Sales Questions 15-21

15. A sum of money paid, or delivered upon the making of a contract for the sale of goods, to bind the
bargain, the delivery and acceptance of which makes the final assent of both parties to the contract.

A. Option money

B. Earnest money

C. Reservation money

D. Down payment

Answer: B. Earnest money

16. S orally offered to sell a certain diamond ring to B for P50,00.00 B accepted the offer and to prove
that he was in earnest, he gave S P1,000.00. The parties agreed that the delivery of the ring and the
payment of the price would be made 30 days later. On due date:

A. S may collect from B P50,000.00.

B. S may collect from B P49,000.00.

C. S cannot enforce payment because the contract was not reduced in writing

D. S cannot enforce payment because there was no contract of sale yet.

Answer: B. S may collect from B P49,000.00.

17. On June 1, 2015, S sold to B 50 units of machines which were scheduled to arrive from Japan the
following day on board the vessel "MT Nippon Maru" The sale was evidenced by an invoice identifying
each machine by serial number. Each machine was priced at P10,000.00. Unknown to the parties, 30
units were damaged beyond repair by seawater on May 31, 2015. Based on the foregoing, which of the
following statements is incorrect?

A. B may rescind the whole contract.

B. B may demand delivery of the remaining 20 units and pay the price therefore.

C. S may acquire payment of the whole shipment from B since S was not aware of the damage caused in
the machines at the time of sale.

D. S has no option to rescind the whole contract or require payment of the remaining 20 units.
Answer: C. S may acquire payment of the whole shipment from B since S was not aware of the
damage caused in the machines at the time of sale.

18. It refers to the delivery of the thing sold from hand to hand in case of movables, or the taking of
possession with respect to the immovable, in the presence and with the consent of the vendor.

A. Actual or real delivery

B. Traditio constitutum possessorium

C. Traditio longa manu

D. Traditio brevi manu

Answer: A. Actual or real delivery

19. On May 1, 2015 S sold to B through a private instrument 20 sacks of corn stored in the only
warehoiuse of S. On May 10, 2015, S delivered the keys to the warehouse to B. The delivery made by S
to B is known as:

A. Constructive delivery by legal formalities

B. Symbolic delivery by tradition clavium

C. Traditio longa manu

D. Traditio brevi manu

Answer: B. Symbolic delivery by tradition clavium

20. Delivery of incorporceal property may be made through any of the following means, except:

A. Execution of a public document

B. Placing the titles of ownership n the possession of the vendee

C. Use by the vendee of his rights, with the debtor’s consent

D. Execution of private instrument

Answer: D. Execution of private instrument

A. Ownership of the thing is transferred to the vendee when he signifies his approval or acceptance to
the vendor

B. Ownership of the thing is transferred to the vendee when he does an act adopting the transaction.

C. Ownership of the thing is transferred to the vendee if the time fixed for the return of the thing has
expired and the vendee retains the thing without giving notice of rejection or acceptance to the vendor

D. Ownership of the thing is transferred to the vendee upon delivery.

Answer: D. Ownership of the thing is transferred to the vendee upon delivery.

9. A kind of mortgage which lacks the formalities required by law but nevertheless shows the intention
of the parties to secure debt with real property is known as:

A. conventional mortgage

B. Voluntary mortgage

C. Equitable mortgage

D. Legal mortgage

Answer: C. Equitable mortgage

10. The debtor/ pledgor has the following rights, except to:

A. Ask for the return of the thing pledged after he has paid the debt, its interests, and with expenses in a
proper case

B. Continue to be the owner of the thing pledged unless it is expropriated

C. Require the deposit of the thing with a third person if it is in danger of being impaired or lost through
the negligence or willful act of the pledgee

D. Alienate the thing pledged without the consent of the pledge

Answer: D. Alienate the thing pledged without the consent of the pledge

11. The creditor/pledge has the following rights, except to:

A. Retain the thing in his possession until the debt is paid

B. Use the thing pledged even without authority if such case is necessary for its preservation

C. Demand reimbursement of the expenses made for the preservation of the thing

D. Automatically appropriate the thing pledged upon default of the debtor in the payment of his debt.

Answer: D. Automatically appropriate the thing pledged upon default of the debtor in the payment of
his debt
12. On March 1, 2015, D obtained a loan from C of P10,000.00 from C. To secure the debt which is
payable on May, 1, 2015, D pledged a promissory note amounting to P12,000.00 which was executed in
his favor by M. The promissory note is due April 26,2015 and properly endorsed by D to C.

A. On April 25, 2015, C can collect the note of P12,000.00 from M. The entire proceeds will belong to C.

B. On April 25,2015, C can collect the note of P12,000.00 to D.

C. C cannot collect from M. D is the one entitled to collect note form M.

D. C cannot collect from M. He must sell the note at public auction at maturity if D cannot pay

Answer: B. On April 25,2015, C can collect the note of P12,000.00 to D.