LAW ON SALES

1. The stages of a contract of sale are the following, except:

a. Negotiation
b. Counter-offer
c. Perfection
d. Consummation
2. I. A contract of sale is a consensual contract, thus, is perfected by delivery.
II. A contract of sale is perfected by the meeting of the offer and the acceptance upon the
thing and the cause which are to constitute the contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
3. One of the contracting parties obligates himself to transfer the ownership of, and to deliver,
a determinate thing, and the other to pay therefore a price certain in money or its
equivalent.
a. Barter
b. Sales
c. Partnership
d. Agency
4. The essential elements of a contract of sale are the following except:
a. Consent
b. Determinate subject matter
c. Written contract
d. Price certain in money or its equivalent
5. I. Sales by itself does not transfer or affect ownership; the most that the sale does is to
create the obligation to transfer ownership.
II. The perfection of a contract of sale should not, however, be confused with its
consummation. In relation to the acquisition and transfer of ownership, it should be noted
that sale is not a mode, but merely a title.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
6. Is manifested by the meeting of the offer and the acceptance upon the thing and the cause
which are to constitute the agreement?
a. Determinate subject matter
b. Consent
c. Policitacion
d. Price certain in money or its equivalent
7. I. In general, the object is the why of the contract or the essential reason which moves the
contracting parties to enter into a contract.
II. for the cause to be valid, it must be lawful such that it is not contrary to law, morals,
good customs, public order or public policy.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
8. I. A contract to Sell may not be considered as a contract of sale because the second
essential element is lacking.
II. In contract to sell, what the seller agrees or obligates himself to do is to fulfill his
promise to sell the subject property, when the entire amount of the purchase price is
delivered to him.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
9. I. The object of every contract must be determinate as to its kind.
II. The fact that the quantity in contract of sale is not determinate shall not be an obstacle
to the existence of the contract, provided it is determinate the same, without the need of a
new contract between the parties.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
10. Is a continuing offer or contract by which the stipulates with another that the latter shall
have the right to buy the property at a fixed price within a certain time, or under, or in
compliance with, certain terms or conditions, or which gives to the owner of the property
the to dell or demand sale?
a. Option
b. Earnest
c. Absolute
d. Conditional
11. I. The fixing of the price can never be left to the decision of one of the contracting parties.
But a price fixed by one of the contracting parties, if accepted by the other, give rise to a
perfected sale.
II. The parties need not agree on the manner of the payment of the price of the property
to give rise to a binding and enforceable contract of sale or contract to sell.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
12. I. the contract of sale is classified as a consensual contract, which means that the is
perfected by mere consent. A private instrument is required for its validity.
II. A contract of sale is normally commutative but not onerous.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
13. It shall be considered as part of the price and as proof of the perfection of the contract.
a. Option money
b. Initial payment
c. Downpayment
d. Earnest money
14. A special mode of the payment where the debtor offers another thing to the creditor who
accept it as equivalent payment of an outstanding debt.
a. Application of payment
b. Cession in payment
c. Dation in payment
d. Tender of payment and consignation
15. What is the test in determining whether it is a “contract of sale or mere option”?
a. Whether or not the agreement is valid
b. Whether or not the agreement could be specifically enforced
c. Whether or not the agreement is not rescissible
d. Whether or not the agreement is covered by Statue of Frauds
16. 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
17. Until acceptance, it is not, properly speaking, a contract and does not vest, transfer, or
agree to transfer, any title to, or any interest or right in the subject matter, but is merely a
contract by which the owner of property gives the optionee the right or privilege of
accepting the offer and buying the property on certain terms.
a. Option
b. Earnest
c. Absolute
d. Condition
18. This serves as a proof of the perfection of the contract of sale
a. Dacion en pago
b. Option money
c. Deliver
d. Arras
19. A contract of sale is not a(an)
a. Onerous contract
b. Accessory contract
c. Bilateral contract
d. Commutative contract
20. Sale of mere hope or expectancy that the thing will come to existence.
a. Emptio rei speratae
b. Emptio spei
c. Sale of a future thing
d. Unenforceable sale
21. I. In dation in payment, the undertaking really partakes in one sense of the nature of
barter.
II. the thing must be licit and the vendor must have a right to transfer the ownership
thereof at the time of perfection.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
22. Sale of a thing with potential existence
a. Emptio rei speratae
b. Emptio spei
c. Sale of a present thing
d. Void sale
23. I. Things having a potential existence may be the object of the contract of sale.
II. the sale of a vain hope or expectancy is voidable.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
24. I. In contract of sale, the buyer receives the goods as owner.
II. In agency to sell, the agent receives the goods as goods of the principal who retains his
ownership over them.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
25. 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. the sole owner of a thing may sell an undivided interest therein.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
26. The requisites of a valid price are the following, except:
a. It is not simulated
b. It is certain
c. In money or an equivalent thing
d. Manner of payment must agreed upon
27. I. If the thing is specially done at the order of another, this is a contract of sale.
II. If the thing is manufactured or procured for the general market in the ordinary course
of one’s business, it is a contract for a piece of work.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
28. I. If the consideration of the contract consists partly in money, and partly in another thing,
the transaction shall be absolutely barter.
II. In order that the price may be considered certain, is shall be sufficient that it be so with
reference to another thing certain, or that the determination thereof be left to the judgment
of a special person or persons.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
29. Warranty against hidden defects is
a. An essential element
b. A natural element
c. An accidental element
d. An artificial element
30. Where sale not subject to any condition
a. Absolute
b. Conditional
c. Natural
d. Incidental
31. Good where owned or possessed by seller
a. Existing goods
b. Future goods
c. Dacio en pago
d. Goods in transit
32. Goods to be manufactured, raised, or acquired
a. Existing goods
b. Future goods
c. Dacio en pago
d. Goods intransit
33. When a sale of piece of land or any interest therein is through an agent, the authority of the
agent shall be in writing, otherwise the sale is
a. Valid
b. Voidable
c. Unenforceable
d. Void
34. Risk of loss on seller exist when, except
a. Thing is lost before perfection
b. Thing is lost after perfection
c. Thing is lost at the time of perfection
d. Default of delivery by seller
35. The following persons cannot acquire by purchase even at public auction, except
a. Guardian
b. Agents
c. Executors
d. Natural person
36. One of the principal obligations of the vendee is
a. Transfer ownership of the determinate thing sold
b. To deliver
c. To warrant
d. To accept delivery
37. The principal obligations of the vendor, except
a. Transfer ownership of the determinate thing sold
b. To deliver
c. To warrant
d. To accept delivery
38. I. It is the act of payment of price that determines the validity of a contract of sale.
II. Payment of the price affects the perfection of the contract
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
39. I. The parties in a contract of sale may stipulate that ownership in the thing shall not pass to
the purchaser until he has fully paid the price.
II. Payment of purchase price is essential to the transfer of ownership as long as the
property sold has been delivered.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
40. I. If the thing or any part thereof has been delivered to and appropriated by the buyer, he
must pay based on the market value.
II. In general, a perfected contract of sale can be challenged on the ground of the seller’s
non-ownership of the thing sold at the time of the perfection of the contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
41. Actions are available for breach of contract on the part of seller, except
a. Action for payment of price
b. Action for damages of non-acceptance
c. Action for rescission of the contract
d. Action for specific performance
42. Delivery by merely pointing to the object of sale if it cannot be delivered to the vendee at
the time of the sale is
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum paossessorium
d. Traditio symbolica
43. Effected when the object of sale is already in the possession of the vendee at the time of
sale so that delivery need no longer be made is
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio symbolica
44. A contract by virtue of which X, in consideration of the payment of a certain sum to Y,
acquires the privilege of buying from, or selling to, Y certain properties within a limited
time at a specified price.
a. Contract of sale
b. Contract to sell
c. Option contract
d. Conditional sale
45. I. The consideration contemplated to support an option must only be monetary.
II. Without consideration that is separate and distinct from the purchase price, an option
contract cannot be enforced.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
46. When a small quantity is exhibited by the seller as affair specimen of the bulk, which is not
present, and there is no opportunity to inspect or examine the same.
a. Sale or return
b. Sale on approval
c. Sale by sample
d. Sale by description
47. I. There must first be a perfected contract of sale before we can speak of earnest money.
II. Earnest money applies to a perfected sale.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
48. There are certain persons who cannot buy certain property under certain circumstances.
a. Absolute incapacity
b. Relative incapacity
c. None of the above
d. All of the above
49. These are the persons who cannot enter into a contract of sale otherwise, the contract of
sale is defective.
a. Absolute incapacity
b. Relative incapacity
c. None of the above
d. All of the above
50. A thing is lost when, except:
a. It perishes
b. Goes out of commerce
c. It is fully depreciated
d. Disappears in such a way that its existence is unknown or it cannot be recovered.
51. It is an act by which one party parts with the title to and the possession of the property, and
the other acquires the right to and the possession of the same.
a. Delivery
b. Contract of sale
c. Eviction
d. Contract to sell
52. It occurs when it is placed under the control and possession of the vendee.
a. Actual delivery
b. Constructive delivery
c. Delivery by operation of law
d. Other kinds of delivery as intended by the parties
53. It is delivery by operation of law
a. Real delivery
b. Actual delivery
c. Legal delivery
d. Quasi-traditio
54. A seller sold to a buyer a specific parcel of land at a price of P1,000,000. The contract
provides that the buyer will pay the seller cash 400,000 and deliver the buyer’s car worth
600,000. The contract is:
a. Barter
b. Sale
c. Contract of sale
d. Mutuum
55. Quasi-delivery is the delivery of rights, credits, or incorporeal property which is made by:
a. Execution of public instrument
b. Placing of titles of ownership in the hands of the buyer
c. Allowing the buyer to make use of rights
d. Issuance of delivery receipt
56. When the sale is made through a public instrument.
a. Legal formalities
b. Symbolical traditio
c. Traditio symbolica
d. Traditio longa manu
57. A delivers B his parcel of land worth P1,000,000 in exchange for the car of B worth
P500,000 and cash in the amount of 500,000. The contract is:
a. Barter
b. Sale
c. Partly barter partly sale
d. Innominate contract
58. The parties use a symbol to represent the thing delivered.
a. Legal formalities
b. Symbolical traditio
c. Traditio brevi manu
d. Traditio longa manu
59. This is opposite of constitutum possessorium
a. Legal formalities
b. Symbolical traditio
c. Traditio brevi manu
d. Traditio longa manu
60. S sold his land to B who began to possess it. Later, C, a stranger sold the same land to D,
who registered the sale and thus, obtained the title on his name.
a. D is the owner for hi was the first registrant in good faith
b. B is the owner because the owner is his seller
c. S remains to be the owner
d. S is still the owner because B did not register the sale.
61. This is opposite of traditio brevi manu
a. Legal formalities
b. Symbolical traditio
c. Traditio brevi manu
d. Traditio constitutum possessorium
62. I. In sale or return, the ownership passes to the buyer on meeting of the minds.
II. In a sale or return, the buyer may revest the ownership in the seller by returning or
tendering the goods within the time fixed in the contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
63. Also called “sales on acceptance”
a. Sale on approval
b. Sale or return
c. Sale by sample
d. Sale by description
64. There is no transfer of ownership notwithstanding delivery of the goods.
a. Sale or return
b. Sale on trial
c. Sale by sample
d. Sale by description
65. I. In sale on trial, the risk of loss upon the buyer.
II. In sale or return, the risk of loss remains with the seller
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
66. I. In sale on trial, it depends entirely on the will of the buyer.
II. In sales or return, it depends on the quality of the goods.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
67. The following are examples of document of title to goods, except:
a. Negotiable instrument
b. Bill of lading
c. Dock warrant
d. Warehouse receipt
68. Who pays for the expenses of putting the goods into a deliverable state?
a. Seller
b. Buyer
c. None of the above
d. All of the above
69. The following are the rules of preference in case of double sale in case of immovable
property, except:
a. First registrant in good faith
b. First possessor in good faith
c. Persons with the oldest title in good faith
d. Persons with the oldest transfer certificate of title in good faith
70. The prescriptive period for instituting actions based on a breach of express warranty is that
specified in the contract, and in the absence of such period, the general rule on rescission
of contract, which is:
a. 4 years
b. 5 years
c. 6 years
d. 10 years
71. If the thing sold should be lost in consequence of the hidden faults, and the vendor was
aware of them, one of the following is not an effect of loss
a. He shall bear the loss
b. He shall return the loss
c. He shall refund the expenses
d. He shall not pay damages
72. If the thing sold should be lost in consequences of the hidden faults, and the vendor was
not aware of them, the following are the effect of loss, except:
a. He shall return the price
b. He shall return the interest
c. He shall reimburse the expenses of the contract
d. None of the above
73. The waiver is made by the vendee with the knowledge of the risk of eviction and assumed
its consequences. The vendor shall not be liable.
a. Express waiver
b. Implied waiver
c. Waiver consciente
d. Waiver intencionanda
74. It is when the buyer does any act in relation to the goods which is inconsistent with the
ownership of the seller.
a. Express acceptance
b. Implied acceptance
c. Non-acceptance
d. None of the above
75. When the buyer intimates to the seller that he has accepted the goods
a. Express acceptance
b. Implied acceptance
c. Non-acceptance
d. None of the above
76. When, after the lapses of a reasonable time, he retains the goods without intimating to the
seller that he has rejected them.
a. Express acceptance
b. Implied acceptance
c. Non-acceptance
d. None of the above
77. 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
78. Not an element of the seller’s right of stoppage in transit
a. The goods must be in transit
b. The buyer must be insolvent
c. The seller must be in possession of the goods
d. The seller must be unpaid
79. If the redemption is to be made by the seller, one of the following need not be given to the
buyer.
a. Expenses of the contract
b. Interest on the price of the sale
c. Necessary expenses on the thing sold
d. Price of the sale
80. A contract of sale is in the stage of conception when
a. There is meeting of minds
b. Negotiations are in progress
c. The parties come to an agreement
d. The contract is perfect
81. It includes all chattels personal but not things in action or money of legal tender in the
Philippines. The term includes growing fruits or crops.
a. Goods
b. Things
c. Real property
d. Immovable property
82. The vendor cannot avail himself of the right of repurchase without returning to the vendee
the following except:
a. Interest
b. The price of the sale
c. The expenses of the contract
d. The necessary and useful expenses made on the thing sold
83. It includes all chattels personal but not things in action or money of legal tender in the
Philippines.
a. Things
b. Fungible goods
c. Goods
d. Consumable goods
84. It means goods identified and agreed upon at the time a contract of sale is made.
a. Generic goods
b. Specific goods
c. Indeterminate goods
d. Quality of goods
85. A person who either has ceased to pay his debts in the ordinary course of business or
cannot pay his debts as they become due.
a. Bankrupt
b. Solvent
c. Debtor
d. Insolvent
86. When goods are in such a state that the buyer would, under the contract, be bound to take
delivery of them.
a. Deliverable state
b. Perishable state
c. Fungible goods
d. Non-fungible goods
87. I. In a contract of sale, the object is property.
II. In assignment of credit, the object is credit, incorporeal rights or rights of action.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
88. When vendee can suspend payment, except
a. Vendor gives security fir the return of the price
b. If it not been stipulated
c. The vendor has caused the disturbance or danger it cease
d. Mere act of trespass
89. When buyer’s refusal is justified, except:
a. Buyer is obliged to return the goods
b. Risk of loss belongs to the seller
c. Seller has the obligation to take delivery of the goods
d. Buyer has the right to resell the goods
90. Remedy of unpaid seller, except
a. Lien on goods
b. Stopping the goods in transit
c. Right of hold
d. Right to rescind the sale
91. Goods considered in transit
a. Before delivery to the buyer or his agent
b. If the buyer or agent obtains possession of the goods
c. If he carrier/bailee acknowledges to hold goods on behalf of the buyer
d. If the carrier/bailee wrongfully refuses to deliver the goods to the buyer
92. The right of the seller to stop goods in transit, upon discovering that the buyer does not
have the funds to pay for the goods.
a. Pre-emptive right
b. Appraisal right
c. Voting right
d. Right of stoppage in transit
93. In contract of sale, if the price is absolutely simulated, the sale is
a. Unenforceable
b. Voidable
c. Void
d. Rescission
94. Action to seek a corresponding reduction in price by reason of some vices or defects in the
thing purchased.
a. Accion quanti minoris
b. Accion reinvidicatoria
c. Accion pauliana
d. Redhibitory action
95. 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
b. Absolute sale
c. On sale or return
d. Pacto de retro sale
96. Ownership of the thing sold
a. Retained by the seller in “sale or return”
b. Transferred to the buyer upon constructive or actual delivery of the thing sold
c. Acquired by the buyer upon perfection of the contract
d. Transferred to the buyer upon acceptance of the price
97. 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
98. I. If the price is grossly inadequate, the sale is void.
II. whenever option money is given in a contact of sale, it shall be considered as part of the
price and a proof of the perfection of the contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
99. I. Any stipulation exempting the vendor from the obligation to answer for eviction shall be
void.
II. The vendor is responsible to the vendee for any hidden faults or defects in the thing
sold only if he was aware thereof.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
100. Unless there is stipulation to the contrary, the expenses for the execution or
registration of the sale shall be borne by
a. Vendor
b. Vendee
c. Vendee or vendor
d. Agent or broker