Contributor: Atty. Mendoza, B.

Date Contributed: March 2011

1. A contract of sale is not a

A. Principal contract
B. Nominate contract
C. Consensual contract
D. Real contract

2. 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
B. False representation
C. Warranty
D. Seller’s talk

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

a. Consensual
b. Bilateral
c. Nominate
d. Gratuitous

4. 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
b. Sale
c. Partly sale and partly barter
d. Commodatum

5. 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
b. by traditio brevi manu
c. by traditio longa manu
d. by traditio symbolica

6. 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

7. 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

8. A characteristic of a contract of sale which involves exchange of value, it is:

a. Nominate
b. Bilateral
c. commutative
d. consensual

9. 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:
a. A contract of sale
b. Contract for a piece of work
c. Contract subject to a resolutory condition
d. Answer not given

10. 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

11. 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

12. 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 false
b. Both statements are false
c. Both statements are true.
d. First statement is false, second statement is true.

13. Which statements 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

14. Which of the following obligations of the vendor cannot be waived?

a. To allow the buyer to examine the goods sold
b. To pay the expenses of the deed of sale
c. To warrant the things sold
d. To transfer ownership to the buyer

15. 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

16. 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.

17. A sold her specific car to B for P200,000 payable in 5 equal installments. A delivered the car to B but
a mortgage was constituted on the car to answer for the unpaid installments. B paid the first two
installments but failed to pay the last 3 installments. A foreclosed the mortgaged property and sold
it at public auction for P100,000. Which is correct? [A] A can recover from B the balance of P20,000
even if there is no stipulation to that effect; [B] A can recover from B the balance of P20,000 if there
is stipulation to that effect; [C] A cannot recover the deficiency except if there is stipulation to that
effect; [D] A cannot recover the deficiency even if there is stipulation to the contrary.

18. B bought on installment a car and executed a chattel mortgage on the same in favor of the seller S
as security for the unpaid balance of the price. They agreed that B shall be liable for any deficiency
that may arise after foreclosure of mortgage. B failed to pay two installments. S filed a case for
collection of the unpaid balance and attached the car and other assets of B. [A] S cannot attach the
other assets of B because B has no deficiency liability under the Recto Law; [B] S can attach the car
and other assets of B because the Recto Law applies only in case of foreclosure of real mortgage; [C]
S cannot go after the other assets of B as this is provided for under the Recto Law in case of the seller
exacting specific performance of the buyer’s obligation to pay; [D] S can attach all the assets of B in
exacting fulfillment of B’s obligation to pay.

19. 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; [B] should the thing produce fruits or income; [C] should the vendee be in
default in the payment of the price; [D] should the vendee be insolvent.

20. 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 not 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.
21. 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.

22. 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; [E] Rescind the sale should the vendee fail to pay any installment.

23. 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.

24. 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.

25. Where the seller of goods has voidable title thereto, but his title has not been avoided at the time of
the sale, the buyer acquires title to the goods. Such acquisition of title has the following requisites,
except: [A] The buyer must have bought the goods in good faith; [B] The buyer must have bought
them for value; [C] The buyer bought them without notice of the seller’s defect of title; [D] The
seller is in good faith.
Contributor: Atty. Areno, R.

Date Contributed: February 2011

1. 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.
2. Also known as barter:[A] Do ut des [B] Facio ut des [C] Facio ut facias [D] Do ut facias
3. The Realty Installment Buyer Protection Act applies to all transactions involving the sale or financing of
real estate on instalments but excludes the following, except: [A] Sale or financing of industrial lots [B]
Sale or financing of commercial building [C] The Land Reform Code [D] Sale of residential condominiums
4. After the death of Carl, Allan, Carl’s son, sold his inheritance though its amount has not yet been
determined to Ben for a consideration of P1,000,000. Which is correct? [A] The contract is valid if the
value of the inheritance is equal to 1,000,000. [B] The contract is valid even though nothing remains of
the inheritance to be turned over to Ben. [C] The contract is void as future inheritance cannot be the
object of sale. [D] The contract is unenforceable.
5. 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.
6. 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.
7. 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.
8. 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.
9. A took the diamond ring of B without the latter’s consent. A subsequently sold the same to C who had no
knowledge about the circumstances that happened between A and B. C thereafter sold the same ring to
E, the latter was likewise bereft of any knowledge during the sale about the fact that the ring was stolen
 from B by A. B proceeded against E to recover the ring. E contended that he was in good faith when he
bought the ring from C. Who has the better right over the ring? [A] C [B] A [C] E [D] B
10. 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.
11. 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
12. 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 [B] Area prevails [C] There must be another survey [D] Contract is void
13. 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.
14. A sold her specific car to B for P200,000 payable in 5 equal instalments. A delivered the car to B but a
mortgage was constituted on the car to answer for the unpaid instalments. B paid the first 2 installments
but failed to pay the last 3 installments. A foreclosed the mortgage and sold the property at a public
auction for P100,000. Which is correct? [A] A can recover from B the balance of P20,000 even if there is
no stipulation to that effect. [B] A can recover from B the balance of P20,000 if there is stipulation to that
effect [C] A cannot recover the deficiency only if there is stipulation to that effect.
[D] A cannot recover the deficiency even if there is stipulation to the contrary.
15. 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 [B]
Contract of sale [C] Contract to sell [D] Barter

Contributor:

Date Contributed: February 2011

1. A form of delivery which takes place when an owner of a car delivers the key of the car to the buyer:[A]
Traditio constitutum possessorium; [B] Traditio clavis;[C] Traditio brevi-manu; [D]Quasi-traditio
2. When goods are delivered to the buyer on “sale or return”, the ownership passes to the buyer:[A] Upon
delivery of the goods [B]Upon the expiration of the period agreed upon [C]Upon acceptance of the buyer if the
seller’s offer [D]Upon perfection of the sale

3. 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

4. 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 [B]
Contract of lease of services [C] Contract of sale [D]Renumeratory contract

5. 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.

6. 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

7. 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.

8. 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.

9. 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.
10. 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.