HOLY CROSS OF DAVAO COLLEGE

Davao City
Sales, Agency, Labor and Other Commercial Laws
FINAL Exam
Atty. Christian Bryan S. Arias

Name: ________________________________________ Date: ______________

Year and Section: _______________________________

1. This Questionnaire contains __ (__) pages. Check the number of pages and
make sure it has the correct number of pages and their proper numbers.

2. All the items have to be answered within ninety (90) minutes. No time extension
will be given. Late papers will not be accepted.

3. Read each question very carefully and write your answers in the blank spaces
provided.

4. NO CHEATING. Anyone caught cheating will be evicted from the classroom,

and will automatically be given a zero (0) in this exam.

TRUE or FALSE. Write True if the statement is correct, write False if otherwise. (30
Points, 2 points for each number)

_________1. One of the modes of extinguishment of sale is reformation whereby

the parties express their true intents and agreements when they made the original
contract of sale.

_________2. Prescription, to be considered as a mode of extinguishment of sale,

must refer to acquisitive prescription which means the destruction or loss of a right
due to lapse of time.

_________3. Delivery is required in order for a contract of sale to be perfected.

_________4. The ownership of a thing sold is transferred upon perfection of the

contract of sale.

_________5. The price is still valid even if the price indicated in the covering
instrument is false.

_________6. If the price is simulated, the sale is void, but the act maybe shown to
have been in reality a donation, or some other act or contract.
_________7. A contract of sale is perfected at the moment there is delivery of the
thing which is the object of the contract and upon the price or consideration.

_________8. A contract of sale is a gratuitous contract because it imposes a

valuable consideration as a prestation.

_________9. One of the essential characteristics of a contract of sale is that it is a

principal contract, meaning, it is a contract that should always stand on its own.

________10. A contract of sale is a bilateral contract, hence, its obligations arises

from the same cause, and in which each party is a debtor and a creditor of the
other, such that the obligation of one is dependent upon the obligation of the
other.

________11. A contract of sale is perfected at the moment there is meeting of the

minds of the parties upon the thing and upon the time when such thing is to be
delivered.

________12. Price signifies the sum stipulated as the equivalent of the thing sold
and also every incident taken into consideration for the fixing of the price put to
the debit of the buyer and agreed to by him.

________13. Consideration could be in a form other than price.

________14. The general rule is that inadequacy of price renders a contract of sale
inefficacious.

________15. Although sale is an onerous and commutative contract, there is no

requirement that the price given should be exactly the value of the subject
matter delivered.

________16. Sale is defined under the Revised Penal Code as a contract whereby
one of the contracting parties (seller) obligates himself to transfer the ownership
and to deliver the possession, of a determinate thing; and the other party (buyer)
obligates himself to pay therefor a price in money or its equivalent.

________17. In a contract of sale, the obligation of the seller is to transfer the

ownership, to deliver the possession of the property subject of the sale and to
impose guidelines on how the seller should take care of the subject matter of the
sale.

________18. In a contract of sale, the only obligation of the buyer is to pay the
price.
________19. The subject matter of the sale should always be determinate, not only
determinable.

________20. The elements of a contract of sale includes Consent, Subject Matter,

Price and Rules and Regulations to be imposed by the seller.

________21. The first stage of the life of a sale is the birth or conception or
perfection wherein there is a concurrence of the essential elements of the sale;

________22. Sale is an innominate contract since it has been given a particular

name by law.

________23. Sale is a principal contract because it can stand on its own and does
not depend on another contract for its validity or existence.

________24. Although a minor cannot validly enter into a contract, he may still do
so if the other party has full knowledge of his minority. As a consequence, the
contract is not merely voidable, but is perfectly valid.

________25. A contract of sale is perfected by mere consent of the parties, thus

there is no need for the person enforcing the contract to show that the terms have
been fully explained to the other party where the contract is written not in a
language understood by him.

_______26. Contracts entered into during lucid intervals by insane persons are
generally valid.

_______27. Sale is merely title that creates the obligation on the part of the seller
to transfer ownership and deliver possession, but on its own sale is not a mode that
transfers ownership. It would be delivery that is the mode of transferring ownership
and possession to the buyer.

_______28. Donation is an onerous contract, whereas Sale is a gratuitous contract.

_______29. In determining whether a contract is a sale or a barter, one should

inquire on the manifest intention of the parties.

_______30. For natural persons, the age of majority begins at 18 years old upon
which they have the capacity to act.
ENUMERATION. (25 points, 5 points for each number)

1. Give at least five (5) essential characteristics of a contract of sale.

2. What are the elements of a contract of sale?

3. What are the stages of a contract of sale? EXPLAIN each briefly.

4. What are the requisites of a valid subject matter?

5. What are the requisites of a valid price?

DEFINITION/EXPLANATION. (15 points, 5 points for each number)

Define or explain the following briefly.

1. Contract of Sale
2. Contract of sale is a consensual contract.

3. Simulated Price