1.

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:

Group of answer choices

Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendee's
failure to pay cover two or more installments.

Cancel the sale, should the vendee's failure to pay cover two or more installments.

Exact fulfillment of the obligation, should the vendee fail to pay.

Rescind the sale should the vendee fail to pay any installment. (x)

2. If stipulated, vendee is bound to accept delivery and to pay the price at the time and place
designated.

If only time for delivery of the thing sold has been fixed in the contract, vendee is required to pay even
before the thing is delivered to him. (x)

If no stipulation as to the place of payment and delivery, vendee to pay at the residence of the vendor.

3. Vendee is not required to pay the price before the thing is delivered in the absence of an agreement
to the contrary.

If S was borrowing money from B, with mortgage of his house as security, and B was buying the house of
S with right of S to repurchase. Here, the proper remedy is: Group of answer choices

Annulment

Reformation (x)

Rescission

Cancellation

4. An owner of a rural land has the right of legal redemption of an adjoining rural land sold if the
following requisites are present, except when:

Group of answer choices

the grantee owns another rural land.

the land sold does not exceed one hectare.

the grantee owns an urban land. (x)

the adjoining rural land is not separated by any apparent servitudes for the benefit of other estates.
5. Mr. Robles sold his only car to Mr. Roxas for P600,000. There was no agreed date for delivery and
payment. The obligation of Mr. Robles as seller is:

Group of answer choices

to have the contract rescinded because no date is fixed for performance.

to deliver the car immediately because there is already a perfected contract.

to deliver the car immediately because his obligation is pure.

to deliver when Mr. Roxas is ready to pay. (x)

6. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples.
What are the rights and obligations of the buyer?

Group of answer choices

He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples.

He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them
anyway.

He can cancel the whole transaction since the seller violated the terms of their agreement.

He can accept all 6,000 apples and pay the seller at P20 per apple. (x)

7. A person who for value negotiates or transfers a document of title by endorsement or delivery,
including one who assigns for value a claim secured by a document of title unless a contrary intention
appears, warrants the following, except one. Which is it?

Group of answer choices

That he has a right to transfer the title to the goods and that the goods are merchantable or fit for a
particular purpose.

That he has knowledge of a fact which would impair the validity or worth of the document. (x)

That he has a legal right to negotiate or transfer it.

That the document is genuine.

8. S, a minor of 17 years, sold his wristwatch for P2,000 to B, 30 years old. The guardian of S was not
aware of the sale; hence, no action for annulment has yet been filed. Subsequently, B sold the
wristwatch to T, who acquired in good faith. Did T acquire title to the wristwatch?

Group of answer choices

No, because the title of B was voidable.

No, because S was a minor.

Yes, because although the title of B was voidable, T acquired the wristwatch in good faith, for value,
and without notice that the title of B was defective. (x)

Yes, because B and T are of age.

9. The ownership passes to the buyer on delivery, but he may revest the ownership in the seller by
returning or tendering the goods within the time fixed in the contract, or, if no other time has been
fixed, within a reasonable time.

Group of answer choices

Sale or return (x)

Sale on approval

Sale on satisfaction

Sale on trial

10. This is a contract or receipt for the transport of goods and their delivery to the person named
therein, to order, or to bearer.

Group of answer choices

Dock warrant

Airway bill

Quedan

Bill of lading (x)

Warehouse receipt
11. Which of the following obligations of the vendor cannot be waived?

Group of answer choices

To allow the buyer to examine the goods sold.

To transfer ownership to the buyer.

To pay the expenses of the deed of sale. (x)

To warrant the thing sold.

12. A contract whereby one of the contracting parties obligates himself to transfer the ownership and to
deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent:

Group of answer choices

Guaranty

Barter

Deposit

Sale (x)

13. constitutum possessorium

14.This is a remedy where a written instrument is made to express or conform to the real intention of
the parties when such intention is not expressed in the instrument.

Group of answer choices

Rescission

Reconsideration

Revision

Interpretation

Reformation (x)
15. The principal obligations of the vendor are, among others, except:

Group of answer choices

To transfer ownership of the determinate thing sold.

To warrant against eviction and hidden defects.

None of the above. (x)

To pay for the expenses for the transfer of title.

To deliver the thing.

16. S sold his land (not registered) with a right to repurchase within two (2) years to B. If before two
(years) B sold the same land to C, a purchaser for value and in good faith:

Group of answer choices

S may still repurchase the property from C if C will agree to it.

S and C will enter into a new contract of repurchase.

S cannot repurchase the property from C because no right was mentioned in the sale between B and C.

S may still repurchase the property from C even if in the sale between B and C, no mention was made
of the right of S. (x)

17. A period when a buyer can exercise his right to either rescind the contract or ask for a proportionate
reduction of the price in “sale of real estate made for a lump sum” if there is a mistake in the area.

Group of answer choices

3 months from the date of delivery

2 years from the date of delivery

6 months from the date of delivery (x)

1 year from the date of delivery

9 months from the date of delivery

18. When goods are delivered to the buyer “on sale or return”, for a period of seven (7) days, ownership
of the goods passes to the buyer:

Group of answer choices

Upon acceptance by the buyer of the offer of the seller.

Upon expiration of seven (7) days. (x)

Upon delivery of the goods.

Upon perfection of the contract.

19. Although lacking in some formality, forms and words or other requisites demanded by a statute,
nevertheless reveals the intention of the parties to charge a real property as a security for a debt and
contains nothing impossible or contrary to law.

Group of answer choices

Chattel mortgage

Real mortgage

Equitable mortgage (x)

Antichresis

20. Statement 1 – The fixing of price can be left to the discretion of one of the contracting parties.

Statement 2 – If price fixed by one of the parties is accepted by the other, sale is perfected.

Statement 3 – If the price can be determined, the contract is inefficacious.

Statement 4 – If the thing or any part thereof has been delivered to and appropriated by the buyer, he
must pay a reasonable price therefor.

Group of answer choices

Statements 1 and 2 are true.

Statements 2 and 4 are false. (x)

Statements 1 and 3 are false.

All statements are false.

All statements are true.

Statements 3 and 4 are false.

21. A sold to B a parcel of land for P30,000. The sale is evidenced by a memorandum of agreement of
sale written in Cebuano dialect. One week later, A sold the same parcel of land to C for P40,000 which
was evidenced by a formal deed of sale. Upon buying the property, C, who was aware of the first sale,
immediately took possession of the land and registered the deed of sale in her favor with the Register of
Deeds. When informed of the second sale, B subsequently registered an adverse claim to the property.
The parcel of land shall belong to:

Group of answer choices

C, because she is the first to take possession of the land.

C, because she is the first to register the deed of sale.

B, because she has got an older title. (x)

C, because the sale was made on a formal deed of sale.

22. Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter
about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects.
Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus
damages?

Group of answer choices

No, because Y is in estoppel, having changed engine without prior demand

Yes, X is liable whether or not he was aware of the hidden defect.

No, because Y waived the warranty against hidden defects.

Yes, since the defect was hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y.
(x)

23. S, 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 possession of the car, B offered to buy the car from S for
P200.000. 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 place of S.

Group of answer choices

There was no delivery because B should have turne over the 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.

The delivery of the car by S to B is by constitutum possessorium. (x)

The delivery of the car by S to B is by traditio tonga manu.

The delivery of the car by S to B is by traditio brevi manu. (x)

24. the land to be sold has an area of 10,000 square meters;

price is P5 million; and

S shall prepare the deed of sale.

With fraudulent intent, S knowing the inadequacies of B with respect to numbers wrote 1,000 square
meters instead of 10,000 sq. meters. The sale is –

Group of answer choices

valid but the contract may be reformed

voidable but the contract may be reformed (x)

valid but the instrument may be reformed

void

25. Abel, Ben, and Cain are co-owners of an undivided parcel of land. Ben sold his 1/3 interest to Cain
absolutely. Which is correct?

Group of answer choices

Abel cannot exercise his right of redemption because the sale was made in favor of a co-owner. (x)

The sale made by Ben to Cain is void because it was not made in favor of a stranger.

Abel may exercise his right of redemption on the interest sold by Ben to Cain.

Abel may redeem only 1/4 of the interest sold by Ben to Cain.

26. S offers to sell his car to B for P200,000. B asks S to show him the car. Later, S brings the car and
shows it to B. B offers to pay P160,000 for the car. Here, the stage of the contract is on:

Group of answer choices

Conclusion

Consummation

Preparation (x)

Perfection
27. Where it is stipulated that the repurchase of the property sold could be made at any time, the
repurchase shall be exercised:

Group of answer choices

Within ten years from the date of the contract (x)

After ten years from the date of the contract

None of them

Within four years from the date of the contract

28. As security for a loan, S mortgaged his house to B. Both parties intended to enter into a mortgage
contract but the instrument as written states that the house is sold by S to B with a right to repurchase.
Here, the proper remedy is:

Group of answer choices

Rescission

Reformation (x)

Cancellation

Annulment

Notarization

29. One of the following is not a remedy granted to an unpaid seller:

Group of answer choices

Right to demand a security for the payment of the price (x)

Right of stoppage of goods in transit

Right of resale

Right of lien over the goods

30. This refers to any representation made by the seller of the thing with respect to its character,
quality, or ownership, by which he induces the buyer to purchase the same relying on said
representation.

Group of answer choices

Guaranty

Assurance
Warranty (x)

Guarantee

31. Three (3) of the following must be given by the seller to the buyer if redemption is to be made.
Which is the exception?

Group of answer choices

Expenses of the contract paid by the buyer

Necessary expenses made on the thing sold

Price made by the buyer

Damages (x)

32. A contract whereby a person binds himself to render some service or to do something in
representation or on behalf of another, with the consent or authority of the latter.

Group of answer choices

Partnership

Agency (x)

Agency to sell

Piece of work

33. In sale, the thing sold is considered the equivalent of the price paid and vice versa. This
characteristic of a sale is:

Group of answer choices

Onerous

Bilateral

Commutative (x)

Consensual

34. The following are examples of documents of title to goods. Which is the exception?

Group of answer choices

Warehouse receipt
Check (x)

Bill of lading

Dock warrant

35. Three (3) of the following are elements of the vendor's right of stoppage in transitu. Which is the
exception?

Group of answer choices

The seller must be unpaid

The buyer must be insolvent

The seller must be in possession of the goods (x)

The goods must be in transit

36. It takes place when the vendor reserves the right to repurchase the thing sold with the obligation of
returning to the vendee the price of the sale, the expenses of the contract, and the necessary and useful
expenses made on the thing sold.

Group of answer choices

Equity of redemption

Right of repurchase

Legal redemption

Conventional redemption (x)

37. X, without the authority of Y, owner of a car, sold the same car in the name of Y to Z. The contract
between X and Z is:

Group of answer choices

void because of the absence of consent from the owner, Y. (x)

valid because all of the essential requisites of a contract are present.

rescissible because the contract caused lesion to Z.

unenforceable because X had no authority but he sold the car in the name of Y, the owner.
38. The wife during the marriage sold under pacto de retro her paraphernal property consisting of a
house and lot. A few weeks later, she died. The husband thereupon repurchased the property with his
exclusive capital. To whom will the property belong?

Group of answer choices

The property will belong to the heirs of the wife excluding the husband.

The property will belong to the heirs of the wife, one of whom is the husband himself. (x)

The property sold by the wife cannot be redeemed.

The property will belong to the husband alone.

39. Contracts entered into by minor and other incapacitated person (insane or demented persons, deaf-
mutes who do not know how to write):

Void

Valid

Unenforceable (x)

Voidable

40. A sold to B the former's horse for P50,000. No date is fixed by the parties for the performance of
their respective obligations. The obligation of A is:

Group of answer choices

To deliver the horse within a reasonable time of two months from the contract of sale.

To deliver the horse upon payment by Bravo of P50,000. (x)

To deliver the horse immediately as there is a perfected contract.

To rescind the contract as there is no time fixed for the delivery and payment.

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

Group of answer choices

To pay the expenses of the deed of sale (x)

To allow the buyer to examine the goods sold

To warrant the thing sold

To transfer ownership to the buyer

42. Which of the following sale is voidable?

Group of answer choices

Sales especially disqualified by law.

By the guardian over the property of his/her ward.

By public officers and employees over the property of the State which has been in trusted to them.

By a judge (hearing the case) over a property in litigation. (x)

43. S agreed to sell B his dog. Before the actual sale takes place, the dog dies through no fault of S.

Statement 1. The death of the dog before ownership passed excuses performance.

Statement 2. If the dog had died after ownership had passed, the loss would be B’s.

Group of answer choices

No. 1 is true; No. 2 is false.

No. 1 is false; No. 2 is true.

Both are false.

Both are true. (x)

44. This is the transfer of possession of an instrument, whether voluntary or involuntary, by a person
other than the issuer to a person who thereby becomes its holder:

Group of answer choices

Negotiation (x)

Delivery

Assignment

Endorsement

45. A offered to sell his land to C for P300,000. C accepted the offer and paid A The purchase price. A
delivered the owner’s duplicate of the Transfer Certificate of title of the land. C wants to register the
land in his name but the Register of Deeds asks C for the Deed of Sale. What can C do?

Group of answer choices

He may sue A to return the purchase price under the legal principle that no one may enrich himself at
the expense of another.

He may occupy and use the land as a buyer in good faith.

He cannot compel A to return the payment because the contract is unenforceable.

He may compel A to execute the Deed of Sale because the contract is valid. (x)

46. This includes any bill of lading, dock warrant, “quedan,” or warehouse receipt or order for the
delivery of goods, or any other document used in the ordinary course of business in the sale or transfer
of goods, as proof of the possession or control of the goods, or authorizing or purporting to authorize
the possessor of the document to transfer or receive, either by indorsement or by delivery, goods
represented by such document.

Group of answer choices

Document of title to goods (x)

Certificate of title to goods

Negotiable instrument of title to goods

Negotiable document of title to goods

47. Which of the following statements is false?

Group of answer choices

If earnest money is given, buyer is bound to pay the balance.

Earnest money is given by seller to buyer to bind the bargain. (x)

Earnest money is given only when there is already a sale.

Earnest money is part of the purchased price.

48. A offered to sell to B a parcel of land at a specified price. A gave B 60 days within which to accept the
offer. B agreed to the period.

Group of answer choices

A offered to sell to B a parcel of land at a specified price. A gave B 60 days within which to accept the
offer. B agreed to the period.

No withdrawal can be made before sixty days because the period is binding.

No withdrawal can be made because there is already a perfected option contract.

Before the lapse of sixty days no withdrawal can be made but the price may be increased. (x)
49. A stage in a contract of sale wherein the parties have performed their respective obligation:

Group of answer choices

Conclusion

Consummation (x)

Preparation

Perfection

50.This is the right to be subrogated, upon the same 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 transaction
whereby ownership is transmitted by onerous title.

Group of answer choices

equity of redemption

legal redemption (x)

equitable mortgage

conventional redemption

51.S, a minor, sold his car to B, a person of majority age. B, in turn, sold the car to C who acted in good
faith. Which of the following statements is false?

Group of answer choices

The sale between S and B is deemed valid until annulled by a proper action in court.

C did not acquire a valid title to the car.

A minor is incapable of giving a consent to a contract.

The sale between S and B is voidable.(x)

52.Ownership of the thing sold is transferred/acquired/retained:

Group of answer choices

Acquired by the buyer upon perfection of the contract.

Retained by the seller in “sale of return”.

Transferred to the buyer upon acceptance of the price.

Transferred to the buyer upon constructive or actual delivery of the thing sold. (x)

53. The vendor a retro, if he wants to redeem, must give to the buyer the following, except:

Group of answer choices

value of the thing at the time of repurchase (x)

expenses of the contract

the price paid by the vendee to the vendor

the necessary and useful expenses made on the thing sold

54. When, after the lapse of a reasonable time, the buyer retains the goods without intimating to the
seller that he has rejected them, there is:

Group of answer choices

Implied acceptance

Non-acceptance

Express acceptance

Qualified acceptance (x)

55.This is a judicial process whereby the vendee is deprived of the whole or part of the thing purchased
by virtue of a final judgment based on the right prior to the sale or an act imputable to the vendor.

Group of answer choices

Execution

Ejectment

Encumbrance

Eviction (x)

Attachment

56. When a small quantity is exhibited by the seller as a fair specimen of the buIk, which is not present
and there is no opportunity to inspect or examine the same.

Group of answer choices

Sale by sample (x)

Sale on return

Sale by trial

Sale by description

57.A contract whereby one of the parties binds himself to give one thing in consideration of the other’s
promise to give another thing.

Group of answer choices

Mutuum

Commodatum

Sale

Barter (x)

58.An unpaid seller has the following rights, except:

Group of answer choices

A lien on the goods or the right to retain them for the price while he is in possession of them.

In case of insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the
possession of them.

A right to rescind.

A right of repurchase. (x)

59. I. 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.

II. The vendor may bring his action against every possessor whose right is derived from the vendee, until
after they have exhausted the property of the vendor.

Group of answer choices

Both I and II are false.

Both I and II are true.

Only II is true.

Only I is true. (x)

60. S and B agreed on a sale of a house and lot for P2M where S can buy it back but did not specifically
fix or designate a period of repurchase. In this case the period of repurchase is:

Group of answer choices

8 years

4 years (x)

10 years

2 years

61.Mr. S sold a banana plantation to Mr. B for P3 million although its market value is P20 million. It was
agreed that Mr. S shall remain in possession as lessee of the land and shall be responsible for the real
estate taxes.

Group of answer choices

The contract gives rise to an action for annulment.

The contract gives rise to an action for rescission.

The contract is presumed to be an equitable mortgage. (x)

The contract is a lease.

The contract is a sale.

62.A contract whereby one person transfers to another his rights and actions against a third person in
consideration of a price certain in money or its equivalent.

Group of answer choices

Exchange

Consignation

Sale

Assignment of credit (x)

Mortgage

63. Sison sold a registered piece of land to Bautista on May 1, 2019 in a public instrument. On May 3,
2019, 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.
Group of answer choices

The land should be divided equally between and Cruz to give effect to both sales.

The land belongs to Bautista. (x)

The land belongs to Cruz.

The land still belongs to Sison, because both sales are void.

64.Statement 1. When there is a contract of sale of specific goods, the seller may, by the terms of the
contract, reserve the right of possession or ownership in the goods until certain conditions have been
fulfilled.

Statement 2. The right of possession or ownership may be thus reserved notwithstanding the delivery of
the goods to the buyer or to a carrier or other bailee for the purpose of transmission to the buyer.

Group of answer choices

No. 1 is true; No. 2 is false.

Both are false.

Both are true. (x)

No. 1 is false; No. 2 is true.

65.General Rule: A person cannot sell what he does not have or own. Which of the following is not an
exception?

Group of answer choices

Sale of hope or expectancy is vain.

Sale of future goods.

Contract for delivery at a certain price of an article which the vendor in the ordinary course of business
manufactures or procures for general market.

Sale of a thing having potential existence. (x)

66.The following are contracts that require the delivery of the subject matter before a perfected
contract exists. Which is the exception?

Group of answer choices

A sale of a car. (x)

An agreement to borrow/lend a car.

An agreement to deposit 1,000 bags of cement in a warehouse.

An agreement to borrow/lend money.

67. No. 1 – A contract of sale is a mode of acquiring ownership.

No. 2 – Every delivery transfers ownership.

Group of answer choices

Both are true.

Both are false. (x)

No. 1 is false; No. 2 is true.

No. 1 is true; No. 2 is false.

68. S sold his car to B. Unknown to both of them, the car has been totally destroyed before they agreed
on the sale.

Group of answer choices

B will bear the loss.

S needs to deliver the subject car.

No valid contract of sale for lack of object. (x)

B needs to pay the price.

69. Implied warranty not applicable in the following situations, except:

Group of answer choices

Sale by virtue of authority in fact or law.

Sale by a sheriff, auctioneer, mortgagee, pledgee or other person who sells.

None of the above. (x)

“As is and where is” sale.

Sale of second hand articles.

70. S offered to sell a parcel of land to B orally for P5 million. B accepted orally on November 5, 2018.

Group of answer choices

The sale is valid and can be registered.

The sale is valid but unenforceable and cannot be registered. (x)

The sale is voidable.

The sale is voidable but may be ratified.

71. S sells to B an automobile for P60,000 telling B that it is a 1990 model and is worth about P70,000. B
sees the automobile and after a test run, expresses satisfaction over its condition. The automobile is
really of 1988 vintage and is worth only P50,000. Which of the following statement is correct?

Group of answer choices

B has no right of action for breach of warranty. (x)

B did not rely on the car’s appearance and demonstrated condition.

B has right of action for breach of warranty.

The inducing cause of purchase is the erroneous statement as to its model and value.

72. A contract whereby the parties, by reciprocal concessions, avoid a litigation or put an end to one
already commenced. It is the amicable settlement of a controversy.

Group of answer choices

Renunciation

Compromise (x)

Waiver

Abandonment

Desistance

73. S sold to B his 5-year old car for P500,000 not aware that its fair market is P650,000.

Group of answer choices

The sale is voidable.

The sale is valid. (x)

The sale is unenforceable.

The sale is invalid.

74.If the price is simulated or false, such as when vendor really intended to transfer the thing
gratuitously:

Group of answer choices

The sale is void and there is no contract of donation.

The sale is valid and there is no contract of donation.

The sale is valid and there is a contract of donation.

The sale is void but there is a contract of donation. (x)

75. Sergio sold to Bart a specific "fighting cock" by pointing it to Bart. What kind of delivery is effected?

Group of answer choices

Brevi manu

Quasi tradition

Constitutum possessorium

Tradition longa manu (x)

76. On July 1, 2018, S sold to B 50 units of machines which were scheduled to arrive from Taiwan the
following day on board the vessel MT Taipei. The sale was evidenced by an invoice identifying each
machine by serial number. Each machine was priced at P1,000,000. Unknown to the parties, 30 units
were damaged beyond repair by seawater on June 30, 2018. Based on the foregoing, which of the
following statements is incorrect?

Group of answer choices

B may demand delivery of the remaining 20 pay the price therefor.

S has no option to rescind the whole contract or payment of the remaining 20 units.

S may require payment of the whole shipment since S was not aware of the damage caused on the
machines at the time of sale. (x)

B may rescind the whole contract.

77.Which of the following statements in an agency to sell is false?

Group of answer choices

Agent receives the good but its ownership is retained by the principal.

Agent does not pay the price but simply to account for the proceeds of the sale.
Agent can return the object if he is unable to sell the same to a third person.

Agent makes a warranty of the subject thing. (x)

78. Luoy is a lessee of a store in a shopping mall. She orally sells/assigns his right to Salome. She then
allows Salome to occupy the stall. The delivery here is called:

Group of answer choices

Traditio longa manu

Traditio brevi manu

Actual delivery (x)

Quasi-tradition

79. I. In conventional redemption, if there is no period of redemption agreed upon, it shall last 10 years
from the date of the contract.

II. In conventional redemption, should there be an agreement, the period cannot exceed 4 years.

Group of answer choices

Both I and II are true.

Only II is true.

Both I and II are false. (x)

Only I is true.

80.A wrote B a letter offering to sell a piece of land. A gave B two months within which to pay the price
of P500,000. After 50 days, A informed B that she is increasing the price of the land to P700,000. Can B
compel A to accept the P500,000 first offered and execute the deed of sale?

Group of answer choices

No, because B did not signify his acceptance of the offer of P500,000. (x)

Yes, because the period of 2 months has not yet expired.

Yes, because there was actual meeting of minds of the parties.

Yes, because Andrea is already estopped by her signed letter.

81. S sold B a laptop which was shipped on board a carrier. The bill of lading stated that the laptop is
deliverable to the order of The bill of lading was sent to B, accompanied by a bill of exchange which B
was supposed to honor.

Statement 1. If B does not honor the bill of exchange, but wrongfully retains the bill of lading, ownership
remains with the seller.

Statement 2. If B sells the bill of lading to X, X can obtain ownership of the goods if he is an innocent
purchaser.

Group of answer choices

No. 1 is false; No. 2 is true.

Both are true. (x)

Both are false.

No. 1 is true; No. 2 is false.

82. Acceptance by the buyer of the goods is a condition to complete the delivery.

Group of answer choices

True (x)

False

83. As a general rule, if the thing subject of a contract of sale is lost after perfection but before its
delivery, the risk of loss or deterioration is with the buyer.

Group of answer choices

True

False (x)

84. The unpaid seller can exercise stoppage in transitu if the buyer is insolvent and the vendor has not
yet parted with the thing sold.

Group of answer choices

True

False (x)
85. In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as a
real mortgage.

Group of answer choices

True

False (x)

86. If a vendor delivers to the vendee goods of a smaller quantity than what he contracted to sell, the
vendee may reject the goods delivered.

Group of answer choices

True (x)

False

87. The document says “deliver to the order of Mr. X”. To negotiate it, Mr. X must sign his name at the
back and then deliver. Mere delivery without signing is not sufficient.

Group of answer choices

True (x)

False

88. Payment of the purchase price is essential to the transfer of ownership as long as the property sold
has been delivered.

Group of answer choices

True (x)

False

89. A non-negotiable document of title cannot be negotiated but can be transferred or assigned by
delivery.

Group of answer choices

True (x)

False
90. There could be a sale without a price.

Group of answer choices

True

False (x)

91. The right of the buyer to examine the goods subject of a sale is not absolute.

Group of answer choices

True

False (x)

92.Gross inadequacy of the selling price affects and, hence, could invalidate a contract of sale.

Group of answer choices

True

False (x)

93.The right to the fruits of the thing sold belongs to the vendee the moment the obligation to deliver
arises.

Group of answer choices

True (x)

False

94. In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed not
be regarded as an equitable mortgage.

Group of answer choices

True (x)

False
95.B buys from S 100 cans of tomato sauce. S delivers only 80 cans. B can reject the goods. But if B
accepts the goods knowing that S cannot deliver the remaining 20, he must pay for the 80 cans at the
fair value of the goods so received.

Group of answer choices

True (x)

False

96. Buyer’s right to examine the goods is absolute.

Group of answer choices

True (x)

False

97. Legal redemption by a co-heir can be invoked if there has been an actual partition of the property.

Group of answer choices

True

False (x)

98. A negotiable document of title was marked “non-negotiable” by the warehouseman. insofar as the
various holders of the note are concerned, the note is still negotiable.

Group of answer choices

True (x)

False

99. A stipulation that ownership in the thing shall not pass to the purchaser until he has fully paid the
price is invalid.

Group of answer choices

True

False (x)
100. The expenses for the execution and registration of the sale shall be borne by the vendee, unless
there is a stipulation to the contrary.

Group of answer choices

True

False (x)

101. If the contract between the parties is a deed of sale with right to repurchase, once the seller a retro
fail to redeem within the stipulated period, ownership thereof becomes vested or consolidated by
operation of law on the buyer.

Group of answer choices

True (x)

False

102. S sold to B a parcel of land. There was no express stipulation reserving to S the right to repurchase.
In this case, the land is still subject to redemption even if the sale is an absolute and unconditional one.

Group of answer choices

True (x)

False

103. B imports electric fans from China and specifically asks for 220 volts’ fans. The fans arrived duly
labeled 220 volts and sells them to the public as such. Later, it turned out that the fans have been
mislabeled by the manufacturer and were only good for 110 volts. B is liable to the vendee for any
hidden defects in the thing sold, even though he was not aware thereof.

Group of answer choices

True (x)

False

104. A co-owner of a thing cannot 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.

Group of answer choices

True

False (x)
105. Every delivery transfers ownership.

Group of answer choices

True

False (x)

106. ttttttttThere can be a sale without a price.

Group of answer choices

True

False (x)

107. A person who does not have actual possession of the thing sold cannot transfer constructive
possession by the execution and delivery of a public instrument.

Group of answer choices

True (x)

False

108. A document of title contained the following words: “Deliver to the order of X or to the order of the
person to whom this document has been entrusted by X.” Later, X entrusted the document to Y.

Y may negotiate the same by indorsement

Group of answer choices

True (x)

False

109. In auction, once the bidder has made a bid, he can no longer retract such bid even if there was “no
fall of the hammer” yet.

Group of answer choices

True

False (x)
110. A stipulation that the installments or rents paid shall not be returned to the vendee or lessee shall
be invalid.

Group of answer choices

True

False (x)

111. The creditors of the vendor can make use of the right of redemption against the vendee only after
they have exhausted the property of the vendor.

Group of answer choices

True

False (x)

112. Sale by itself is a mode of acquiring ownership and not merely a title.

Group of answer choices

True

False (x)

113. The law requires that the vendor must own or have the right to transfer ownership of the property
sold at the time of the perfection of the contract (at the time of sale).

Group of answer choices

True

False (x)

114. If document is negotiable, the goods can be attached or be levied under an execution without the
document be first surrendered to the bailee or its negotiation enjoined.

Group of answer choices

True (x)

False
115. Where the seller delivers to the buyer the goods agreed upon mixed with goods of a different
description, the buyer may accept the goods which are in accordance with the contract, and reject the
rest. If the sale is indivisible, the buyer may not reject the whole of the goods.

Group of answer choices

True (x)

False

116. One who purchases a negotiable document of title issued to a thief acquires no right over the
goods as the thief has no right to transfer notwithstanding that such purchaser is innocent.

Group of answer choices

True (x)

False

117. A purchaser in good faith for value of the bill of lading or goods from the buyer will obtain the
ownership in the goods although the bill of exchange has not been honored.

Group of answer choices

True (x)

False

118. In sale of personal property payable in installments, the vendor who opted for foreclosure shall
have further action against the vendee for the recovery of any unpaid balance of the price.

Group of answer choices

True

False (x)

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

Group of answer choices

True

False (x)
120. If Sam orally/verbally sells his parcel of land to Ben, the sale is valid and enforceable.

Group of answer choices

True

False (x)