LAW ON SALES AND AGENCY: SHADE the letter of your answer on the answer sheet provided.

ITEMS 1-100.
1. A warranty inherent in a contract of sale to transfer ownership, whether or not mentioned in it, is known as the
a. Warranty on quality c. Warranty against eviction
b. Warranty against hidden detects d. Warranty in merchantability.
2. In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a
retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This is
known as
a. Equitable mortgage c. Legal redemption
b. Conventional redemption d. Equity of redemption
3. The contract shall be presumed to be an equitable mortgage, in one of the following:
a. The price of the sale is unusually inadequate
b. The vendee remains in possession
c. The vendor retains for himself a part of the purchase price
d. The vendee binds himself to pay the taxes on the thing sold
4. Which of the following is not a right of the unpaid seller?
a. A lien on the goods while in his possession c. Right to rescind the sale
b. Right of stoppage of goods in transit even if d. Right of resale.
buyer is solvent
5. I. The seller must be the owner of the property he sells but his ownership need not exist on perfection but upon
delivery of the thing.
II. A contract of sale may be absolute; conditional, either suspensive or resolutory; or the subject to a
contingency; or undivided interest in property, either present or future except future inheritance.
a. Both are false statements. c. First is true, second is false.
b. Both are true statements. d. First is false, second is true.
6. S offered his land to B with the understanding that the latter shall fix the price. B, as agreed upon fixed the price at
P2M, although the land's market value was P1.5M. It is clear, therefore, that S is to benefit from the transaction. Was
there a sale?
a. No perfected sale as there was no consent on the price.
b. There was a perfected sale, fixed by buyer and accepted by the seller
c. There's valid sale since the buyer was authorized to fix the price.
d. Voidable sale at the option of the buyer due to mistake in the fixing of the price.
7. The following are the alternative remedies, except one available to the buyer in case of breach of warranty by the
seller
a. Keep the good 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.
8. B wrote S, his sister, to sell his parcel of land. The land was purchased by X, but S did not forward the money to B.
Now, B wants to recover the parcel of land
a. B cannot recover because the sale is valid
b. B can recover because the sale between S and X is void, therefore there is no sale
c. B can recover only if B can return the money paid by X to S
d. Answer not given
9. Quasi-tradition is equivalent to
a. Longa manu c. Symbolical delivery
b. Execution of a public instrument d. Brevi-manu
10. S sold to B a specific "fighting cock" by pointing it to B. What kind of delivery is effected?
a. Brevi manu c. Constitutum possessorium
b. Quasi tradition d. None of the above
11. Ownership of incorporeal property is transferred to the buyer:
a. Execution of the sale in a public instrument
b. Placing the titles of ownership in the possession of the buyer
c. Use the buyer of his right, with the seller's consent
d. All of the above
12. A offered to sell his lot to B for P100,000. In his offer to sell it was stated that B 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 the 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. Yes, because A is already estopped by his signal letter
b. No, for B never signified his acceptance of A's offer.
c. Yes, because there was actual meeting of minds of the parties
d. Answer not any of the above.
13. I. The vendor is bound to deliver the thing sold and its accessions and accessories in the condition in which they
were upon the perfection of the contract. All fruits shall pertain to the vendee from the day which the contract was
perfected.
II. Whenever earnest money is given in a contract of sale, it shall be considered as part of the price and as proof
of the perfection of the contract.
a. True, true c. True, false
b. False, True d. False, false
14. A sold his land to B. the sale was made orally. B paid the agree price. B wanted to have the sale registered but he
needs a public instrument. Which is correct?
a. B may sue A for the return of his money as no one shall unjustly enriched at the expense of another
b. B cannot demand the return of the purchase price because the sale is unenforceable
c. B may compel A to execute the public instrument because the sale is valid
d. B may only occupy and use the land as buyer in good faith
15. A, offered to sell to B 100 cartons of sardines at a specified price who was accepted by B and subsequently
delivered his letter of acceptance. In view of the shortage of the catch of sardines A failed to deliver the commodities
it had offered for sale. B decided to sue A. Which is correct?
a. The acceptance of the offer ably created an option to buy.
b. The absence of consideration distinct from the price makes the contract without any obligatory force.
c. The acceptance of the offer to sell by showing the intention to buy for a price certain creates a bilateral
contract to sell and buy.
d. The acceptance of the offer to sell constitute a binding contract of sale provided the option was supported
by a sufficient consideration.
16. S sold a car for P300,000 to B. Unknown to B, the car then had a cracked engine block, the replacement of which
would cost P75,000. Despite his knowledge of this defect, S obtained a waiver from B of the latter's right under the
warranty against hidden defects. Subsequently, the care was wrecked due to the recklessness of B who only then
discovered the defects. Which of the following statements is true?
a. S still liable to reimburse B of P75,000 the difference between the purchase price and the true value.
b. The waiver is void because B has no knowledge of the defect.
c. S is not liable anymore because the car got loss due to the recklessness of B.
d. The liability of S remains to be P300,000 because of the breach of warranty against hidden defect.
17. The vendor
a. Is liable to the vendee for hidden fault or defect of the thing sold even if he is not aware thereof
b. Is not liable to the vendee for hidden fault or defect of the thing sold if he is not aware thereof.
c. Is liable to the vendee for hidden fault or defect of the thing sold if he is not aware thereof if stipulated.
d. None of the above
18. I. A promise to buy and sell a determine thing for a price certain is reciprocally demandable.
II. Emptio Spei Speratae is the sale of a thing which is expected to come into existence, the quality and quantity of
which are unknown.
a. True, true c. True, false
b. False, True d. False, false
19. I. In the consummation of a contract of sale, the option money given by the buyer to the seller is deductible
from the purchase price.
II. The contract of sale is perfected at the moment here is a meeting of minds upon the thing which is the
object of the contract and upon the price.
a. True, true c. True, false
b. False, True d. False, false
20. S sold his car to B with agreement that he will pay the price one week after the sale on January 10, 2001. In this
case:
a. The time and place of delivery shall be at the time and place of payment of the price.
b. The time and place of deliver and payment not having been agreed upon, the sale shall be void.
c. The seller may demand payment first before delivery of the thing sold.
d. The buyer may demand delivery first before payment of the price.
21. 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 contracts are incompatible with each other, ownership shall be transferred to
a. The first purchaser in good faith.
b. The first who completed the payment of the price in good faith.
c. The first who will register in good faith the transaction.
d. The one who presents the oldest title who must be in good faith.
22. Bears the risk of collecting from the buyer the price of the sale
a. Commission agent c. Del credere agent
b. Delegacion d. Expromission
23. On day 1, A appointed B as his agent covered by a general power to lease his car to Z for eight months. On day 2, A
appointed C as his agent covered by a special power to lease the same car for two months. On day 3, A directly
transacted business with Z, leasing the car for two months. Which is correct?
 a. The appointment of B is valid because it is covered by a general power
b. The appointment of C is valid because it is covered by special power
c. The appointment of B and C are considered revoked because the principal directly transacted with Z
d. The appointment of B is valid because it is the earliest appointment
24. In case of breach of warranty against eviction, which of the following shall be returned by the seller?
a. Costs of the suit which brought about the eviction and the suit against the seller
b. Value of the thing at the time of the sale
c. Damages if the seller was in bad faith
d. Expenses of the contract borne by the buyer
25. Without authority from P, A sold P’s car in A’s name. Contract is:
a. Void c. Valid
b. Voidable d. Unenforceable
26. A, a manufacturer and B, a distributor agreed to a contract where A will deliver 2,000 units of A’s products to B
every month and B will sell the products at A’s suggested prices plus 15%. All unsold units at the end of the year shall
be bought back by A at the same time the products were ordered. A shall hold B free from any claim for defects in the
units. The contract between A and B is
a. Contract of sale c. Contract of lease
b. Sale with right to repurchase d. Agency to sell
27. It is the right of the mortgagor to redeem the property that was mortgaged after it was sold
a. Equity of redemption c. Right of subrogation
b. Right of redemption d. Right of pre-emption
28. In case both principal and agent contracted with different persons as regards the same thing and one of the
contracts shall therefore be rejected, the one liable for damages to the third person shall be:
a. The principal because he should not have entered into the contract since he already has an agent.
b. The agent because in the case of conflict of interest, the principal’s interest prevails.
c. The principal because he is really the one entering into the contract not the agent.
d. The agent if he acted in bad faith otherwise it is principal.
29. A, a duly authorized agent of P, wrote a letter to X on March 1, 2013 offering to sell P’s car for P200,000.00 cash.
On March 3, 2013, X wrote a letter to A stating that he accepted all the terms of the offer, which letter was received
by A on March 5, 2013. Before A could relay such acceptance to P. P died in a vehicular accident on March 6, 2013.
a. The contract was not perfected because P, the real party to the sale, died before the acceptance came to
his knowledge.
b. The contract was perfected on March 1, 2013.
c. The contract was perfected on March 3, 2013.
d. The contract was perfected on March 5, 2013.
30. I. If the agent contracts in the name of the principal exceeding the scope of his authority and the principal does
not ratify the contract, the contract shall be void if the party with whom the agent contracted is aware of the limits of
the powers granted by the principal.

II. A third person cannot set up the fact that the agent has exceeded his powers, if the principal has ratified, or
has signified his willingness to ratify the agent’s acts.
a. Both are true c. Only the first statement is true
b. Both are false d. Only the second statement is true
31. Which of the following contracts of sale is void?
a. Sale of EGM’s car by KRP. EGM’s agent, whose authority is not reduced into writing
b. Sale of EGM’s piece of land by KRP, EGM’s agent, whose authority is not reduced into writing
c. Sale of EGM’s car by KRP, a person stranger to EGM, without EGM’s consent or authority
d. Sale of EGM’s piece of land by KRP, a person stranger to EGM, without EGM’s consent or authority.
32. Three of the following are conditional sale. Which is the exception?
a. sale of expectancy
b. sale with the right to repurchase
c. sale of vain and hope
d. sale subject to contingency
33. There is a contract of sale:
a. when goods are delivered to a distributor on consignment
b. when the manufacturer delivers the goods to an agent were the former retains the ownership and dictates
the term of sale.
c. when goods are delivered to a person on charge account.
d. when goods delivered to an aent to be sold by him and the agent is not liable to the manufacturer of goods.
34. 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.
35. Where it is stipulated that the repurchased of the property sold could be made at any time, the repurchased shall
be exercised:
a. within four years from the date of the contract.
b. within ten years from the date of the contract.
c. after 4 years from the date of the contract.
C. none of these.

36. S sold to B a specific piano. It was agreed that S would fix the price a week later. At the appointed time, S named
the price. B agreed. Is the contract perfected?
a. No, because the price was left to the discretion of one of the contracting parties.
b. No, because at the time of sale the time was not fixed.
c. Yes, because the price fixed by one of the parties accepted by the buyer.
d. answer not given.
37. Three of the following are implied warranties in contract of sale. Which is the exception?
a. reasonably fit for the purpose they acquired.
b. right to sell the thing at the time the contract is perfected.
c. merchantability in quality.
d. free from charges and encumbrances not declared or known by the buyer.
38.C transferred to V a parcel of land for the price of P100, 000; P30, 000 to be paid in cash and for the difference, she
will convey her car worth P70, 000. What kind of contract is this?
a. lease contract c. obligation to sale
b. contract of sale d. barter
39. The following are kinds of constructive delivery. What in the exception?
a. execution of public instrument. c. symbol or token signifying delivery
b. actual delivery. d. quasi-tradition
40. C sold to V a parcel of land for the price of P100, 000; P30, 000 to be paid in cash and for the difference, she will
convey her car worth P70, 000. What kind of contract is this?
a. lease contract c. obligation to sale
b. contract of sale d. barter
41. The Recto Law is applicable:
a. sale of car on a straight term. c. sale of car on installment.
b. sale of house on installment. d. all of these.
42. If the price is uncertain:
a. the transaction is void c. the buyer must pay the reasonable price
b. the price is to be fixed by court d. none of the above.
43. Present in every contract of sale:
a. implied warranty of fitness. c. implied warranty against eviction.
b. implied warranty of merchantability. d. all of these
44. The following are elements of the vendor’s right in stoppage in transit. Which is the exception?
a. the buyer must be insolvent. d. the seller must be in possession of the
b. the goods must be in transit. goods.
c. the seller must be unpaid.
45. A,B,C are co-owner of undivided parcel of land. B sold his interest to C. Which is correct?
a. A may exercise the power of redemption on the interest sold by B to C.
b. A cannot exercise the right of redemption because the sale was made in favor of a stranger.
c. The sale made by B to C is void because it was not made in favor of the stranger.
d. A may redeem only ½ of the interest sold by B to C.
46. In distinguishing Earnest money from option money, earnest money is:
a. given when no contract of sale.
b. given only when there is perfected contract of sale.
c. given to bind the offeror in a unilateral promise to sell or buy.
d. given as separate consideration from the purchase price.
47. X after the death of his father, sold his inheritance though its amount has not yet been determined to B, for
consideration of P50, 000.
a. the contract is valid only if the inheritance values at least equal to or more than P50,000.
b. the contract is recissible.
c. the contract is valid
d. contract is void, future inheritance cannot be the object of sale.
48. S, 16 years old sold to B, of legal age, a specific diamond ring for P10, 000. Later B, sold it to X. Which of the
following statement is incorrect?
a. S has got a voidable title because at the time of sale he is a minor.
b. X, if in good faith, shall become the owner upon delivery to him.
c. X, if in bad faith shall also be the owner, except that his title is voidable.
d. none of the above.
49. The following are characteristics of contract of sale. Except?
a. onerous contract c. accessory contract
b. commutative contract d. bilateral contract
50. Warranty against hidden defect is:
a. an essential element c. natural element
b. accidental element d. none of the above.
51. S delivers to B a piece of jewelry for a price of P30, 000. The contract provides that cash of P15, 000 and for the
balance, B will give S a micro oven worth P15, 000. What is the nature of the contract?
a. sale c. barter
b. partly sale and partly barter d. Commodatum
52. A contract of sale is not a
A. Principal contract C. Consensual contract
B. Nominate contract D. Real contract
53. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to
induce the buyer to purchase the same, relying on such promise or affirmation.
A. Condition C. Warranty
B. False representation D. Seller’s talk
54. Which of the following is not a characteristic of Sale?
a. Consensual c. Nominate
b. Bilateral d. Gratuitous
55. A seller sold to a buyer a piece of jewelry at a price of P20,000. The contract provides that the buyer will pay the
seller cash of P15,000 and for the balance, the buyer will give the seller a microwave oven worth P5,000. What is the
nature of the contract?
a. Barter c. Partly sale and partly barter
b. Sale d. Commodatum
56. When 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 the sale, delivery is effected:
a. by traditio constitutum possessorium c. by traditio longa manu
b. by traditio brevi manu d. by traditio symbolica
57. Ownership of the thing sold is transferred/acquired/retained:
a. Transferred to the buyer upon constructive or actual delivery of the thing sold
b. Retained by the seller in “sale or return”
c. Transferred to the buyer upon acceptance of the price
d. Acquired by the buyer upon perfection of the contract
58. 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, B was given a period of two months within which to produce the P200,000. After 45 days, A
told B that 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. No, for B did not signify his acceptance of A’s offer
b. Yes, because there was actual meeting of the minds of the parties
c. Yes, because the period of two months has not expired
d. Yes, because A is already estopped by his signed letter
59. A characteristic of a contract of sale which involves exchange of value, it is:
a. Nominate c. commutative
b. Bilateral d. consensual
60. Mr. Marcial Bonifacio orders for his workers 1,000 pieces of t-shirts ranging in size from small to large from the
Magellan Garments Manufacturing 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. Bonifacio with the
Magellan Garments Mfg. corp. is a:
b. A contract of sale
c. Contract for a piece of work
d. Contract subject to a resolutory condition
d. Answer not given
61. Which of the following statements is not correct?
a. Actual delivery of the thing or payment of the price is not required for the perfection of the sale
b. A stipulation that even when the object is delivered to the buyer, ownership will not pass until the price is
fully paid is not valid
c. A sale is consummated upon delivery of the thing and the payment of the purchase price
d. Sales through letters or telegrams are deemed perfected only when the seller has received acceptance by the
buyer
62. B sold a parcel of land to J for 2,000,000. B delivered the transfer Certificate of Title of the land to J. Later, J
wanted to register the land to his name and he needed a Deed of Sale: What can J do?
a. J can possess and utilize the land as a buyer in good faith
 b. J can compel B to execute the Deed of Sale
c. J cannot compel B to refund the P2,000,000 because the contract is not enforceable
d. J can sue B for enriching himself at the expense of another
63. 1st statement: The vendor is bound to transfer the ownership of and deliver as well as warrant the thing which is
the object of the sale.
2nd statement: Payment of price is essential to delivery of the thing sold.
a. First statement is true, second statement is c. Both statements are true.
false d. First statement is false, second statement is
b. Both statements are false true.
65. Which statement is not true?
a. Warranty against hidden defects is an accidental element of a contract of sale
b. In sale the obligation of the buyer is not only the payment of the price
c. In dacion en pago, an obligation is extinguished while in contract of sale, obligation arise
d. In sale or return ownership is transferred to the buyer upon delivery
66. Which of the following obligations of the vendor cannot be waived?
a. To allow the buyer to examine the goods sold c. To warrant the things sold
b. To pay the expenses of the deed of sale d. To transfer ownership to the buyer
67. 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. Interest of the price paid by the buyer
c. All necessary expenses on the thing sold and to be redeemed
d. Expenses in the execution of the sales contract paid by the buyer
68. A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B and the balance
at P10,000 per month until full payment of the purchase price. Later, the car gets burned in the possession of B
through fortuitous event before full payment of the balance. Is B obliged to pay the balance?
[A] No, because the car was lost through fortuitous event and without B’s fault, hence B’s obligation is
extinguished;
[B] No, because the loss should be borne by the seller as this is an installment sale so until the buyer pays the full
amount of the price of the sale, A remains to be the owner;
[C] Yes, but A must give another car to B because of the principle “genus nun quam peruit” or generic thing never
perishes;
[D] Yes, because of the principle “res perit domino” or the thing perishes with the owner.
70. The buyer is obliged to pay interest on the price from the time of delivery of the thing sold up to the time of
payment in three of the following instances, except:
[A] should it have been stipulated; [C] should the vendee be in default in the payment
[B] should the thing produce fruits or income; of the price;
[D] should the vendee be insolvent.
71. S sold to B a dog on January 10, 2011. Two days after delivery, the dog suffered some illness which caused its
death. B is now suing S for breach of warranty against hidden defect because the dog died within three days after
delivery. Decide.
[A] S is liable because the disease existed within three days after purchase;
[B] S is not liable if he was aware of the disease which caused the death of the dog;
[C] S is liable if he were in bad faith;
[D] S is liable because the disease did not exist at the time of the purchase.
72. B purchased a pair of leather shoes from the store of S. Shortly after leaving the store, B decided to return and
requested S, the owner, to place a protective rubber covering on the sole of each shoe. Since the job required at
least 30 minutes to complete, B left the store of S to shop at the neighboring stores. When he returned to the
store of S after 30 minutes, the pair of shoes was nowhere to be found. It turned out that C, a sales clerk, had sold
the pair of shoes that B bought to X, another customer.
[A] X acquired ownership of the pair of shoes earlier bought by B;
[B] X did not acquire ownership of the pair of shoes earlier bought by B;
[C] B remained the owner of the pair of shoes that he had bought despite its sale to X;
[D] S reacquired ownership of the pair of shoes when it was brought to him for additional work.
73. In a contract of sale of personal property the price of which is payable in installments, the vendor may exercise
any of the following remedies, except:
[A] Exact fulfillment of the obligation, should the vendee fail to pay any number of instalments;
[B] cancel the sale should the vendee’s failure to pay cover two or more installments;
[C] Foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more installments
and recover any deficiency after the foreclosure sale if they have stipulated it;
[D] Foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more installments
but he may no longer recover any deficiency after the foreclosure sale;
74. B purchased from S a laptop computer worth P100,000. The terms of the sale provide for a downpayment of
P20,000 with the balance payable in 8 equal installments. To secure the balance, S required B to execute a chattel
mortgage on the laptop computer and a real mortgage on B’s lot. B complied with all the requirements but
 defaulted in the payment of the third and fourth installments. These remedies are available to S except one.
Which is it?
[A] Cancel the sale;
[B] Exact fulfillment of the obligation;
[C] Foreclose the real mortgage and thereafter recover any deficiency from B.;
[D] Foreclose the chattel mortgage and thereafter foreclose the real mortgage in case of deficiency.
75. T stole a ring belonging to O. Subsequently, the ring was offered for sale at a public auction where X, who was
not aware that the ring was stolen, bought it. A few weeks later, O saw the ring and recognized it as his. Based on
the foregoing information, which of the following statements is correct?
[A] O may recover the ring from X without reimbursing X since O was unlawfully deprived of the ring;
[B] O may recover the ring from X but he has to reimburse X since X acquired title to the ring;
[C] O may no longer recover the ring even if he is willing to reimburse X;
[D] X did not acquire title to the ring since the auctioneer had no valid title thereto.
76. A, B, and C are co-owners of an undivided parcel of land. A sold his 1/3 interest to C, absolutely. Which is correct?
[A] B may exercise his right or redemption on the interest sold by A to C.
[B] B cannot exercise the right of redemption because the sale was made in favor of a co-owner.
[C] The sale made by A to C is void because it was not made in favor of a stranger.
[D] B may redeem only ½ of the interest sold by A to C.
77.Also known as barter:
[A] Do ut des [C] Facio ut facias
[B] Facio ut des [D] Do ut facias
78. On June 6, 2010, X sold for P1M his house and lot to Y. It was agreed that delivery of the house and lot and the
payment therefore would be made on June 30, 2010. Unfortunately, typhoon “Basyang” completely destroyed the
house on June 12, 2010. Which is correct?
[A] Y is not required to pay the P1M since the contract had no subject matter.
[B] X must still deliver the lot but is excused from delivering the house while Y must still pay the P1M.
[C] X must still deliver the lot while Y should pay only the amount equivalent to the value of the lot.
[D] X need not deliver the lot while Y need not pay the P1M.
79. 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 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 if stipulated.
80. A stole a watch from P and sold to a “store of watches” which paid for it in good faith, not knowing that it was
stolen. The store then sold it to B. Which is correct?
[A] B cannot be considered as the owner because the original seller (A) is not the real owner.
[B] P may recover the watch from B without reimbursement because he is the legal owner.
[C] B is considered the owner because he purchased the watch in a merchant store.
[D] When the watch was sold to the store in good faith, ownership was transferred therefore it can also
transfer ownership to B.
81. A sold his car to B binding himself not to sell the same to another person. On the following day, A sold the same
car to C who immediately took possession in good faith. In the case at bar, the proper remedy of B is to:
[A] Institute an action for the annulment of the sale against C.
[B] Institute an action for the recovery of the car
[C] Institute an action for damages against A
[D] Institute an action for recovery of the car plus damages against C.
82. Goods are deemed in transit
[A] When the buyer accepts delivery of the goods upon arrival at destination
[B] When the buyer intercepts and lawfully takes possession of the goods at any point before destination
[C] From the time they are delivered by the seller to a common carrier or other bailee for transmission to the
buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee.
[D] When the carrier or bailee, upon arrival of the goods at destination, acknowledges to the buyer or his
agent that he is holding the goods as bailee for the latter.
83. A sold to B a parcel of land for P1M. The sale was evidenced by an agreement of sale written in Cebuano dialect.
One week later, A sold the same parcel of land to C for P2M which was evidenced by a formal deed of sale. C, who
was aware of the previous sale, immediately took possession and registered the sale in his favor. Who is the rightful
owner?
[A] C because registration is higher in rank in law than possession or title.
 [B] B because he has the older title
[C] C because she took possession ahead of B
[D] A, under the principle res perit domino
84. In a contract of sale of real property by lump sum, when there is a difference between the area and the boundary:
[A] Boundary prevails [C] There must be another survey
[B] Area prevails [D] Contract is void
85. A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the same car to
C and immediately effected delivery. On the agreed day of delivery, B did not deliver the car to A. Which is correct?
[A] B can cancel the contract between A and C because the contract between A and B was perfected ahead of
the contract between A and C.
[B] B should make a demand to make A in default.
[C] A is liable to B for the value of the car plus damages after B makes a demand
[D] A is liable to B for damages and is in default without need of any demand.
86. Mark purchased from Anthony a parcel of land worth P600,000; P200,000 to be paid in cash and for the
difference, he will convey his car worth P400,000. What kind of contract is this?
[A] Lease contract [C] Contract to sell
[B] Contract of sale [D] Barter
87. When goods are delivered to the buyer on “sale or return”, the ownership passes to the buyer:
[A] Upon delivery of the goods [C]Upon acceptance of the buyer if the seller’s
[B]Upon the expiration of the period agreed offer
upon [D]Upon perfection of the sale
88. Which of the following may not be the object of a contract of sale?
[A] Things having potential existence
[B] Things, the acquisition of which depends upon a contingency which may or may not happen.
[C] Vain hope or expectancy
[D]Things subject to a resolutory condition
89. A placed an order with B for one hundred pieces of t-shirts which were then not available manufactured by B and
consigned to its sales outlets regularly. The contract between A and B is:
[A] Contract for piece of work [C] Contract of sale
[B] Contract of lease of services [D]Renumeratory contract
90. P orally appointed A as his agent to sell the former’s land. On January 3,2001, A sold the land to B who forthwith
took possession thereof. It turned out however, that on January 1,2001, P, without informing A, had already sold the
same land to C, who up to now has not taken possession of the same land. Neither of the sales was registered. Whose
contract shall prevail?
[A] The sale to B for he was first in possession of good faith;
[B] The sale to C for the land was first sold to him by the owner.
[C] The sale to B for the agent was duly authorized to sell the land.
[D] The sale to C because the sale to B was void, A was not duly authorized by P.
92. A seller sold to a buyer a piece of jewelry at a price of Php 1M. The contract provides that the buyer will pay the
seller cash of Php.4M and deliver the buyer’s car worth Php.6M. The contract is:
[A] Barter [B] Partly sale and partly barter [C] Sale [D] Commodatum
93. S sold his cat to B for P2,000.00. No payment has been made and the sales document does not provide for the
date of delivery. Before delivery and payment, the cat gave birth to a kitten.
[A] B entitled to the kitten which was born after the perfection of the sale.
[B]S is entitled to the fruit as B has not yet paid the price.
[C] S is entitled to the fruit because it was born before his obligation to deliver the cat.
[D] B should pay an additional amount for the kitten to be entitled to it.
94. A sold his land to B who began to posses it. Later, C, a stranger, sold the same land to D who in good faith
registered the sale and thus obtained the title in his name. the owner is:
[A]D is the owner for he was the first to register in good faith.
[B]A remains to be the owner because C had no authority to sell.
[C] A is still the owner because B did not register the sale.
[D] B is the owner because the owner is his seller and he has taken possession of the land.
95. S sold to A in a memorandum of agreement of sale his parcel of land. After a week, S sold the same land to B in a
formal deed of sale. Upon buying the land, B who was aware of the sale to A, immediately took possession thereof
and registered the sale in his favor. When informed of the second sale, A subsequently registered an adverse claim
with the Registry of Deeds. The parcel of land shall belong to:
[A] A, because he has the older title.
[B] B, because the sale to him was in a formal deed of sale.
[C] B, because he first registered the sale in his favor.
[D] B, because he was the first possessor of the land.
96. A husband and his wife were living together under a conjugal partnership of gains. Later, because of a quarrel, the
wife left the husband without judicial approval. They have thus been living apart for more than ten years. The wife
later sold her land to the said husband. Is the sale valid?
[A] The sale is valid because the spouses have been separated for more than ten years
[B] The sale is valid because after separation there is already a separation of properties between spouses.
[C] The sale is void because of the absence of separation of properties between spouses.
[D]The sale is void because the spouses are living apart.
97. Miguel appointed Michael as commission agent to sell Miguel’s goods for P10,000.00 cash. Michael, however, sold
the goods on credit for P11,000.00 without Miguel’s consent. Based on the foregoing facts, which of the following
options are available to Miguel?
I. Miguel may demand immediate payment in P11,000 cash.
II . Miguel may demand immediate payment in P10,000 cash. However, Michael shall be entitled to keep the excess
of P1,000 when he collects the price of P11,000
III. Miguel may ratify the sale on credit for P11,000 and wait for the amount to be collected.
a. Either I or III c. Either I or II
b. Either II or III d. I only
98. P authorized A to sell in cash for P1M. A sold on credit for P1.5M. A liable for:
a. P1M
b. P1.5M
c. P1.5M only after he has collected from the buyer his payment.
d. P1M plus damages for not following the principal’s instruction
99. P, who was abroad, learned that F was interested in buying his lot located in Quezon City. To take advantage of
the opportunity, he made an overseas call to A, who was in Manila, to sell the lot in his behalf, to F, for P1M. A thus
sold the lot promptly to F. The contract of sale is in public instrument which was signed by a in behalf of P as seller,
and F as buyer. The said contract of sale is:
a. Valid, because it is in a public instrument and A was duly authorized to represent P.
b. Void, because the authority of A was not in the form required by law.
c. Unenforceable, because P did not sign the contract of sale and so he had no consent thereto.
d. Rescissible, because the contract was entered into a representation of an absentee.
100. The agent is responsible for the acts of a substitute which he appoints in the following instances. Which is not
included?
a. When he is not given the power to appoint one.
b. When he was prohibited from appointing one.
c. When he was given the power to appoint one, but without designating the person, and he appointed
incompetent one in good faith.
d. When the principal designated the person to be appointed.