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1. Which of the following is not an essential element of a Contract of Sale? a. Consent b. Subject Matter c. Delivery d. Price 2.

What is the effect when all the three (3) elements of a valid contract of sale are present but there is a defect or illegality constituting any of such elements? a. Contract is Void. b. Contract is Voidable. c. Contract is Unenforceable d. Contract is Rescissible. 3. It takes place upon the concurrence of the essential elements of the sale which are the meeting of the minds of the parties as to the object of the contract and upon the price. a. Negotiation b. Perfection or Birth c. Consummation or Death d. Preparation 4. The following are characteristics of a contract of sale, except: a. Nominate b. Consensual c. Accessory d. Reciprocal 5. The buyer has a right to the fruit of the thing from the time the a. Thing is delivered b. Contract is perfected c. Obligation to deliver the thing arises d. Fruits are delivered 6. Shaolo sold to Balo his land worth P2,000,000 for P1,500,000 only, thus resulting to inadequate price. The sale is: a. Rescissible b. Voidable c. Unenforceable d. Valid 7. A characteristic of a contract of sale which involves exchange of value. a. Commutative b. Nominate c. Bilateral d. Consensual

8. A case where a contract of sale must not necessarily be in writing

a. Sale of 100 piculs of sugar at P400 per picul when there is partial delivery. b. Sale whereby its term cannot be performed within one (1) year from the making thereof. c. Sale of land. d. Sale at public auction. 9. 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 things sold. 10. a. b. c. d. Ownership of the thing sold is transferred/ acquired/ retained: Retained by the seller in "sale or return" Transferred to the buyer upon constructive or actual delivery of the thing sold. Acquired by the buyer upon perfection of the contract. Transferred to the buyer upon acceptance of the price.

11. One of the following is not an alternative remedy available to a seller of personal property on installment if buyer defaults. a. To go to court and ask the court to order delivery of the property. b. To foreclose the chattel mortgage. c. To sue for specific performance. d. To take possession of the property and forfeit the amount paid by the buyer. 12. The following, except one, are the alternative remedies available to the buyer in case of breach of warranty by the seller. a. Keep the goods and ask for damages. b. Refuse to accept the goods and ask for damages. c. Rescind the sale and retain the goods. d. Keep the goods and set up against the seller by way of recoupment in price. 13. The sale shall not be presumed to be an equitable mortgage when? a. The price of the sale is usually adequate. b. The vendor remains in possession of the thing sold. c. The vendor allows the extension of time to repurchase the thing sold. d. The purchaser retains for himself a part of the purchase price.

14. If redemption is made, which of the following will not be paid by the seller to the buyer? a. Price paid by the buyer. b. Expenses in the execution of the sales contract paid by the buyer. c. All necessary expenses on the thing sold and to be redeemed. d. Interest on the price paid by the buyer.

15. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in: a. Sale on approval b. Sale or return c. Sale on trial d. Contract to sell 16. The right of pre-emption differs from the right of redemption in that in pre-emption: a. The action is directed against the buyer b. The action is directed against the seller c. The right arises from the sale d. There can be a rescission of the original sale 17. A credit is considered to be in litigation a. As soon as a complaint is filed by the creditor against the debtor b. When the debtor has filed his answer to the complaint c. When the case is scheduled for pre-trial conference between the parties d. When the trial has started. a. b. c. d. The non-payment of the price is a negative resolutory condition in: Contract to sell Contract of sale Contract of agency to sell Sale on approval

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19. A contract for a piece of work is different from a contract of sale in that in a contract for a piece of work: a. The Statute of Frauds does not apply b. The article object of the contract is manufactured or procured in the ordinary course of business c. There is usually a stock which is kept on hand and made available to anyone d. If the article is not available, there is no change or modification of it when it is ordered by the customer 20. An unpaid seller may avail himself of the following remedies, except the right to: a. Retain the goods while he is in possession of them b. Resume possession of the goods at any time while they are in transit c. Buy the goods at any public sale if he decides to resell them d. Rescind the sale 21. If a movable property is sold separately to two or more vendees, ownership shall belong to the person: a. Who in good faith first paid the purchase price in full b. Who in good faith first recorded the sale in the Registry of Property c. Who in good faith presents the oldest title d. Who in good faith first took possession of the property

22. The vendor shall be liable for the death of the animal sold when the following requisites are present: 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 three (3) days from the time of purchase 23. A sum of money paid, or a thing delivered upon the making of a contract for the sale of goods, to bind the bargain, the delivery and acceptance of which makes the final assent of both parties to the contract a. Option money b. Earnest money c. Reservation money d. Down payment 24. Delivery of incorporeal property may made through any of the following means, except: a. Execution of a public document b. Placing the titles of ownership in the possession of the vendee c. Use by the vendee of his rights, with the debtor's consent d. Execution of private document 25. a. b. c. d. The essence of a contract of sale is Ownership Possession Warranty Delivery of object

26. If there is a meeting of the minds, is there is a perfected contract of sale? a. Yes, because all consensual contracts are perfected by mere consent b. No, because delivery of the thing is essential for the perfection of the contract of sale c. Yes, because the obligation of the seller to sell and buyer to buy arise as soon as there is meeting of the minds. d. No, because meeting of the minds is not the only requisite of the perfection of a contract of sale 27. a. b. c. d. A buyer may compel the seller to make the delivery if When what is to be delivered is an indeterminate thing When what is to be delivered is a generic thing When what is to be delivered is a determinate thing When what is to be delivered is a specific thing

28. In a contract of sale of personal property, if the price is payable in installments, the vendor may exercise the following remedies a. If the vendee fails to pay the full amount, vendor can demand exact fulfillment of the obligation b. If the vendee fails to pay an installment, vendor can cancel the sale c. If the vendee fails to pay 2 or more installments, he may demand rescission and keep amounts paid so far d. both a and b

29. Can a person without capacity to act can enter into a contract of sale? a. No, because for a contract of sale to be valid, both parties should have the capacity to act. b. Yes, because anyone is free to buy anything especially in department stores c. No, because it would constitute lack of consent making the contract voidable d. Yes, because there are some things that are indispensable for the buyer's clothing or dwelling 30. a. b. c. d. The husband and the wife cannot sell property to each other. True False True but subject to Exception Never

31. In a contract of sale between husband and wife, who can contest its validity? a. Either the husband or the wife b. Persons claiming to be illegitimate children of either the husband or wife c. The siblings of either husband or wife (reason: HEIRS of husband/wife) d. The state when there are creditors of either husband or wife 32. The following persons cannot acquire by purchase, even at public or judicial auction, either in person or through the mediation of another, except: a. The guardian in connection with the property of the person under their guardianship. b. The lawyer in connection with the property of his client not in litigation c. Public officer in connection with the property of the state under his administration d. Agents in connection with the property interested to him for sale 33. All things which are not outside the commerce of men may be the object of a contract of sale, except for a. Future things b. Future inheritance c. Rights which are not intransmissible d. An undivided interest 34. a. b. c. d. 35. it? a. b. c. d. When payment is made in a contract of sale The contract of sale is consummated already Title passes over to the vendor Possession (either actual or constructive) is deemed of the vendee's The contract of sale is perfected already Can a person who is not an owner of a thing alienate and deliver No, when he doesn't have the authority to do so. Yes, when he eventually acquires title of the thing No, when the thing is acquired in bad faith by the vendor Yes, when he is eventually in possession of the thing
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36. A sold books to B as evidenced by invoice receipts who in turn sold the books to C. However, B turned out to be an impostor and never paid A. Who is the rightful owner of the books? a. A because title never passed to B thus C also didn't acquire the title b. B because title already passed to him which he couldn't pass to C for B's non-payment to A. c. C because title already passed to him by operation of law. EDCA publishing v. Santos (B had a voidable title. actual delivery to impostor because there was no unlawful deprivation. the books were disposed of with the owner's consent even though there was fraud) d. C because possession was with him already. 37. A sold B a car with the understanding that B would pay after the car is registered in his name. After the registration and the deed of sale were delivered to B, B disappeared with the car which was used by A to deliver the documents. B in turn sold the car to C who bought it in good faith. Who had better right of the car? a. A because the title never passed to B C also didn't acquire the title. (Aznar v. Yapdiangco: B had no title of car. there was no delivery of car thus title is non-existing thus void. There was no transfer of ownership as A was dispossessed of the car without his consent.) b. B because title already passed to him which he couldn't pass to C for B's non-payment to A. c. C because title already passed to him by operation of law. d. C because possession was with him already. 38. a. b. c. d. When can the courts fix the price in a contract of sale? When parties are both unable or unwilling to fix the price When third persons acted in bad faith or by mistake. (1469) When one of the parties acted in bad faith or by mistake. When third persons are prevented from fixing the price by fault of the seller or the buyer.

39. A sold his land originally valued at P10,000 to B for P1 and some unspecified services stated in the contract as consideration. Is the sale valid? a. Yes, because aside from the one-peso consideration, there were other services to be rendered. b. No, because there is no real price and no valid consideration. (Bagnas v CA. no specified services. 1 peso here is a notoriously low indicator of actual value) c. Yes, because the price is real and agreed upon by both parties thus there was no fraud involved. d. No, because there was false consideration.

40. The fixing of the price can be left to the discretion of one of the contracting parties if a. It is the seller who fixed the price because he's the owner after all b. It is the buyer who fixed the price but the seller later consented to the price. c. It is the seller who fixed the price but the buyer later consented to the price. d. It is the either the seller or buyer who fixed the price and the other consented to it. (1473) 41. The following are remedies of an unpaid seller except: a. Possessory lien where the seller reserves his right to possession or ownership of property regardless of delivery b. When goods are in transit and the negotiable instrument has been issued, to have the goods redelivered to him (1532 par. 2) c. Right of resale where goods are perishable in nature or where seller expressly reserves that right d. Right to rescission of the contract of sale 42. A bought machines for production of Christmas decorations from B which he promised to deliver by October. On the first week of October, A signed the contract of sale and believed the promises of B that the machines were on their way already. However, when it still didn't arrive on the first week of November, A made demands. The machines never arrived that year. What remedy could A have against B? a. An action for specific performance as there was delay already and B didn't comply with it yet. b. Action for rescission of the contract because despite demands, there was still no delivery (soler v cheeky: time is of the essence here (machines in time for Christmas season, he signed the contract believing that the machines were on their way) c. Action for recovery of damages because the right of A vested by B to have it on time (for the Christmas season) was violated by B. d. Action for specific performance and damages because there was delay and the right to have it on time was violated 43. A bought a condominium unit from B worth 10,500,000 measuring 90 square meters in area. After payment had been made, possession and ownership was turned over to A. When A transferred, he found out that the unit was only 75 square meters big. Although he still continued to occupy the property, A demanded refund from B for the difference of 15 square meters (1,750,000). Is B obligated to give the excess? a. Yes, because clearly there was fraud. The contract explicitly stated 90 square meters b. No, because there was negligence on the part of A. He should have inspected and surveyed the property even before full payment c. Yes, because there was an error or mistake in fact as to the measurement. d. No, clearly, the condo unit was purchased for a lump sum and not for a piece rate as stated in the contract that the condo unit was for 10,500,000. (1542 and 1539)

44. A bought a residential house from B for 50 million pesos payable in 10 years at at a bi-annual installment payment scheme. On the sixth year, A failed to pay an installment but was only able to pay it the following year. However, on the eigth year, A again failed to pay. This time, after repeated demands from B, A failed to pay. B filed an action for rescission of contract. Will the suit prosper? a. No, because he had already paid for more than 7 years. He had paid more than half already. b. Yes, because he failed to pay the 2nd installment despite repeated demands but he is entitled for a refund for the payments made. c. No, because according to the Maceda Law, a one month grace period can be given for every year paid. d. Yes, because he has already been in delay twice in five years, although he is entitled to a refund. (Maceda law, grace period can only be used once in every five years) 45. A sold an antique jar to B explaining to him that acquired it from C, a certified expert antique dealer and relaying to him what C said that it was already 200 years old and made from real jade. Relying on A's explanations, B bought it. However, when B had it inspected by an antique dealer, the jar turned out to be fake. A filed an action for recovery of payment on ground of fraud of the contract. Will the suit prosper? a. No, because there was no fraud to begin with as B agreed to purchase it relying solely on A who was not an antique dealer. (1340, 1341 - B wasn't the antique dealer but C. A relied only on B, not C) b. Yes, because B relied on A's explanation which came from C, an expert on antique jars. c. No, because B should have it checked before buying it. d. Yes, because an expression of opinion doesn't signify fraud unless made by an expert and C clearly was an expert in antique jars. 46. When the warranty against eviction has been agreed upon or nothing has been stipulated on this point, in case eviction occurs, the vendee shall have the right to demand of the vendor the ff. except: a. The return of the value which the thing sold had at the time of the eviction be it greater or less than the price of the sale b. The damages and interests, and ornamental expenses if the sale was made in bad faith c. The costs of from breach of contract of sale (1551: correct one is the cost of suit which caused the eviction) d. The income or fruits if has been ordered to deliver them to the party who won the suit against him.

47. A bought a motorcycle from B with a factory machine as the mortgage. Payment was to be made in installments. However, A failed to pay 3 installments already thus B chose to foreclose on the machine. When the machine still didn't satisfy the entire payment of the motorcycle, B wanted to foreclose on the 2nd mortgage which was made after the 1st default on the installment. A said he couldn't foreclose on the 2nd mortgage anymore. Who is correct? a. A, because B having foreclosed on the first mortgage, no further action is allowed including the foreclosure of the 2nd mortgage. (Cruz v Filipinas, Recto Law) b. B, because he had the right to foreclose on both mortgages since they were purposely made in connection of the sale. However, he can't avail of the other remedies anymore. c. A, because B having foreclosed on the first mortgage, he already bound himself to that action. d. B, because he can exhaust all the remedies until full payment of price can be acquired. 48. When can the courts fix the price in a contract of sale? a. When parties are both unable or unwilling to fix the price b. When third persons acted in bad faith or by mistake. (1469) c. When one of the parties acted in bad faith or by mistake. d. When third persons are prevented from fixing the price by fault of the seller or the buyer.

49. A sold his land originally valued at P10,000 to B for P1 and some unspecified services stated in the contract as consideration. Is the sale valid? a. Yes, because aside from the one-peso consideration, there were other services to be rendered. b. No, because there is no real price and no valid consideration. (Bagnas v CA. no specified services. 1 peso here is a notoriously low indicator of actual value) c. Yes, because the price is real and agreed upon by both parties thus there was no fraud involved. d. No, because there was false consideration. 50. In a contract of sale of personal property the price of which is payable in installments, the following can be exercise by the vendor except: a. Exact fulfillment b. Ask for Damages c. Cancel the sale d. Foreclose the Chattel mortgage