Midterm Exam on Sales

1. 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 c. Traditio longa manu
b. Traditio brevi manu d. constitutum possesorium

2. The price in a contract of sale is certain, except:

a. When the parties have fixed or agreed upon a definite amount
b. If the price is certain with reference to another thing certain
c. If the fixing of the price is left to the discretion of one of the contracting parties
and the price fixed is not accepted by the other party.
d. If the price fixed is that which the thing sold would have on a definite day or in a
particular exchange or market.

3. On January 1, 2017 X sold to Y through a private instrument 20 sacks of rice stored in

the warehouse of X. On January 10, 2017, X delivered the keys of the warehouse to
Y. The delivery made by X to Y is known as:
a. Constructive delivery by legal formalities c. Symbolic delivery
b. Traditio longa manu d. Tradio Brevi manu

4. Three of the following are the requisites in order that an unpaid seller may exercise
his right of stoppage of transit. Which 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

5. Dela Cruz bought a piece of land from Abad for a lump sum of 120,000.00. Aside
from mentioning the boundaries in the contract which is required in the sale of real
estate, the contract also states that the piece of land consists of 1,000 square
meters. Before delivery, Abad discovered that the piece of land actually contains
1,200 square meters.
a. Abad must deliver all the 1,200 square meters; Dela Cruz must pay 120,000 plus
am additional amount for the excess of 200 square meters.
b. Abad is required to deliver only 1,000 square meters; Dela Cruz must pay the
contract price of 120,000.00
c. Abad must deliver all the 1,200 square meters; Dela Cruz must pay the contract
price of 120,000.00
d. Neither party is required to perform the obligation because of mistake.

6. A contract of sale is not a

a. Principal Contract c. Nominate contract
b. Consensual contract d. real contract

7. The following may not be valid objects of a contract of sale, except:

a. Objects outside the commerce of men c. Illicit things
 b. Future goods d. Impossible service

8. 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 c. Constitutum possessorium

b. Tradio Brevi Manu d. Delivery to a common carrier

9. The recto Law applies to which of the following examples of sale?

a. Sale if a car in 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.

10. A and B entered into a contract whereby S transferred to B a specific piano for the
price of 80,000.00, while B gave A cash of 30,000 and a diamond ring worth
50,000.00 What kind of contract was entered into between A and B?
a. A contract of barter c. Party sale and partly barter
b. A contract of Sale d. Innominate contract

11. Sam who was in Japan made an overseas call to Set, his friend, to sell Sam’s lot in
Alibagu, immediately as Sam needed cash. Accordingly, Set sold the lot to Third. The
deed of sale was in a public document. The sale of Sam’s lot is:
a. Void c. Unenforceable
b. Valid d. Rescissible

12. It is an affirmation of fact or any promise by the seller relating to the thing which has
a natural tendency to induce the buyer to purchase the same, relying on such
promise or affirmation.
a. Condition c. Warranty
b. False representation d. Seller’s talk

13. Earnest money possesses three of the following characteristics. Which is the
exception?
a. It is part of the purchase price
b. It is a 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.

For items 14 – 17

Problem: S sold his ring to B for 50k, with Down payment of 30k and the balance to be paid
at the end of the month. As a security a chattel mortgage was constituted at the object. B
did not pay the balance.

14. If A foreclose the ring and sold it for 15k, may he still recover the 5k?
a. No, the remedies are not in alternative c. Yes, the remedies are commutative
 b. Yes, it is not covered by art. 1484 d. No, it will result to unjust enrichment

15. Supposed a piano was also given as security, and A foreclose the piano and sold it
for 15k, may he still recover 5k?
a. No, the remedies are not in alternative c. Yes, the remedies are commutative
b. Yes, it is not covered by art. 1484 d. No, it will result to unjust enrichment

16. Supposed a piano was also given as security, and A foreclose the piano and sold it
for 15k, may he foreclose the ring to cover the deficiency of 5k?
a. No, the remedies are not in alternative c. Yes, the remedies are commutative
b. Yes, it is not covered by art. 1484 d. No, it will result to unjust enrichment

17. Suppose instead, A went to court to file a collection case, he won, thus the sheriff
attached the ring and was able to sold it at 15k, may he still recover the 5k?
a. No, the remedies are not in alternative c. Yes, the remedies are commutative
b. Yes, it is not covered by art. 1484 d. No, it will result to unjust enrichment
18. When is the vendor bound to deliver the thing sold?
a. If the vendee has not paid him the price
b. If no period for payment of the price has been fixed in the contract
c. If the buyer has been given the benefit of the period
d. None of the foregoing

19. On January 1, Z orally sold to B a specific ring for 450.00. The parties agreed that Z
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 to Z to B.
b. The contract is perfected in 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.

20. Cuevas bought a residential house and lot from Villa Jesusa for 250,000 giving a
down payment of 10,000.00 and promising to pay the balance of 240,000 in 20 years
in monthly installments of 1,000.00. After paying 72 installments, Cuevas defaulted
in the payment of the 73rd installment and subsequent ones. Despite the grace
period he had earned he was not able to make any further payments, thus Villa
Jesusa cancelled the sale. How much is the cash surrender value is Cuevas entitled to
received?
a. 45,100.00 c. 36,000.00
b. 39,600.00 d. 41,000.00

21. XYZ sold a registered piece of land to ABC on December 1, 2017 in a public
instrument. On December3, 2017, XYZ sold in a private instrument the same piece of
land to PQR who took physical possession of the land. Neither buyer was aware of
the sale made to the other.
a. The land belongs to ABC
b. The land belongs to PQR
 c. The land still belongs to XYZ because both sales are void
d. The land should be divided equally between ABC and PQR

22. ABC sold a specific parcel of land separately to the following persons
July 1, 2017 to X in a public document
July 5, 2017 to Y who took physical possession
July 9, 2017 to Z who registered the sale with the register of Deeds.
Neither X, Y, nor Z was aware if the sale made to the other two buyers. Who is the
owner of the parcel of land?
a. X, because he was the first purchaser
b. Y, because he was the first who took actual possession
c. Z, because he was the first to register the sale
d. ABC, because the multiple sales he made rendered each sale a void contract.

23. B wanted to buy the car of S for 1 Million and to show his interest, he gave S
2,000.00 as earnest money in which S accepted. There was no written instrument
signed by S and B to incorporate their agreement. Based on the foregoing, which of
the following statements does not pertain to the contract?
a. B, thereafter needs to pay 998,000.00
b. The giving of earnest money binds S and B to a contract of sale
c. B, thereafter must pay S the amount of 1 million
d. The contract between B and S is a perfected contract of Sale

24. Before perfection in a sale by auction

I. The bidder may withdraw his bid.
II. The auctioneer may withdraw the goods from the sale unless the auction
has been announced to be without reserved.
a. Only statement I is correct c. Both Statements are correct
b. Only statement II is correct d. Bothe statements are false

25. The justified refusal of the buyer to accept the goods produces the following effects,
except:
a. Buyer has no duty to return the goods, unless otherwise stipulated.
b. Title to the goods does not pass on to him.
c. Buyer shall not be obliged to pay the price
d. Buyer is obliged to constitute himself as depositary until he returns the goods.