Obligation of the Vendor

Obligation of the Vendee

1. The Seller shall not be bound to deliver the thing sold if the buyer has not paid him the price
or if no period for the payment has been fixed in the contract. T
2. The seller must deliver the thing sold and its accessions and accessories in the condition in
which they were upon the perfection of the contract and all fruits shall belong to the seller
from the time of the perfection of the contract. F (Buyer)
3. In a contract of sale, the ownership of the thing sold is acquired by the buyer from the
moment it is delivered to him either by actual delivery or constructive delivery. T
4. If goods are delivered to the buyer, which he/she has not previously examined, he/she
deemed to have accepted them unless he/she has had a reasonable opportunity of
examining them for the purpose of ascertaining whether they are in conformity with the
contract if there is no stipulation to the contrary. F (not accepted)
5. The buyer must accept delivery and pay the price of the thing sold at the time and place
agreed upon. T
6. If the buyer is disturbed in the possession or ownership of the thing acquired or has
reasonable grounds to fear such disturbance, he/she may suspend the payment of the price,
even the seller gives security for the return of the price in a proper case. F (not unless)
7. If there is no express agreement, the right to repurchase shall last five years from the date of
the contract. F (four)
8. Legal redemption is the right to be subrogated, upon the terms and conditions stipulated in
the contract, in the place of one who acquires a thing by purchase or dation in payment, or
by any other transactions whereby ownership is transmitted by gratuitous title. F (onerous)
9. A co-owner of thing is not allowed, under the law, to exercise the right of redemption in case
the shares of all the other co-owners or of any of them are sold to a third person. F (may
exercise)
10. In conventional redemption, the seller reserves the right to repurchase the thing sold, with
the obligation to return to the buyer the price of the sale, the expenses of the contract, and
any other legitimate payments made by reason of the sale, as well as the necessary and
useful expenses made on the thing sold, and to comply with other stipulations which may
have been agreed upon. T

11. BDO Unibank borrowed P10B from Vista Land Co. In order to secure the loan, BDO Unibank
mortgaged its land to Vista Land Co. The borrower defaulted in the payment of the loan at
the maturity date. This resulted to the extrajudicial foreclosure of the mortgaged land. What
is the period available to the mortgagor for the exercise of right of redemption?
A. Within one year from the foreclosure sale
B. Within three months from the foreclosure sale
C. Within 30 days from the foreclosure sale
D. Within a period of not less than 90 days but not more than 120 days from foreclosure sale
12. In a contract of sale, what is the operative act that transfers ownership from the seller to the
buyer?
A. Full payment of the agreed price
B. Meeting of minds between the buyer and seller
C. Notarization of the deed of sale
D. Actual or constructive delivery of subject matter

13. A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of
agreement of sale written in the Bicolano dialect. One week later, A sold the same parcel of
land to C for P4M. This is evidenced by a formal deed of sale. Upon buying the property, C,
who was aware of the first sale, immediately took possession of the lot. When informed of
the second sale, B subsequently registered an adverse claim to the property. Later, C
registered the deed of sale in her favor. The parcel of land shall belong to
A. B because he has got an older title
B. C because he is the first to register
C. C because he is the first to take possession
D. No one as both sales are void

14. A sold his necklace to B in a public instrument and later orally sold his watch to C. Both items
will be delivered seven days later. On the fifth day, A again sold the same necklace to D and
the same watch to E. Both D and E immediately took physical possession of the necklace and
watch, respectively and both are not aware of the previous sale to B and C. Who will have a
better right to the necklace and watch?
A. B and C
B. D and E
C. B and E
D. C and D

15. On January 1, 2001, S entered into a notarized contract to sell with A involving a specific
laptop without payment of price. On January 2, 2001, S orally entered into a contract of sale
with B involving again the same laptop. On January 3, 2001, S sold in written private
instrument the same laptop to C who fully paid the price but without physical delivery. After
discovery of the sale to C, B immediately obtained physical possession of the laptop from S.
Who has better right over the laptop?
A. A
B. B
C. C
D. S
16. Mr. A orally sold his specific land to Mr. B at a selling price of P499. The delivery and
payment will be made after two months. On the agreed date of performance of contract, Mr
A did not perform his obligation. What is the remedy available to Mr. B?
A. File an action for specific performance
B. He has no remedy.
C. File an action to compel Mr. A to execute a written contract
D. File an action for declaration of nullity

17. It is the automatic appropriation by the creditor of the thing pledged or mortgaged upon the
failure of the debtor to pay the principal obligation.
A. Pacta sunt servanda
B. Pacto de retro
C. Pactum commissorium
D. Constitutum possessorium

18. Ownership over a property is transferred during the

19. Which of the following statements concerning the vendor’s liability for hidden defect is
correct?
A. The vendor is liable only if the reason of the loss of the thing with hidden defect is the
hidden defect.
B. The vendor is liable only if he was aware of the hidden defect.
C. The vendor is not liable for the hidden defect if the loss is due to fortuitous event or fault of
the vendee.
D. The vendor is liable even he was not aware of the hidden defect.

20. Which of the following may not become the object or subject matter of a contract?
A. Patrimonial property of the Manila City
B. Future inheritance
C. Shares of stocks of Government Owned and Controlled Corporation
D. Private property of the Republic of the Philippines