but Register of Deeds, the latter refused
Mar did not bother to appoint Eg to act to register and requires the
as his agent until Mar’s death. Now presentation of the certificate of
Mar’s heirs brought an action against
Law on Sales
capital gains tax payment. What can B 33. Mr. A mortgaged his residential
do? land to Mr. B as a guarantee for the
payment of P400,000 obligation of Mr.
A. B may sue A to refund the A. They agreed that Mr. A shall not sell
consideration paid by B under the land while the obligation exists.
the maxim, “no one shall enrich The maturity of the mortgaged, C
himself at the expenses of offered to buy the land from Mr. A.
another.”
B. B cannot compel A to return the A. A cannot sell the land to Mr. C
selling price because the because of the agreement not
contract is not enforceable to sell
C. B may possess the residential B. A can sell the land to Mr. C only
land as a buyer in good faith if B consents in writing
D. B may compel A to pay the C. A can sell the land to Mr. C
capital gains tax and secure the despite the agreement not to
certificate of capital gains tax sell (?)
payment D. A cannot sell the land to Mr. C
unless A pays the obligation
31. A Seller sold to a Buyer a piece of
jewelry at a price of P20,000. The 34. Mr. D. Dy constituted Mr. S. Sim
contract provides that the Buyer will as his authorized agent to sell the
pay Seller a micro wave oven worth former’s Lancer car for P300,000 and
P5,000. What is the nature of the to pay him a 5% commission on the
contract? selling price. Mr. S. Sim sold the car
for P320,00. Mr. S. Sim shall remit to
A. Sale Mr. D Dy:
B. Partly sale and partly barter
C. Barter A. P300,000
D. Commodatum B. P320,000
C. P285,000
32. Mr. A. Abad signed a letter D. P305,000
addressed and delivered to Mr. B.
Baje. The terms of the letter are: 35. Ownership of the thing sold is
transferred / acquired / retained:
1. An offer to sell a 500 sq.m. lot
for P300,000 A. Retained by the seller in “sale
2. An option time up to October of return”
31, 2010 for Mr. Baje to raise B. Transferred to the buyer upon
the P300,000 constructive or actual delivery
3. Upon payment of the P300,000, of the thing sold
Mr. Abad will execute and sign a C. Acquired by the buyer upon
Deed of Sale D. Transferred to the buyer upon
4. On October 31, 2010, Mr. A acceptance of the price.
Abad sent a letter to Mr. B. Baje
asking for a new price of 36. If redemption is made, which of
P350,000 for the 500 sq. m. lot. the following will not be paid by the
seller to the buyer
Can Mr. B. Baje compel Mr. A. Abad to
accept the P300,000 and make him A. Price paid by the buyer
sign and execute a Deed of Sale? B. Expenses in the execution of
the sales contract paid by the
A. No, Mr.B. Baje did not accept buyer
the offer of Mr. A. Abad C. All necessary expenses on the
B. Yes, Mr. A. Abad is already thing sold and to be redeemed
stopped by his sighing the D. Interest of the price paid by the
letter and offer. buyer
C. Yes, there was actual meeting
of the minds. 37. The following are requisites of
D. Yes, the contract is perfected Pledge except:
A. The disposal of the pledge

Law on Sales
B. The absolute ownership of the the land orally. The sale is
property pledged valid
C. The thing pledge may be placed
in the possession of a third A. Both examples are true
person B. Both examples are false
D. To bind a third person, it must C. First example is true, but the
be recorded in the office of the second example is false
Register of Deeds D. First example is false, but the
second example is true
38. The leviable properties of the
debtor are transferred to the creditors 43. Which of the following is not a
to be sold and from the proceeds, the characteristic of Sale?
creditor is paid;
A. Pledge A. Bilateral
B. Cession B. Gratuitous
C. Dacion en pago C. Consensual
D. Chattel mortgage D. Nominate
39. A characteristic of the Contract of 44. The following are the alternative
Sale which involves exchange of remedies, except one available to the
value, it is buyer in case of breach of warranty by
the seller:
A. Commutative
B. Nominate A. Keep the goods and ask for
C. Bilateral damages
D. Consensual B. Refuse to accept the goods and
ask for damages
40. The principal is not liable for C. Rescind the sale and retain the
expenses incurred by the agent: goods
D. Keep the goods and set up
A. When it was stipulated that the against the seller by way of
agent would only be allowed a recoupment in price.
certain sum
B. When the agent has complied 45. Which of the following statements
with his obligations by acting is true and correct?
according to the principal’s
instructions A. In a Contract of Sale, the full
C. When the agent incurred them payment of the price is in the
with the knowledge that an nature of a suspensive condition
unfavorable result would ensue in that the seller is obligated to
and the principal was aware of transfer ownership of the thing
it sold.
D. When the expenses were B. The seller need not be the
incurred without the fault of the owner of the thing sold at the
agent perfection of the sale.
C. There may be a transfer of
41. An assignor of credit warrants: ownership over the thing even if
the seller has not delivered the
A. Solvency of the debtor thing sold to the buyer.
B. Existence and legality of credit D. In a Contract of Sale, the buyer
C. Collectibility becomes the owner of the thing
D. Assurance of payment sold upon full payment of the
purchase price.
42. A appoints B to sell his land
46. X, Y and Z were appointed by R as
Example 1. If the authority of B is his agents to administer his building
oral and B sells the which was rented by various tenants
land in writing. The sale while R was abroad for three years. In
is valid. the course of management, X cause
Example 2. If the authority of B is through his fault damage to the
in writing and B sells
Law on Sales
building, which was assessed at but for a price of P120 each. After
P30,000. R can claim: ratifying the sale on credit, B can
collect. After ratifying
A. P10,000 from each of X, Y and the sale on credit, B can collect
Z. cash payment from C.
B. P30,000 from X
C. P30,000 from Y and Z A. P1,000
D. P30,000 from either X, Y and Z B. P1,200
C. P1,080
47. Pledge and Mortgage are D. P 900
accessory contracts because they:
52. Three of the following are
A. Are meant to secure the essential requisites of a contract of
fulfillment of a principal mortgage. Which one is not?
obligation.
B. Cannot exist if the principal A. The person instituting the
obligation is void. mortgage has the free disposal
C. Can exist by themselves. of his property.
D. Cannot secure fulfillment of B. The contract must be in writing.
rescissible obligation. C. The mortgagor is the absolute
owner of the thing mortgaged.
48. Mr. A offered to sell his land to Mr. D. The mortgage is constituted to
B for P300,000. Mr. B accepted the secure the fulfillment of a
offer and paid Mr. A the purchase principal obligation.
price. Mr. A delivered the owner’s
certificate of the Transfer certificate of 53. In real mortgage, the following
Title to the land. Mr. B wants to rules are valid, except one:
register the land in his name, but the
Register of Deeds asks Mr. B for the A. A stipulation in the mortgage
Deed of Sale. What can Mr. B do? contract prohibiting the owner
from alienating the immovable
A. He may occupy the land as a mortgaged is valid.
buyer in good faith. B. The mortgage may alienate the
B. He cannot compel Mr. A to mortgage credit or assign to a
return the payment because the third person in whole or in part.
contract is unenforceable. C. Any stipulation allowing the
C. He may compel Mr. A to mortgage creditor to
execute the Deed of Sale appropriate the property
because the contract is valid. mortgaged is null and void.
D. He may sue Mr. A to return the D. If alienation of the mortgage
purchase price under the legal credit is not registered, it is still
principle that no one may enrich valid between the parties.
himself at the expense of
another. 54. A wrote a letter to B wherein A
offered to sell his piece of land to B for
49. Pacto de retro sale as P200,000. B signified his desire to buy
distinguished from mortgage: the land. In A’s letter, he gives B a
period of two (2) months within which
A. There is redemption by to produce the P200,000. After 45
payment principally of the debt. days, A told B that the price of the
B. There is no transfer of land is now P250,000. Can B compel A
possession of the thing sold to accept the P200,000 first offered by
C. There is no foreclosure unless it A and execute the deed of sale?
is declared as an equitable
mortgage. A. Yes, there was actual meeting
D. There is no transfer of of the minds of the parties
ownership of the thing sold. B. No, for B did not signify his
acceptance of A’s offer.
50. A is authorized by B to sell the C. Yes, because A is already
latter’s books for P100 each. A sells 10 stopped by his signed letter
books to C on credit
Law on Sales
D. Yes, because the period of two D. C can recover the deficiency of
months has not expired. P2,000.
55. A and B are good friends. A sold 59. In a contract wherein a person
and delivered his car to B. It was binds himself to render special service
agreed and understood that on the to do something in behalf of another
next Sunday A will name and fix the with consent of the latter.
price of the car. Sunday came. A
called B by phone and stated and A. Contract of piece of work
fixed the price at P150,000. Is the sale B. Contract of service
perfected? C. Contract of agency
D. Contract of exchange
A. Yes. The price was stated and
fixed on the date agreed upon. 60. Which of the following obligations
B. No. The price was left to the of the vendor cannot be waived:
discretion of the seller.
C. No. at the time of the sale, the A. To allow the buyer to examine
price is not fixed. the goods sold.
D. No. The price fixed by the seller B. To transfer ownership to the
was not accepted by the buyer. buyer.
C. To pay the expenses of the
56. In sale, this is actual delivery: deed of sale.
D. To warrant the thing sold.
A. Execution and signing of the
sales document. 61. A appoints B as his agent to sell
B. When the goods sold are his land, which of the following is
p0laced in the control and valid:
possession of the buyer.
C. Delivery by the seller to the A. The authority of B is in writing
buyer of the key where the and the sale of the land in favor
goods are kept. of C is oral.
D. The buyer is already in actual B. The authority of B from A is by
possession of the goods. way of letter and B sells the
land to C in writing.
57. This is a mode of extinguishing an C. The authority of B is oral and B
agency: sells the land to C for P50,000 in
a written contract of sale.
A. Death of the principal, but the D. When goods are delivered to an
agency is for the interest of the agent to be sold by him and the
principal and agent. agent is not liable to the
B. Partial accomplishment of the manufacturer of the goods.
agency.
C. Upon withdrawal of the 62. A stipulation whereby the pledge
principal. or mortgagee automatically becomes
D. Insanity of the principal or the owner of the thing pledged or
agent. mortgaged:
A. Pactum commisorium
58. D pledged his Singer Sewing B. Consolidation of ownership
Machine to C for P8,000. D was unable C. Conventional redemption
to pay the obligation 60 days after due D. Consignation
date. C sold the machine at public
auction for P6,000. 63. Which of the following statements
is true and correct:
A. C cannot recover the deficiency
of P2,000 even if there is A. Pledge and mortgage are
stipulation that he can. accessory contracts because
B. C can recover the deficiency of they cannot exist by
P2,000 even without stipulation. themselves.
C. C cannot recover the deficiency
of P2,000
Law on Sales
B. In both pledge and mortgage, I. The sale is not valid because a
the creditor is entitled to seller cannot sell that which he
deficiency judgment. does not own.
C. Where an obligation is secured
by a pledge or mortgage and it II. The sale is not valid because a
is not paid when due the pledge public document is required.
or mortgagee may dispose of
the thing pledged or mortgaged A. First statement is true, second
if there is an agreement to that statement is false.
effect between the parties. B. First statement is false, second
D. Unless otherwise agreed upon statement is true.
by the parties, the sale of the C. Both statements are true.
mortgage property extinguishes D. Both statements are false
in full the obligation of the
mortgagor to the mortgagee. 67. Husband owes C. Subsequently,
------------------------------------------------------ husband sold his car to his wife. If
------------------------------------------------------ husband cannot pay C on due date:
---------
64. I. A sales contract is a real I. C can question the sale
contract because no ownership is because the sale prejudices C,
transferred unless there is delivery. a creditor.
II. A sales contract is a real
contract because the seller suffers II. C can question the sale
the risk of loss until the object of the because husband is relatively
sale has been delivered. disqualified to enter into this kind
of sale.
A. First statement is true, second
statement is false. A. First statement is true, second
B. First statement is false, second statement is false.
statement is true. B. First statement is false, second
C. Both statements are true. statement is true.
D. Both statements are false C. Both statements are true.
D. Both statements are false
65. A sells to B for P25,000 all the
mango fruits to be harvested from the 68. A sells his TV set to B for P50,000
mango orchard which A plans to buy. on sale or return. Subsequently, the
TV set is lost by
I. The sale is valid because the fortuitous event.
mango fruits have potential
existence. I. The risk of loss pertains to the
seller because the buyer is not
II. The sale is valid because the at fault.
object of the contract need not
exist at the time of the II. The risk of loss pertains to
contract. the seller until the buyer signifies to
the seller that he accepts
A. First statement is true, second the TV set.
statement is false.
B. First statement is false, second A. First statement is true, second
statement is true. statement is false.
C. Both statements are true. B. First statement is false, second
D. Both statements are false statement is true.
C. Both statements are true.
66. A who plans to buy a piece of land D. Both statements are false
from B, enters into contract of sale
respecting the same land with X for 69. A offered to sell for P500,000 his
the price of P100,000. The contract is house and lot to B who was interested
in writing. in buying the same. A gave B thirty
days to raise the amount and as soon
as B is ready they will sign the deed of
sale. On the 25th day, A notified B that
Law on Sales
he is no longer willing to sell the perfection pertains always to the
property unless the price is increased seller.
to P550,000. II. Should fungible things be sold
for a price fixed according to weight,
I. B can compel a to accept the number or measure the risk of loss
P500,000 first offered because there pertains to the buyer after perfection
exists a bilateral offer to even before delivery.
sell and to buy a definite
property for a definite price. A. First statement is true, second
statement is false.
II. B cannot compel A to accept the B. First statement is false, second
P500,000 because this is merely an statement is true.
unaccepted unilateral C. Both statements are true.
promise to sell. D. Both statements are false
A. First statement is true, second 73. Maria purchased a quantity of bed

statement is false. sheets which were wrapped up in
B. First statement is false, second bales. The sale was done in the
statement is true. warehouse of Seller. Some bed sheets
C. Both statements are true. were pulled out from the bales
D. Both statements are false displayed and fount to be all right.
Maria then purchased 100 bales and
70. I. A promise to buy and sell a paid the price. After delivery, Maria
determinate thing for a price certain is discovered that some of the bed
reciprocally demandable. sheets contain holes.
II. An accepted unilateral promise I. Maria can return the bed sheets
to buy or to sell a determinate thing and recover the money she paid.
for a price certain is binding upon the II. Maria cannot return the bed
promissor if the promise is supported sheets and recover the money she
by a consideration distinct from the paid because the principle
price. “caviat emptor” applies.
A. First statement is true, second A. First statement is true, second
statement is false. statement is false.
B. First statement is false, second B. First statement is false, second
statement is true. statement is true.
C. Both statements are true. C. Both statements are true.
D. Both statements are false D. Both statements are false
71. A specific boat was sold to B for 74. A entered into a contract of sale of
the price of P1 million on credit. his car to B for a price of P50,000. The
Shortly after perfection of the sale but terms are: Upon payment of P20,000 A
before delivery, the boat was shall deliver the car and the balance
destroyed by a fortuitous event. to be paid after one month. B also
I. The seller suffers the loss executed a chattel mortgage on the
because at time of loss he was still car to secure the payment of the
the owner. balance. B defaulted in the payment of
II. The buyer suffers the loss the balance, therefore A foreclosed
because if it were not for the the mortgage. The proceeds realized
fortuitous event ownership would in the foreclosure sale were not
have transferred to him. sufficient to pay the entire balance.
statement is false. I. A can still recover the
B. First statement is false, second deficiency.
statement is true. II. A cannot recover the deficiency
C. Both statements are true. because the law prohibits him from
D. Both statements are false doing so.
72. I. Should fungible things be sold statement is false.
for a price independently and for a B. First statement is false, second
single price, the risk of loss before statement is true.
Law on Sales
D. Both statements are false A. First statement is true, second
statement is false.
75. Guardian sells the property of the B. First statement is false, second
ward to X for a price certain. The statement is true.
property is rural land, area 1 /2 C. Both statements are true.
hectare. X already owns rural land. D. Both statements are false
Guardian is an adjacent owner of 1/ 4
area and the other adjacent owner is C 78. I. A contract of “sale or return” is
of 1/ 2 hectare. a sale with a resolutory condition.
I. Guardian cannot legally redeem II. A contract of “sale on trial or
because he is relatively incapacitated. approval” is a sale with a suspensive
II. Guardian cannot legally redeem condition.
because he is the owner of a lesser
area. A. First statement is true, second
statement is false.
76. S owns 10 sacks of rice for sale in B. First statement is false, second
his store. B came into the store and statement is true.
buys the 10 sacks at the price of C. Both statements are true.
P1,200 per sack and promised S to D. Both statements are false
pay as soon he is paid for the bags of
cement which are then being 79. I. If the bill of lading covering the
unloaded from a truck parked opposite goods sold is by its terms the goods
the store. Upon request of B, S described therein are deliverable to
ordered the loading of the sacks of the order of the seller, and retained by
rice on the truck, continuously the seller, the seller has reserved his
watching the loading. After the sacks ownership over the goods.
of rice were loaded on the truck, B did II. If the bill of lading is by its terms
not appear to pay the price. So, S the goods described therein are
again ordered the unloading of the deliverable to the order of the buyer
sacks of rice. At this moment, the and retained by the seller, the seller
driver of the truck objected to the ha reserved his right of possession of
unloading of the sacks of rice claiming the goods as against the buyer.
the he purchased the sacks of rice
from B and therefore acquired A. First statement is true, second
ownership thereof. statement is false.
I. S cannot order the unloading B. First statement is false, second
because B acquired ownership when statement is true.
the sacks or rice were C. Both statements are true.
loaded on the truck. D. Both statements are false
II. S cannot order the unloading 80. B bought a pair of shoes from shoe
because ownership was transferred to store and repair shop. It was later
the driver by B who discovered that the pair of shoes
had ownership of the sacks of bought by B belonged to a customer
rice. who left it there for repair.
I. B acquired ownership provided
A. First statement is true, second he acted in good faith.
statement is false. II. B did not acquire ownership
B. First statement is false, second because a seller cannot transfer
statement is true. ownership if he himself has
C. Both statements are true. no ownership.
D. Both statements are false A. First statement is true, second
statement is false.
B. First statement is false, second
77. I. If seller has ownership, he can statement is true.
always transfer ownership. C. Both statements are true.
II. If seller has ownership but no D. Both statements are false
possession, he cannot transfer
ownership by constructive 81. I. An unpaid seller loses his
delivery. possessory lien after he has delivered
the goods to a carrier for
Law on Sales
the purpose of transmission to the II. This contract is a contract of
buyer without reserving the ownership sale with leaseback.
in the goods or the right to the A. First statement is true, second
possession thereof. statement is false.
II. The unpaid seller who loses his statement is true.
possessory lien does not lose his lien C. Both statements are true.
for the payment of the purchase price. D. Both statements are false.
statement is false. 85. A sold his piece of land to B last
B. First statement is false, second November 10, 2009.
statement is true. I. S shall repurchase the land
C. Both statements are true. within 4 years from date of sale.
D. Both statements are false. II. S shall have within 10 years
from date of sale to repurchase the
82. I. Once the goods have been land so long as the period of
accepted by the buyer, the seller is no repurchase shall not exceed 10 years.
longerresponsible to him for any
breach of warranty. A. First statement is true, second
II. Acceptance by the buyer does statement is false.
not as a general rule release the B. First statement is false, second
seller from liability for breach of statement is true.
warranty. C. Both statements are true.
D. Both statements are false.
A. First statement is true,
second statement is false. 86. A, B and C are co-owners of rural
B. First statement is false, land with an area of 9 hectares. A sold
second statement is true. his undivided interest to X who does
C. Both statements are true. not own rural land.
D. Both statement are false. I. B and C cannot legally redeem
because the sale was an absolute sale.
83. A enters into a contract of sale II. B and C as co-owners can
with B respecting 2 immovables for legally redeem for the purpose of
P200,000, the boundaries are reducing the number of co-
mentioned and the area is 20,000 sq. ownership.
meters. A. First statement is true, second
I. The seller shall suffer a statement is false.
proportionate reduction in price B. First statement is false, second
if the area delivered is less than statement is true.
the area specified in the C. Both statements are true.
contract even though the D. Both statements are false.
boundaries were followed.
II. The seller shall also be entitled 87. I. Conventional redemption is a
to a proportionate increase in privilege.
price if the area exceeds the II. Legal redemption is a right
number specified in the granted by law.
contract.
A. First statement is true, second A. First statement is true, second
statement is false. statement is false.
D. Both statements are false. D. Both statements are false.
84. S sells his piece of land to B for 88. A sold his piece of land to B with a
P100,000. Consequently, another right of repurchase when A has sold
contract was entered into his car.
between the parties whereby B leases
the land to S. I. A can repurchase within 4
I. This contract shall be construed years from date of sale.
as an equitable mortgage.
Law on Sales
II. A can repurchase within 4 D. Both statements are false.
years from date of sale of his car.
statement is false. 92. I. An agency cannot revoked at
B. First statement is false, second principal’s will if the agency depends
statement is true. upon a bilateral contract.
C. Both statements are true. II. An agency cannot be revoked
D. Both statements are false. at principal’s will if the agency is for a
compensation.
89. P authorized his agent to direct
and administer his commercial A. First statement is true, second
business, among others “to statement is false.
collect sums of money and exact B. First statement is false, second
their payment by legal means.” statement is true.
I. A can bring a court action for D. Both statements are false.
collection provided he brings it
in the principal’s name 93. A and B were appointed
under his agency. simultaneously by P as his agents.
II. A needs a special power of Solidary liability of the agents
attorney to bring a court action was stipulated.
because the agency of A pertains only I. Any one of the agents shall be
to acts of administration. liable for any damage suffered
by the principal for
A. First statement is true, second nonperformance of the agency.
statement is false. II. Solidary liability will apply in
B. First statement is false, second case of damages suffered by the
statement is true. principal caused by the negligence of
C. Both statements are true. either agent provided the agent acted
D. Both statements are false. within the scope of his authority.
90. I. A special power to mortgage statement is false.
includes the special power to B. First statement is false, second
constitute a second mortgage. statement is true.
II. A special power to mortgage C. Both statements are true.
does not include the power to sell. D. Both statements are false.
statement is false. 94. On September 1, 2010, P owns a
B. First statement is false, second piece of land gave a general power of
statement is true. attorney to A. On October 1, 2010, P,
C. Both statements are true. without the knowledge of A executed
D. Both statements are false. in favor of C a special power of
attorney to sell said piece of land.
91. Agent was authorized by Principal November 10, 2010, A as attorney-in-
to sell the latter’s TV set for P10,000 fact of P executed a deed of sale over
on the installment the piece of land in favor of X. On the
plan. A was able to sell it for same date, C under the special power
P10,000 cash basis. given by P, sold the same piece of
I. The sale is not binding upon the land t Y. Both purchasers acted in
principal unless the principal good faith. X registered his sale. Y did
ratifies it. not.
I. The sale in favor of X must
II. The sale is not binding upon the be respected because he
principal because the agency was registered it in good faith.
performed in a manner not II. The sale in favor of Y must
included in the agency. be respected because C was
A. First statement is true, second specially granted with
statement is false. authority to sell.
statement is true. A. First statement is true, second
C. Both statements are true. statement is false.
Law on Sales
D. Both statements are false. D. Both statements are false.
95. A, B and C appointed Z as their 98. I. The creditor pledge cannot

agent to sell their separate houses. appropriate the thing pledged.
The appointment was II. But he can dispose of the thing
made under one special power of pledged with the consent of the
authority. pledgor.
I. A, B and C shall be solidarily statement is false.
liable under the agency to Z B. First statement is false, second
II. A, B and C shall be jointly liable statement is true.
under the agency to Z even though C. Both statements are true.
the appointment was made in one D. Both statements are false.
common instrument because A, B and
C are not co-owners. 99. I. A mortgage or pledge is
indivisible although the principal
A. First statement is true, second obligation is divisible.
statement is false. II. The principal obligation must
B. First statement is false, second be necessarily indivisible because the
statement is true. mortgage or pledge securing is
C. Both statements are true. indivisible.
96. I. The pledge extends to the statement is false.
interest and earnings of the thing B. First statement is false, second
pledged unless there is a stipulation to statement is true.
the contrary. C. Both statements are true.
II. In case of pledge of animals, D. Both statements are false.
their offsprings shall be subject to the
pledge if there is a stipulation to that 100. A borrows P10,000 from B, so A
effect. delivered his diamond ring to B as a
pledge to secure his
A. First statement is true, second obligation. The contract of pledge
statement is false. was executed in a public document
B. First statement is false, second but the description of
statement is true. the ring and the date of the
C. Both statements are true. pledge did not appear thereon. A,
D. Both statements are false. pledgor alienates the ring in
favor of C.
97. If there are reasonable grounds to
fear the destruction or impairment of I. C has to respect the pledge
the thing pledged without the fault of because the contract of pledge is in a
the pledge: First statement is true, public document.
second statement is false. II. C has to respect the pledge if
I. The right of the pledgor to the alienation of the pledged was
demand the return of the thing, consented to by the pledge.
upon offering another thing in
pledge, provided the latter is of A. First statement is true, second
the same kind as the former statement is false.
and not of inferior quality must B. First statement is false, second
always be respected. statement is true.
II. The right of the pledge to cause C. Both statements are true.
the thing pledged to be sold at a D. Both statements are false.
public sale is subordinate
to the above right of the pledgor. 101.I. A stipulation in a contract of
pledge allowing the pledge to
A. First statement is true, second purchase the thing pledged at
statement is false.
Law on Sales
the current purchase price if
the debt is not paid on time is valid. I. The pledge is not valid
because the principal obligation is not
II. A stipulation in a contract of valid.
pledge allowing the pledgor to assign II. The pledge is not valid, the
the thing pledged to thing pledged should belong to the
the pledge in payment of the debtor.
debt due is not paid on time is valid.
A. First statement is true, second statement is false.
statement is false. B. First statement is false, second
B. First statement is false, second statement is true.
statement is true. C. Both statements are true.
C. Both statements are true. D. Both statements are false.
105.I. In mortgage and chattel
102.I. Future property cannot be the mortgage there is recovery of
object of a pledge or mortgage unless deficiency as a general rule.
there is a stipulation
to the contrary. II. In pledge, absolutely, there is
II. Future property cannot be the no recovery of deficiency.
object of a pledge or mortgage unless
there is a stipulation A. First statement is true, second
to the contrary. statement is false.
A. First statement is true, second statement is true.
statement is false. C. Both statements are true.
B. First statement is false, second D. Both statements are false.
statement is true.
C. Both statements are true. 106.A and B are co-owners of a piece
D. Both statements are false. of land. They mortgaged their land in
favor of C. While
103.I. Two things are prohibited in a the mortgage debt is pending, A
pledge or mortgage, which are: (a) the and B partitioned the land between
appropriation by the them. On due date, A
pledge or mortgagee of the paid his share of the debt of C.
object of the pledge or mortgage and
(b) the disposition of I. The mortgage on A’s share of
the object by the pledgor or the land is extinguished.
mortgagor. II. The mortgage on A’s share
cannot be extinguished unless B pays
II. Two things are prohibited in a his share of debt.
pledge or mortgage, which are: (a) the
disposition of the A. First statement is true, second
object by the pledgee or statement is false.
mortgagee and (b) the return of the B. First statement is false, second
pledge or mortgage to the statement is true.
pledgor or mortgagor before C. Both statements are true.
debt is fully paid. D. Both statements are false.
A. First statement is true, second 107. I. Unless there is stipulation to

statement is false. the contrary, the debtor mortgagor
B. First statement is false, second can alienate the property
statement is true. mortgage.
D. Both statements are false. II. The debtor mortgagor can
alienate the property mortgaged with
104.A, minor borrows P10,000 from B. the consent of the
To secure A’s debt, X a good friend of mortgagee.
A pledges his
gold watch to B.
Law on Sales
A. First statement is true, second 111. I. A general power of authority
statement is false. may also include a special power.
statement is true. II. A special power of authority
C. Both statements are true. does not include a general power.
108. A, minor borrows money from B. statement is false.
The contract although voidable is B. First statement is false, second
secured by a pledge or statement is true.
mortgage of A’s property. C. Both statements are true.
I. A can validly constitute a pledge
or mortgage of his personal or real 112 I. If the third person contracts
property. with the agent knowing that the agent
II. The pledge or mortgage exceeds the scope of
constituted by a minor is valid his authority, the contract is
provided he is the absolute owner void not only as against the principal
of the property pledged or but also as between
mortgaged. agent and the third person.
A. First statement is true, second II. If a third person contracts with

statement is false. the agent knowing that the agent
B. First statement is false, second exceeds the scope of his
statement is true. authority the contract is void
C. Both statements are true. as against the principal but valid
D. Both statements are false. between the agent and the
third person.
109.A, agent is authorized by Principal
to lend money of the principal. A. First statement is true, second
statement is false.
I. A, the agent can borrow the B. First statement is false, second
money provided the loan is without statement is true.
interest. C. Both statements are true.
II. A, the agent cannot borrow the D. Both statements are false.
money if the loan is with interest.
113.I. In mortgage the mortgagor
A. First statement is true, second may alienate the property mortgaged.
statement is false.
B. First statement is false, second II. In mortgage the mortgagee
statement is true. may alienate the mortgage credit.
D. Both statements are false. A. First statement is true, second
statement is false.
110.I. Agency is a nominate, principal, B. First statement is false, second
unilateral, preparatory, commutative statement is true.
and generally C. Both statements are true.
onerous contract. D. Both statements are false.
II. Agency is a nominate,

accessory, bilateral, preparatory,
commutative and generally
onerous contract.
SALES (cpar)
statement is false. 1.As a rule, this contract of sale
B. First statement is false, second involving a piece of land is void,
statement is true.
C. Both statements are true. A. Between a minor and a
D. Both statements are false. capacitated person.
Law on Sales
B. Between two insane persons
who did not act during lucid 8. The sale of an expected thing
interval
C. Between first degree cousins A. Dacion en pago
D. Between husband and wife B. Payment by cession
C. Emptiospei
2. X, 17 years old, sold to Z, of legal D. Emptio rei-speratae
age, her necklace worth P20,000 for
P15,000. Later, Z 9. The sale of the hope itself
sold the necklace to Y for
P20,000. Which of the following A. Dacion en pago
statements is correct? B. Payment by cession
C. Emptio spei
A. X has got a voidable title D. Emptio rei-speratae
because at the time of sale, she
is a minor 10. One of the following is not correct
B. X can ask for rescission of the
sale to Y because she suffered a A. Things subject to a resolutory
lesion of more than ¼ of the condition may be the object of
value of the property. the contract of sale.
C. If Y is in bad faith, Y becomes B. A thing is generic when it is
the owner of the necklace upon particularly designated or
delivery to him but his title is physically segregated from all
voidable. others of the same class.
D. X can ask for the annulment of C. Things having a potential
the sale to Y because at the existence may be the object of
time of sale she is a minor. the contract of sale.
D. The sole owner of a thing may
3. This serves as a proof of the sell an undivided interest
perfection of the contract of sale therein
A. Dacion en pago 11. X needs a size of 10 of model 101

B. Option money of Leather Shoes regularly available to
C. Delivery the public for her
D. Arras boyfriend Z, but the same is out
of stock so she placed an order for
4.A contract of sale is not a(an) one. On the other hand, Z
placed an order for size No. 8,
A. Onerous contract colored violet, (something not
B. Accessory contract ordinarily made by the
C. Commutative contract company) to be given to X. Which
D. Bilateral contract is correct?
5.Warranty against hidden defects is A. Both are contracts of sale

B. Both are contracts for a piece of
A. An essential element work
B. A natural element C. First is a contract of sale second
C. An accidental element is a contract for a piece of work
D. An artificial element D. First is a contract for a piece of
work, second is a contract of
6. sale
7. When a sale of a piece of land or
any interest therein is through an 12. V offered to sell for P12,000,000
agent, the authority of the her house and lot to DD who was
agent shall be in writing, otherwise interested in buying the
the sale is same. In her letter to DD, V stated
that she is giving DD a period of one
A. Valid month within which
B. Voidable to raise the amount and that as
C. Unenforceable soon as DD is ready, they will sign the
D. Void deed of sale. Five days
Law on Sales
before the expiration of the one D. Chicago rule
month period. V went to DD and told
her that she is no 17. The Realty Installment Buyer
longer willing to sell the property Protection Act applies to all
unless the price in increased to transactions involving the sale or
P15,000,000. Which is financing of real estate on
correct? installment but it excludes the
following except:
A. DD may compel V to accept the
P12,000,000 first offered. A. Sale or financing of industrial
B. V may compel DD to pay lots
P15,000,000 B. Sale or financing of commercial
C. V and DD should shoulder the building
P3,000,000 difference C. Sale to tenants under the Land
D. DD cannot compel V to accept Reform Code
the P12,000,000 first offered D. Sale of residential
condominiums
13. If the object of the contract is
specially made or manufactured at the 18. Delivery by merely pointing to the
specific order of object of sale if it cannot be delivered
another, it is a contract for a piece to the vendee at the
of work. This is time of the sale is
A. English rule A. Traditio longa manu

B. Massachusetts rule B. Traditio brevi manu
C. New York rule C. Traditio constitutum
D. Chicago rule possessorium
D. Traditio symbolica
14. If the article already exists and
subsequently acquired by another, it is
a contract of sale, and 19. Effected when the object of sale is
if the article is still to be already in the possession of the
manufactured at the instance of vendee at the time of sale
another, it is a contract for a piece so that delivery need no longer be
of work. This is made is
A. English rule A. Traditio longa manu

B. Massachusetts rule B. Traditio brevi manu
C. New York rule C. Traditio constitutum
D. Chicago rule possessorium
D. Traditio symbolica
15. If the material used in the
manufacturer of the article is more 20. When the owner of the thing sells
valuable, it is a contract of it to vendee, but continues to have
sale, and if the labor or skill is possession or
more valuable than the material used occupation of the thing not as
in the manufacture of owner but as tenant or lessee
the article, it is a contract for a
piece of work. This is A. Traditio longa manu
B. Traditio brevi manu
A. English rule C. Traditio constitutum
B. Massachusetts rule possessorium
C. New York rule D. Traditio symbolica
D. Chicago rule
21. Goods are deemed in transit
16. The rule observed in the
Philippines is A. When the buyer accepts
delivery of the goods upon
A. English rule arrival at destination
B. Massachusetts rule B. When the buyer intercepts and
C. New York rule lawfully takes possession of the
Law on Sales
goods at any point before 24. On January 15, 2010, X sold for
destination. P2M her house and lot to V. It was
C. From the time they are agreed that delivery of
delivered by the seller to a the house and lot, and the
common carrier or other bailee payment therefore, would be made on
for transmission to the buyer, March 10, 2010.
up to the time that the buyer or Unfortunately, Z a stranger
his agent takes delivery of the negligently set the house on fire on
goods from the carrier or bailee. February 25, 2010, and the
D. When the carrier or bailee, upon house was completely destroyed.
arrival of the goods at Which is correct?
destination acknowledges to the
buyer or his agent that he is A. V is not required to pay the P2M
holding the goods as bailee for since the contract had no
the latter. subject matter.
B. X must still deliver the lot but is
22. Goods are deemed no longer in excused from delivering the
transit house, while V must still pay the
P2M
A. If the goods are rejected by the C. X must deliver the lot while V
buyer for a valid reason and the should pay only the amount
carrier or other bailee continues equivalent to the value of the
in possession of them, even if lot.
the seller has refused to receive D. X need not deliver the lot while
them back. V need not pay the P2M
B. From the time they are
delivered to a carrier by land, 25. If immovable property should
water or air for the purpose of have been sold to different vendees,
transmission to the buyer. the ownership shall be
C. From the time they are transferred to the person
delivered to a bailee for the
purpose of transmission to the A. Who have first taken possession
buyer until the buyer or his in good faith
agent in that behalf, takes B. Who presents the oldest title in
delivery of them from such good faith
bailee. C. Who in good faith first recorded
D. If the carrier or other bailee it in the Registry of Property
wrongfully refuses to deliver the D. Who have paid in good faith the
goods to the buyer or his agent purchase price in full
in that behalf.
26. Using the preceding number, if
23. X sold to V orally a parcel of land movable property, it shall belong to
for P200,000. X effected the delivery the person
of the land. The
payment of the price was to be A. Who have paid in good the
made three month later. At the end of purchase price in full
three month period B. Who in good faith first recorded
it in the Registry of Property
A. V may refuse to pay claiming in C. Who presents the oldest title in
his defense the Statute of good faith
Frauds D. Who have first taken possession
B. V may return the parcel of land in good faith
to X
C. X can collect from V because 27. Action by the vendee against the
the contract has already been vendor to nullify the sale due to some
executed vices or defects
D. V may refuse to pay on the which render the object of sale
ground that there is no written unfit for the use intended or
contract to support the sale. knowledge of which the vendee
should not have bought the thing
Law on Sales
A. Accion quanti minoris the funds to pay for the goods
B. Accion reinvidicatoria
C. Accion pauliana A. Pre-emptive right
D. Redhibilitory action B. Appraisal right
C. Voting right
28. Action to seek a corresponding D. Right of stoppage in transit
reduction in price by reason of some
vices or defects in the 33. A sold to B a parcel of land for
thing purchased P3.8M. The sale is evidenced by a
memorandum of
A. Accion quanti minoris agreement of sale written in the
B. Accion reinvidicatoria Bicolano dialect. One week later, A
C. Accion pauliana sold the same parcel of
D. Redhibilitory action land to C for P4M. This is
evidenced by a formal deed of sale.
29. The redhibitory action based on Upon buying the property, C,
the faults or defects of animals must who was aware of the first sale
be brought within immediately took possession of the
lot. When informed of
A. 30 days from delivery to the the second sale, B subsequently
vendee registered an adverse claim to the
B. 40 days from delivery to the property. Later, C
vendee registered the deed of sale in her
C. 45 days from delivery to the favor. The parcel of land shall belong
vendee to
D. 6 months from delivery to the
vendee A. B because he has got an older
title
30. In contract of sale, if the price is B. C because he is the first to
absolutely simulated, the sale is register
C. C because he is the first to
A. Unenforceable take possession
B. Voidable D. No one as both sales are void
C. Void
D. Rescissible 34. Voluntary renunciation made by
the buyer of his right to warranty
31. In a contract of sale, of personal against eviction where in
property, the price of which is payable case the buyer is evicted, the
in installments, the seller is liable to the value of the thing
vendor may exercise any of the at the time of eviction.
following remedies, except
A. Waiver intentionada
A. Exact fulfillment of the B. Waiver consciente
obligation, should the vendee C. Waiver cursunada
fail to pay any installment D. Waiver inocente
B. Cancel the sale, should the
vendee’s failure to pay cover 35. Using the preceding number,
two or more installment where the seller is no longer liable
C. Foreclose the chattel mortgage
on the thing sold, if one has A. Waiver intentionada
been constituted should the B. Waiver consciente
vendee’s failure to pay cover C. Waiver cursunada
two or more installments D. Waiver inocente
D. Rescind the sale should the
vendee fail to pay any 36. A contract of sale whereby the
installment. seller acquires the right to redeem or
repurchase the object of
the sale from the buyer within a
32. The right of the seller to stop certain period agreed upon
goods in transit, upon discovering that
the buyer does not have A. Equitable mortgage
Law on Sales
B. Absolute sale 40. After the death of C, A, C’s son,
C. On sale or return sold his inheritance though its amount
D. Pacto de retro sale has not yet been
determined to B for a
37. A sold to B his car and promised consideration of P1,000,000. Which is
to deliver ten days later. The next day, correct?
after the sale to B,
A sold the same car to C and A. The contract is valid if the value
immediately affected delivery. On the of inheritance is at least equal
day agreed upon, A did to P1,000,000
not deliver the car to B. Which is B. The contract is valid even
correct? though the inheritance to be
turned over to B is less than
A. B can cancel the contract P1M
between A and C, because the C. The contract is void as future
contract between A and B was inheritance cannot be the object
perfected ahead of the contract of sale
between A and c D. The contract is unenforceable
B. B should make the demand to
make A in default 41. X stole a fountain pen from P and
C. A is liable to B for the value of sold it to Z Merchandise, a “store for
the car plus damages after B pens”, which paid for
makes a demand it in good faith, not knowing it was
D. A is liable to B for damages and stolen. The “store” then sold it to C, a
is in default without need of any student.Which is
demand correct?
38. X sold to V her Yamaha organ. It A. C cannot be considered as the

was agreed that X would fix the price owner because the original
a week later. At the seller (X) is not the real owner.
agreed time, X named the price B. P may recover the fountain pen
P10,000. V agreed. Was the sale from C without reimbursement
perfected? because he is the legal owner.
C. C became the owner because
A. No, because the price was left he purchased the pen from a
to the discretion of one of the merchant store
contracting parties D. C became the owner regardless
B. No, because at the time of sale of whether the seller is a store
the price was not fixed for pens or not because C
C. Yes, because the price fixed by bought it in good faith.
one of the parties was
accepted by the other 42. When goods are delivered to the
D. Yes, because there was buyer on “sale or return” for period of
agreement that X would fix the seven days,
price ownership of the goods passes to
the buyer
39. Not an implied warranty in a
contract of sale A. Upon perfection of the contract
B. Upon acceptance by the buyer
A. Right to sell the thing at the of the offer of the seller
time of perfection of the C. Upon expiration of seven days
contract D. Upon delivery of the goods
B. Reasonably fit for the purpose
they are acquired 43. Quasi-traditio is equivalent to
C. Merchantable in quality
D. Free from charges or A. Traditio longa manu
encumbrances not declared or B. Traditio brevi manu
known to the buyer C. Traditio constitutum
possessorium
D. Execution of a public instrument
Law on Sales
44. Vi imported radios from Taiwan B. No, because the loss should be
and asked for 220 volts radios. The borne by the seller as this an
radios arrived clearly installment sale so until the
labeled 220 volts and Vi sold them buyer pays the full amount of
to the public as such. Later the the price of the sale, A remains
customer complained that to be the owner.
the radios have been mislabeled C. Yes, but A must give another
by the manufacturer and that they car to B because of the principle
were good only for 110 “genus nunquam peruit” or
volts. As a consequence generic thing never perishes
D. Yes, because the principle “res
A. Vi is liable to the vendees for perit domino” or the thing
any hidden defects even though perishes with the owner.
he is not aware.
B. Vi is not liable because he is in 48. A, B and C are co-owners of an
good faith undivided parcel of land, A sold his 1/
C. Vi is not liable under the 3 interest to B
principle of “caveat emptor” or absolutely. Which is correct?
let the buyer beware
D. The vendees may hold the A. C may exercise his right of
manufacturer liable but not Vi redemption of the interest sold
because Vi specifically asked for by A to B
220 volts B. C cannot exercise the right of
redemption because the sale
45. If the redemption is to be made was made in favor of a co-
by the seller, one of the following need owner
not be given to the C. The sale made by A to B is void
Buyer because it was not made in
favor of a stranger
A. Expenses of the contract D. C may redeem only 1 /2 of the
B. Interest on the price of the sale interest sold by A to B
C. Necessary expenses on the
thing sold 49. Using the preceding number,
D. Price of the sale suppose, instead of selling his interest
to B, A sold it to D, who
46. Not an element of the sellers right can exercise the right of
of stoppage in transit redemption?
A. The goods must be in transit A. Both B and C

B. The buyer must be insolvent B. B but not C
C. The seller must be in possession C. C but not B
of the goods D. A, B and C
D. The seller must be unpaid
50. Which of the following cannot be
47. A sold his only car to B for the object of a contract of sale?
P300,000 to be paid as follows:
P150,000 upon delivery of the A. Sale of credit
car to B and the balance at B. Young animal not yet conceived
P10,000 per month until full payment at the time of perfection
of the purchase price. Later C. Land which the seller expects to
the car gets burned in the buy
possession of B through fortuitous D. Future inheritance
event and without B’s fault,
before full payment of the 51. A offered for sale to B 20 cavans of
balance. Is B obliged to pay the wagwag rice and fixed the price per
balance? cavan at P10 over
the price offered at Z’s store in
A. No, because the car was lost Cainta Market. The price is
through fortuitous event and
without B’s fault, hence B’s A. Not certain because the price at
obligation is extinguished. Cainta Market is not stated
Law on Sales
B. Certain because it has got
reference to another thing 55. X sold her specific car to V for
which is certain P200,00 payable in 5 equal
C. Certain because there is a price installments. X delivered the car
ceiling for price of land to V but a mortgage was
D. Not certain so court may fix the constituted on the car to answer for
price the unpaid installments. V paid
the first 2 installments but failed to
52. X sold his motor vehicle to V who pay the last 3 installments. X
bought it for P200,000. It turned out foreclosed the mortgaged
however, that X has property and sold it at public
2 motor vehicles: Toyota valued auction for P100,000. Which is
at P230,000 and Lancer valued at correct?
P220,000. Which is
correct? A. X can recover from V the
balance of P20,000 even if
A. There is no contract of sale there is no stipulation to that
between X and V effect
B. The parties may ask for B. X can recover from V the
interpretation or reformation balance of P20,000 if there is
C. The parties can ask for stipulation to that effect
annulment of the contract C. X cannot recover the deficiency
D. V may choose between the except if there is stipulation to
Toyota or Lancer that effect
D. X cannot recover the deficiency
53. X offers to V 100 electric fans for even if there is stipulation to
P80,000 payable in 60 days with 12 % the contrary
interest per annum.
V accepted the offer by telegram 56. Ownership of the thing sold is
provided that interest is reduced to
6%. If there is no A. Retained by the seller in “sale
further communication between X or return
and V relating to the terms B. Transferred to the buyer upon
constructive or actual delivery
A. The contract is perfected of the thing sold
because of the acceptance by V C. Acquired by the buyer upon
B. There is no contract yet perfection of the contract
between X and V because V D. Transferred to the buyer upon
made a counter offer acceptance of the price
C. The contract is perfected under
the terms of X 57. X sold his horse to Y for P40,000.
D. There is no contract yet unless No payment has yet been made and
v gives earnest money the sales document
does not provide the date of
delivery. Before delivery and payment
54. X owns 50 mango trees bearing the horse gave birth to a
fruits, ready for harvest. She told all baby horse, which is correct?
the fruits of all the trees
to V who paid P100,000. X told V A. Y is entitled to the baby horse
that he can harvest her fruits anytime which was born after the
he likes and perfection of the contract
pointing at the mango trees. For B. X is entitled to the fruit (baby
legal purposes, X has fulfilled her horse) as Y has not paid the
obligation to deliver the price yet
mango fruits to V by C. X is entitled to the (baby horse)
because it was born before his
A. Traditio longa manu obligation to deliver arises
B. Traditio brevi manu D. Y should pay additional amount
C. Traditio constitutum for the baby horse to be entitled
possessorium to it
D. Execution of a public instrument
Law on Sales
58. A contract of sale is in the stage B. X can collect the rental fees for
of conception when the unexpired 12 months of the
lease contract.
A. There is meeting of the minds C. When X took possession of the
B. Negotiations are in progress generator, he has no further
C. The parties come to an action against V
agreement D. X in terminating the lease and
D. The contract is perfect repossessing the generator is
obliged to refund the 9 months
59. A seller sold to a buyer a piece of rental fee, paid by V even if
jewelry at a price of P25,000. The there is a stipulation to the
contract provides that contrary.
the buyer will pay the seller cash,
P20,000 and for the balance, the 62. X sold his car to Z for P60,000. No
buyer will give the seller date was fixed for the performance of
a micro oven worth P5,000. What the obligation of
is the nature of the contract? the seller and the buyer. The
obligation of X is
A. Sale
B. Partly sale partly barter A. To deliver the car immediately
C. Barter because the sale is a perfected
D. Commodatum contract
B. To deliver the car only after Z
60. X, the guardian of V, sold V’s writes to X demanding the
house and lot worth P480,0000 for delivery of the car.
P430,000 C. To deliver the car only after Z
pays the P60,000
A. The contract can be rescinded D. To rescind the contract because
because of inadequacy of price there is no time fixed for the
B. The contract cannot be delivery
rescinded because there is no
fraud, mistake or undue 63. I. The vendor need not be the
influence owner at the time the sale is
C. The contract cannot be perfected. It is sufficient that he is
rescinded because all the the owner at the time the thing
elements of a contract are sold is delivered.
present
D. The contract can be rescinded II. The sale of a vain hope or
by X. expectancy is voidable.
61. X leased to V a 5 Freezer for two A. First statement is true, second

years at a lease rental fee of P1,000 statement is false.
per month and signed B. First statement is false, second
an option in favor of V to buy the statement is true.
freezers at the end of the term of the C. Both statements are true.
lease at P50,000. All D. Both statements are false
rental fee paid are to be
considered as partial payment of the 64. I. There may be a contract of sale
sale. After 12 months V was of goods, whose acquisition by the
able to pay the rental fee for 9 seller depends upon a
months and was in arrears for three contingency which may or may
months. X terminated the not happen.
lease contract and repossessed
the freezers. The consequence of the II. If the consideration of the
transaction is contract consists partly in money and
partly in another thing, it
A. X can collect the rental fees for shall be considered a barter if
three months which are in the value of the thing given as a part
arrears. of the consideration
exceeds the amount of the
money or its equivalent.
Law on Sales
A. First statement is true, second 68. I. The ownership of the thing sold
statement is false. shall be transferred to the vendee
B. First statement is false, second upon perfection of the
statement is true. contract.
D. Both statements are false II. An unaccepted unilateral
promise to buy or to sell a
65. I. If the price is grossly determinate thing for a price certain
inadequate, the sale is void. is binding upon the
promissory.
II. Whenever option money is
given in a contract of sale, it shall be A. First statement is true, second
considered as part of the statement is false.
price and a proof of the B. First statement is false, second
perfection of the contract. statement is true.
A. First statement is true, second D. Both statements are false
statement is false.
B. First statement is false, second 69. I. The husband and the wife
statement is true. cannot sell property to each other, as
C. Both statements are true. a rule.
II. The sale of a piece of land or
66. I. Earnest money and option interest therein when made thru an
money both apply to perfected sale. agent is void unless the
agent’s authority is in writing
II. In a contract of sale of personal even if the sale itself is in s public
property the price of which is payable instrument and has been
in installment, the registered.
vendor may cancel the sale
should the vendee fail to pay. A. First statement is true, second
statement is false.
A. First statement is true, second B. First statement is false, second
statement is false. statement is true.
B. First statement is false, second C. Both statements are true.
statement is true. D. Both statements are false
D. Both statements are false 70. I. The expenses for the execution
and registration of the sale shall be
67. I. Should the vendee’s failure to borne by the vendee,
pay, cover two or more installments, unless there is a stipulation to
the vendor may the contrary.
foreclose the chattel mortgage
on the thing sold but he shall have no II. If the same thing should have
further action against been sold to different vendees the
the purchaser to recover any ownership shall be
unpaid balance of the price, except if transferred to the person who
there is an agreement to may have taken possession thereof in
the contrary. good faith.
II. Sale is a consensual contract, A. First statement is true, second

therefore delivery or payment is not statement is false.
essential for perfection. B. First statement is false, second
statement is true.
A. First statement is true, second C. Both statements are true.
statement is false. D. Both statements are false
statement is true. 71. I. Any stipulation exempting the
C. Both statements are true. vendor from the obligation to answer
D. Both statements are false for eviction shall be
Law on Sales
void. or of livestock sold as
condemned.
II. The vendor is responsible to the
vendee for any hidden faults or A. First statement is true, second
defects in the thing sold statement is false.
only if he was aware thereof. B. First statement is false, second
statement is true.
statement is false. D. Both statements are false
statement is true.
C. Both statements are true. 75. I. The ownership in the thing shall
D. Both statements are false not pass to the purchaser until he has
fully paid the price.
72. I. If the animal sold should die
within three (3) days after its II. If at the time the contract of
purchase, the vendor shall be sale is perfected, the thing which is
liable to the vendee. the object of the contract
has been partially lost, the
II. The fixing of the price can contract shall be without effect.
never be left to the discretion on one
of the contracting parties. A. First statement is true, second
However, if the price fixed by statement is false.
one of the parties is accepted by the B. First statement is false, second
other, the sale is statement is true.
perfected. C. Both statements are true.
statement is false. 76. I. Where the seller of goods has a
B. First statement is false, second voidable title thereto, but his title has
statement is true. not been avoided at
C. Both statements are true. the time of the sale, the buyer
D. Both statements are false acquires a good title to the goods.
73. I. Option money is considered as II. If the vendee has renounced the
part of the purchase price while right to warranty in case of eviction,
earnest money is not. and eviction should
take place, the vendor shall
II. The Maceda Law refers to the only pay the value which the thing
sale of personal property by sold had at the time of sale.
installments while the Recto
Law refers to the sale of real A. First statement is true, second
property by installments. statement is false.
B. First statement is false, second D. Both statements are false
statement is true.
C. Both statements are true. 77. I. Unless otherwise agreed, the
D. Both statements are false buyer of goods is not bound to accept
delivery thereof by
74. I. If two or more animals are sold installment.
together, whether for lump sum or for
a separate price for II. In case of doubt, a contract
each of them, the redhibitory purporting to be an equitable
defect of one shall give rise to the mortgage shall be construed as a
redhibition of the others. sale with a right to repurchase.
II. There is no warranty against A. First statement is true, second

hidden defects of animals sold at fairs statement is false.
or at public auctions
Law on Sales
statement is true. A. Pledgor or mortgagor must be
C. Both statements are true. the absolute owner
D. Both statements are false B. Pledgor or mortgagor must have
the free disposal of the thing
78. I. The creditors of the vendor pledged.
cannot make use of the right of C. The thing pledged or mortgaged
redemption against the may be appropriated if the
vendee, until they have debtor cannot pay.
exhausted the property of the vendor. D. Pledge and mortgage are
accessory contracts
II. Sale is a real contract because
delivery is necessary to transfer 4.A borrowed P100,000 from B with
ownership to the buyer. A’s ring given to B by way of pledge. It
was stipulated that
A. First statement is true, second in case of non-payment on due
statement is false. date, the ring would belong to B. This
B. First statement is false, second for feature is
statement is true.
C. Both statements are true. A. Caveat emptor
D. Both statements are false B. Dacion en pago
C. Pactum comisorio
D. Pacto de retro
CREDIT TRANSACTIONS (Cpar)
5.A borrowed P100,000 from B, and as
PLEDGE AND a security A pledged his ring to B.
MORTGAGE After the obligation
falls due, A goes to b relinquishing
1.Which of the following statements is ownership of the ring in favor of B.
true? This is
A. Any stipulation in a contract of A. Caveat emptor

pledge authorizing the pledge B. Dacion en pago
to sell the thing pledged if the C. Pactum comisorio
pledgor cannot pay is void. D. Pacto de retro
B. In mortgage, the mortgagee is
entitled to the entire proceeds 6.A borrowed P30,000 from B, and as
of the sale of the thing security, he pledged his ring, pair of
mortgaged. earrings and
C. In mortgage and in pacto de necklace. On due date, A paid
retro sale, the title to the P20,000. As a result,
property which is the subject
matter of the contract is A. A can demand the return of one
transferred to the other party. (1) of the things pledged
D. Real estate mortgage is an B. A can demand the return of any
accessory contract. two (2) of the things pledged
C. A can demand the return of the
2. In real estate mortgage, the ring
mortgagor can sell the property D. A cannot demand the return of
mortgaged any of the things pledged
A. Only if with the oral consent of 7. A mortgaged his residential land to

the mortgagee B as a guarantee for the payment of
B. Only if with the written consent P400,000 obligations
of the mortgagee to B. They agreed that A should
C. If not prohibited to sell not sell the land while the obligation
D. Even without the consent of the exists. Before the
mortgagee maturity of the mortgage, C
offered to buy the land from A. Which
3. Elements of contracts of pledge is correct?
and mortgage, except
Law on Sales
A. A cannot sell the land to C B. The deficiency of P5,000 may
because of the agreement not still be recovered by C from B
to sell C. C can no longer recover the
B. A can sell the land to C only if B deficiency of P5,000 from B as
consents in writing the mortgage, together with the
C. A can sell the land to C despite foreclosure sale, was valid. The
the agreement not to sell title of B was still valid.
D. A cannot sell the land to C D. If D was a purchaser in bad faith
unless A pays the obligation as he knew of the defective title
of B over the bracelet,
8. S, minor of 16 years old, sold her ownership will not pass to him
bracelet to B for P8,000. Later, B, (D).
needing money to pay
her daughter’s tuition fee, 10. S sold to b a specific car for
borrowed P15,000 from C and as a P200,000 payable in four equal
security, pledged the bracelet installments. S delivered the car
to the latter. B failed to pay C to B but required B to mortgage it
resulting into auction sale of the back to S to answer for the unpaid
bracelet in favor of D for installments. B paid the
P10,000 only. Which of the 1st and 2nd installments but he
following statements is correct? failed to pay the balance. S foreclosed
the mortgaged property
A. The title of B over the bracelet and sold it at public auction for
is not valid, hence the pledge, P80,000. As a result,
as well as the sale of said
bracelet is likewise defective. A. S can recover from B the
The pledgor must be the owner balance of P20,000
of the thing pledged. B. S can recover from B the
B. The deficiency of P5,000 may balance of P20,000 if there is
still be recovered by C from B if stipulation to that effect.
there is a stipulation to this C. S cannot recover the deficiency
effect. any more even if there is
C. C can no longer recover the stipulation to that effect
deficiency of P5,000 from B. D. S cannot recover the deficiency
The pledge together with the except if there is stipulation.
sale is valid. The voidable title
of B is valid because it is not PLED
yet annulled. GE
D. If D was a purchaser in bad
faith as he knew of the 11. I. The creditor cannot appropriate
defective title of B over the the things given by way of pledge or
bracelet from S, ownership will mortgage, or
not pass to him (D). dispose of them, except if
there is a stipulation to the contrary.
9. In the preceding number,
assuming what was executed by B in II. The indivisibility of a pledge or
favor of C was valid chattel mortgage is affected by the fact that
mortgage which was eventually the debtors are
foreclosed and the bracelet was old to solidarily liable.
D at the public
auction for the same amount, A. First statement is true, second
which statement is correct? statement is false.
A. The title of B over the bracelet statement is true.
is not valid, hence the chattel C. Both statements are true.
mortgage, as well as the sale of D. Both statements are false.
said bracelet is likewise
defective. The mortgagor must 12. I. A pledge or mortgage is
be the owner of the thing indivisible, except if the debt may be
mortgaged. divided among the
Law on Sales
successors in interest of the II. At the public auction, the
debtor or of the creditor. pledge may also bid and his ofer shall
be valid even if he is the
II. In case of pledge of animals, only bidder.
their offspring shall pertain to the
pledge of the animals. A. First statement is true, second
statement is false.
A. First statement is true, second B. First statement is false, second
statement is false. statement is true.
B. First statement is false, second C. Both statements are true.
statement is true. D. Both statements are false.
D. Both statements are false. 16. I. The sale of the thing pledged
shall extinguish the principal
obligation provided the
13. I. The creditor can use the thing proceeds of the sale are equal
pledged even without the authority of to the amount of the principal
the pledgor. obligation.
II. If through the negligence or II. If the price of the sale is more
willful act of the pledge, the thing than the amount of the obligation, the
pledge is in danger of debtor shall be
being lost or impaired, the pledge entitled to the excess, unless it
may cause the same to be sold at a is otherwise agreed.
public auction.
17. I. If the price of the sale is less
14. I. If the thing pledged is returned than the amount of the obligation the
by the pledge to the pledgor or owner, creditor shall not be
the pledged is entitled to recover the
extinguished, except if there is deficiency except if there is a
stipulation to the contrary. stipulation to the contrary.
II. If subsequent to the perfection II. If two or more things are

of the pledge, the thing is in the pledged, the pledgor may choose
possession of the pledgor which he will cause to be sold,
or owner there is a conclusive unless there is a stipulation to
presumption that the same has been the contrary.
returned by the pledge.
15. I. A statement in writing by the

pledge that he renounces or abandons 18. I. A pledge shall not take effect
the pledge is against third person if a description of
sufficient to extinguish the the thing pledged and
pledge only if accepted by the pledgor the date of the pledge do not
or owner and the thing appear in a public instrument.
pledged is returned.
Law on Sales
II. If after the auction sale, the property within a certain
thing pledged is not sold, the pledge period of time after it was sold to third
can appropriate the thing person.
pledged.
22. I. The right of redemption refers
19. I. Z pledged his ring to B for to the right of the mortgagor to
P20,000. Z failed to pay his obligation redeem the mortgaged
on time. B sold the ring property after his default in
at a public auction for P16,000. payment but before the sale.
B cannot recover P4,000 from Z even
if there is II. The registration in the Registry
stipulation. of Property is necessary for the
validity of a contract of
II. Using the same facts, if the real estate mortgage.
proceeds of sale is P24,000, Z can
recover the excess of A. First statement is true, second
P4,000 if stipulated. statement is false.
B. First statement is false, second D. Both statements are false.
statement is true.
C. Both statements are true. 23. I. Except in case of sale of
D. Both statements are false. personal property in installments, if
the proceeds of the sale is
20. I. In sale at public auction, the less than the principal
pledgor or owner may be abider and obligation, the creditor-mortgagee can
shall have a better right recover the deficiency.
if he should offer the same
terms as the highest bidder. II. A borrowed P100,000 from B
payable in 10 equal monthly
II. Pledge is a real contract. installments. To secure
payment of the loan, A
A. First statement is true, second executed chattel mortgage on his
statement is false. Mercedes Benz car. If A
B. First statement is false, second violates the condition of the
statement is true. mortgage, and the car was foreclosed
C. Both statements are true. and sold at a public
D. Both statements are false. auction but the proceeds is
less than the collectible amount, B
cannot recover the
MORT deficiency.
GAGE
21. I. A stipulation prohibiting the statement is false.
owner from alienating the immovable B. First statement is false, second
mortgaged shall be statement is true.
void. C. Both statements are true.
II. The equity of redemption refers
to the right of the mortgagor to 24. I. In real estate mortgage the
redeem the mortgaged mortgagor can sell the property
mortgage even without the
consent of the mortgagee.
Law on Sales
28. I. In commodatum one of the
II. In chattel mortgage, the parties delivers money or consumable
mortgagor cannot sell the thing thing upon the
mortgage even with the written condition that the same
consent of the mortgagee amount of the same kind and quality
appearing at the back of the shall be paid.
mortgage.
II.In commodatum and mutuum
A. First statement is true, second ownership of the thing loan is
statement is false. transferred to the borrower.
statement is true. A. First statement is true, second
C. Both statements are true. statement is false.
D. Both statements are false. B. First statement is false, second
statement is true.
25. I. Chattel mortgage like pledge is C. Both statements are true.
a real contract. D. Both statements are false.
II. In chattel mortgage like pledge 29. I. Commodatum and mutuum

the possession of the thing mortgaged involve real and personal property.
is vested in the
creditor. II. The bailee in commodatum
acquires the use of the thing loaned
A. First statement is true, second and its fruits.
statement is false.
B. First statement is false, second A. First statement is true, second
statement is true. statement is false.
C. Both statements are true. B. First statement is false, second
D. Both statements are false. statement is true.
L D. Both statements are false.
O
A 30. I. The bailee in commodatum
N can lend or lease the object of the
contract to a third person.
26. D deposits his momey by way of a
savings account with C Bank. The II. When there are two or more
contract between D bailees to whom a thing is loaned in
and C is the same contract, they
are liable jointly.
A. Deposit
B. Agency A. First statement is true, second
C. Commodatum statement is false.
D. Mutuum B. First statement is false, second
statement is true.
27. I. In mutuum or loan, one of the C. Both statements are true.
parties delivers to another something D. Both statements are false.
not consumable so
that the latter may use the 31. I. A contract whereby one person
same for a certain time and return it. transfers the ownership of non-
fungible things to another
II.Mutuun is essentially gratuitous. with the obligation on the part
of the latter to give things of the same
A. First statement is true, second kind, quantity and
statement is false. quality shall be considered a
B. First statement is false, second loan.
statement is true.
C. Both statements are true. II. Precarium is a kind of mutuum
D. Both statements are false. where the bailor may demand the
thing loaned at will.
Law on Sales
statement is false. 35. I. Unless there is a stipulation to
B. First statement is false, second the contrary, the depositary cannot
statement is true. deposit the thing with a
C. Both statements are true. third person.
II. When the depositary has
permission to use the thing deposited,
the contract loses the
DEPOSIT concept of a deposit and
becomes a loan or commodatum even
32. I. An agreement to constitute a when safekeeping is still
deposit is binding and is perfected the principal purpose of the
from the moment there is contract.
meeting of minds.
II. Movable and immovable things statement is false.
may be the object of judicial deposit. B. First statement is false, second
statement is true.
statement is false. D. Both statements are false.
statement is true. 36. I. The thing deposited shall be
C. Both statements are true. returned with all its products,
D. Both statements are false. accessories and accessions.
II. A contract of deposit is

perfected from the moment there is
meeting of minds.
33. I. A contract of deposit must be A. First statement is true, second

in writing. statement is false.
II. The depositary can make use of statement is true.
the things deposited even without the C. Both statements are true.
express permission D. Both statements are false.
of the depositor.

statement is false.
statement is true.
34. I. Fixed, savings, and current

deposits of money in banks and
similar institutions shall be
governed by the provisions
concerning simple loan.
II. The depositary can demand

that the depositor prove his ownership
of the thing deposited.

statement is false.
statement is true.

Law On Sales Practice Set

Uploaded by

Copyright:

Available Formats

Law On Sales Practice Set

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Law On Sales Practice Set

Uploaded by

Copyright:

Available Formats

Law on Sales

1.Unless there is stipulation to the A. No, the obligation is one with a

A. Given when contract of sale is A. The obligation to deliver the

A. Death of the principal, but the 15. In distinguishing Earnest Money

A. P200,000 22. Sale is distinguished from dation in

A. C can recover the deficiency of

A. Traditio brevi manu 29. Ces kidnapped and tortured Ed for

A. The disposal of the pledge

A. First statement is true, second 73. Maria purchased a quantity of bed

95. A, B and C appointed Z as their 98. I. The creditor pledge cannot

A. First statement is true, second 107. I. Unless there is stipulation to

A. First statement is true, second II. If a third person contracts with

II. Agency is a nominate,

A. Dacion en pago 11. X needs a size of 10 of model 101

5.Warranty against hidden defects is A. Both are contracts of sale

A. English rule A. Traditio longa manu

A. English rule A. Traditio longa manu

38. X sold to V her Yamaha organ. It A. C cannot be considered as the

A. The goods must be in transit A. Both B and C

61. X leased to V a 5 Freezer for two A. First statement is true, second

II. Sale is a consensual contract, A. First statement is true, second

II. There is no warranty against A. First statement is true, second

A. Any stipulation in a contract of A. Caveat emptor

A. Only if with the oral consent of 7. A mortgaged his residential land to

II. If subsequent to the perfection II. If two or more things are

15. I. A statement in writing by the

II. In chattel mortgage like pledge 29. I. Commodatum and mutuum

II. A contract of deposit is

33. I. A contract of deposit must be A. First statement is true, second

A. First statement is true, second

34. I. Fixed, savings, and current

II. The depositary can demand

A. First statement is true, second

You might also like