SALES

1) Nasaktan bought a residential house and lot from Masasaktan Realty for
P250,000 giving a down payment of P10,000.00 and promising to pay the
balance of P 240,000 in 20 years in monthly installments of P
1,000.00.After paying 72 installments,Nasaktan defaulted in the payment
of the 73rd installment and subsequent ones.Despite the grade period
earned,he was not able to make any further payments.Accordingly,
Masasaktan Realty cancelled the sale.How much cash surrender value is
Nasaktan entitled to receive?

a. P45,100
b. P39,600
c. P36,000
d. P41,000
2) Pakboy alleged that Pakgirl promised to give Pakboy one hectare of
land.This is in consideration of Pakboy’s meritorious service to
Pakgirl.Pakgirl pleads in defense that since the promise was not in
writing,it is unenforceable under the Statute of Fraud.Is Pakgirl’s defense
correct?

a. Yes,the promise is unenforceable because it is not in writing

b. Yes,The Statute of Fraud is applied because Pakboy has rendered
services already
c. No,The Statute of Fraud is inapplicable here,because the promise
to give the land is not a sale of real property
d. No, The Statute of fraud can apply to partially executed contract
3) King Kong Company, a jewelry manufacturer,shipped five dozen
necklaces to Kang Kong Jewelry store.The shipment was made under a
written agreement allowing Kang Kong Jewelry Store to return the
necklaces within a period of one month from delivery.Based on the facts
presented, which of the following statements is false?

a. Title to the necklaces passed to Kang Kong upon delivery

b. If Kang Kong does not return the necklaces within one month,the
sale to it become absolute
c. If the necklaces are destroyed by fire without the fault of Kang
Kong,Kang Kong need not pay the price thereof
d. If the necklaces are destroyed through the fault of Kang Kong,Kang
Kong must pay the price thereof to King Kong Company.
4) Mag Artista Na Shoe store entered into a separate contracts with two
movie stars, Artistahin and Artista Jud.With Artistahin,the agreement was
that Mag Artista Na Shoe store shall deliver at a specified date for P 3,500
a pair of shoes of a specified brand which the store had been
manufacturing for the general market but which at that time was out of
stock and the agreement with Artista Jud was to deliver at a specified date
for P 5,000 a pair of shoe specially made for him with the basis of the
design he gave or instructed.Evaluate.

I. The contract with Artistahin is a contract of sale

II. The contract with Artista Jud is a contract for piece of work
III. The contract with Artistahin is a contract for piece of work
IV. The contract with Artista Jud is contract of sale
V. The contract wth Artistahin and Artista Jud is a contract for a
piece of work
 a. True,True,False,True,True
b. True,True,False,False,False
c. False,False,True,True,True
d. False,True,False,True,False

5) Sizt would like to sell to Orb a car.Sizt is a manufacturer of race cars.Orb

told Sizt that he would like Sizt to manufacture for him the type of race car
which would at least out run the police cars as Orb would use such race
car as a get-away car for the robbery that he would commit.Sizt agreed
and the terms of payment,as determined by Sizt and approved by Orb
would be that Orb would be paying Sizt the price equivalent to the price of
1 kilo of shabu as of September 2018.Evaluate.

I. The contract of Sale between Sizt and Orb is nevertheless valid

since the object of the contract is licit.
II. The contract of Sale between Sizt and Orb is void as the purpose of
Orb in purchasing the car was for illicit purposes
III. The contract of Sale between Sizt and Orb is void since the price of
the sale is based on the price of 1 kilo of Shabu as of September
2018 and shabu is illicit
IV. The contract of Sale between Sizt and Orb is valid even though the
basis of the price of the sale is illicit

a. True,False,False,True
b. False,True,True,False
c. False,True,False,True
d. True,False,True,False

6) Lami agreed to sell and deliver to Luod 1 sack of rice.Upon delivery,Luod

refused to accept the sack of rice delivered.The refusal caused Lami to
suddenly suffer a mild stroke and was hospitalized for that cause.Which of
the following is true?
a. Luod is liable for the hospitalization expense since it was incurred
due to his non-performance.Lami is entitled for proximate damages
b. Luod is not liable for such expenses
c. Luod is liable because he caused the mild stroke to happen
d. None of the above
7) Aling Momo lost her necklace which was given by her late husband Mang
Toto.Without her knowing,it was stolen by her friend,Aling Lala since she
needed to pay for her son’s graduation fee.Later on,Aling Lala sold it to a
tiangge and the tiangge pays for it in good faith and afterwards,the tiangge
sold it to Aling Riri.Which of the following is true?Choose the best answer

a. Ownership passed to Aling Riri because she bought it on a

merchant store
b. Ownership did not pass to Aling Riri because a tiangge is not a
merchant store
c. Aling Riri would not be entitled to any reimbursement if Aling Momo
would want to recover the item because Aling Momo is the legal
owner
d. The Tiangge having bought the item in good faith becomes the
legal owner, and as such,he can transfer ownership to Aling Riri
8) Jeje and Monmon agreed to a contract of sale of a piece of land on
December 10,2019.Monmon,the seller,then executed in a public
instrument on December 19,2019 but Jeje only took possession of such
land on January 3,2020.After such possession,he then decided to register
the public instrument on January 20,2020.When was ownership
transferred?

a. December 10,2019
b. December 19,2019
c. January 3,2020
d. January 20,2020

9) On October 10,2017, Dindong deposited his goods with Manny,

warehouse, who issued a warehouse receipt states that the goods are to
be delivered “to the order of Dindong”. On October however, Dindong sold
the goods represented by the receipt to Serces who informed Manny
immediately of the sale to him by Dindong.At that time,Manny was not
aware that Dindong had indorsed the receipt to Lily.Which of the following
is true?
a. Lily acquired title to the goods as represented by the receipt at the
time such receipt was indorsed to him
b. Serces acquired title to the goods because at the time of sale to
him,Manny,the warehouseman was not yet aware that Dindong had
indorsed the receipt to Lily
c. Dindong retained ownership of the goods because he cannot
indorse the receipt to one person and sells the goods to another
d. Manny will be bound to deliver the goods to Serces

10) Ugly shipped FOB Shiping Point,perishable goods worth P50,000 to

Beauty who is based in Cebu.Beauty remitted a check amounting to
P50,000 for the price of the goods.While the carrier was on its way to
Cebu,Ugly was informed by the bank that the check issued by Beauty was
dishonored for insufficient funds.On further inquiry,he learned that Beauty
had become insolvent.Accordingly,Ugly obtained physical possession of
the goods from the carrier.After notifying Beauty,Ugly resold the
goods.Evaluate.

I. If the goods are resold for P52,000,the profit of P2,000

belongs to Beauty since title had already passed to her
II. If the proceeds of sale ,net of expenses,amounted to
P47,000.Ugly can recover the loss of P3,000 from B

a. Both are true

b. False,true
c. Both are false
d. True,false
Answers:
1. A. P 45,100
2. C. No,The Statute of Fraud is inapplicable here,because the
promise to give the land is not a sale of real property
3. C. If the necklaces are destroyed by fire without the fault of Kang
Kong,Kang Kong need not pay the price thereof
4. B. True,True,False,False,False
5. A. True,False,False,True
6. A. Luod is liable for the hospitalization expense since it was
incurred due to his non-performance.Lami is entitled for proximate
damages
7. A.Ownership passed to Aling Riri because she bought it on a
merchant store
8. B. December 19,2019
9. A.Lily acquired title to the goods as represented by the receipt at
the time such receipt was indorsed to him
10. B.False,true