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Homework 2 – Law1301 – Topic Law on Sales – Part 2

1. The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default
in the performance of the conditions of the mortgage but before the sale of the mortgaged property or
confirmation of the sale by the court, is known as
a. accion publiciana.
b. equity of redemption.
c. pacto de retro.
d. right of redemption.
2. Which of the following statements is false?
a. In contract to sell, ownership is not transferred to the buyer upon delivery.
b. The unpaid seller can exercise stoppage in transitu 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 in reference to another thing certain.
d. Dock warrant is an example of a negotiable document of title.
3. B imports electric fans from China and specifically asks for 220 volts fans. The fans arrived duly
labeled 220 volts and sells them to the public as such. Later, it turned out that the fans has been
mislabeled by the manufacturer and were only good for 110 volts.
a. B is liable to the vendee for any hidden defects in the thing sold, even though he was not aware
thereof
b. B is not liable because he was in good faith, and this is shown by specifically asking for 220 volts
c. B is not liable under the principle of "let the buyer beware"
d. B is liable because the vendee did not enjoy legal and peaceful possession of the object of sale.
4. The justified refusal of the buyer to accept the goods produces the following effects, except:
a. buyer has no duty to return the goods, unless otherwise stipulated.
b. title to the goods does not pass on to him.
c. buyer shall not be obliged to pay the price.
d. buyer is obliged to constitute himself as depositary until he returns the goods.
5. Dave sold to Babe orally a parcel of land for P500.000. Delivery was made of the land. The payment
of the price was to be made three months later. At the end of the three month period
a. Babe may refuse to pay claiming in his defense the Statute of Frauds.
b. Babe may return the parcel of land to Dave.
c. Dave can collect from Babe because the contract was already executed partially.
d. Babe may refuse to pay on the ground that there is no written contract to support the sale.
6. An unpaid seller's right to resell the goods is available in the following cases, except:
a. if the goods are of a perishable nature.
b. when the seller reserved the right to resell the goods.
c. when the buyer has defaulted in the payment of the price for an unreasonable time.
d. when the seller has lost his lien on the goods.
7. If redemption is made, which of the following will not be paid by the seller to the buyer:
a. Price made 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.
8. Which of the following obligations of the vendor cannot be waived?
a. To allow the buyer to examine the goods sold.
b. To transfer ownership to the buyer.
c. To pay the expenses of the deed of sale.
d. To warrant the thing sold.
9. Three of the following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired.
b. Right to sell the thing at the time the contract is perfected.
c. Merchandise in quality.
d. Free from charges or encumbrances not declared or known to the buyer.
10. Warranty against hidden defect is:
a. An essential element c. Natural element
b. Accidental element d. Structural element
11. On June 1, 2014, Sanchez sold to Borlaza in a private instrument a certain computer. Two days later,
Sanchez sold the same computer in a private instrument to Contreras who immediately took
possession of the computer. Neither party was aware of the sale made to the other.
a. The computer belongs to Borlaza.
b. The computer belongs to Contreras.
c. The computer will be co-owned by Borlaza and Contreras to give effect to both sales.
d. Both sales are void. Accordingly, Sison will still be the owner.
12. What mode of extinguishing a contract of sale is effected when a person is subrogated upon the same
term and condition stipulated in the contract in the place of one who acquires a thing by onerous title?
a. Compensation c. Novation
b. Conventional redemption d. Legal redemption
13. In three of the following there is no warranty against hidden defects of animals. Which is the
exception?
a. Animals sold at fairs
b. Livestock sold as condemned, declared known to the buyer
c. Animals sold at public auction
d. None of the above
14. On June 10, 2014, S sold to B a specific car which S acquired from a friend last June 1, 2014. On
August 10, 2014, the car was totally destroyed which was traced to a crack in the engine block. S was
not aware of the defect. Is S, the seller, liable to B?
a. No because S was innocent and a seller in good faith.
b. No, because S has all the opportunity to examine the car before buying it
c. Yes, S is liable to return the price and expenses incurred by B
d. Yes, S is liable to return the price, expenses and damages actually suffered by B.
15. Three of the following are the requisites in order that the vendee may enforce the vendor's liability in
case of eviction. Which one is not?
a. There must be a final judgment depriving the vendee of a part or the whole of the thing sold.
b. The vendee must have appealed from such judgment rendered against him.
c. The deprivation of the vendee is based on a right prior to the sale or an act imputable to the
vendor.
d. The vendor is notified of the suit at the instance of the vendee.
16. In three of the following cases, the buyer is not entitled to suspend the payment of the price. Which
one will give him the right to suspend payment?
a. Disturbance in the possession or ownership of the thing purchased.
b. The seller gives him security for the return of the price.
c. It has been stipulated that the buyer shall pay the price notwithstanding any disturbance,
d. The disturbance is a mere act of trespass.
17. An unpaid seller has the following rights, except:
a. a lien on the goods or the right to retain them for the price while he is in possession of them.
b. In case of insolvency of the buyer, a right of stopping the goods in transitu after he has parted
with the possession of them.
c. a right of repurchase.
d. a right to rescind.
18. Three of the following are elements of the vendor's right of stoppage in transitu. Which is the
exception?
a. The buyer must be insolvent
b. The goods must be in transit
c. The seller must be unpaid
d. The seller must be in possession of the goods
19. Where it is stipulated that the repurchase of the property sold could be made at any time, the
repurchase 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 ten years from the date of the contract
d. None of them
20. M, N, and O are co-owners of a parcel of land pro-indiviso, M sold his 1/3 share in the land to N in an
absolute deed of sale. Which is correct?
a. The deed of sale between M and N is void because it was not made in favor of a third party.
b. O may exercise his right of redemption on the interest sold by M to N.
c. O may redeem only 1/2 of the interest sold by M to N.
d. O cannot exercise the right of redemption because the sale was made in favor or a co-owner.
21. An owner of a rural land has the right of legal redemption of an adjoining rural land sold if the
following requisites are present, except when:
a. the adjoining rural land is not separated by any apparent servitudes for the benefit of other estates.
b. the land sold does not exceed one hectare.
c. the grantee owns another rural land.
d. the grantee owns an urban land.
22. An unpaid seller's right to resell the goods is available in the following cases, except:
a. if the goods are of a perishable nature.
b. when the seller reserved the right to resell the goods.
c. when the buyer has defaulted in the payment of the price for an unreasonable time.
d. when the seller has lost his lien on the goods.
23. Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter
about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects.
Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus
damages?
a. Yes. X is liable whether or not he was aware of the hidden defect.
b. Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the
fact to Y.
c. No, because Y is in estoppel, having changed engine without prior demand.
d. No, because Y waived the warranty against hidden defects.
24. X sold Y 100 sacks of rice that Y was to pick up from X’s rice mill on a particular date. Y did not,
however, appear on the agreed date to take delivery of the rice. After one week, X automatically
rescinded the sale without notarial notice to Y. Is the rescission valid?
a. Yes, automatic rescission is allowed since, having the character of movables and consumables,
rice can easily deteriorate.
b. No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the
goods.
c. No, since there was no express agreement regarding automatic rescission.
d. No, the seller should first determine that Y was not justified in failing to appear.
25. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples.
What are the rights and obligations of the buyer?
a. He can accept all 6,000 apples and pay the seller at P20 per apple.
b. He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples.
 c. He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them
anyway.
d. He can cancel the whole transaction since the seller violated the terms of their agreement.
26. 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.
b. conventional redemption.
c. legal redemption.
d. equity of redemption.
27. Barrameda bought a piece of land from Sarmiento for a lump sum of P120,000.00. Aside from
mentioning the boundaries in the contract which is required in the sale of real estate, the contract also
states that the piece of land consists of 1,000 square meters. Before delivery, Sarmiento discovered
that the piece of land actually contains 1,200 square meters.
a. Sarmiento must deliver all the 1,200 square meters; Barrameda must pay P120,000.00 plus an
additional amount for the excess of 200 square meters.
b. Sarmiento is required to deliver only 1,000 square meters; Barrameda must pay the contract
price of P120,000.00.
c. Sarmiento must deliver all the 1,200 square meters; Barrameda has to pay only P120,000.00.
d. Neither party is required to perform the obligation because of mistake.
28. If redemption is made, which of the following will not be paid by the seller to the buyer?
a. Price made 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.
29. A case where Contract of Sale must not necessarily be in writing.
a. Sale of 100 piculs of sugar at P400 per picul when there is no partial delivery
b. Sale where by its term cannot be performed within one year from the making thereof
c. Sale of land
d. Sale at public auction
30. A sold and delivered her diamond ring to B. It was agreed upon that within 10 days B will state and
fix the price. On the 10th day, B called up by telephone A and stated the price at P20,000 which A
agreed. Is the sale perfected?
a. No, at the time of the sale the price was not fixed.
b. Yes, at the time of the sale the price was already known.
c. Yes, the price 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.
31. M, N, and O are co-owners of a parcel of land pro-indiviso, M sold his 1/3 share in the land to N in an
absolute deed of sale. Which is correct?
a. The deed of sale between M and N is void because it was not made in favor of a third party.
b. O may exercise his right of redemption on the interest sold by M to N.
c. O may redeem only 1/2 of the interest sold by M to N.
d. O cannot exercise the right of redemption because the sale was made in favor or a co-owner.
32. 1st statement: If the same thing should have been sold to different buyers, the ownership shall be
transferred to the person who may have taken possession thereof in good faith.
2nd statement: The seller is responsible to the buyer for any hidden defects of faults in the thing
sold only if he was aware thereof.
a. 1st statement true, 2nd statement false.
b. Both statements are false.
c. 1st statement false, 2nd statement true.
d. Both statement are true.
33. When does the buyer of a thing have the right to the fruits of the thing bought?
a. From the time the fruits are delivered.
b. From the time the obligation to deliver the thing bought arises
c. From the time the sale is perfected.
d. From the time the thing bought is delivered.
34. 1st statement: In all cases of extrajudicial foreclosure, the right of redemption can be exercised by
the mortgagor within one year from and after the juridical registration of the sale.
2nd statement: In juridical foreclosure, the mortgagor may still exercise his equity of redemption
after the confirmation of the sale by the court.
a. Both statements are wrong
b. 1st statement correct, 2nd statement wrong
c. Both statements are correct
d. 1st statement wrong, 2nd statement correct
35. A form of delivery which takes place after the seller of the property continues possession of said
property no longer as owner but as a mere possessor:
a. traditio constitutum possessorium
b. traditio clavis
c. traditio brevi manu
d. quasi-tradition