MCQ Sales-CAGAKIT

1.
Unless there is stipulation to the contrary the expenses for the execution or registration of the
sale shall be borne by:
The Vendee
The Vendor
The Vendee and Vendor
The agent or broker
2. A offered to sell his lot to B for P100,000. In his offer to sell it was stated that he 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 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?
Yes, because A already signed his offer

No, For B never signified his acceptance of A’s offer.
Yes, because there was actual meeting of minds of the parties
Answer not any of the above.
3. 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 he gives B a period of two (2) months within to
produce the P200,000. After 45 days, A told B that the 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?
Yes, because there was actual meeting of the minds of A’s offer
No, for B did not signify his acceptance of A’s offer
Yes, because A is already estoppels by his signed letter
Yes, because the period of two (2) months has not expired
4. Mr. AB owes Mr. CD P150,000 due on August 1, 2010. Mr. AB executed mortgage in favor
of Mr. CD on Mr. AB’s building to guaranty the obligation. On August 10, 2010, the
mortgage building was totally lost due to a strong typhoon. On August 12, 2010, Mr. CD
demanded payment from Mr. AB. Is Mr. CD’s demand valid?
No, the obligation is one with a definite period, thus the creditor cannot demand fulfillment of
the obligation as such would the prejudicial to the rights of the debtor.
No, the obligation is extinguished because the obligation is lost through a fortuitous event.
Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous
event. Unless the debtor can mortgage another property that is equally satisfactory.
Yes, the debt becomes due at once because, from the tenor benefit is given solely to the creditor
thereby giving the creditor the right to demand performance even before the date.
5. Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten
(10) days Mrs. Pat will name and fix the price. On the tenth (10th) day, Mrs. Pat called up by
telephone Mrs. Go and stated the price at P10,000. Mrs. Go agreed. IS the sale perfected?
Yes, the price stated and named by one of the contracting parties was accepted by the
other.
No, at the time of the sale the price was not fixed.
No, the price was left to the discretion of one of the parties
No, at the time of the sale the price is not known.
6. Mr. Sy sold a parcel of land to Mr. Tan for P200,000. Mr. Sy delivered the transfer Certificate
of Title of the land to Mr. Tan. Later, Mr. Tan wanted to register the land to his name and he
needed a Deed of Sale. What can Mr. Tan do?
Mr. Tan can compel Mr. Sy to execute a Deed of Sale

Mr. Tan cannot compel Mr. Sy to refund the P200,000 because the contract is not enforceable
Mr. Tan can sue Mr. Sy enriching himself at the expense of another.
Mr. Tan can possess and utilize the land as a buyer in good faith.
7. Bonds which are not secured by any specific mortgage lien of pledge or corporate property
but by the general corporation are:
Guaranteed bonds
Debenture bonds
Income bonds
Redeemable bonds
8. The buyer of a thing has the right to the fruits of the thing:
From the time the thing bought is delivered

From the time the sale is perfected
From the time the obligation to deliver the thing bought arises.
From the time the fruits are delivered.
9. Three (3) of the following are option money. Which is the earnest money?
Given when contract of sale is perfected.

Given when there is no contract of sale.
Given to bid the offer or in a unilateral promise to sell or to buy.
Given as a separate consideration from purchase price.
10. In a sale, this is actual delivery.
Execution and signing of the sale document.

When the goods sold are placed in the control and possession of the buyer.
Delivery by the seller to the buyer of the key where the goods sold are kept.
The buyer is already in actual possession of the goods.
11. This is a mode to extinguish an agency:
Death of the principal, but the agency is for the interest of the principal and agent.
Partial accomplishment of the agency.
Upon withdrawal of the principal.
Insanity of principal or agent.
12. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation
60 days after it was due. C sold the machine at public auction for P6,000.
C cannot recover the deficiency of P2,000 even if there is stipulation that he can.
C can recover the deficiency of P2,000 even without stipulation.
C cannot recover the deficiency of P2,000
C can recover the deficiency of P2,000.
13. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time:
The obligation to deliver the thing sold arises

The sale is perfected
The thing sold is delivered
The fruit of the thing sold is delivered.
14. Mr. AB offered in writing to sell his house and lot for P750,000 to Mr. CD on July 1, 2010.
Mr. CD requested Mr. AB to give him 60 days within which to raise the P750,000. On
August 15, 2010 Mr. AB informed Mr. CD that the price is raised and now at P1,000,000.
Can Mr. CD compel Mr. AB to sell his house and lot at P750,000 which was offered in
writing by Mr. AB?
Yes, because Mr. AB is already stopped by his written offer.

Yes, because the 60 days offer has not yet expired
No, because Mr. CD has not accepted the offer of Mr AB.
Yes, there was meeting of the minds.
15. In distinguishing Earnest Money from Option money, earnest Money is:
Given when there is no contract of sale,

Given only when there is perfected contract of sale.
Given to bind the offer or in a unilateral promise to sell or buy
Given as a separate consideration from the purchase price.
16. Gay appointed May to sell the former’s car for P200,000. May sold the car to Pam, Pam
inspected the car and found hidden defects in the car. Can Pam file an action against Gay
even when May acted in her own name?
No, under “Caveat Emptor” let the buyer beware.

Yes, because this is contract involving property belonging to the principal
No, because, May acted in her own name not of the principal.
No, because the contract of sale is already perfected.
17. Mr. San authorized Mr. Soy to sell his car for p200,000 with 5% agent’s commission. Mr.
Soy sold the car to Mr. Dy for P250,000. For how much is Mr. Soy accountable to Mr. San?
P200,000
P190,000
P250,000
P240,000
18. B pledged his Rolex to C for P4,000. B failed to pay C the P4,000 on due date. C sold the
Rolex watch at a public auction to the highest bidder at P3,500.
C can recover the deficiency of P500 from B.

C can recover the deficiency of P500 even without stipulation.
C cannot recover the deficiency of P500 unless there is stipulation.
C cannot recover the deficiency of P500 even if there is stipulation.
19. Which of the following may not be the object of sale?
Things having potential existence

The sale of a vain hope or expectancy
Future goods
Answer not given.
20. When delivery takes place by the mere consent or agreement of the contracting parties as
when the vendor merely points to the thing sold which shall thereafter be at the control and
disposal of the vended if the thing sold cannot be transferred to the possession of the vendee
at the time of sale, delivery is effected:
By tradition symbolica
By traditio longa manu
By traditio brevoi manu
Answer not given
21. The distinction between a chattel mortgage and a pledge is that in chattel mortgage:
The delivery of the personal property is necessary

The registration of the property in the Registry of Property is not necessary
The excess over the amount due after foreclosure, goes to the debtor
Answer not given.
22. Sale is distinguished from dation in payment in that in sale
There is a pre-existing obligation or credit

The cause is the price
It is a mode of extinguishing an obligation in the form of payment.
Answer not given.
23. Mr. Mar orders for his workers 1,000 pieces of T-shirt ranging in size from small to large
from RDG Garments Mfg. 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. Mar with the RDG Garments Mfg. Corp. is a:
Contract for a piece of work.

Contract subject to a resolutory condition
A contract of sale
Answer not given
24. Mr. Amado owes the BIR P100,000 in delinquent taxes and penalties. In order to evade the
payment of said liability, he executed a deed of sale of his only parcel of land valued for
P200,000 in favor of his brother Pedro, where P20,000 was stated as the purchase price but
the BIR has evidence that said price had never been paid, the purpose of the sale being to
prevent the BIR to levy upon the land to satisfy the tax liability of Mr. Amado. In this case:
The BIR may not levy upon the land because the sale is void
The BIR without annulling the sale may levy upon the land of Amado pursuant to the
provisions of the National Internal Revenue Code
The BIR should first annul the sale before it may levy upon the land pursuant to the provisions of
the National Internal Revenue Code.
Answer not given.
25. Mr. Rene owns a mango tree bearing fruits, ready for harvest. He sells all the fruits of that
tree to Mr. Mar who pays Mr. Rene the sum of P5,000. Rene tells Mar that he can just
harvest the fruits anytime he likes pointing at the particular tree. For legal purposes, Rene has
fulfilled his obligation to deliver the mango fruits to Mar by:
Traditio brevi manu

Traditio longa manu
Traditio simbolica
Answer not given
26. Mar Garci, before going to Spain appointed Jc Legaspi as his agent to administer his
properties in the Philippines. Afterwards, Legaspi wrote Garci that he ( Legaspi) was
withdrawing from the agency because of failing health. Legaspi, in the same letter said that
he appointed Eg Legaspi as his substitute and that Mar should extend a new appointment to
Eg. Eg took over the duties of Jc but Mar did not bother to appoint Eg to act as his agent
until Mar’s death. Now Mar’s heirs brought an action against Eg for accounting. Eg raised
the defense that he was not validly constituted as an agent of Mar. In the case at bar, defense
is not tenable because there is:
An actual agency
An implied agency
A general agency
Answer not given
27. Maria is authorized by Dulfo to sell the latter’s washing machine for P5,000 each at 10%
commission. One day, Dulfo sells one washing machine to Carla on credit (payable in 90
days) but for a price of P6,000. If Dulfo does not ratify this sale on credit, he can collect cash
payment from Maria:
P4,500 (P5,000 less P500 commission)

P5,000 (the price without commission)
P5,400 (P6,000 less P600)
Answer not given
28. Tony sold a piece of land to Rene binding himself not to sell the same to another person. On
the following day, Tony sold the land to Carla who immediately took possession in good
faith. In the case at bar, the proper remedy of Rene is to:
Institute an action for the annulment of the sale to Carla

Institute an action for the recovery of the land
Institute an action for damages against Tony
Answer not given
29. Ces kidnapped and tortured Ed for refusing to sell his (Ed’s) land to Ces. Ed who could no
longer bear the physical pains inflicted upon him signed a document of sale in favor of Ces.
This sale is:
Void
Voidable
Valid
Answer not given
30. A sold a residential land to B. B paid the consideration. When B wanted to register the sale at
the Register of Deeds, the latter refused to register and requires the presentation of the
certificate of capital gains tax payment. What can B do?
B may sue A to refund the consideration paid by B under the maxim, “no one shall enrich
himself at the expenses of another.”
B cannot compel A to return the selling price because the contract is not enforceable
B may possess the residential land as a buyer in good faith
B may compel A to pay the capital gains tax and secure the certificate of capital gains tax
payment
31. A Seller sold to a Buyer a piece of jewelry at a price of P20,000. The contract provides that
the Buyer will pay Seller a micro wave oven worth P5,000. What is the nature of the contract?
Sale
Partly sale and partly barter
Barter
Commodatum
32. Mr. A. Abad signed a letter addressed and delivered to Mr. B. Baje. The terms of the letter
are:
An offer to sell a 500 sq.m. lot for P300,000

An option time up to October 31, 2010 for Mr. Baje to raise the P300,000
Upon payment of the P300,000, Mr. Abad will execute and sign a Deed of Sale
On October 31, 2010, Mr. A Abad sent a letter to Mr. B. Baje asking for a new price of P350,000
for the 500 sq. m. lot.
Can Mr. B. Baje compel Mr. A. Abad to accept the P300,000 and make him sign and execute
a Deed of Sale?
A. No, Mr.B. Baje did not accept the offer of Mr. A. Abad
B. Yes, Mr. A. Abad is already stopped by his sighing the letter and offer.
Yes, there was actual meeting of the minds.
Yes, the contract is perfected
33. Mr. A mortgaged his residential land to Mr. B as a guarantee for the payment of P400,000
obligation of Mr. A. They agreed that Mr. A shall not sell the land while the obligation
exists. The maturity of the mortgaged, C offered to buy the land from Mr. A.
A cannot sell the land to Mr. C because of the agreement not to sell
A can sell the land to Mr. C only if B consents in writing
A can sell the land to Mr. C despite the agreement not to sell (?)
A cannot sell the land to Mr. C unless A pays the obligation
34. Mr. D. Dy constituted Mr. S. Sim as his authorized agent to sell the former’s Lancer car for
P300,000 and to pay him a 5% commission on the selling price. Mr. S. Sim sold the car for
P320,00. Mr. S. Sim shall remit to Mr. D Dy:
A. P300,000
B. P320,000
C. P285,000
D. P305,000
35. Ownership of the thing sold is transferred / acquired / retained:
Retained by the seller in “sale of return”

Transferred to the buyer upon constructive or actual delivery of the thing sold
Acquired by the buyer upon
Transferred to the buyer upon acceptance of the price.
36. If redemption is made, which of the following will not be paid by the seller to the buyer
Price paid by the buyer

Expenses in the execution of the sales contract paid by the buyer
All necessary expenses on the thing sold and to be redeemed
Interest of the price paid by the buyer
37. The following are requisites of Pledge except:
The disposal of the pledge

The absolute ownership of the property pledged
The thing pledge may be placed in the possession of a third person
To bind a third person, it must be recorded in the office of the Register of Deeds
38. The leviable properties of the debtor are transferred to the creditors to be sold and from the
proceeds, the creditor are paid;
Pledge
Cession
Dacion en pago
Chattel mortgage
39. A characteristic of the Contract of Sale which involves exchange of value, it is
Commutative
Nominate
Bilateral
Consensual
40. The principal is not liable for expenses incurred by the agent:
When it was stipulated that the agent would only be allowed a certain sum
When the agent has complied with his obligations by acting according to the principal’s
instructions
When the agent incurred them with the knowledge that an unfavorable result would ensue and
the principal was aware of it
When the expenses were incurred without the fault of the agent
41. An assignor of credit warrants:
Solvency of the debtor

Existence and legality of credit
Collectibility
Assurance of payment
42. A appoints B to sell his land
Example 1. If the authority of B is oral and B sells the land in writing. The sale is valid.
Example 2. If the authority of B is in writing and B sells the land orally. The sale is valid
Both examples are true

Both examples are false
First example is true, but the second example is false
First example is false but the second example is true
43. Which of the following is not a characteristic of Sale?
Bilateral
Gratuitous
Consensual
Nominate
44. The following are the alternative remedies, except one available to the buyer in case of
breach of warranty by the seller:
Keep the goods and ask for damages

Refuse to accept the goods and ask for damages
Rescind the sale and retain the goods
Keep the goods and set up against the seller by way of recoupment in price.
45. Which of the following statements is true and correct?
In a Contract of Sale, the full payment of the price is in the nature of a suspensive condition in
that the seller is obligated to transfer ownership of the thing sold.
The seller need not be the owner of the thing sold at the perfection of the sale.
There may be a transfer of ownership over the thing even if the seller has not delivered the thing
sold to the buyer.
In a Contract of Sale, the buyer becomes the owner of the thing sold upon full payment of the
purchase price.
46. X, Y and Z were appointed by R as his agents to administer his building which was rented by
various tenants while R was abroad for three years. In the course of management, X cause
through his fault damage to the building which was assessed at P30,000. R can claim:
P10,000 from each of X, Y and Z.

P30,000 from X
P30,000 from Y and Z
P30,000 from either X, Y and Z
47. Pledge and Mortgage are accessory contracts because they:

Are meant to secure the fulfillment of a principal obligation.
Cannot exist if the principal obligation is void.
Can exist by themselves.
Cannot secure fulfillment of rescissible obligation.
48. Mr. A offered to sell his land to Mr. B for P300,000. Mr. B accepted the offer and paid Mr. A
the purchase price. Mr. A delivered the owner’s certificate of the Transfer certificate of Title
to the land. Mr. B wants to register the land in his name but the Register of Deeds asks Mr. B
for the Deed of Sale. What can Mr. B do ?
He may occupy the land as a buyer in good faith.

He cannot compel Mr. A to return the payment because the contract is unenforceable.
He may compel Mr. A to execute the Deed of Sale because the contract is valid.
He may sue Mr. A to return the purchase price under the legal principle that no one may enrich
himself at the expense of another.
49. Pacto de retro sale as distinguished from mortgage:
There is redemption by payment principally of the debt.

There is no transfer of possession of the thing sold
There is no foreclosure unless it is declared as an equitable mortgage.
There is no transfer of ownership of the thing sold.
50. A is authorized by B to sell the latter’s books for P100 each. A sells 10 books to C on credit
but for a price of P120 each. After ratifying the sale on credit, B can collect. After ratifying
the sale on credit, B can collect cash payment from C.
P1,000
P1,200
P1,080
P 900
which is the object of the sale.
II. Payment of price is essential to delivery of the thing sold.
Both statements are true.

Both statements are false
First statement is true, second statement is false.
First statement is false, second statement is true.
52. Three of the following are essential requisites of a contract of mortgage. Which one is not?
The person instituting the mortgage has the free disposal of his property.
The contract must be in writing.
The mortgagor is the absolute owner of the thing mortgaged.
The mortgage is constituted to secure the fulfillment of a principal obligation.
53. In real mortgage, the following rules are valid, except one:
A stipulation in the mortgage contract prohibiting the owner from alienating the immovable
mortgaged is valid.
The mortgage may alienate the mortgage credit or assign to a third person in whole or in part.
Any stipulation allowing the mortgage creditor to appropriate the property mortgaged is
null and void.
If alienation of the mortgage credit is not registered, it is still valid between the parties.
54. A wrote a letter to B wherein A offered to sell his piece of land to B for P200,000. B
signified his desire to buy the land. In A’s letter, he gives B a period of two (2) months
within which to produce the P200,000. After 45 days, A told B that the 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?
Yes, there was actual meeting of the minds of the parties

No, for B did not signify his acceptance of A’s offer.
Yes, because A is already stopped by his signed letter
Yes, because the period of two months has not expired.
55. A and B are good friends. A sold and delivered his car to B. It was agreed and understood
that on the next Sunday A will name and fix the price of the car. Sunday came. A called B by
phone and stated and fixed the price at P150,000. Is the sale perfected?
Yes. The price was stated and fixed on the date agreed upon.
No. The price was left to the discretion of the seller.
No. at the time of the sale, the price is not fixed.
No. The price fixed by the seller was not accepted by the buyer.
56. In sale, this is actual delivery:
Execution and signing of the sales document.

When the goods sold are p0laced in the control and possession of the buyer.
Delivery by the seller to the buyer of the key where the goods are kept.
The buyer is already in actual possession of the goods.
57. This is a mode of extinguishing an agency:
Death of the principal, but the agency is for the interest of the principal and agent.
Partial accomplishment of the agency.
Upon withdrawal of the principal.
Insanity of the principal or agent.
58. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation
60 days after due date. C sold the machine at public auction for P6,000.
C cannot recover the deficiency of P2,000 even if there is stipulation that he can.
C can recover the deficiency of P2,000 even without stipulation.
C cannot recover the deficiency of P2,000
C can recover the deficiency of P2,000.
59. In a contract wherein a person binds himself to render special service to do something in
behalf of another with consent of the latter.
Contract of piece of work

Contract of service
Contract of agency
Contract of exchange
60. Which of the following obligations of the vendor cannot be waived:
To allow the buyer to examine the goods sold.

To transfer ownership to the buyer.
To pay the expenses of the deed of sale.
To warrant the thing sold.
61. A appoints B as his agent to sell his land, which of the following is valid:
The authority of B is in writing and the sale of the land in favor of C is oral.
The authority of B from A is by way of letter and B sells the land to C in writing.
The authority of B is oral and B sells the land to C for P50,000 in a written contract of sale.
When goods are delivered to an agent to be sold by him and the agent is not liable to the
manufacturer of the goods.
62. A stipulation whereby the pledge or mortgagee automatically becomes the owner of the thing
pledged or mortgaged:
Pactum commisorio
Consolidation of ownership
Conventional redemption
Consignation
63. Which of the following statements is true and correct:
Pledge and mortgage are accessory contracts because they cannot exist by themselves.
In both pledge and mortgage, the creditor is entitled to deficiency judgment.
Where an obligation is secured by a pledge or mortgage and it is not paid when due the pledge or
mortgagee may dispose of the thing pledged or mortgaged if there is an agreement to that effect
between the parties.
Unless otherwise agreed upon by the parties, the sale of the mortgage property extinguishes in
full the obligation of the mortgagor to the mortgagee.
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64. I. A sales contract is a real contract because no ownership is transferred unless there is
delivery.
II. A sales contract is a real contract because the seller suffers the risk of loss until the
object of the sale has been delivered.

65. A sells to B for P25,000 all the mango fruits to be harvested from the mango orchard which
A plans to buy.
The sale is valid because the mango fruits have potential existence.
II. The sale is valid because the object of the contract need not exist at the time of the
contract.

66. A who plans to buy a piece of land from B, enters into contract of sale respecting the same
land with X for the price of P100,000. The contract is in writing.
The sale is not valid because a seller cannot sell that which he does not own.
II. The sale is not valid because a public document is required.

67. Husband owes C. Subsequently, husband sold his car to his wife. If husband cannot pay C
on due date:
C can question the sale because the sale prejudices C, a creditor.
II. C can question the sale because husband is relatively disqualified to enter into this kind of
sale.

68. A sells his TV set to B for P50,000 on sale or return. Subsequently, the TV set is lost by
fortuitous event.
The risk of loss pertains to the seller because the buyer is not at fault.
II. The risk of loss pertains to the seller until the buyer signifies to the seller that he accepts
the TV set.

69. A offered to sell for P500,000 his house and lot to B who was interested in buying the same.
A gave B thirty days to raise the amount and as soon as B is ready they will sign the deed of
sale. On the 25th day, A notified B that he is no longer willing to sell the property unless the
price is increased to P550,000.
I. B can compel a to accept the P500,000 first offered because there exists a bilateral offer to
sell and to buy a definite property for a definite price.
II. B cannot compel A to accept the P500,000 because this is merely an unaccepted unilateral
promise to sell.

70. I. A promise to buy and sell a determinate thing for a price certain is reciprocally
demandable.
II. An accepted unilateral promise to buy or to sell a determinate thing for a price certain is
binding upon the promissor if the promise is supported by a consideration distinct from
the price.

71. A specific boat was sold to B for the price of P1 million on credit. Shortly after perfection of
the sale but before delivery, the boat was destroyed by a fortuitous event.
I. The seller suffers the loss because at time of loss he was still the owner.
II. The buyer suffers the loss because if it were not for the fortuitous event ownership would
have transferred to him.

72. I. Should fungible things be sold for a price independently and for a single price, the risk of
loss before perfection pertains always to the seller.
II. Should fungible things be sold for a price fixed according to weight, number or measure
the risk of loss pertains to the buyer after perfection even before delivery.

73. Maria purchased a quantity of bed sheets which were wrapped up in bales. The sale was done
in the warehouse of Seller. Some bed sheets were pulled out from the bales displayed and
fount to be all right. Maria then purchased 100 bales and paid the price. After delivery, Maria
discovered that some of the bed sheets contain holes.
I. Maria can return the bed sheets and recover the money she paid.
II. Maria cannot return the bed sheets and recover the money she paid because the principle
“caviat emptor” applies.

74. A entered into a contract of sale of his car to B for a price of P50,000. The terms are: Upon
payment of P20,000 A shall deliver the car and the balance to be paid after one month. B also
executed a chattel mortgage on the car to secure the payment of the balance. B defaulted in
the payment of the balance, therefore A foreclosed the mortgage. The proceeds realized in
the foreclosure sale were not sufficient to pay the entire balance.
I. A can still recover the deficiency.

II. A cannot recover the deficiency because the law prohibits him from doing so.

(?)75. Guardian sells the property of the ward to X for a price certain. The property is rural land,
area 1 /2 hectare. X already owns rural land. Guardian is an adjacent owner of 1/ 4 area and
the other adjacent owner is C of 1/ 2 hectare.
I. Guardian cannot legally redeem because he is relatively incapacitated.
II. Guardian cannot legally redeem because he is the owner of a lesser area.
76. S owns 10 sacks of rice for sale in his store. B came into the store and buys the 10 sacks at
the price of P1,200 per sack and promised S to pay as soon he is paid for the bags of cement
which are then being unloaded from a truck parked opposite the store. Upon request of B, S
ordered the loading of the sacks of rice on the truck, continuously watching the loading.
After the sacks of rice were loaded on the truck, B did not appear to pay the price. So S again
ordered the unloading of the sacks of rice. At this moment, the driver of the truck objected to
the unloading of the sacks of rice claiming the he purchased the sacks of rice from B and
therefore acquired ownership thereof.
I. S cannot order the unloading because B acquired ownership when the sacks or rice were
loaded on the truck.
II. S cannot order the unloading because ownership was transferred to the driver by B who
had ownership of the sacks of rice.

77. I. If seller has ownership he can always transfer ownership.

II. If seller has ownership but no possession he cannot transfer ownership by constructive
delivery.

78. I. A contract of “sale or return” is a sale with a resolutory condition.

II. A contract of “sale on trial or approval” is a sale with a suspensive condition.

79. I. If the bill of lading covering the goods sold is by its terms the goods described therein are
deliverable to the order of the seller, and retained by the seller, the seller has reserved his
ownership over the goods.
II. If the bill of lading is by its terms the goods described therein are deliverable to the order
of the buyer and retained by the seller, the seller ha reserved his right of possession of the
goods as against the buyer.

80. B bought a pair of shoes from shoe store and repair shop. It was later discovered that the pair
of shoes bought by B belonged to a customer who left it there for repair.
I. B acquired ownership provided he acted in good faith.

II. B did not acquire ownership because a seller cannot transfer ownership if he himself has
no ownership.

81. I. An unpaid seller loses his possessory lien after he has delivered the goods to a carrier for
the purpose of transmission to the buyer without reserving the ownership in the goods or
the right to the possession thereof.
II. The unpaid seller who loses his possessory lien does not lose his lien for the payment of
the purchase price.

Both statements are false.
82. I. Once the goods have been accepted by the buyer, the seller is no longer responsible to
him for any breach of warranty.
II. Acceptance by the buyer does not as a general rule release the seller from liability for
breach of warranty.

Both statement are false.
83. A enters into a contract of sale with B respecting 2 immovables for P200,000, the boundaries
are mentioned and the area is 20,000 sq. meters.
The seller shall suffer a proportionate reduction in price if the area delivered is less than
the area specified in the contract even though the boundaries were followed.
II. The seller shall also be entitled to a proportionate increase in price if the area exceeds the
number specified in the contract.

84. S sells his piece of land to B for P100,000. Consequently, another contract was entered into
between the parties whereby B leases the land to S.
I. This contract shall be construed as an equitable mortgage.

II. This contract is a contract of sale with leaseback.

85. A sold his piece of land to B last November 10, 2009.
I. S shall repurchase the land within 4 years from date of sale.

II. S shall have within 10 years from date of sale to repurchase the land so long as the period
of repurchase shall not exceed 10 years.

86. A, B and C are co-owners of rural land with an area of 9 hectares. A sold his undivided
interest to X who does not own rural land.
I. B and C cannot legally redeem because the sale was an absolute sale.
II. B and C as co-owners can legally redeem for the purpose of reducing the number of co-
ownership.

87. I. Conventional redemption is a privilege.
II. Legal redemption is a right granted by law.

88. A sold his piece of land to B with a right of repurchase when A has sold his car.
I. A can repurchase within 4 years from date of sale.

II. A can repurchase within 4 years from date of sale of his car.

89. P authorized his agent to direct and administer his commercial business, among others “to
collect sums of money and exact their payment by legal means.”
A can bring a court action for collection provided he brings it in the principal’s name
under his agency.
II. A needs a special power of attorney to bring a court action because the agency of A
pertains only to acts of administration.

90. I. A special power to mortgage includes the special power to constitute a second mortgage.
II. A special power to mortgage does not include the power to sell.

91. Agent was authorized by Principal to sell the latter’s TV set for P10,000 on the installment
plan. A was able to sell it for P10,000 cash basis.
The sale is not binding upon the principal unless the principal ratifies it.
II. The sale is not binding upon the principal because the agency was performed in a manner
not included in the agency.

92. I. An agency cannot revoked at principal’s will if the agency depends upon a bilateral
contract.
II. An agency cannot be revoked at principal’s will if the agency is for a compensation.

93. A and B were appointed simultaneously by P as his agents. Solidary liability of the agents
was stipulated.
Any one of the agents shall be liable for any damage suffered by the principal for the
nonperformance of the agency.
II. Solidary liability will apply in case of damages suffered by the principal caused by the
negligence of either agent provided the agent acted within the scope of his authority.

94. On September 1, 2010, P owns a piece of land gave a general power of attorney to A. On
October 1, 2010, P, without the knowledge of A executed in favor of C a special power of
attorney to sell said piece of land. November 10, 2010, A as attorney-in-fact of P executed a
deed of sale over the piece of land in favor of X. On the same date, C under the special
power given by P, sold the same piece of land t Y. Both purchasers acted in good faith. X
registered his sale. Y did not.
The sale in favor of X must be respected because he registered it in good faith.
The sale in favor of Y must be respected because C was specially granted with authority to sell.

95. A, B and C appointed Z as their agent to sell their separate houses. The appointment was
made under one special power of authority.
A, B and C shall be solidarily liable under the agency to Z
II. A, B and C shall be jointly liable under the agency to Z even though the appointment was
made in one common instrument because A, B and C are not co-owners.

96. I. The pledge extends to the interest and earnings of the thing pledged unless there is a
stipulation to the contrary.
II. In case of pledge of animals, their offsprings shall be subject to the pledge if there is a
stipulation to that effect.

97. If there are reasonable grounds to fear the destruction or impairment of the thing pledged
without the fault of the pledge: First statement is true, second statement is false.
The right of the pledgor to demand the return of the thing, upon offering another thing in pledge,
provided the latter is of the same kind as the former and not of inferior quality must always be
respected.
II. The right of the pledge to cause the thing pledged to be sold at a public sale is subordinate
to the above right of the pledgor.

98. I. The creditor pledge cannot appropriate the thing pledged.
But he can dispose of the thing pledged with the consent of the pledgor.

99. I. A mortgage or pledge is indivisible although the principal obligation is divisible.
II. The principal obligation must be necessarily indivisible because the mortgage or pledge
securing is indivisible.

100. A borrows P10,000 from B, so A delivered his diamond ring to B as a pledge to secure his
obligation. The contract of pledge was executed in a public document but the description of
the ring and the date of the pledge did not appear thereon. A, pledgor alienates the ring in
favor of C.
I. C has to respect the pledge because the contract of pledge is in a public document.
II. C has to respect the pledge if the alienation of the pledged was consented to by the pledge.


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1.

Yes, because A already signed his offer

Mr. Tan can compel Mr. Sy to execute a Deed of Sale

From the time the thing bought is delivered

Given when contract of sale is perfected.

10. In a sale, this is actual delivery.

Execution and signing of the sale document.

11. This is a mode to extinguish an agency:

The obligation to deliver the thing sold arises

Yes, because Mr. AB is already stopped by his written offer.

Given when there is no contract of sale,

No, under “Caveat Emptor” let the buyer beware.

C can recover the deficiency of P500 from B.

19. Which of the following may not be the object of sale?

Things having potential existence

The delivery of the personal property is necessary

22. Sale is distinguished from dation in payment in that in sale

There is a pre-existing obligation or credit

Contract for a piece of work.

Traditio brevi manu

P4,500 (P5,000 less P500 commission)

Institute an action for the annulment of the sale to Carla

An offer to sell a 500 sq.m. lot for P300,000

35. Ownership of the thing sold is transferred / acquired / retained:

Retained by the seller in “sale of return”

Price paid by the buyer

37. The following are requisites of Pledge except:

The disposal of the pledge

39. A characteristic of the Contract of Sale which involves exchange of value, it is

41. An assignor of credit warrants:

Solvency of the debtor

Both examples are true

43. Which of the following is not a characteristic of Sale?

Keep the goods and ask for damages

45. Which of the following statements is true and correct?

P10,000 from each of X, Y and Z.

47. Pledge and Mortgage are accessory contracts because they:

He may occupy the land as a buyer in good faith.

49. Pacto de retro sale as distinguished from mortgage:

There is redemption by payment principally of the debt.

which is the object of the sale.

II. Payment of price is essential to delivery of the thing sold.

Both statements are true.

Yes, there was actual meeting of the minds of the parties

56. In sale, this is actual delivery:

Execution and signing of the sales document.

57. This is a mode of extinguishing an agency:

Contract of piece of work

60. Which of the following obligations of the vendor cannot be waived:

To allow the buyer to examine the goods sold.

63. Which of the following statements is true and correct:

First statement is true, second statement is false.

First statement is true, second statement is false.

II. The sale is not valid because a public document is required.

First statement is true, second statement is false.

C can question the sale because the sale prejudices C, a creditor.

First statement is true, second statement is false.

First statement is true, second statement is false.

First statement is true, second statement is false.

First statement is true, second statement is false.

First statement is true, second statement is false.

First statement is true, second statement is false.

First statement is true, second statement is false.