Answer key for LAW - Lecture notes 1-4 PDF

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SALES Which of the following is not a characteristic of sale? a. Bilateral b. Gratuitous c. Consensual d. Nominate A characteristic of a Contract of Sale which involves exchange of value a. Commutative b. Nominate c. Bilateral d. Consensual Dacion en Pago as distinguished from sale a. The object is ...

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SALES 1. Which of the following characteristic of sale? a. Bilateral b. Gratuitous c. Consensual d. Nominate

is

not

a

2. A characteristic of a Contract of Sale which involves exchange of value a. Commutative b. Nominate c. Bilateral d. Consensual 3. Dacion en Pago as distinguished from sale a. The object is always existing and specific. b. There is greater freedom in fixing the price. c. There is no pre-existing obligation. d. The cause is the price. 4. Sale is distinguished from dation in payment in that is a sale: a. There is a pre-existing obligation or credit. b. The cause is a price. c. It is a mode of existing an obligation in the form of payment. d. Answer is not given. 5. Ababao and Bancaso entered into a “ Contract to sell “ in private writing involving a specific parcel of land worth P2M. Bancaso paid 50% of the purchase price, balance payable in 3 years. Ababao delivered the land to Bancaso. What is the effect of the delivery of tha land to bancaso? a. Bancaso is the owner because there was delivery already. b. Bancaso can compel Ababao to execute a deed of sale in public instrument. c. The partial payment made Bancaso the owner of the land. d. Ababao is still the owner because the price is not yet totally paid. 6. Which is an exception? A sale is a contract where one of the contracting parties, called the seller (or vendor), Obligates himself: a. The transfer ownership of the object. b. The deliver a determinate thing. c. To warrant against eviction and hidden defects. d. To pay therefor a price certain in money or its equivalent. 7. Mimmodto entered the Sugbo Restaurant and ordered a dozen fresh oyster in their shell. While eating, Mimmodto noticed an almost perfect pearl in one of the shells. He is about to take it when Maliksi, the restaurant owner, claims the pearl. To whom does the pearl belong? a. To Mimmodto because the contract of sale was already perfected. b. To Maliksi, because Mimodto has not yet paid the food he ordered. c. To the state because the pearl is considered as a national treasure. d. To both Mimdoto and Maliksi, each of them being entitled to half of its price.

c. Yes, it is sufficient that he be the owner at the time he is to deliver the object. d. Yes, it is valid until annulled. 9. Which of the following may not be object of a contract of sale? a. Things having potential existence. b. The sale of vain hope or expectancy. c. Future goods. d. Answers not given 10. There is not be a valid object of sale a. Future wool that shall grow upon a sheep. b. Sale of human flesh for human pleasure. c. The entire rental next month in a 4door apartment. d. Sale of a lotto ticket that will be drawn next week. 11. If the seller is not the owner, the sale is null and void. Which is not an exception? a. When the sale of the goods is by his conduct precluded from denying the seller’s authority. b. Where the goods were sold in a merchant’s store, or in fairs, or markets. c. When the seller subsequently acquires title. d. When the buyer acquires the property without knowledge of the bad faith of the seller. 12. Mr. Marcial Bonifacio orders of his workers 1,000 pieces of t-shirts ranging in size from small to large from the Magellan Garments Mfg. Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to it sales outlets regularly. The contract entered into by Mr. Bonifacio with the Magellan Garments Mfg, Corp is an a. Contract for a piece of work. b. Contract subject to resolutory condition. c. A contract of sale. d. Answers not given. 13. Aldaba delivers to Baduria a photocopying machine worth P 50,000 and cash amounting to P 50,000. The contract is a – a. Sale b. Barter c. Partly barter and partly sale d. Innominate 14. Abion sold the Bagamasbad a piece of jewelry at a price of P 20,000. The contract provides that the Bagamasbad will give the Abion a microwave oven worth P 5,000. What is the nature of the contract? a. Sale b. Partly sale partly barter c. Barter d. Commodatum 15. Connie transferred to Violeta a parcel of land for a price of P 100,000; P 30,000 to be paid in cash and for the difference, she will convey her car worth P 70,000. What kind of contract is this? a. Lease contract b. Contract of sale

8. Silva sold to Bien a land, which os owned by Canuto. Is the sale valid? a. No, because Silva does nt have the right to sells things which he does not own. b. No, he should first acquire the title legally from Canuto before he can sell it to Bien.

c. Obligation of sale d. Barter 16. Shaolo and to Balo his land worth P 2,000,000 for P 1,500,000 only, thus resulting to inadequate price. The sale is: a. Rescissible

b. Voidable c. Unenforceable d. Void 17. Sawana offered his car to Bacopa with understanding that the price shall be at the descrition of Bacopa. As agreed upon, Bacopa fixed the price at P 350,000 although its fair market value was P 250,000 only. It is clear therefore that the price fixed is beneficial to Sawana. Before acceptance of the price by Sawana, is there already a sale? a. No perfected sale as there was no consent on the price. b. There was a perfected sale, the amount was already fixed by the buyer and will surely be accepted by the seller. c. Yes because the fixing of the price by Bacopa is properly authorized by Sawana. d. Yes but it is voidable due to mistake committed by Bacopa in the fixing of the price. 18. Solera sold and delivered her diamond ring to Ballesteros. It was agreed upon that within 10 days Ballesteros will state and fix the price. On the 10th day, Ballesteros called upon by telephone Solera and stated the price at P 20,000 while Solera agreed. Is the sale perfected? a. No, at the time of sale the price was not fixed. b. Yes, at the time of the sale the price was already known. c. Yes, the price as stated and fixed by the buyer was accepted by the seller. d. No, the price was left to the discretion of one of the parties. 19. Sotto sells to Buena his 1988 Cougar car, and leaves Buena to determine the price. Buena refuses to fix the price but took the car for his use. Which of the following statements is correct? a. No sale because the price is not fixed by the parties. b. There is a sale, Buena must pay a reasonable price. c. No sale until a third person fixed the price. d. Sotto may go to a court and ask for damages. 20. A case where a contract of sale must not necessarily be in writing a. Sale of 100 piculs of sugar at P 400 per picul when there is partial delivery. b. Sale where by its term cannot be performed within one year from the making thereof. c. Sale of land. d. Sale of public auction. 21. Which is not correct? In a sale by auction a. The auctioneer may withdraw the goods before the hammer falls whether or not the auction has been announced to be without recourse. b. The sale is perfected when auctioneer announces its perfection by the fall of the hammer. c. The seller may bid provided such right was reserved and noticed was given to the other bidders. d. Every bidding is merely an offer, and

seller is obligated to transfer ownership of the things sold. b. The seller need not be the owner of the thing sold at the perfection of the sale. c. There may be a transfer of ownership over the thing even if the seller has not actually delivered the thing sold to the buyer. d. In a contract of sale the buyer becomes the owner of the thing sold upon full payment of the purchase price. 23. Secillo offered to sell to Buensalida his 5-door apartment house in Cubao, Quezon City for P 3 Million. Buensalida agreed to buy but requested to give him 20 days to raise the money. After two weeks, Buensalida informed Secillo that he has raised the money. However, Buensalida informed him the he is no longer interested to sell the property. Can Buensalida compel Secillo to sell the property. a. Yes, because there was a mutual promise to buy and sell a determinate thing. b. Yes, because Buensalida was able to raise money within the agreed period. c. No, because the contract of sale has not yet been perfected. d. No, because there was only an accepted unilateral promise to sell. 24. Singalong sold his land to Barganza for P 500,000, who paid SIngalong the price in fake 500 pieces of P 1,000 bill. What is the status of the contract of sale? a. Voide because the consideration is fake. b. Voidable because of the presence of consideration except that it is fake. c. Void because the cause is false. d. Valid because it has a consideration although it is fake. 25. Barayoga sold his motorcycle to Narcisa. No date was fixed for the performance of their respective obligations. The obligation of Barayoga is: a. To wait for Narcisa to pay the price before he delivers the motorcycle. b. To deliver the motorcycle after Narcisa demands delivery. c. To rescind the contract because the time of performance is not fixed. d. To deliver the motorcycle as soon as possible because the sale has been purchased. 26. Which of the following obligations of the vendor cannot be waived? a. To allow the buyer to examine the goods sold. b. To transfer the ownership to the buyer. c. To pay the expenses of the deed of sale. d. To warrant the thing sold. 27. Halk, a taekwando champion, with the intimidation forced his wife Matatakutin to sell to him Matatakutin’s properties worth P 300,000. The sale is a. Unenforceable, unless the sale was made in writing. b. Voidable, because the consent of MAtatakutin is vitiated. c. Rescissible, if Matatakutin suffered

therefore before is it accepted, it may be withdrawn, 22. Which of the following statement is incorrect? a. In a contract of sale the full payment of the price is in the nature of suspensive condition in that the

a lesion of more than ¼ of the value of the property. d. Void, except when the separation of property was agreed upon in the marriage settlement or there has been a judicial separation of property.

28. Which of the following is considered s an actual delivery? a. Execution and signing of the deed of sale. b. Delivery by the vendor of the key of the warehouse where the goods are stored. c. Placing the title of the ownership in the hands of the buyer. d. The goods sold are placed in the control and possession of the vendee. 29. Which of the following is not constructive delivery in sale? a. Tradition brevi manu b. Tradition constitutum possessorium c. Thing is place in the control and possession of buyer. d. Execution of public document. 30. Lucky is a lessee of a store in a shopping mall. She orally sells/ assigns his right to Samonte. She then allows Samonte to occupy the staff. The delivery here is called a. Quasi-traditio b. Actual delivery c. Tradition longa manu d. Tradition brevi manu 31. When the delivery takes place by the mere consent of contracting parties as when the vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vendee if the thing sold cannot be transferred to the possession of the vendee at the time of sale, delivery is effected: a. By tradition symbolica b. By tradition longa manu c. By tradition brevi manu d. Answers not given 32. Alay-ay sold his house to Bibingka but continued to posses it as a lessee of the purchaser. a. Traditio longa manu b. Quasi-traditio c. Tradition constitutum possessorium d. Tradition brevi manu 33. Which of the following options is not correct? If Selerio delivered to Bayeran a television “ on sale or return “ a. The ownership is transferred to Bayeran upon actual delivery. b. Bayeran can return the goods even if he finds nothing wrong with its quality. c. The goods are transferred to the buyer upon constructive or actual delivery of the thing. d. The ownership is retained by the seller. 34. Asantalicio delivered a television to Barberian on “sale or return “. In this case, the ownership passes to Barberian upon a. Delivery of the television b. Expiration of the period agreed upon c. Acceptance by Barberian of Asantalicio’s offer. d. Perfection of the sale 35. Ownership of the thing sold is transferred / acquired / retained: a. Retained by the “ sale or return “ b. Transferred to the buyer upon constructive or actual delivery of

absolute deed of sale was executed and notarized. On January 20, the sale was registered with the Land Transportation Office (LTO). On January 25, bayer took actual possession of the car. When did Bayer acquire title of the car? a. On January 10 b. On January 15 c. On January 20 d. On January 25 37. On January 7, 2008, Ariel sells and delivers to Barabara his car for P 200,000 on a “ sale or return within 10 days “ after delivery. On January 15, 2008, the car was lost through a fortuitous event. Who bears the loss? a. Ariel under the principle of “ res perit domino “ b. Barabara and she must pay the purchase price. c. Both Ariel and Barabara jointly. d. Neither of them because the loss was due to a fortuitous event. 38. Salvora delivered a computer set Perper “ on approval, on trial ot no satisfaction “ the ownership passes to Perper upon a. Delivery of the things. b. Meeting of the minds c. Conception of the sale d. The return of the things to Salvora. 39. Statement 2: in a sale on return, ownership passes to the vendee upon the delivery of the goods; in sale or trial, ownership does not pass to the buyer until he accepts the goods. Statement 1: in sale or return, the risk of the loss is on the vendor; in sale or trial, the risk of loss is on the vendee a. Both statements are true b. Statement 1 is true, statement 2 is false c. Both statement is false d. Statement 1 is false, statement 2 is true 40. The Recto Law is applicable on: a. Sale of car on a straight term b. Sale of house on instalment were buyer constituted mortgage on house. c. Sale of car on instalment were buyer constituted a mortgage on truck d. None of the above.

the the the his

41. Ara bought a washing machine from Bal on instalment basis but defaulted in the payment of two instalments. Which of the following is not a remedy of Ara? a. Damages b. Specific performance only c. Cancel of sale d. Foreclose the chattel mortgage and recover from the buyer the difference if the proceeds of the sale is less than the unpaid balance of the purchase price. 42. Statement 1: in a sale of personal property in instalment, the seller is obliged to exercise the remedy of the foreclosure of the chattel mortgage, if there be one, in the event that the buyer fails to pay two or more instalments.

the thing sold. c. Acquired by the buyer upon perfection of the contract. d. Transferred to the buyer upon acceptance of the price. 36. Selerio sold to Bayer his Toyota Innova Car on January 10. On January 15, an

Statement 2: in a sale of personal property in instalment, if the seller decided to foreclose but did not actually sell the property, he may still ask for specific performance and demand for the remaining deficiency in the price

a. b. c. d.

True, False True, True False, True False, False

43. Bag bought a refrigerator on Instalment from Sum and to secure his indebtedness, Bag executed a chattel mortgage on title refrigerator in favour of Sum. Upon default by Bag on his two (2) payments, the refrigerator was foreclosed and sold for P 8,000 which was less than the balance of P 10,000 due to Sum. How much can Sum still collect from Bag? a. P 2,000 b. P 8,000 c. P 10,000 d. Nothing 44. One of the following is not an alternative remedy available to a seller of personal property on instalment if buyer defaults. a. To go to court and ask court to order delivery of the property. b. To foreclose the chattel mortgage c. To sue to specific performance d. To take possession of the property and forfeit the amount paid by the buyer. 45. Sad sold to Bad a motor vehicle for P 1.2M to be paid in twelve equal monthly instalments starting the 15th of February, 2008. To secure the payment of the car, Bad executed a chattel mortgage on the subject motor vehicle and furnished a surely bond issued by Contreras. Bad failed to pay two instalments. Sad went after Contreras but was not able to obtain only ¾ the total amount still due from Bad. Can Sad still collect the deficiency from Bad? a. Sad can still recover the deficiency from Bad because the amount received from the surely was only payment protanto of the obligation. b. Sad can still foreclose the chattel mortgage on the car for the deficiency. c. Sad cannot recover the deficiency anymore applying the Recto Law, that is, Sad can maintain an action for the deficiency. d. Sad can still recover the deficiency after he forecloses the chattel mortgage on the vehicle. 46. Which of the following statement is false: a. In contract to sell, ownership is not transferred to the buyer even if there is a delivery. b. Stoppage in transitu can be exercised by the unpaid seller if the buyer is insolvent and the vendor has not yet parted with the thing sold. c. The price is considered certain if it is reference to another thing certain. d. In a right to resell it is not necessary that the original buyer is insolvent. 47. Anthony sold a piece of land to Rolando binding himself not to sell the same to another person. On the following day, Anthony sold the land to Carl who immediately took possession in good faith. In the case at bar, the proper remedy of Rolando is to:

48. Statement 1: if the thing should have been sold to different buyers, the ownership should be transferred to the person whom may have been in the possession thereof in good faith; if it should be movable property. Statement 2: the seller is responsible to the buyer for any hidden defects or fault in the thing sold only if he was aware thereof. a. b. c. d.

1st statement true, 2 nd statement false Both statements are false. 1st statement false, 2nd statement true Both statements are true.

49. Salay, the owner of a parcel of land sold the same to Basco, a buyer in good faith but the document was not registered. One year, he sold it again to Bal who knew of the first dale but registered the document and obtained a title over the land. a. Basco is not entitled to the land even if he is a buyer in good faith. b. Basco is the rightful owner because the bad faith of Bal renders nothing but an exercise in futility. c. Bal being the first registrant is the rightful owner of the land. d. The knowledge of the first sale by Bal is immaterial because the non-action of Basco plus him in estoppels. 50. Sala sold his land to Bata who began to possess it. Later Caw, a tranger, sold the same land to Dau who in good faith registered the sale in the Registry of Deeds. Who should be considered as the owner? a. Sala because the sale is not registered by Bata. b. Bata because Dau did not buy it from the owner of the land. c. Caw because the sale to Dau is a second sale. d. Dau being the registrant in good faith. 51. Seoul sold a land to Busan. Then, Seoul became Busan’s tenant. Subsequently, Seoul sold the same property to Gangnam. Neither sale was registered. Who is the rightful owner? a. Busan being the first buyer in good faith. b. Gangnam because the property was sold to him ny the original owner. c. Seoul because the sale to Busan and Gangnam are not registered in the Registry of Deeds. d. Busan if he will register the sale ahead of Gangnam. 52. Soreta sold his land to Biares. Later, Soreta sold the same land to Baduy. Biares in turn sold the same land to Bastos, who took possession of the land in good faith. Baduy, a purchaser in good faith, registered the sale in his favour. Decide: a. Biares is the owner of the land because he was the first buyer. b. Biares is the owner of the land having registered the sale in good faith. c. Bastos is the owner of the land being the transferee of the rights of Biares and who is in possession in good faith.

a. Institute an action for the annulment of the sale to Carl. b. Institute an action for the recovery of the land. c. Institute an action for damages against Anthony. d. Answers not given.

d. Bastos is the owner because after Soreta sold the land to Biares,Soreta had not more right to transfer ownership to Baduy, the second buyer. 53. Crystal is the owner of an earring wh...