Barebusx Act 183 Finals Quiz 3 (Pre-Final Exam)

3/5/2021 BAREBUSX ACT 183 FINALS QUIZ 3 (PRE-FINAL EXAM)
BAREBUSX ACT 183 FINALS QUIZ 3

(PRE-FINAL EXAM)
PRE-FINAL EXAM
Multiple Choice. Choose the Best Answer
Points: 42/65
1. What is the right of the agent over the object of the agency until the principal
reimburses him for the sums necessary for the execution of the agency which he
had advanced and until the principal pays him the indemnity for all damages in
the execution of the agency? *
(1/1 Point)
Right to appropriate the property
Right to sell the property
Right to retain in pledge the property or legal pledge. 
Right to destroy the property
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2. Which of the following stipulation is null and void?
I. A stipulation which provides that the pledge is not extinguished by the return of
the thing pledged.
II. A stipulation allowing the appropriation by the pledge of the thing pledged in
the case the same is not sold in the first and second auctions.
III. A stipulation for the recovery of deficiency in case the proceeds from the sale of
the thing pledged is less than the amount of the auction sale. *
(2/2 Points)
I and II
II and III
I and III 
I, II and III
None of the Above
3. The following are kinds of principal obligations that may be secured by a pledge
or mortgage, except. *
(1/1 Point)
Rescissible Contracts
Null and Void Obligations 
Natural Obligations
Voidable Contracts
4. On January 1, 2012, S sold to B a specific car owned by X for P50,000. S promised

to deliver the car to B on January 11,2012. S bought the car from X on January
10,2012 and delivered it to B on January 11, 2012. 1s the contract of sale between
S and B valid? *
(0/1 Point)
No because there is no delivery of the car on January 1, 2012 which is an essential requisite
of a contract of sale.
No because the seller or vendor shall be the owner of the thing sold at the time of
perfection of contract.
Yes even if X is not the owner of the thing sold on January 11, 2012 because future

thing can be the object of a contract of sale.
Yes because the vendor need not possess the title to the thing sold at the perfection of the
contract but he must have the right to transfer the ownership of the thing at the time that
the thing is to be delivered

5. Which of the following statements is incorrect concerning the prescriptive period
of equity of redemption and right of redemption? *
(0/1 Point)
In judicial foreclosure, the mortgagor is given within ninety (90) days to one hundred
twenty (120) days after entry of judgment or even after the sale but prior to its
confirmation
In extra-judicial foreclosure, the mortgagor may exercise his equity of redemption by


paying the mortgage debt after his default but before sale of the property
In judicial foreclosure, the mortgagor may exercise his right of redemption after the sale
but before the confirmation by the Courts.
In extra-judicial foreclosure, the mortgagor has one year from the date of sale to exercise
his right of redemption.
6. S promised to sell his car to B for P100,000 giving B one week to decide whether
to buy or not.
B accepts the promise and gives a consideration of P 1,000 for the one week
period.
If B decides to buy the car, how much should B pay to S? *

(1/1 Point)
P100,000 because the P 1,000 is an earnest money
P99,000 because the P1,000 is an option money.
P100,000 because the P 1,000 is an option money 
P99,000 because the P1,000 is an earnest money.
7. Statement 1: Sale of land covered by a private contract is not binding among third
parties
Statement 2: Sale of land must always be in a public instrument.
Which of the Following is Correct?

(1/1 Point)
A. Only Statement 1 is True 
B. Only Statement 2 is True
C. Both Statements are False
D. Both Statements are True
8. What is the status of the contract of sale between a husband and wife?
(1/1 Point)
Voidable because of Absolute incapacity
Rescissible if there is lesion
Unenforceable if not in writing
Null and Void because of relative incapacity 
9. S and B entered into a contract of sale of a specific car. S delivered the key of the
car to B. What type of constructive delivery is present *
(1/1 Point)
Traditio Brevi Manu
Traditio Longa Manu
Traditio Symbolica 
Tradition By Legal Formalities
10. What is the effect to the contract of sale if the determination of the price is left to
the judgment of a third person and such person is unable or unwilling to fix the
price? *
(1/1 Point)
The contract of sale is voidable.
The contract of sale is valid and binding.
The contract of sale is inefficacious unless the parties subsequently agree upon the

price.
The contract of sale is rescissible.
11. It is a mode of acquiring ownership whereby the object the contract and
possession of the vendor is given to the vendee, either actually or constructively.
(1/1 Point)
Payment of Purchase price
Sale
Transfer of Ownership
Delivery 
12. What is the status of the contract entered into by the agent in excess of the
authority of his principal and in the name of the principal or by a person without
authority of another but in the latter's behalf? *
(2/2 Points)
Rescissible unless ratified by the Principal
Voidable unless ratified by the Principal
Unenforceable unless ratified by the Principal 
Null and Void unless ratified by the Principal
13. It is a contract by virtue of which the debtor delivers to the creditor or to a third
person a movable, or instrument evidencing incorporeal rights for the purpose of
securing the fulfillment of a principal obligation with the understanding that when
the obligation is fulfilled, the thing delivered shall be returned with all its fruits and
accessions. *
(1/1 Point)
Real Estate Mortgage
Pledge 
Antichresis
Chattel Mortgage
14. S, a capacitated person, sold to B, a minor, a chicken joy. May S demand from B
the payment of the purchase price? *
(1/1 Point)
No because the contract of sale is voidable since B is an incapacitated person.
Yes because the contract of sale is valid considering the food is a necessary. 
Yes even the price is unreasonable.
No the contract is void
15. D borrowed P10,000 from C and pledged his ring and watch with P4,000 and
P6,000 value respectively. After several days, D pays P4,000 to C. Which of the
following statements is correct? *
(1/1 Point)
Contract of Pledge is Extinguished
Contract of Loan is Extinguished
D cannot demand the release of his ring because a contract of pledge is indivisible. 
D may compel the return of the ring because the the 4,000 has already been paid
16. The following are the requisites of the object of a contract of sale, except *
(1/1 Point)
It must be within the commerce of men.
It must not be contrary to law, morals, good customs, public order or public policy
It must be owned by the vendor at the time of perfection of contract of sale. 
It must be determinate
17. The following are essential requisites of a contract of pledge, except: *

(1/1 Point)
That they be constituted to secure the fulfillment of a principal obligation.
The pledgor be the absolute owner of the thing pledged or mortgaged.
That when the principal obligation becomes due, the things in which the pledge

consists may be alienated for the by the pledgee
That the persons constituting the pledge have the free disposal of their property, and in
the absence thereof, that they be legally authorized for the purpose.
That the thing pledged or mortgaged be placed in the possession of the creditor, or of a
third person by common agreement.

18. In a sale of real estate with a statement of its area at the rate of a certain price per
unit of measure or number, the vendor shall deliver the area mentioned in the
contract of sale. What is the remedy of the buyer if the actual area is less than by
an area less than 1/10 of that stated in the contract? *
(0/1 Point)
A. Ask for proportionate reduction in the price. 
B. Ask for rescission of the contract of sale.
C. Either A or B
D. Ask for declaration of nullity of the contract of sale.

19. ABC Inc. is the borrowed P2,000,000 from BPI. ABC Inc., is under receivership. To
secure the fulfillment of the loan,
ABC mortgaged its administrative building.
Which of the following statements is correct? *

(0/1 Point)
Mortgage is Valid because the mortgagor is the absolute owner of the property
Mortgage is Null and Void because the mortgagor has no free disposal of the Building 
Mortgage is Voidable
Mortgage is null and void because only natural persons can enter to a REM.
20. It is a stipulation whereby the thing pledged or mortgaged shall automatically

become the property of the creditor in the event of non-payment of the debt
within the term fixed. *
(-/1 Point)
Pactum Non Alienado
Pactum Commissorium
Pactum Credatarium
Precarium
21. Statement 1: In an Implied New Lease, all provisions under the Contract are
deemed revived
Statement 2: When there is no fixed period for the lease of Rural Lands, it shall be
for all time necessary for the gathering of fruits which the whole estate may yield
in One year or which it may yield once.

(1/1 Point)
A. Only Statement 1 is True
B. Only Statement 2 is True 
22. As a general rule, all those who may oblige themselves may enter into a contract
of sale. What is the status of a contract of sale entered into by persons having
absolute incapacity such as minors, insane or demented persons and deaf mutes
who do not know how to write with a capacitated person? *
(1/1 Point)
Voidable
Rescissible
Unenforceable
Null and Void 
23. Statement 1: Between the sale of unregistered Lands, land covered by Act 3344
would not prevail over a land registered under the Torrens System of titling
Statement 2: Art. 1544 applies to lands not registered under Torrens System.

(0/1 Point)
24. The following are the instances where the pledger-owner may ask that the thing
pledged be deposited judicially or extrajudicially except: *
(1/1 Point)
If the creditor uses the thing without authority.
If the creditor uses the thing in any other way.
If the thing is in danger of being lost or impaired because of the negligence or willful act of
the pledgee.
If there are reasonable grounds to fear the destruction or impairment of the thing

pledged without the fault of the pledgee.

25. Indicate the proper order on how the proceeds of sale from judicial or extrajudicial
foreclosure shall be distributed:
I. Cost of sale.
II. Claim of junior encumbrances in the order of their priority.
III. Claim of the person foreclosing the mortgage.
IV. Excess to the Mortgagor or his agent. *
(0/2 Points)
I-II-III-IV
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II-III-IV-I
I-III-II-IV 
II-I-III-IV
26. It is foreclosure made in compliance with Act No. 3135 (as amended) and available
when there is a stipulation in the mortgage contract that the mortgage may be
foreclosed or when such foreclosure sale is made under a special power of
inserted in the contract. *
(1/1 Point)
Judicial Foreclosure
Extrajudicial Foreclosure 
Legal Foreclosure
Conventional Foreclosure
27. The following are the instances where the thing pledged or mortgaged may be
sold or alienated to pay the principal obligation, except: *
(1/1 Point)
If the pledgor or mortgagor fails to fulfill certain conditions and such violation would make
the debt due and demandable.
If the debtor has lost the right to make use of the period or where there is an acceleration
clause in the payment of installment.
Upon default to pay the obligation at maturity.
Before Maturity of the loan 
28. The following persons are prohibited from acquiring by purchase, except
(1/1 Point)
The guardian, the property of the person or persons under his guardianship.
Agents, the property whose administration or sale may have been entrusted to them,
unless the consent of the principal has been given.
Executors and administrations, the property of the estate under administration
Wife, the exclusive or capital property of his husband. 
Public officers and employees, the property of the State or GOCC under their
administration.

29. D borrowed P1,000,000 from C.
G, a third person, mortgaged his land to secure the fulfillment of D’s loan.
Is the contract of mortgage valid? *
(0/1 Point)
No because D must be the owner of the mortgaged land.
Yes, provided D will deliver the Land.
Yes because third persons who are not parties to the principal obligation may secure

the latter by pledging or mortgaging their own property.
No because G is no privy to the contract of loan.
30. It is a contract whereby one of the contracting parties, known as the seller or
vendor, obligates himself to transfer the ownership of and to deliver a determinate
thing, and the other party, known as the buyer or vendee, obligates himself to pay
therefore a price certain in money or its equivalent. *
(1/1 Point)
Sales 
Agency
Partnership
Lease

31. The following are the rules for the place-of registration of Chattel Mortgage,
except *
(0/1 Point)
It must be recorded in the both Chattel Mortgage Registers of the provinces where the
mortgagor resides and where the property is located
To bind third persons,With respect to motor vehicles, it must be registered with both
Chattel Mortgage Register and LTO.
To bind third persons, With respect to vessels it must be registered with the Philippine
Coast Guard in coordination with the Bureau of Customs at port of entry.
As a general rule, it must be recorded in the Chattel Mortgage Register of the province

where the mortgagee resides.
32. Statement 1: Sale is only a Title and not a Mode of Acquiring Ownership
Statement 2: Republic Act No. 387 as Amended is also known as the Civil Code of
the Philippines

(1/1 Point)

33. Under RA Section 47 of RA 8791 (General Banking Laws), - In the event of
foreclosure made by banks, whether judicially or extrajudicially, of any mortgage
on real estate which is security for any loan or other credit accommodation
granted, the mortgagor or debtor whose real property has been sold for the full or
partial payment of his obligation shall have the right of redemption to be
exercised: *
(0/1 Point)
Within one year from the date of the sale
Within 120 days from the date of the sale
Within 90 days from the date of the sale 
Within 60 days from the date of the sale
34. Under the Rent Control Law
Statement 1: Two months advance, two months deposit for lease of residential
lands under 10,000 pesos is legal.
Statement 2: Boarding Houses with rent of 10,001 pesos are included

(1/1 Point)
C. Both Statements are False 
35. It refers to remedy available to the mortgagee by which he subjects the property
mortgaged to the satisfaction of the obligation secured when the principal
obligation is not paid when due or when there is any violation of any condition,
stipulation or warranty by mortgagor. *
(1/1 Point)
Novation
Dacion en Pago
Foreclosure 
Compensation
36. B purchased the car of S for P100,000 payable within 30 days from the date of
sale. To show that he is really interested, B gives S P1,000 upon the execution of
their agreement.
How much should B pay to S on the 30th day? *

(1/1 Point)
P100,000 because the P 1,000 is an earnest money
P99,000 because the P1,000 is an option money.
P100,000 because the P 1,000 is an option money
P99,000 because the P1,000 is an earnest money. 

37. There may be a sale of an undivided share of a specific mass of fungible goods
though the seller purports to sell and the buyer purports to buy definite number,
weight or measure of the goods in the mass, and though the number, weight or
measure of the goods in the mass is undetermined. Which of the following rules is
incorrect?
1. If the quantity, number, weight or measure. of the mass is more than the
quantity sold, the parties shall become co-owners of the mass.
II. If the quantity of the mass is less than the quantity sold, the buyer becomes
the owner of the whole mass, with the seller being bound to make good the
deficiency from goods of the same kind and quality, unless a contrary intent
appears. *
(0/1 Point)
I ONLY 
II ONLY
NEITHER I nor II
BOTH I and II
38. S and B entered into a contract of sale of a specific coconut S and B pointed over
that particular coconut.
What type of constructive delivery is present? *

(1/1 Point)
Traditio Brevi Manu
Traditio Longa Manu 
Traditio Simbolica
Traditio constitutum possessorium

39. What shall be the remedy of the buyer in case of the partial loss of the object of
the contract of sale before the perfection of the contract?
I. Rescission as a Subsidiary Remedy

II. Demanding the remaining part and paying its proportionate price. *
(0/1 Point)
I ONLY
II ONLY 
NEITHER I nor II
BOTH I and II

40. In case the thing pledged is alienated by the debtor-pledgor to third person, what
is the effect of the consent of the pledge to the alienation? *
(0/1 Point)
The thing pledged remains to be owned by the debtor-pledgor.
The debt is still existing but the ownership of the thing pledged is transmitted to the

buyer. 
The creditor-pledgee loses possession of the thing pledged.
Contract of Pledge is extinguished.

41. What is the remedy of the pledgor-owner if there are reasonable grounds to fear
the destruction or impairment of the thing pledged, without the fault of the
pledgee? *
(0/1 Point)
To ask for the extinguishment of the contract of pledge.
To ask for the extinguishment of the contract of loan
To have the thing deposited with a Third Person
To ask for the return of the thing, upon offering another thing in pledge, provided the

latter is of the same kind as the former and not of inferior quality

42. Bailee is Liable for the loss of thing loaned if:
Statement 1: If he devotes the thing to any purpose which is the same from that
for which it has been loaned;
Statement 2: If he keeps it longer than the period stipulated, or after the

accomplishment of the use for which the commodatum has been constituted;

(0/1 Point)
D. Both Statements are True 
43. What is the effect of simulated price in a contract of sale? *

(1/1 Point)
It renders the contract of sale null and void. 
It renders the contract of sale voidable.
It renders the contract of sale rescissible
It renders the contract of sale unenforceable
It renders the contract of sale as' a valid donation even if the requirements of donations or
other agreements are not complied with.

44. Which of the following statements concerning bilateral and unilateral promise to
buy and/or sell is incorrect? *
(0/1 Point)
Bilateral promise takes place when one party promises to buy and the other party promises
to sell a determinate thing at an agreed price.
Bilateral promise is reciprocally demandable since this is as good as a perfected


contract of sale.
Unilateral promise not accepted by the promissee (policitacion) does not produce any
effect
Unilateral promise accepted by the promissee is binding upon the promissor even if it is
not supported by a consideration distinct from the price.

45. When two persons contract with regard to the same immovable thing, one of
them with the agent, and the other with the principal, and the two contracts are
incompatible with each other, who between the buyers shall be preferred? *
(0/2 Points)
Buyer with older tittle
First registrant in good faith 
First possessor in good faith
Buyer of the Agent
Buyer of the Principal
46. Which of the following direct modes of extinguishing pledge impliedly

extinguishes the principal obligation?
I. Return by the pledge of the thing pledged to the pledgor or owner.
II. Renunciation or abandonment in writing by the pledge of the pledge.
III. Sale of the thing pledged.
IV. Appropriation of the thing pledged. *

(-/2 Points)
III and IV
I, II and III
I and II
I and IV
II and III
None of the Above
47. In sale or return, when is the ownership of the good.; transferred to the buyer? *
(1/1 Point)
Upon payment of the price
Upon delivery 
Upon approval by the buyer
Upon return of the goods to the seller
48. Statement 1: The guarantor who pays is subrogated by virtue thereof to all the
rights which the creditor had against the debtor.
Statement 2: A "material alteration” of the principal contract, effected by the

creditor and principal debtor without the knowledge and consent of the surety
extinguishes the latter's obligation

(1/1 Point)
D. Both Statements are True 
49. S, a minor of 17 years, sold his watch for P1,500.00 to B, 30 years old. The guardian
of S was not aware of the sale; hence, no action for annulment has yet been filed.
Subsequently, B sold the watch to T, who acquired it in good faith.
Which of the following statements is incorrect?

(1/1 Point)
T acquires no title to the watch because the seller’s title is voidable.
T acquires good title to the watch even if he buys it in bad faith.
T acquires good title to the watch even if the seller’s title is voidable provided the same
has not been avoided at the time of sale and T acquires the watch in good faith, for 
value and without notice or seller's defect of title.
T acquires good title to the watch even if the voidable title of the seller has been avoided
before the time of sale as long as T acquires the watch in good faith, for value and without
notice of seller's defect of title.
50. The following are the requisites of chattel mortgage for its validity, except *
(1/1 Point)
That they be constituted to secure the fulfillment of a principal obligation.
The mortgagor be the absolute owner of the thing pledged or mortgaged.
That the persons constituting the mortgage have the free disposal of their property, and in
the absence thereof, that they be legally authorized for the purpose.
That the document in which the mortgage appears be recorded in the Chattel Mortgage
Register.
That the affidavit of good faith must be appended to the Deed of Chattel of Mortgage

and recorded therewith in the Chattel Mortgage Register
51. On January 1, 2012, D borrowed from C P100,000 and as a security D mortgaged

his land to C. On January 2, 2012, D sold the same land to X for P50,000 to be
delivered on January 5, 2012. D failed to pay the loan. Is the sale between D and X
valid? *
(1/1 Point)
No because D is no longer the owner of the land on January 2, 2012
No because D is no longer the owner of the land on January 5, 2012.
Yes because D is still the owner of the land although it was mortgaged to C. 
Yes provided D will pay the amount due to C.
52. If the proceeds of the sale is less than the amount of the obligation, which of the
following statements is true? *
(1/1 Point)
The debtor-pledgor shall always pay for the deficiency.
The creditor-pledgee cannot recover the deficiency even if stipulated. 
The creditor-pledgee can recover deficiency only if stipulated.
None of the above

53. Enter your Name (Surname First)
Montemayor, Adrian G.
54. The following contracts of sale have prices which are certain and therefore valid,
except: *
(1/1 Point)
S sold to B a specific watch for P2,500 which both parties agreed upon.
S sold to B a certain ring of which the price is the salary of the faculty member of La Salle
High School.
S sold to H a specific car the price of which is subject to determination of X third person.
All of the Above
None of the Above 
55. Statement 1: The benefit of excussion is available to both guarantors and sureties.
Statement 2: The failure to pay by the debtor on the agreed maturity immediately
passes the obligation to the guarantor.

(1/1 Point)
C. Both Statements are False 
56. Future things or things having a potential existence may be the object of a
contract of sale, However, the thing must come into existence; otherwise, the sale
will not be effective for not having a subject matter. The following future things
can be the object of a contract of sale, except *
(1/1 Point)
Wine the a Vineyard may produce
Milk your cows may yield during the next year
Next catch of a fisherman's net
Future inheritance of an Heir 
57. On January 1, S delivered a calculator to B under a sale or return arrangement. S

gave B up to May 7 to return the electronic calculator. Before May 7, the calculator
war destroyed by fire.
Should B pay for the purchase price? *

(1/1 Point)
No because B is not yet the owner of the calculator.
No because the calculator is destroyed through fortuitous event.
Yes because B becomes the owner of the calculator and bears the risk of loss 
Yes if the fire is due to the fault of B.
58. The following goods may become the subject of a contract of sale, except:
(1/1 Point)
Existing goods owned or possessed by the seller.
Things subject of a resolutory condition
Goods to be manufactured, raised or acquired by the seller after the perfection of the
contract of sale or "future goods".
Vain hope or expectancy 
59. The holder of a negotiable instrument may at any time strike out any indorsement
not necessary to his title. What are the effects of striking out indorsement?
I. The indorser whose indorsement is struck out is relieved from his liability on
the instrument.
II. All subsequent indorsers are likewise relieved from their liability on the
instrument.
Which of the following statements are correct? *

(1/1 Point)
I ONLY 
II ONLY
NEITHER I nor II
BOTH I and II

60. The following are purposes for the crossing of a check, except: *
(0/1 Point)
To have the check deposited for the account of the paye
To have the checked encashed. 
o have the check paid only with the intervention of a particular banker when its name is
placed between the parallel lines crossing the check.
To have the assurance that the check shall be paid to the rightful person

61. It refers to the right of the mortgagor to repurchase the property within a certain
period after it was sold for the payment of the mortgage debt. *
(0/1 Point)
Equity of Redemption
Right of Redemption 
Right of First Refusal
Right of Pre-Emption
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3/5/2021 BAREBUSX ACT 183 FINALS QUIZ 3 (PRE-FINAL EXAM)

BAREBUSX ACT 183 FINALS QUIZ 3

Multiple Choice. Choose the Best Answer

Right to appropriate the property

Right to sell the property

Right to retain in pledge the property or legal pledge. 

Right to destroy the property

2. Which of the following stipulation is null and void?

None of the Above

Null and Void Obligations 

4. On January 1, 2012, S sold to B a specific car owned by X for P50,000. S promised

In extra-judicial foreclosure, the mortgagor may exercise his equity of redemption by

If B decides to buy the car, how much should B pay to S? *

P100,000 because the P 1,000 is an earnest money

P99,000 because the P1,000 is an option money.

P100,000 because the P 1,000 is an option money 

P99,000 because the P1,000 is an earnest money.

Statement 2: Sale of land must always be in a public instrument.

Which of the Following is Correct?

A. Only Statement 1 is True 

B. Only Statement 2 is True

C. Both Statements are False

D. Both Statements are True

Voidable because of Absolute incapacity

Rescissible if there is lesion

Unenforceable if not in writing

Null and Void because of relative incapacity 

Traditio Brevi Manu

Traditio Longa Manu

Tradition By Legal Formalities

The contract of sale is voidable.

The contract of sale is valid and binding.

The contract of sale is rescissible.

Payment of Purchase price

Rescissible unless ratified by the Principal

Voidable unless ratified by the Principal

Unenforceable unless ratified by the Principal 

Null and Void unless ratified by the Principal

Real Estate Mortgage

No because the contract of sale is voidable since B is an incapacitated person.

Yes even the price is unreasonable.

No the contract is void

Contract of Pledge is Extinguished

Contract of Loan is Extinguished

It must be within the commerce of men.

It must be owned by the vendor at the time of perfection of contract of sale. 

17. The following are essential requisites of a contract of pledge, except: *

That they be constituted to secure the fulfillment of a principal obligation.

The pledgor be the absolute owner of the thing pledged or mortgaged.

A. Ask for proportionate reduction in the price. 

B. Ask for rescission of the contract of sale.

D. Ask for declaration of nullity of the contract of sale.

Which of the following statements is correct? *

20. It is a stipulation whereby the thing pledged or mortgaged shall automatically

Pactum Non Alienado

Which of the Following is Correct?

A. Only Statement 1 is True

B. Only Statement 2 is True 

C. Both Statements are False