PRELIM EXAM on Sales, Agency, Bailments and Special Laws (LAWS 1023)

2ND Sem, S.Y. 2017-2018

Essay:
1. What is a contract of sale? 5 points
2. Pepe and Jose entered into a contract of sale wherein Pepe agreed to purchase 5 cars from Jose in
the amount of 5,000,000.00. After the perfection of the contract of sale, all 5 cars were destroyed
and rendered unusable due to a storm. Jose is demanding payment of the 5,000,000.00 alleging that
a valid and perfected contract of sale was already existing between him and Pepe, therefore Pepe
is obliged to pay the price agreed upon.
a.) Is the contention of Jose correct? Explain (5 points)

b.) Discuss briefly the Stages in the life of a contract of sale. (5 points)

3. Differentiate Contract of Sale from Contract of Lease. 5 points

4. Can a person sell a property which is not owned by him during the perfection of a contract?
Yes/No.Why? 5 points

5. What is the remedy of the aggrieved party where the low price in contract of sale indicates
a vice of consent, annulment or rescission? Explain (5 points)

6. Enumerate the obligations of a vendee. Explain each (5 points)

TRUE or FALSE
Write out the word "True" if the statement is correct. If it is otherwise, write out the word “False”,

1.) Accidental elements are those which may be present or absent depending on the stipulations
of the parties, like conditions, interest, penalty, time or place of payment
2.) The failure to pay the price in full within a fixed period does not, by itself, dissolve a
contract of sale in the absence of any agreement that payment on time is essential or make it
null and void for lack of consideration, but results at most in default on the part of the
vendee for which the vendor may exercise his legal remedies.
3.) The essence of sale is the mere physical transfer of the property,

4.) The delivery of the thing bought and the payment of the price necessary for the perfection of
the contract of sale.
5.) Dation in payment produces the effect of extinguishing an obligation if it is the clear
intention of the parties regardless of the amount of the thing.
6.) Payment to a person who is incapacitated to administer his property shall not be valid if he
has kept the thing delivered, or insofar as the payment has been beneficial to him
7.) Contract of Sale is not a mode of acquiring ownership
8.) Sale between husband and wife can be assailed by either of them in case question of law
arise.
9.) Contract to Sell is a contract granting a privilege to one person, for which he has paid a
consideration, giving him the right to buy certain property at any time within the agreed
period at a fixed price
10.) Emptio Spei is the sale of a mere hope or expectancy which is deemed subject to a condition
that the thing will come into existence.

GOD BLESS!