COLEGIO DE DAGUPAN

Arellano Street, Dagupan City

School of Business and Accountancy

PRELIMINARY EXAMINATION
Regulatory Framework for Business Transactions - Sales

1. A contract whereby one of the contracting parties obligates himself to transfer the ownership of
and deliver a determinate thing and the other to pay therefor a price certain in money or its
equivalent is a contract of:
a. barter.
b. sale.
c. dacion en pago.
d. mortgage.

2. The following are the essential elements of a contract of sale, except:

a. consent of the contracting parties.
b. subject matter which should be determinate.
c. price which is certain in money or its equivalent.
d. warranty against eviction and against hidden defects.

3. The following are the characteristics of a contract of sale, except:

a. principal, which means that's contract of sale can stand by itself.
b. real, which requires the delivery of the object of the contract of sale for its
perfection.
c. onerous, where rights are acquired in exchange of a valuable consideration.
d. bilateral, which means that both parties are bound reciprocally to each other.

4. The following items pertain to either a contract of sale or a contract to sell.

i. Ownership of the thing sold is transferred upon delivery.
ii. Ownership of the thing is transferred to the buyer at some future time.
iii. The risk of loss in on the buyer.
iv. The risk of loss is on the seller.

Based on the above data, which of the following is correct?

a. Items I and III pertain to a contract to sell.
b. Items II and III pertain to a contract to sell.
c. Items II and IV pertain to a contract of sale.
d. Items I and III pertain to a contract of sale.

5. One of the following is not a requisite of the object of a contract of sale. Which is it?
a. It must be within the commerce of men.
b. It must be licit.
c. It must be determinate or determinable.
d. Vendor must have the right to transfer the ownership of the thing at the time of sale.
6. The following items pertain to either emptio rei speratae or emptio spei.
i. The sale of a future thing.
ii. The sale of hope or expectancy.
iii. The sale of a present thing.
iv. The thing sold must come into existence,
Based on the above information, which of the following is correct?
a. Items I and II pertain to emptio rei speratae.
b. Items II and III pertain to emptio spei.
c. Items II and III pertain to emptio rei speratae.
d. Items III and IV pertain to emptio spei

7. Santiago sells to Bermejo 500 sacks of rice at P1,000.00 per sack from the stock then stored in
the warehouse of Santiago. Unknown to the parties, the warehouse contains only 480 sacks of
rice. What is the status of the contract between Santiago and Bermejo?
a. The sale is void since the quantity available is less than the quantity sold.
b. The sale is valid up to 480 sacks of rice but void as to the deficiency of sacks of rice.
c. The entire sale is valid up to 500 sacks of rice. Bermejo becomes the owner of the
whole stock available and Santiago must deliver the deficiency of 20 sacks of rice.
d. The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sacks of
rice by reason of damage suffered by Bermejo.

8. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his truck's tank
which, unknown to the parties, contains 500 gallons gasoline. What is the status of the contract of
sale between Somera and Bermejo?.
a. The sale is void because the quantity available is more than the quantity sold:.
b. The sale is valid up to 500 gallons of gasoline. Buenviaje must pay for the additional 200
gallons of gasoline.
c. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of 3/5 of
the whole stock, while Somera becomes the owner of 2/5 thereof.
d. The sale is rescissible because Somera will suffer lesion of more than 1/4 of the value of
the whole stock.

9. San Manuel Corporation, which maintains a professional basketball team, entered into a contract
with Armstrong Rubber Company for the latter to provide a pair of rubber shoes to the former's
two imported basketball players, Charles Jordan and Michael Barkley. Armstrong Rubber
Company was instructed to make a pair for either or both players in case the company did not
manufacture shoes of their size. No pair was, however, immediately available for both the
players. Charles Jordan, who is 6'5' tall and wears size 12 rubber shoes, was given a pair the
following day from the 300 pairs that Armstrong was in the process of manufacturing for its
customers at the time the orders were received. Michael Barkley, who is 7'tall and wears size 18
shoes, was provided three days later, with a pair that was specially made for him since Armstrong
does not make shoes of his size. What kind of contracts were entered into for the shoes provided
to the two basketball players?
a. The contract for the pair of shoes provided to Charles Jordan is a contract for a piece of
work, while that for Michael Barkley is a contract of sale.
b. The contract for the pair of shoes provided to Charles Jordan is a contract of sale,
while that for Michael Barkley is a contract for a piece of work.
c. Both contracts are contracts of sale.
d. Both contracts are contracts for a piece of work.
10. S and B entered into a contract whereby S transferred to B a specific car for the price of
P200,000.00, while B gave to S P90,000.00 in cash and a diamond. ring worth P110,000.00. The
heading of the written contract signed by the parties reads “Contract of Sale”.
a. The contract is void because the intention of the parties is void since the value of the
diamond ring is more than the monetary consideration given.
b. The contract is a valid contract of sale as intended by the parties regardless of
whether the monetary consideration is more or less than the value of the property
consideration.
c. The contract is a valid contract of barter since the value of the property given is more
than the monetary consideration. The intention of the parties is immaterial.
d. The contract is partly a contract of barter and partly a contract of sale.

11. On January 1, S orally sold to B a specific ring for P450.00. The parties agreed that S shall
deliver the ring to B on January 5, while B shall pay the price on January 7
a. The contract is perfected on January 5, when the ring is delivered by S to B.
b. The contract is perfected on January 1, when the parties had a meeting of minds on
the object and the price.
c. The contract is perfected on January 7, when the price is paid, since both parties would
by then have performed their obligations in the contract.
d. There is no perfected contract. because the sale was made orally.

12. S orally offered to sell a certain diamond ring to B for P50,000.00. 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 to writing.
d. S cannot enforce payment because there was no contract of sale yet.

13. 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 therefor.
c. S may require payment of the whole shipment from B since S was not aware of the
damage caused on 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.

14. 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 immovables, 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.

15. On May 1, 2015, S sold to B through a private instrument 20 sacks of corn stored in the only
warehouse 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. traditio clavium.
c. traditio longa manu.
d. traditio brevi manu.

16. 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.

17. On March 1, 2015, S sold and delivered to B a television set for P10,000.00 “on sale or return"
giving B up to March 16, 2015 within which to return the television set or pay the price. On
March 10, 2015, the television set was burned through no fault of B. Based on the foregoing,
which of the following statements is incorrect?
a. B must pay the price of the television set.
b. S must bear the loss since the time for the return of the television set had not yet
expired.
c. The ownership of the television set was transferred to B upon delivery to him.
d. B must bear the loss of the television set.

18. In one of the following cases, delivery, of the goods to a carrier for the purpose of transmission to
the buyer transfers ownership to the latter. Which one is it?
a. When by the terms of the bill of lading, the goods are to be delivered to the seller or his
agent.
b. When' by the terms of the bill of lading, the goods are to be delivered to the order of the
buyer or his agent but the seller retains the bill of lading.
c. When the seller draws a bill of exchange on the buyer for the price of the goods and
transmits such bill of exchange and the bill of lading to the buyer to secure acceptance or
payment of the bill of exchange and the buyer dishonors the bill of exchange.
d. When the owner does not reserve the right of possession or ownership of the thing
sold upon delivery to the carrier.

19. S 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.
20. Where the seller of goods has a 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 the:
a. buyer must have bought the goods in good faith.
b. buyer must have bought them for value.
c. buyer bought them without notice of the seller's defect of title.
d. party from whom the seller obtained the goods must ratify the sale.

21. An unpaid seller loses his lien on the goods in the following cases, except:
a. when he delivers the goods to a carrier or other bailee for the purpose of transmission to
the buyer without reserving the right of ownership in the goods.
b. when the buyer or his agent lawfully obtains possession of the goods.
c. when the seller waives his possessory lien.
d. when he has obtained judgment for the price of the goods.

22. Three of the following are the requisites in order that an unpaid seller may exercise his right of
stoppage of transitu. Which one is not?
a. The seller is unpaid.
b. The seller has not parted with the possession of the goods.
c. The goods are in transit.
d. The buyer is or becomes insolvent.

23. Goods are still in transit:

a. if the buyer or his agent obtains delivery of the goods before their arrival at the appointed
destination.
b. when the carrier acknowledges possession of the goods as bailee for the buyer after the
arrival of the goods at the place of destination.
c. if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his
agent.
d. if the goods are rejected by the buyer, and the carrier or other bailee continues in
possession of them, even if the seller has refused to received them back

24. An unpaid seller's right to resell the goods is available in the following cases, except:
a. if the goods are of a perishable nature.
b. when the seller reserved the right to resell the goods.
c. when the buyer has defaulted in the payment of the price for an unreasonable time.
d. when the seller has lost his lien on the goods.

25. Sison sold a registered piece of land to Bautista on May 1, 2015 in a public instrument. On May
3, 2015, Sison sold in a private instrument the same, piece of land to Cruz, who took physical
possession of the land. Neither buyer was aware of the sale made to the other.
a. The land belongs to Bautista.
b. The land belongs to Cruz.
c. The land still belongs to Sison, because both sales are void.
d. The land should be divided equally between Bautista and Cruz to give effect to both
sales.
26. On June 1, 2015, Sanchez sold to Borlaza in a private instrument a certain computer. Two days
later, Sanchez orally sold the same computer to Contreras who immediately took possession of
the computer. Neither party was aware of the sale made to the other.
a. The computer belongs to Borlaza.
b. The computer belongs to Contreras.
c. The computer will be co-owned by Borlaza and Contreras to give effect to both sales.
d. Both sales are void. Accordingly, Sison will still be the owner.

27. This refers to the implied warranty on the part of the seller that he has the right to sell the thing at
the time when ownership is to pass, and that the buyer from that time shall have and enjoy legal
and peaceful possession of the thing.
a. Warranty against hidden defects.
b. Warranty against eviction.
c. Warranty of ownership.
d. Warranty of possession.

28. Three of the following are the requisites in order that the vendee may enforce the vendor's
liability in case of eviction. Which one is not?
a. There must be a final judgment depriving the vendee of a part or the whole of the thing
sold.
b. The vendee must have appealed from such judgment rendered against him.
c. The deprivation of the vendee is based on a right prior to the sale or an act imputable to
the vendor.
d. The vendor is notified of the suit at the instance of the vendee.

29. This refers to an encumbrance imposed upon an immovable for the benefit of another immovable
belonging to a different owner.
a. Easement or servitude
b. Real estate mortgage
c. Pledge
d. Chattel mortgage

30. This is a kind of constructive 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.
b. traditio brevi manu.
c. traditio constitutum possessorium.
d. delivery to common carrier.

31. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in:
a. sale on approval.
b. sale or return.
c. sale on trial.
d. contract to sell.
32. S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B accepted the
promise of S and informed S that he (B) would make known his decision before the lapse of 30
days. He also gave S P2,000.00 as consideration so that S would hold on to his promise. The
contract entered into between S and B and the consideration given by B to S are known as:
a. Option contract and option money, respectively.
b. Contract of sale and earnest money, respectively.
c. Contract of sale and down payment, respectively.
d. Contract to sell and reservation money, respectively.

33. The Recto Law applies to which of the following examples of sale?
a. Sale of a car on straight term.
b. Sale of house and lot on installment.
c. Sale of car on installment where the buyer constituted a mortgage on his truck.
d. Sale of a piano on installments where the buyer constituted a chattel mortgage on
the piano.

34. S sold to B a lot through a deed of absolute sale duly acknowledged before a notary public. Three
days later, S sold the same lot to X, also through a deed of sale duly acknowledged before, a
notary public. X had the sale registered with the Register of Deeds. Neither B nor X was aware of
the sale made by S to the other and neither took physical possession of the lot. Who is the present
owner of the lot?
a. B, because he was the first purchaser in good faith.
b. X, because he registered the sale in good faith.
c. Neither B nor X.
d. S, as long as he does not surrender physical possession of the lot.

35. 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 & 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.

36. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P's lot in Quezon City
immediately as P needed cash. Accordingly, A sold the lot to B. The deed of sale was in a public
document. The sale of P's lot is:
a. valid.
b. rescissible.
c. unenforceable.
d. void.
37. S, the owner of a rent-a-car business, leased one of his cars to B for one month. On the day of the
expiration of the lease and while B was still in physical possession of the car, B offered to buy the
car from S for P200,000.00. Believing the price to be a good one, S readily accepted B's offer and
then and there executed a deed of absolute sale in favor of B who immediately paid the price in
cash. Thereafter, B drove away from the place of S.
a. The delivery of the car by S to B is by constitutum possessorium.
b. The delivery of the car by S to B is by traditio longa manu.
c. The delivery of the car by S to B is by traditio brevi manu.
d. There was no delivery because B should have turned over the physical possession of the
car to S upon the expiration of the lease so that S could make the proper delivery to him
upon the execution of the contract of sale.

38. Which of the following contracts of sale is void?

a. Oral sale of a piece of land made through an agent whose authority is in a public
instrument.
b. Sale of a piece of land in a public instrument made through an agent whose
authority was given orally by the principal.
c. Sale of a piece of land in a private instrument made through an agent whose authority is
in a public instrument.
d. Sale of a piece of land in a public instrument made through an agent whose authority is in
a private instrument.

39. Which of the following documents of title requires indorsement and delivery for its negotiation?
a. A warehouse receipt which states that the goods are to be delivered to bearer.
b. A bill of lading which states that the goods are to be delivered to the order of a specified
person but such person indorsed it in blank.
c. A warehouse receipt which states that the goods are to be delivered to bearer but
the bearer indorsed it to a specified person.
d. A bill of lading which states that the goods are to be delivered to a specified person.

40. Earnest money possesses three of the following characteristics. Which is the exception?
a. It is part of the purchase price.
b. It is proof of the perfection of the contract of sale.
c. It is paid at the time of the perfection of the contract of sale.
d. It is paid as a consideration for the purpose of holding one to his promise to buy or
sell a determinate thing for a certain period.

41. As a rule, this contract of sale involving a piece of land is void,

a. Between a minor and a capacitated person.
b. Between two insane persons who did not act during lucid interval
c. Between first degree cousins
d. Between husband and wife

42. One of the following is not correct

a. Things subject to a resolutory condition may be the object of the contract of sale.
b. A thing is generic when it is particularly designated or physically segregated from
all others of the same class.
c. Things having a potential existence may be the object of the contract of sale.
d. The sole owner of a thing may sell an undivided interest therein
43. V offered to sell for P12,000,000 her house and lot to DD who was interested in buying the same.
In her letter to DD, V stated that she is giving DD a period of one month within which to raise the
amount and that as soon as DD is ready, they will sign the deed of sale. Five days before the
expiration of the one month period. V went to DD and told her that she is no longer willing to sell
the property unless the price in increased to P15,000,000. Which is correct?
a. DD may compel V to accept the P12,000,000 first offered.
b. V may compel DD to pay P15,000,000
c. V and DD should shoulder the P3,000,000 difference
d. DD cannot compel V to accept the P12,000,000 first offered

44. If the object of the contract is specially made or manufactured at the specific order of
a. another, it is a contract for a piece of work. This is
b. English rule
c. Massachusetts rule
d. New York rule
e. Chicago rule

45. If the article already exists and subsequently acquired by another, it is a contract of sale, and if
the article is still to be manufactured at the instance of another, it is a contract for a piece of work.
This is
a. English rule
b. Massachusetts rule
c. New York rule
d. Chicago rule

46. If the material used in the manufacturer of the article is more valuable, it is a contract of
sale, and if the labor or skill is more valuable than the material used in the manufacture of
the article, it is a contract for a piece of work. This is
a. English rule
b. Massachusetts rule
c. New York rule
d. Chicago rule

47. The rule observed in the Philippines is

a. English rule
b. Massachusetts rule
c. New York rule
d. Chicago rule

48. X stole a fountain pen from P and sold it to Z Merchandise, a “store for pens”, which paid for it in
good faith, not knowing it was stolen. The “store” then sold it to C, a student.Which is correct?
a. C cannot be considered as the owner because the original seller (X) is not the real owner.
b. P may recover the fountain pen from C without reimbursement because he is the legal
owner.
c. C became the owner because he purchased the pen from a merchant store
d. C became the owner regardless of whether the seller is a store for pens or not because C
bought it in good faith.

49. Which of the following cannot be the object of a contract of sale?

a. Sale of credit
b. Young animal not yet conceived at the time of perfection
 c. Land which the seller expects to buy
d. Future inheritance

50. A contract of sale is in the stage of conception when

a. There is meeting of the minds
b. Negotiations are in progress
c. The parties come to an agreement
d. The contract is perfect

51. A seller sold to a buyer a piece of jewelry at a price of P25,000. The contract provides that the
buyer will pay the seller cash, P20,000 and for the balance, the buyer will give the seller a micro
oven worth P5,000. What is the nature of the contract?
a. Sale
b. Partly sale partly barter
c. Barter
d. Commodatum

52. I. The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the
owner at the time the thing sold is delivered.

II. The sale of a vain hope or expectancy is voidable.

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

53. I. There may be a contract of sale of goods, whose acquisition by the seller depends upon a
contingency which may or may not happen.

II. If the consideration of the contract consists partly in money and partly in another thing, it shall
be considered a barter if the value of the thing given as a part of the consideration exceeds the
amount of the money or its equivalent.
a. First statement is true, second statement is false.
b. First statement is false, second statement is true.
c. Both statements are true.
d. Both statements are false

54. I. If the price is grossly inadequate, the sale is void.

II. Whenever option money is given in a contract of sale, it shall be considered as part of the price
and a proof of the perfection of the contract.

a. First statement is true, second statement is false.

b. First statement is false, second statement is true.
c. Both statements are true.
d. Both statements are false
55. I. Earnest money and option money both apply to perfected sale.

II. In a contract of sale of personal property the price of which is payable in installment, the
vendor may cancel the sale should the vendee fail to pay.

a. First statement is true, second statement is false.

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

56. I. Should the vendee’s failure to pay, cover two or more installments, the vendor may
foreclose the chattel mortgage on the thing sold but he shall have no further action against
the purchaser to recover any unpaid balance of the price, except if there is an agreement to
the contrary.

II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection.

a. First statement is true, second statement is false.

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

57. I. The ownership of the thing sold shall be transferred to the vendee upon perfection of the
contract.

II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain is
binding upon the promissory.
a. First statement is true, second statement is false.
b. First statement is false, second statement is true.
c. Both statements are true.
d. Both statements are false

58. I. The husband and the wife cannot sell property to each other, as a rule.

II. The sale of a piece of land or interest therein when made thru an agent is void unless the
agent’s authority is in writing even if the sale itself is in a public instrument and has been
registered.
a. First statement is true, second statement is false.
b. First statement is false, second statement is true.
c. Both statements are true.
d. Both statements are false
59. I. The expenses for the execution and registration of the sale shall be borne by the vendee, unless
there is a stipulation to the contrary.

II. If the building should have been sold to different vendees the ownership shall be
transferred to the person who may have taken possession thereof in good faith.

a. First statement is true, second statement is false.

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

60. I. Option money is considered as part of the purchase price while earnest money is not.

II. The Maceda Law refers to the sale of personal property by installments while the Recto Law
refers to the sale of real property by installments.

a. First statement is true, second statement is false.

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

61. I. The ownership in the thing shall not pass to the purchaser until he has fully paid the price.

II. If at the time the contract of sale is perfected, the thing which is the object of the contract has
been partially lost, the contract shall be without effect.

a. First statement is true, second statement is false.

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

62. S offered his land to B with the understanding that the latter shall fix the price. B, as agreed upon
fixed the price at P2M, although the land’s market value was P1.5M. It is clear, therefore, that S
is to benefit from the transaction. Was there sale?
a. No, the sale was not perfected as there was no consent on the price
b. There was perfected sale, fixed by buyer and accepted by the seller
c. There’s valid sale since the buyer was authorized to fix the price
d. Voidable sale at the option of the buyer due to mistake in the fixing of the price.

63. A sold his land to B verbally. The sale is:

a. Rescissible
b. Unenforceable
c. Voidable
d. Void

64. Which of the following is not constructive delivery in sale?

a. Traditio longa manu
b. Traditio constitum possessorium
c. Thing is placed in the control and possession of buyer
d. Traditio symbolica
65. A sold to B his dog with the agreement that delivery shall be after one week from sale and the
payment of the price after two weeks from delivery. If the dog shall produce offspring, it shall
belong to:
a. If produced before the sale, it shall pertain to the seller;
b. If the puppy shall exist before the actual delivery, it shall pertain still to the seller
c. The fruits that shall exist after delivery will only be the ones to pertain to the buyer
d. The fruits after the sale but before delivery shall pertain to the buyer if so stipulated by
the parties to the sale

66. S sold to B his land on January 10, 2001. On January 15, an absolute deed of sale was executed
and notarized. On January 20, the sale was registered with the Registry of Deeds. On January 25,
B took actual possession of the land by building a fence thereon. When did B acquire ownership
of the land?
a. On January 10
b. On January 20
c. On January 15
d. On January 25

67. S sold to B his car on January 10, 2001. On January 15, an absolute deed of sale was executed
and notarized. On January 20, the sale was registered with the LTO. On January 25, B took
actual possession of the car. When did B acquire title to the car?
a. On January 10
b. On January 20
c. On January 15
d. On January 25
68. S sold his car to B. No agreement was made on the time and place of delivery and payment.
Hence:
a. The time and place of delivery shall be at the time and place of payment of the price.
b. The time and place of delivery and payment not having been agreed upon, the sale shall
be void.
c. The seller may demand payment first before delivery of the thing sold.
d. The buyer may demand delivery first before payment of the price.

69. S and B entered into a contract whereby S transferred to B a specific car for the price of
P200,000.00, while B gave to S P90,000.00 in cash and a diamond. ring worth P110,000.00. The
heading of the written contract signed by the parties reads “Contract of Sale”.
a. The contract is void because the intention of the parties is void since the value of the
diamond ring is more than the monetary consideration given.
b. The contract is a valid contract of sale as intended by the parties regardless of
whether the monetary consideration is more or less than the value of the property
consideration.
c. The contract is a valid contract of barter since the value of the property given is more
than the monetary consideration. The intention of the parties is immaterial.
d. The contract is partly a contract of barter and partly a contract of sale.
70. On January 1, S orally sold to B a specific ring for P450.00. The parties agreed that S shall
deliver the ring to B on January 5, while B shall pay the price on January 7
a. The contract is perfected on January 5, when the ring is delivered by S to B.
b. The contract is perfected on January 1, when the parties had a meeting of minds on
the object and the price.
c. The contract is perfected on January 7, when the price is paid, since both parties would
by then have performed their obligations in the contract.
d. There is no perfected contract. because the sale was made orally.

71. S orally offered to sell a certain diamond ring to B for P50,000.00. 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 to writing.
d. S cannot enforce payment because there was no contract of sale yet.

72. 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 to:
a. exact fulfillment of the obligation, should the vendee fail to pay any number of
installments.
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.

73. A sold to B her only laptop. It was agreed that A would fix the price a week later. At the agreed
time, A named the price P10,000. B agreed. Was the sale perfected?
a. No, because the price was left to the discretion of one of the contracting parties.
b. No, because at the time of sale, the price was not fixed.
c. Yes, because the price fixed by one of the parties was accepted by the other.
d. Yes, because there was agreement that A would fix the price.

74. I. The husband and wife cannot sell property to one another as a rule which, for policy
consideration and the dictates of morality require that the prohibition apply to common-law
relationships.
II. The law emphatically prohibits the spouses from selling property to each other subject to
certain exceptions. Similarly, donations between spouses during marriage are prohibited.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
75. A offered for sale to B 20 cavans of XYZ rice and fixed the price per cavan at P100 over the price
offered at W's store in La Trinidad Public Market. The price is:
a. Not certain because the price at La Trinidad Public Market is not stated.
b. Certain because it has got reference to another thing which is certain.
c. Certain because there is a price ceiling for price of rice.
d. Not certain so the court may fix the price.

76. One of the following is not included as an example of relative incapacity.

a. Demented persons
b. Executors and administrators, the property of the estate under administration
c. Public officers and employees, the property of the State, the administration of which has
been entrusted to them
d. Justices, judges, and other officers and employees connected with the administration of
justice, the property in litigation before the court within whose jurisdiction they exercise
their respective functions

77. I. The Civil Code prohibits lawyers from acquiring by purchase or assignment the property or
rights involved which are the object of the litigation in which they intervene by virtue of their
profession. The prohibition applies not only during the pendency of the suit.
II. The proscription against sale of property between spouses does not apply to common law
relationships.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

78. Where the parties purport a sale of specific goods, and the goods without the knowledge of the
seller have perished in part or have wholly or in a material part so deteriorated in quality as to be
substantially changed in character, the buyer may at his option treat the sale:
I. As avoided; or
II. As valid in all of the existing goods or in so much thereof as have not deteriorated,
and as binding the buyer to pay the agreed price for the goods in which the ownership
will pass, if the sale was divisible.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

79. The following persons cannot acquire by purchase, even at a public or judicial auction, either in
person or through the mediation of another, except:
a. Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other
officers and employees
b. Executors and administrators
c. Brothers and sisters
d. The guardian
 80. I. Option money is considered as part of the purchase price while earnest money is not.

II. The Maceda Law refers to the sale of personal property by installments while the Recto Law
refers to the sale of real property by installments.

a. First statement is true, second statement is false.

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

Prepared by:
____________________________
KIM JOSEPH B. VISPERAS, CPA
Instructor

Noted by:
____________________________
DANIEL T. GONZALES, CPA, MDM
Dean, SBA