SALES, AGENCY, LABOR AND OTHER COMMERCIAL LAW

TTh (1:00 2:30)

PRE-MIDTERM EXAMINATION
Instructor: VANNESA R. COMPASIVO
I. True/False
Instruction: Carefully read each question and write true or false
before each number.
1. The thing must be licit and the vendor must have a right to
transfer the ownership thereof at the time it is delivered. T
2. Gross inadequacy of price does not affect a contract of sale,
except as it may indicate a defect in the consent, or that the
parties really intended a donation or some other act or contract.
T
3. The expenses for the execution and registration of the sale shall
be borne by the vendor, unless there is a stipulation to the
contrary. T
4. If the consideration of the contract consist partly in money and
partly in another thing, it shall be considered a barter if the value
of the thing given as a part of the consideration exceeds the
amount if the money or its equivalent. F
5. The efficacy of the sale of a mere hope or expectancy is deemed
subject to the condition that the thing will not come into
existence. F
6. A contract of sale may not be absolute or conditional. F
7. Where such third person or persons are prevented from fixing the
price or terms by fault of the seller or the buyer, the party not in
fault may have such remedies against the party in fault as are
allowed the seller or the buyer, as the case may be. T
8. The fixing of the price can never be left to the discretion of one
of the contracting parties. T
9. A right to bid may be reserved impliedly by or on behalf of the
seller, unless otherwise provided by law or by stipulation. F
10.
A promise to buy and sell a determinate thing for a price
certain is reciprocally demandable. T
11.
The parties may stipulate that ownership in the thing shall
not pass to the purchaser until he has fully paid the price. T
12.
When the sale is made through a public instrument, the
execution thereof shall be equivalent to the delivery of the thing,
which is the object of the contract, if from the deed the contrary
does not appear or cannot clearly be inferred. T
13.
The expenses for registration and execution of the sale
shall always be borne by the vendor. F
14.
The ownership of the thing sold shall be transferred to the
vendee upon actual or constructive delivery thereof. T
15.
In construing a contract containing provisions
characteristic of both the contract of sale and of the contract of
agency to sell, the essential clauses of the whole instrument
shall be considered. T
II. Multiple Choice
Instruction: Carefully read each question and write the letter of your
answer before each number.
1. 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 where

the former retains the ownership and dictates the terms of the
sale.
c. When goods are delivered to a person on charge
account
d. When goods are delivered to an agent to be sold by him
2. S sold to B orally a parcel of land for P200,000. 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. B may refuse to pay claiming as his defense the Statute of
Frauds
b. B may return the parcel of land to S
c. S can collect from B because the contract was already
executed partially.
d. B may refuse to pay on the ground that there is no written
contract to support the sale
3. Mr. Renato Tala-od owns a mango tree bearing fruits, ready for
harvest. He sells all the fruits of that tree to Mr. Marcelo Abalos