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TEST BANK SALES, AGENCY and PLEDGE1 there is stipulation to the contrary the expenses for the execution or registration of the sale shall be borne by:A. The Vendee B. The Vendor C. The Vendee and Vendor D. The agent or broker A offered to sell his lot to B for P100,000. In his offer to sell it was s...

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TEST BANK SALES, AGENCY and PLEDGE

1.Unless there is stipulation to the contrary the expenses for the execution or registration of the sale shall be borne by: A. B. C. D.

The Vendee The Vendor The Vendee and Vendor The agent or broker

2. A offered to sell his lot to B for P100,000. In his offer to sell it was stated that he is given 60 days to prepare the P100,000 and as soon as B is ready with the money, A will execute a deed of sale. Before the end of 60 days, A informed B that price of the lot was increased to P120,000. May B, compel A to accept P100,000 offered previously by A and make him execute the deed of sale? A. B. C. D.

Yes, because A already signed his offer No, For B never signified his acceptance of A’s offer. Yes, because there was actual meeting of minds of the parties Answer not any of the above.

3. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to buy the land. In A’s letter he gives B a period of two (2) months within to produce the P200,000. After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the P200,000 first offered by A and execute the deed of sale? A. B. C. D. 4.

Yes, because there was actual meeting of the minds of A’s offer No, for B did not signify his acceptance of A’s offer Yes, because A is already estoppels by his signed letter Yes, because the period of two (2) months has not expired

Mr. AB owes Mr. CD P150,000 due on August 1, 2010. Mr. AB executed mortgage in favor of Mr. CD on Mr. AB’s building to guaranty the obligation. On August 10, 2010, the mortgage building was totally lost due to a strong typhoon. On August 12, 2010, Mr. CD demanded payment from Mr. AB. Is Mr. CD’s demand valid? A. No, the obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation as such would the prejudicial to the rights of the debtor. B. No, the obligation is extinguished because the obligation is lost through a fortuitous event. C. Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous event. Unless the debtor can mortgage another property that is equally satisfactory. D. Yes, the debt becomes due at once because, from the tenor benefit is given solely to the creditor thereby giving the creditor the right to demand performance even before the date.

5.

Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten (10) days Mrs. Pat will name and fix the price. On the tenth (10th) day, Mrs. Pat called up by telephone Mrs. Go and stated the price at P10,000. Mrs. Go agreed. IS the sale perfected? A. Yes, the price stated and named by one of the contracting parties was accepted by the other. B. No, at the time of the sale the price was not fixed. C. No, the price was left to the discretion of one of the parties D. No, at the time of the sale the price is not known.

6. Mr. Sy sold a parcel of land to Mr. Tan for P200,000. Mr. Sy delivered the transfer Certificate of Title of the land to Mr. Tan. Later, Mr. Tan wanted to register the land to his name and he needed a Deed of Sale. What can Mr. Tan do? A. Mr. Tan can compel Mr. Sy to execute a Deed of Sale B. Mr. Tan cannot compel Mr. Sy to refund the P200,000 because the contract is not enforceable C. Mr. Tan can sue Mr. Sy enriching himself at the expense of another. D. Mr. Tan can possess and utilize the land as a buyer in good faith. 7. Bonds which are not secured by any specific mortgage lien of pledge or corporate property but by the general corporation are: A. B. C. D.

Guaranteed bonds Debenture bonds Income bonds Redeemable bonds

8. The buyer of a thing has the right to the fruits of the thing: A. B. C. D.

From the time the thing bought is delivered From the time the sale is perfected From the time the obligation to deliver the thing bought arises. From the time the fruits are delivered.

9. Three (3) of the following are option money. Which is the earnest money? A. B. C. D.

Given when contract of sale is perfected. Given when there is no contract of sale. Given to bid the offer or in a unilateral promise to sell or to buy. Given as a separate consideration from purchase price.

10. In a sale, this is actual delivery. A. B. C. D.

Execution and signing of the sale document. When the goods sold are placed in the control and possession of the buyer. Delivery by the seller to the buyer of the key where the goods sold are kept. The buyer is already in actual possession of the goods.

11. This is a mode to extinguish an agency: A. B. C. D.

Death of the principal, but the agency is for the interest of the principal and agent. Partial accomplishment of the agency. Upon withdrawal of the principal. Insanity of principal or agent.

12. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation 60 days after it was due. C sold the machine at public auction for P6,000. A. B. C. D.

C cannot recover the deficiency of P2,000 even if there is stipulation that he can. C can recover the deficiency of P2,000 even without stipulation. C cannot recover the deficiency of P2,000 C can recover the deficiency of P2,000.

13. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time: A. B. C. D.

The obligation to deliver the thing sold arises The sale is perfected The thing sold is delivered The fruit of the thing sold is delivered.

14. Mr. AB offered in writing to sell his house and lot for P750,000 to Mr. CD on July 1, 2010. Mr. CD requested Mr. AB to give him 60 days within which to raise the P750,000. On August 15, 2010 Mr. AB informed Mr. CD that the price is raised and now at P1,000,000. Can Mr. CD compel Mr. AB to sell his house and lot at P750,000 which was offered in writing by Mr. AB? A. B. C. D.

Yes, because Mr. AB is already stopped by his written offer. Yes, because the 60 days offer has not yet expired No, because Mr. CD has not accepted the offer of Mr AB. Yes, there was meeting of the minds.

15. In distinguishing Earnest Money from Option money, earnest Money is: A. B. C. D.

Given when there is no contract of sale, Given only when there is perfected contract of sale. Given to bind the offer or in a unilateral promise to sell or buy Given as a separate consideration from the purchase price.

16. Gay appointed May to sell the former’s car for P200,000. May sold the car to Pam, Pam inspected the car and found hidden defects in the car. Can Pam file an action against Gay even when May acted in her own name? A. B. C. D.

No, under “Caveat Emptor” let the buyer beware. Yes, because this is contract involving property belonging to the principal No, because, May acted in her own name not of the principal. No, because the contract of sale is already perfected.

17. Mr. San authorized Mr. Soy to sell his car for p200,000 with 5% agent’s commission. Mr. Soy sold the car to Mr. Dy for P250,000. For how much is Mr. Soy accountable to Mr. San? A. B. C. D.

P200,000 P190,000 P250,000 P240,000

18. B pledged his Rolex to C for P4,000. B failed to pay C the P4,000 on due date. C sold the Rolex watch at a public auction to the highest bidder at P3,500. A. B. C. D.

C can recover the deficiency of P500 from B. C can recover the deficiency of P500 even without stipulation. C cannot recover the deficiency of P500 unless there is stipulation. C cannot recover the deficiency of P500 even if there is stipulation.

19. Which of the following may not be the object of sale? A. B. C. D.

Things having potential existence The sale of a vain hope or expectancy Future goods Answer not given.

20. When delivery takes place by the mere consent or agreement of the contracting parties as when the vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vended if the thing sold cannot be transferred to the possession of the vendee at the time of sale, delivery is effected: A. B. C. D.

By tradition symbolica By traditio longa manu By traditio brevoi manu Answer not given

21. The distinction between a chattel mortgage and a pledge is that in chattel mortgage: A. B. C. D.

The delivery of the personal property is necessary The registration of the property in the Registry of Property is not necessary The excess over the amount due after foreclosure, goes to the debtor Answer not given.

22. Sale is distinguished from dation in payment in that in sale A. B. C. D.

There is a pre-existing obligation or credit The cause is the price It is a mode of extinguishing an obligation in the form of payment. Answer not given.

23. Mr. Mar orders for his workers 1,000 pieces of T-shirt ranging in size from small to large from RDG Garments Mfg. Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to its sales outlets regularly. The contract entered into by Mr. Mar with the RDG Garments Mfg. Corp. is a: A. B. C. D.

Contract for a piece of work. Contract subject to a resolutory condition A contract of sale Answer not given

24. Mr. Amado owes the BIR P100,000 in delinquent taxes and penalties. In order to evade the payment of said liability, he executed a deed of sale of his only parcel of land valued for P200,000 in favor of his brother Pedro, where P20,000 was stated as the purchase price but the BIR has evidence that said price had never been paid, the purpose of the sale being to prevent the BIR to levy upon the land to satisfy the tax liability of Mr. Amado. In this case: A. The BIR may not levy upon the land because the sale is void B. The BIR without annulling the sale may levy upon the land of Amado pursuant to the provisions of the National Internal Revenue Code C. The BIR should first annul the sale before it may levy upon the land pursuant to the provisions of the National Internal Revenue Code. D. Answer not given. 25. Mr. Rene owns a mango tree bearing fruits, ready for harvest. He sells all the fruits of that tree to Mr. Mar who pays Mr. Rene the sum of P5,000. Rene tells Mar that he can just harvest the fruits anytime he likes pointing at the particular tree. For legal purposes, Rene has fulfilled his obligation to deliver the mango fruits to Mar by: A. Traditio brevi manu B. Traditio longa manu C. Traditio simbolica

D. Answer not given 26. Mar Garci, before going to Spain appointed Jc Legaspi as his agent to administer his properties in the Philippines. Afterwards, Legaspi wrote Garci that he ( Legaspi) was withdrawing from the agency because of failing health. Legaspi, in the same letter said that he appointed Eg Legaspi as his substitute and that Mar should extend a new appointment to Eg. Eg took over the duties of Jc but Mar did not bother to appoint Eg to act as his agent until Mar’s death. Now Mar’s heirs brought an action against Eg for accounting. Eg raised the defense that he was not validly constituted as an agent of Mar. In the case at bar, defense is not tenable because there is: A. B. C. D.

An actual agency An implied agency A general agency Answer not given

27. Maria is authorized by Dulfo to sell the latter’s washing machine for P5,000 each at 10% commission. One day, Dulfo sells one washing machine to Carla on credit (payable in 90 days) but for a price of P6,000. If Dulfo does not ratify this sale on credit, he can collect cash payment from Maria: A. B. C. D.

P4,500 (P5,000 less P500 commission) P5,000 (the price without commission) P5,400 (P6,000 less P600) Answer not given

28. Tony sold a piece of land to Rene binding himself not to sell the same to another person. On the following day, Tony sold the land to Carla who immediately took possession in good faith. In the case at bar, the proper remedy of Rene is to: A. Institute an action for the annulment of the sale to Carla B. Institute an action for the recovery of the land C. Institute an action for damages against Tony D. Answer not given 29. Ces kidnapped and tortured Ed for refusing to sell his (Ed’s) land to Ces. Ed who could no longer bear the physical pains inflicted upon him signed a document of sale in favor of Ces. This sale is: A. B. C. D.

Void Voidable Valid Answer not given

30. A sold a residential land to B. B paid the consideration. When B wanted to register the sale at the Register of Deeds, the latter refused to register and requires the presentation of the certificate of capital gains tax payment. What can B do? A. B may sue A to refund the consideration paid by B under the maxim, “no one shall enrich himself at the expenses of another.” B. B cannot compel A to return the selling price because the contract is not enforceable C. B may possess the residential land as a buyer in good faith D. B may compel A to pay the capital gains tax and secure the certificate of capital gains tax payment

31. A Seller sold to a Buyer a piece of jewelry at a price of P20,000. The contract provides that the Buyer will pay Seller a micro wave oven worth P5,000. What is the nature of the contract? A. B. C. D.

Sale Partly sale and partly barter Barter Commodatum

32. Mr. A. Abad signed a letter addressed and delivered to Mr. B. Baje. The terms of the letter are: 1. 2. 3. 4.

An offer to sell a 500 sq.m. lot for P300,000 An option time up to October 31, 2010 for Mr. Baje to raise the P300,000 Upon payment of the P300,000, Mr. Abad will execute and sign a Deed of Sale On October 31, 2010, Mr. A Abad sent a letter to Mr. B. Baje asking for a new price of P350,000 for the 500 sq. m. lot.

Can Mr. B. Baje compel Mr. A. Abad to accept the P300,000 and make him sign and execute a Deed of Sale? A. B. C. D.

No, Mr.B. Baje did not accept the offer of Mr. A. Abad Yes, Mr. A. Abad is already stopped by his sighing the letter and offer. Yes, there was actual meeting of the minds. Yes, the contract is perfected

33. Mr. A mortgaged his residential land to Mr. B as a guarantee for the payment of P400,000 obligation of Mr. A. They agreed that Mr. A shall not sell the land while the obligation exists. The maturity of the mortgaged, C offered to buy the land from Mr. A. A. B. C. D.

A cannot sell the land to Mr. C because of the agreement not to sell A can sell the land to Mr. C only if B consents in writing A can sell the land to Mr. C despite the agreement not to sell (?) A cannot sell the land to Mr. C unless A pays the obligation

34. Mr. D. Dy constituted Mr. S. Sim as his authorized agent to sell the former’s Lancer car for P300,000 and to pay him a 5% commission on the selling price. Mr. S. Sim sold the car for P320,00. Mr. S. Sim shall remit to Mr. D Dy: A. B. C. D.

P300,000 P320,000 P285,000 P305,000

35. Ownership of the thing sold is transferred / acquired / retained: A. B. C. D.

Retained by the seller in “sale of return” Transferred to the buyer upon constructive or actual delivery of the thing sold Acquired by the buyer upon Transferred to the buyer upon acceptance of the price.

36. If redemption is made, which of the following will not be paid by the seller to the buyer A. B. C. D.

Price paid by the buyer Expenses in the execution of the sales contract paid by the buyer All necessary expenses on the thing sold and to be redeemed Interest of the price paid by the buyer

37. The following are requisites of Pledge except: A. B. C. D.

The disposal of the pledge The absolute ownership of the property pledged The thing pledge may be placed in the possession of a third person To bind a third person, it must be recorded in the office of the Register of Deeds

38. The leviable properties of the debtor are transferred to the creditors to be sold and from the proceeds, the creditor are paid; A. B. C. D.

Pledge Cession Dacion en pago Chattel mortgage

39. A characteristic of the Contract of Sale which involves exchange of value, it is A. B. C. D.

Commutative Nominate Bilateral Consensual

40. The principal is not liable for expenses incurred by the agent: A. When it was stipulated that the agent would only be allowed a certain sum B. When the agent has complied with his obligations by acting according to the principal’s instructions C. When the agent incurred them with the knowledge that an unfavorable result would ensue and the principal was aware of it D. When the expenses were incurred without the fault of the agent 41. An assignor of credit warrants: A. B. C. D.

Solvency of the debtor Existence and legality of credit Collectibility Assurance of payment

42. A appoints B to sell his land Example 1. If the authority of B is oral and B sells the land in writing. The sale is valid. Example 2. If the authority of B is in writing and B sells the land orally. The sale is valid A. B. C. D.

Both examples are true Both examples are false First example is true, but the second example is false First example is false but the second example is true

43. Which of the following is not a characteristic of Sale? A. B. C. D.

Bilateral Gratuitous Consensual Nominate

44. The following are the alternative remedies, except one available to the buyer in case of breach of warranty by the seller: A. B. C. D.

Keep the goods and ask for damages Refuse to accept the goods and ask for damages Rescind the sale and retain the goods Keep the goods and set up against the seller by way of recoupment in price.

45. Which of the following statements is true and correct? A. In a Contract of Sale, the full payment of the price is in the nature of a suspensive condition in that the seller is obligated to transfer ownership of the thing 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 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. 46. X, Y and Z were appointed by R as his agents to administer his building which was rented by various tenants while R was abroad for three years. In the course of management, X cause through his fault damage to the building which was assessed at P30,000. R can claim: A. B. C. D.

P10,000 from each of X, Y and Z. P30,000 from X P30,000 from Y and Z P30,000 from either X, Y and Z

47. Pledge and Mortgage are accessory contracts because they: A. B. C. D.

Are meant to secure the fulfillment of a principal obligation. Cannot exist if the principal obligation is void. Can exist by themselves. Cannot secure fulfillment of rescissible obligation.

48. Mr. A offered to sell his land to Mr. B for P300,000. Mr. B accepted the offer and paid Mr. A the purchase price. Mr. A delivered the owner’s certificate of the Transfer certificate of Title to the land. Mr. B wants to register the land in his name but the Register of Deeds asks Mr. B for the Deed of Sale. What can Mr. B do ? A. B. C. D.

He may occupy the land as a buyer in good faith. He cannot compel Mr. A to return the payment because the contract is unenforceable. He may compel Mr. A to execute the Deed of Sale because the contract is valid. He may sue Mr. A to return the purchase price under the legal principle that no one may enrich himself at the expense of another.

49. Pacto de retro sale as distinguished from mortgage: A. B. C. D.

There is redemption by payment principally of the debt. There is no transfer of possession of the thing sold There is no foreclosure unless it is declared as an equitable mortgage. Th...