100 questions Sales with answers PDF

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Law on Sales Philippines ...

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1. If the seller makes a defective deliveries or the buyer wrongfully neglects or refuses to accept delivery or fails to pay any installments, the injured party may sue for damages for breach of the entire contract. a. General rule b. Where breach divisible c. Where breach affects the whole contract d. Where separate price has been fixed for each installments

2. I: The buyer is not bound to receive delivery of the goods in installments II: A buyer has no right to pay the price in installments a. b. c. d.

Only I is true Only II is False Both are true Both are false

3. ______ is assent to become owner of the specific goods when delivery of them is offered to the buyer. a. Acceptance b. Right of inspection c. Actual delivery contemplated d. Goods delivered C.O.D/not C.O.D

4. I: The buyer does not have an absolute right to examination since the seller is bound to afford the buyer a reasonable opportunity of examining the goods only “on request” II: Such opportunity to examine should be availed of within a reasonable time in order that the seller may not suffer undue delay or prejudice a. Only I is true b. Only II is false c. Both are true

d. Both are false

5. When the buyer, after delivery of goods, does any act inconsistent with the seller’s ownership. a. Implied acceptance b. Express acceptance c. Rescission d. None of the above

6. Article 1586 requires the buyer, in order to hold the seller for the breach of promise or warranty, to give notice to the seller of any breach within a reasonable time. a. Necessity b. Acceptance c. Purpose d. None of the above

7. Which of the following may not be the object of a contract of sale? a. Things having potential existence b. The acquisition of things which depends upon a contingency which may or may not happen c. Vain hope or expectancy d. Things subject to a resolutary condition

8. Which is not an element of the seller’s right of stoppage in transit? a. The goods must be in transit b. The buyer must be insolvent c. The seller must be in unpaid d. The seller must be in possession of the goods

9. In contract of sale, if the price absolutely stimulated, the sale is a. Unenforceable b. Void c. Voidable d. Rescissible

10.X sold his car to Y for P50,000. No date was fixed for the performance of the obligation of the seller and the buyer. The obligation of X is: a. To deliver the car immediately because the sale is a perfected contract b. To deliver the car only after Y writes to X demanding the delivery of the car c. To deliver the car after Y pays X the P50,000. d. To rescind the contract anytime.

11.A form of delivery which takes place after seller of the property continues in possession of said property no longer as owner but as a mere possessor: a. Traditio brevi manu b. Traditio symbolica c. Traditio constitum possessorium d. Quasi- tradition

12.The right of the seller to stop goodss in transit upon discovering that the buyer does not have the funds to pay for the goods. a. Pre-emptive right b. Right of stoppage in transit c. Appraisal right d. Voting right

13.A contract of sale whereby the seller acquires the right to redeem or repurchase the object of the sale from the buyer within a certain period agreed upon. a. Equitable mortgage

b. Absolute sale c. On sale or return d. Pacto de retro sale

14.In a sale, this is actual delivery a. Execution and signing of the sales document b. Delivery by the seller to the buyer of the key where the goods are kept c. When the goods sold are placed in the control and possession of the buyer d. The buyer is already in actual possession of the goods

15.When goods are delivered to the buyer on “sale or return” for a period of seven days; ownership of the goods passes to the buyer a. Upon expiration of seven days b. Upon delivery of the goods c. Upon acceptance by the buyer of the offer of the seller d. Upon perfection

16.In case of redemption, which of the following will not be paid by the seller to the buyer? a. Expenses incidental to the sale paid by the buyer b. All necessary expenses on the thing sold and to be redeemed c. Interest on the price paid by the buyer d. The consideration of the sale paid by the buyer

17.Not an implied warranty in a contract of sale: a. Right to sell at the time of perfection of the contract b. Merchantable in quality c. Reasonably fit for the purpose for which they are acquired d. Free from charges or encumbrances not declared or known to the buyer

18.In case of doubt, a sale with a right to repurchase or without a right to repurchase shall be construed as an equitable mortgage. The seller therefore: a. May ask for the annulment of the contract b. May ask the court for the declaration of nullity of the contract c. May ask for the reformation of the instrument d. Shall be bound to perform his obligation as seller

19.A sold to X his ½ share of the parcel of land he co-owns with B. C owns the parcel of the land adjoining that A and B. Both B and C want to redeem the share of A which the latter sold to X. a. C shall be preferred to B in the redemption from X b. B and C shall equally redeem the share of A c. B’s right as co-owner excludes that of C, the latter being only an adjoining owner d. C has a better right to the redemption as adjoining owner

20.Unless there is stipulation to the contrary, the expenses for the execution or registration of the sale shall be borne by: a. The vendor b. The agent or broker c. The vendee d. The vendee and the vendor

21.Action to seek a corresponding reduction in price by reason of some vices or defects in the thing purchased a. Accion reinvindicatoria b. Accion pauliana c. Accion quanti minoris d. Redhibitory action

22.A delivers B his parcel of land worth P1,000,000 in exchange for the car of B worth P500,000 and cash in the amount or P500,000. The contract is: a. Barter b. Sale c. Partly barter partly simuno d. Innominate contract

23.If immovable property should have been sold to different vendees, the ownership shall be transferred to the person. a. Who have first taken the possession in good faith b. Who presents the oldest title in good faith c. Who in good faith first recorded it in the Registry of Property d. Who have paid in good faith the purchase price in full

24.The buyer of a thing has the right to the fruits of the thing a. From the time the thing bought is delivered b. From the time the sale is perfected c. From the time the obligation to deliver the thing bought arises d. From the time the fruits are delivered

25.Dacion en pago as distinguished from sale a. The object is always existing and specific b. There is a greater degree of freedom in fixing the price c. There is no pre-existing obligation d. The cause is the price

26.Which of the following is not requisite of the object of a contract of sale? a. It must be within the commerce of men b. It must be licit c. It must be determinate thing

d. Vendor must have the right to transfer the ownership of the thing at the time of sale

27.The redhibitory action based on the faults or defects of animal must be brought within a. 30 days from delivery to the vendee b. 40 days from delivery to the vendee c. 45 days from delivery to the vendee d. 6 months from delivery to the vendee

28.This special form of payment is conveyance of the ownership of the thing as accepted equivalent of performance a. Dacion in payment or dacion en pago b. Assignment of property or cession en pago c. Application of payment d. Tender of payment and consignation

29.The price in a contract of sale is certain except: a. When the parties have fixed or agreed upon a definite amount b. If the price is certain with reference to another thing certain c. If the fixing of the price is left to the discretion of one of the contracting parties d. If the price fixed is that which the thing sold would have on a definite day or in a particular exchange or market

30.When things are delivered to the buyer on approval, trial, or satisfaction, the ownership passes to the buyer a. Upon delivery of the things b. Upon meeting of minds c. Upon conception of the sale d. Upon return of the things to the seller

31.On January 1, S orally sold to B a specific ring for P4,500. The parties agreed that S shall be deliver the ring to B on January 5 , while B will pay the price on January 7. a. The contract is perfected on January 5 when the ring is delivered by S to B. b. The contract is perfected on January 1 when the parties had a meeting of minds on the object and price c. The contract is perfected on January 7 when the price is paid, since both would then have performed their obligations in the contract d. There is no perfected contract because the sale was made orally

32.I: A contract to sell does not sell the thing or property, it sells the right to buy property. II: a conditional sale is a sale subject to the happening or performance of a condition, such as payment of the full price or the performance of other prestation to give, to do or not to do. a. Only I is true b. Only II is false c. Both are true d. Both are false

33.A and B entered into a contract of lease with option to buy the car of the former for a term of two years. For three months B failed to pay the rentals and by reason thereof, A repossessed the car. Hence, a. A can collect the unpaid rentals for three months b. A can collect the unpaid rentals for the duration of the term of the lease of two years c. When A deprived B the possession of the leased car, he has no further action against the latter for any unpaid rentals d. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with option to buy

34.It is a contract whereby one if the parties obligate himself to deliver something to another who on his part, bunds himself to pay therefor a sum of money or its equivalent. a. Contract of sale b. Contract to sell c. Contract for a piece of work d. Contract of barter or exchange 35.It is one of the characteristics of a contract of sale which doesn't depend on toher contract for existence. a. Consensual b. principal c. Nominate d. Commutative 36.This contract of sale is not subject to any condition a. Contract to sell b. Conditional Contract of Sale C. Absolute contract of sale d. None of the above 37. The following are essential requisites of a contract of sale. a. Consent b. Object c. Cause d. None of the above

38.Refers to the elements which are deemed to exist in certain contracts even in the absence of some stipulations. a. Natural Elements b. Accidental elements c. absolute d. Conditional

39.. Below are some examples of accidental elements except. a. Conditions B. Interest C. Penalty D. Warranty against eviction

40.The object of a contract of sale must be: a. Determinate b. Licit c. possible d. All of the above

41.Sale of a vain hope or expectancy. a. Void b. Valid c. voidable d. Rescissible

42.Things having potential existence a. Void b. Valid c. Voidable D. Rescissible

43.Sale of mere hope or expectancy a. void B. Valid C. Voidable D. Rescissible

44.Sale of future inheritance a. void B. Valid C. Voidable D. Rescissible

45.The stages of a contract of sale are the ff except: a. Negotiation B. Counter-offer . C. Perfection D. Consummation

46.It shall be considered as part of the price and as proof of the perfection of the contract. a. Option Money B. Initial Payment C. Downpayment D. Earnest Money .

47.When a buyer who bought an undivided interest in a thing, he becomes a co-owner of the thing A. True . B. False C. Somewhat true D. Somewhat false

48.In a sale of a fungible goods, if later on it was discovered that the mass of fungible goods contains less than what was sold, the buyer becomes the owner of the whole mass. A. True . B. False C. Somewhat true D. Somewhat false

49.Things subject to a resolutory condition may be the object of the contract of sale. A. True . B. False

C. Somewhat true D. Somewhat false

50.. It a contract whereby a person binds himself to render some servuce or to do something in representation or on behalf of another, with the consent or authority of the latter. a contract of agency b. Contract of barter/exchange c contract for a piece of work D. None of the above

51.It is a contract whereby the contractor binds himself to execute a piece of work for the employer in consideration of a certain price or compensation.

a contract of agency b. Contract of barter/exchange c contract for a piece of work D. None of the above

52.As a general rule, if price is not ascertained or determined, there is no sale. a. True B. False C. Somewhat true D. Somewhat false

53.. The following are instances where price is considered ascertained. a the parties have fixed or agreed upon a definite amount b. It be certain to another thing certain c. The determination of the price is left to the judgement of a specified person/persons. D. All of the above

54.. The price fixed by the third person specified by the parties is binding upon them. a. True B. False C. Somewhat true D. Somewhat false

55.. If the third person refuses or cannot fix it, the parties may subsequently agree upon the price a. True B. False C. Somewhat true D. Somewhat false

56.If the third person is prevented from fixing the price by fault of the seller or buyer, the party not in fault may obtain redress against a person the party in fault. a. True B. False

C. Somewhat true D. Somewhat false

57.. If the price is inadequate, it does not affect the contract. Thus, the contract us valid. a. True B. False C. Somewhat true D. Somewhat false

58.. What is the effect if the price is simulated or false a. The contract is void b. The contract is valid. C. The contract is rescibble. D. The contract is voidable.

59. The fixing if the orice can never be left to the discretion of one of the contracting parties. a. True B. False C. Somewhat true D. Somewhat false

60. When the price haven't been fixed and there has been delivery, the vendee must pay a reasonable price thereof. a. True B. False C. Somewhat true D. Somewhat false

61. It cover the period from the time the prospective contracting parties indicate interest a. Negotiation B. Perfection C. Consummation D. Counter offer

62. It takes place upon the concurrence of the essential elements of the sale which are the meeting of the minds of the parties upon the object and upon the price. a. Negotiation B. Perfection C. Consummation D. Counter offer

63. It is a stage where the parties perform their respective undertakings. a. Negotiation B. Perfection

C. Consummation D. Counter offer

64. . Sales in public auction is perfected by: a. Fall of the manner b. any other manner c. a or b d. none of the above 65. The seller has the right to bid in the auction provided: a. Such right is reserved b. Notice was given that the sale is subject to a right to bid on behalf of the seller c. His right is not prohibited by law d. All of the above 66. It is only after this that the ownership of the thing sold is transferred to the vendee. a. Delivery b. Perfection of the contract c. Payment d. Cannot be transferred 67. A unilateral promise or offer to sell or to buy a thing which is not accepted creates no juridical effect or legal bound. Such unaccepted offer is called ____________ . a. Policitation b. Solicitation c. Redemption d. Revolution 68. Principle which states that the thing perishes with the owner. a. Res perit domino

b. Genus nunquam perit c. Negotiorum gestio d. Solution indebti 69. Who is liable for the loss before perfection a. Seller b. Buyer c. Agent d. Carrier 70. who is liable if the thing is lost at the time of the perfection a. Seller b. Buyer c. Agent d. Contract is void 71. he is liable for the loss of the thing after perfection but before its delivery. a. Seller b. Buyer c. agent d. carrier 72. . In the contract of sale of goods by description or by sample, the contract may be rescinded if the bulk of the goods delivered do not correspond with the description or the sample. a. True b. False c. Not sure d. Somewhat true 73. It is money is given by the buyer to the seller to bind the bargain. It is actually a partial payment of the purchase price and is considered as proof of the perfection of the contract. a. Earnest money b. Option money c. Bill of exchange d. Bill of lading

74. A contract of sale may be entered into any form. a. True b. False c. Somewhat true d. Not false 75. The following contracts must be in writing a. Sale of personal property at a price not less than Php 500 b. Sale of real property c. Sale of property not to be performed within a year from the date thereof. d. All of the above 76. . In sale of personal property payable in installments, the vendor has the following remedies, a. Exact fulfillment of the obligation b. Cancel the sale should the vendee fail to pay two or more installments c. Foreclose the chattel mortgage d. All of the above 77. Those remedies can be performed cumulatively or successively. a. True b. False c. Somewhat true d. Not sure 78. the rents or installments paid can be forfeited only and only if a. If stipulated b. After 6 months c. Can never be forfeited d. If allowed by law

79. As a general rule, the vendor has shall pay the expenses and execution of the sale. a. Seller b. Buyer c. Bailee

d. Carrier 80. As a general rule, minors are incapacitated to enter into contracts except if where ______________ are sold to them, as a consequence, they shall pay a reasonable price. a. Necessaries b. Luxuries c. Cars d. Cellphone 81. . As a rule, this contract of sale involving a piece of land is void, A. Between a minor and a capacitated person. B. Between two insane persons who did not act during lucid interval C. Between first degree cousins D. Between husband and wife 82. . A contract of sale is in the stage of conception when A. There is meeting of the minds B. Negotiations are in progress C. The parties come to an agreement D. The contract is perfect 83. Three of the following are the requisites in order that the vendee may enforce the vendor’s liability in case of eviction. Which one is not? a. There must be a final judgment depriving the vendee of a part or whole of the thing sold. b. The vendee must have appealed from such judgment rendered against him. c. The deprivation of the vendee is based on a right prior to the sale or an act imputable to the vendor. d. The vendor is notified of the suit at the instance of the vendee. 84. Three of the following are the requisites in order that the buyer may enforce the seller’s liability for hidden defects. a. The defects of the thing sold must not be patent or visible. b. The defects render the thing unfit for the use which it is intended, or which diminish its fitness for such use to such an extent that had the buyer been aware thereof he would not bought it. c. The defects must be existing at the time of sale.

d. The defects must be capable of determination by an expert. 85. The vendor shall be liable for the death of the animal sold when the following requisites are present, except: a. The disease existed at the time of sale. b. The disease is the cause of the death of the animal. c. The disease must be redhibitory. d. The animal dies within 3 days from the time of purchase. 86. The justified refusal of the buyer to accept the goods produces the following effects, except: a. buyer has no duty to return the goods unless otherwise stipulated. b. title to the goods does not pass on to him. c. buyer shall not be obliged to pay the price. d. buyer is obliged to constitute himself as depositary unti...