GROUP PROJECT

1. X the owner of a certain jewelry delivered the same to Y, “on sale or return” upon a
specified period of time. Y sold the said jewelry to Z, but retains the price. Can X recover
the jewelry from Z?

a. X can recover the jewelry from Z being an c. X cannot recover the jewelry from Z
unpaid seller whose ownership was not because his seller (Y) has transferred
transferred to Y upon delivery to him. ownership to him
b. X can recover the jewelry from Z but after d. X cannot recover the jewelry from Z
reimbursement of the price paid because it was sold by his agent Y to Z and
his only recourse is to go after Y for his
failure to remit the payment to him.

2. A sold his car to B. There was no fixed date for the performance of their respective
obligations. The obligation of B as vendee is:

a. To immediately pay the price because their c. Rescind the sale because there was no
obligations are demandable at once being agreement as to when their obligations shall
pure obligation be performed
b. To pay upon demand by vendor d. To pay at the time of delivery

3. The seller must be the owner of the property he sells because he must transfer
ownership thereof to the buyer.

The delivery of the thing sold may be by mere agreement of the parties.
a. Both are true c. Both are false
b. Only first is true d. Only the second is true

4. This is a kind of delivery where the vendor remains in possession of the property sold,
such as by virtue of a lease agreement with the vendee.

a. traditio longa manu c. traditio consitutum possessorium

b. traditio brevi manu d. delivery to common carrier

5. Recto Law applies to which of the following examples of sale?

a. Sale of a car on a straight term c. sale of car on installment where the buyer
constituted a mortgage on his truck
b. sale of house and lot on installment d. sale of a piano on installment where the
buyer constituted a chattel mortgage on the
piano

6. B purchased from S a laptop computer worth P100,000.00. The terms of sale provide for a
down payment of P20,000.00 with the balance payable in 8 equal monthly installments. To
secure the balance, S required B to execute a chattel mortgage on the laptop computer and a
real estate 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 also to S except
one. Which is it?
a. cancel the sale c. foreclose the real mortgage and thereafter
recover any deficiency from B
b. exact fulfillment of the obligation d. Foreclose the chattel mortgage and
thereafter foreclose the real estatate
mortgage in case of deficiency.

7. Under the Realty Installment Buyer Act, the buyer of real estate on installment payments
may pay an installment defaulted without additional interest if he has paid at least two years of
installments. The law is applicable to sales/transactions involving:
a. industrial lots c. residential lots
 b. commercial buildings d. sales to tenants under the Land Reform
Law

8. The seller has the right to stop the goods in transit, upon discovering that the buyer does not
have funds to pay for the goods.
a. pre-emptive right c. voting right
b. appraisal right d. right of stoppage in transitu

9. In case of redemption, which of the following will not be paid by the seller to the buyer?
a. Expenses incidental to the sale paid by the buyer.
b. Necessary expenses made on the thing sold.
c. The consideration of the sale paid by the buyer.
d. The interest on the purchase price.

10. A, B, and C are co-owners of a parcel of land pro indiviso. A sold his share to B in an
absolute deed of sale. Which is correct?
a. The deed of sale between A and B is void since it was made not in favor of a third person.
b. C may exercise his right of redemption on the interest of A sold to B.
c. C may redeem only ½ of the share sold by A to B.
d. C cannot exercise the right of redemption since the sale was made to co-owner.

11. Even in the absence of doubt, a sale with right of repurchase is presumed to be an equitable
mortgage.
In conventional redemption, it is not necessary that the parties agree upon the period within
which Redemption may be exercised.
a. Both statements are correct c. Both are incorrect
b. First is false, second is true d. First is true, second is incorrect

12. Warranty against eviction as well as against hidden defect may be waived by the vendee
provided the vendor is in good faith.
Waiver intencionada on the part of the vendee will absolutely exempt the vendor from liability.
a. Both statements are false c. First is false, second is true
b. Both are true d. First is true, second is false

13. In waiver concsiente there is no warranty against eviction but the seller is still liable to pay
the value of the thing at the time of eviction if eviction takes place.
In case of total eviction, the vendee cannot rescind the sale with damages.
a. Both statements are correct. c. First is correct, second is incorrect.
b. Both are incorrect. d. First is incorrect, second is correct.

14. A, B and C are co-owners in equal shares of one hectare rural land, the adjoining owners
to which are D and E, the latter owning the smaller area. A donated his share of the land owned
in common to X who is a rural landowner. Upon proper notice of the sale, B .C, D and E sought
to exercise the right of Legal redemption over the shares sold. Who shall have the right to do
so?
a. A and B are preferred to D and E to redeem because co-owners have preference to
adjoining owners.
b. E shall have the right to redeem because he has smaller area of land than D.
c. The first one between to request redemption shall be preferred in case both demand.
d. None of them has the right to redeem because the alienated was not by onerous title.

15. In case eviction takes place. The seller is obliged to return to the buyer the price he paid
for the thing sold. In case the thing is lost due to its hidden defect, the vendor shall return to the
vendee the value at the time of the loss.

a. Both statements are true. c. First is false, second is true.

b. Both are false. d. First is true, second is false.

16. In the sale of goods, if the seller delivers more than the quantity agreed upon, the buyer
may rescind the contract of sale.
 The seller shall have the right of legal redemption only if this right has been agreed upon
between the seller and the buyer.
a. Both statements are false. c. First is false, second is true.
b. Both are true. d. First is true, second is false.

17. If several persons, jointly and in the same contract, should sell an undivided immovable
with a right of repurchase, none of them may exercise this right for more than his respective
share.
Each one of the co-owners of an individual immovable who may have sold his share
separately, may independently exercise the right of repurchase as regards his own share,
and the vendee cannot compel him to redeem the whole property.
a. Both statements are true. c. First is true, second is false.
b. Both are false. d. First is false, second is true.

18. A contract of sale is deemed an equitable mortgage in any of the following situations,
except:
a. When the price is unusually inadequate.
b. When the buyer retains for himself a part of the purchase price.
c. When the vendor binds himself to pay the taxes on the thing sold.
d. the buyer is in possession as lessee.

19. The creditors of the vendor cannot make use of the right of redemption against the vendee,
until after they have exhausted the property of the vendor.
The vendor is responsible to the vendee for any hidden faults or defects in the thing sold if so
stipulated by the parties.
a. First statement is false, second is true. c. Both statement are false
b. Second statement is false, first is true. d. Both statements are true.

20. Three of the following are remedies of the buyer in case of the breach of warranty by the
seller. Which is not included?
a. Accept or keep the goods and set up the breach of warranty by way or recoupment or
extinction of the price;
b. Rescind the contract of sale and refuse to accept the thing or if already delivered refuse
to return the same;
c. Accept or keep the goods and claim damages for the breach of warranty;
d. Refuse to accept the goods and claim damages for the breach of warranty.

21. In payment for his debt to X, A ceded his one half ( 1/2) share in a parcel of land he co-
owned with B. B therefore;
a. Has the right of pre-emption as a co-owner;
b. Has the right of redemption as a co-owner,
c. Has no right of redemption nor pre-emption since the transfer was not of sale.
d. Has the right to compel X to buy his ½ share of the land to prevent co-ownership between
X and himself.

22. In case of doubt, a sale with the right of repurchase or without a right of repurchase shall
be construed as an equitable mortgage. The seller therefore:
a. May ask for the reformation of the instrument.
b. May ask for the annulment of the contract.
c. May ask the court for the declaration of nullity of the contract.
d. Shall be bound to perform his obligation as seller.

23. A sold to X his ½ share of the parcel of land he co-owns with B. C owns the parcel of land
adjoining that of A and B. Both B and C want to redeem the share of A which the latter
sold to X.
a. C shall be preferred to B in the redemption from X.
b. B’s right as co-owner excludes that of C, the latter being only an adjoining owner.
c. C has a better right to the redemption as an adjoining owner.
d. B and C shall equally redeem the share of A.
24. S sold to B his dog which he knew was afflicted with a disease. The parties agreed that
there is no warranty against hidden defect. After delivery, the dog was struck by lightning
and thus died.
a. S is not liable to pay B any amount because the dog was lost due to fortuitous event.
b. S is not liable because of the waiver agreed upon between B and himself’
c. S is liable to return the price paid by B because the waiver is void.
d. S is liable for the price less the value of the dog at the time of loss.

25. Delivery of incorporeal property may be made through any of the following means except:
a. Execution of a public document.
b. Placing the titles of ownership in the possession of the vendee.
c. Use by the vendee of his rights, with the debtor’s consent.
d. Execution of private instrument.

26. A kind of mortgage which, although lacking some formality, form of words, or requisites
prescribed by law, show the intention of the parties to charge real property as security for
debt and contains nothing impossible or contrary to law is known as:
a. Legal mortgage b. Equitable mortgage c. Conventional mortgage
d. Voluntary mortgage

27. This refers to the warranty of the seller that he has the right to sell the thing at the time
when ownership is to pass, and which can be enforced if the buyer is deprived of the property
sold by a final judgment in court.
a. Warranty against hidden defects c. Warranty against eviction
b. Warranty of merchantable quality d. Warranty of possession

28. 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

29. Action to seek a corresponding reduction in price by reason of some vices or defects in the
thing purchased
a. Accion quanti minoris c. Accion pauliana
b. Accion reinvidicatoria d. Redhibitory Action

30. The redhibitory action based on the faults or defects animals must be brought within
a. 30 days from delivery to the vendee c. 45 days from delivery to the vendee
b. 40 days from delivery to the vendee d. 6 months from delivery to the vendee

31. Voluntary renunciation made by the buyer of his right to warranty against eviction where in
case the buyer is evicted, the seller is liable to the value of the thing at the time of eviction.
a. Waiver intentionada c. Waiver cursunada
b. Waiver consciente d. Waiver inocente

32. A contract of sale whereby the seller acquires the right to redeem or repurchase the object
of the sale from the buyer within a certain period agreed upon
a. Equitable mortgage c. On sale or return
b. Absolute sale d. Pacto de retro sale

33. Not an implied warranty in a contract of sale

a. Right to sell the thing at the time of perfection of the contract
b. Reasonably fit the purpose they acquired
c. Merchantable in quality
d. Free from charges or encumbrances not declared or known to the buyer

34. If redemption is to be made by the seller, one of the following need not be given to the buyer
a. Expenses of the contract c. Necessary expenses on the thing sold
b. Interest on the price of the sale d. Price of the sale
35. The seller is liable for express warranty only if there is stipulation on the warranty. If it is
stipulated that there is no warranty against hidden defect, the seller is still liable for the value
of the thing lost due to the hidden defect.
a. Both statements are false. c. First is true, second is false.
b. Both are true. d. First is false, second is true.

36. Waiver consciente and intentionada apply both to hidden defect and eviction.
Rescission of the sale may be resorted to by the vendee in case of total eviction.
a. Both statements are false . c. First is true, second is false.
b. Both statements are true. d. First is false, second is true.

37. A contract of sale. In pacto de retro sale, the repurchase is suspensive condition that will
give rise to a sale.
In case the thing to be sold is not on hand but still to be raised, acquired or manufactured,
the contract is one for a piece of work and not sale.
a. First statement is false, second is true c. Both are false statements
b. Second is false, first is true d. Both are true.

38. S sold 500 shares of stock of San Miguel Corporation to B at P50.00 per share. The transfer
of the Ownership of the shares of stock may be made through any of the following means,
except:
a. Execution of the sale in a public instrument.
b. The giving by S to B of the power to vote in the stockholders’ meeting of San Miguel
Corporation and its actual exercise thereof by B.
c. The endorsement by S of the stock certificate covering the 500 shares of stock and its
placing it in the possession of B.
d. The issuance by S of the official receipt for the full payment of the purchase price of the
shares by

39. Mario and Ana, husband and wife, constructed a P1M house on a P200,000 lot belonging
to Ana. The funds used for the construction belong to the conjugal partnership. Three years
later, when the value of the house and lot had gone up to P2M, Ana sold the house and lot for
P200,000 to spouses Pedro and Maria, without Mario’s consent or authority. Given the
aforesaid facts, which of the following is true?
a. The sale is void because the house and lot is conjugal, and the sale is made without the
consent or authority of Mario.
b. The sale is valid because the house and lot is not conjugal, Ana being the owner of the lot.
c. The sale is unenforceable because the house and lot is conjugal, and the sale is made
without the consent or authority of Mario.
d. The sale is rescissible because the price is grossly inadequate and is so low as to be
shocking to the conscience.

40. When a person who is not the owner of a thing sells and delivers it, and later the seller
acquires title thereto –
a. the title passes by operation of law to the buyer (Llacer vs. Munoz 12 Phil 328, 1908)
b. the title passes to the buyer upon entering into a new contract of sale with the seller,
subsequent to the seller’s acquisition of title
c. the title remains with the seller
d. the title is not transferred to the buyer or the seller, notwithstanding the delivery to the buyer

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