front 1 A offers to B 100 electric fans for P80,000 payable in 60 days with 12% interest per annum. B accepted the offer by telegram provided that interest is reduced to 6%. If there is a no further communication between A and B relating to the terms a. The contract is perfected because of the acceptance by
B | back 1 There is no contract yet between A and B because B made a counter-offer |
front 2 Y sold his horse to Z for P50,000. No payment has yet been made and the sales document does not provide the date of delivery. Before delivery and payment the horse gave birth to a baby horse, which is correct? a. Z is entitled to the baby horse which was born after the
perfection of the contract | back 2 Z (buyer) is entitled to the baby horse (fruits) which was born after the perfection of the contract |
front 3 A seller sold to a buyer a piece of jewelry at a price of P20,000. The contract sale provides that the buyer will pay the seller cash P8,000 and the balance, the buyer will give the seller a micro oven worth P12,000. What is the nature of the contract? a. Sale b. Partly sale and partly barter c. Barter d. Commodatum | back 3 Sale |
front 4 X sold his car to Y for P50,000. No date was fixed for the performance of the obligation of the seller and the buyer. The obligation of X is a. To deliver the car immediately because the sale is a perfected
contract | back 4 c. To deliver the car only after Y pays the P50,000 *Since there is no stipulation on the date of delivery, delivery must be made within a reasonable time from the execution of the contract |
front 5 Determine which statement/s are true or false: Statement 1: The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the owner at the time the thing sold is delivered. Statement 2: The sale of vain hope or expectancy is voidable. | back 5 S1: TRUE [Right of seller to transfer ownership is at the time of delivery] S2: FALSE [The sale of vain hope or expectancy is void, not voidable] |
front 6 A stole a fountain pen from P and sold it to B Merchandise, a “store of pens”, which paid for it in good faith, not knowing it was stolen. The “store” then it sold to C, a reviewee. Which is correct? a. C cannot be considered as the owner because the original seller (A) is not the real owner b. P may recover the fountain pen from C without reimbursement because he is the legal owner c. C became the owner because he purchased the pen from a merchant store d. C became the owner regardless of whether the seller is a store for pens or not because C bought it in good faith | back 6 c. C became the owner because he purchased the pen from the merchant store. *C purchased the pen from the store which paid for it in good faith from A. Even if A acquired the pen from P in bad faith, A does not have a transactional relationship to C, hence becoming the owner of the pen. |
front 7 B imported radios from Taiwan and asked for 220 volts radios. The radios arrived clearly labeled 220 volts and B sold them to the public as such. Later the customer complained that the radios have been mislabeled by the manufacturer and that they were good only for 110 volts. As a consequence: a. B is liable to the vendees for any hidden defects even though he is not aware b. B is not liable because he is in good faith c. B is not liable under the principle of “caveat emptor” or let the buyer beware d. The vendees may hold the manufacturer liable but not B because B specifically asked for 220 volts | back 7 a. B is liable to the vendees for any hidden defects even though he is not aware *B as a vendor should ensure that the radios are free from any hidden defects before selling them to the public. |
front 8 If redemption is to be made by the seller, one of the following need not 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 | back 8 b. Interest in the price of the sale *buyer can demand all from the seller except b. |
front 9 Not an element of the sellers right of stoppage in transit: a. The good 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 | back 9 c. The seller must be in possession of the goods |
front 10 A, B and C are co-owners of an undivided parcel of land, A sold his 1/3 interest to B absolutely. Which is correct? a. C may exercise his right of redemption on the interest sold
by A to B | back 10 b. C cannot exercise the right of redemption because the sale was made in favor of a co-owner *The right of redemption of co-owners excludes that of adjoining owners. |
front 11 A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered at Y’s store in Quinta Market. The price is: a. Not certain because the price at Quinta Market is not
stated | back 11 b. Certain because it has got reference to another thing which is certain *A's determined the price for the cavans of wagwag rice in reference to the price offered at Y's store in Quinta Market, hence it is certain |
front 12 A sold his motor vehicle to B who bought it for P200,000. It turned out however, that A has 2 motor vehicles: Toyota valued at P230,000 and Lancer valued at P220,000. Which is correct? a. There is no contract of sale between A and B | back 12 a. There is no contract of sale between A and B. *B already bought a P200,000 motor vehicle. The additional information regarding A's Toyota and Lance has no direct relationship to A & B's earlier sale of the unnamed motor vehicle |
front 13 Determine which statement/s are true or false: S1: There may be a contract of sale of goods, whose acquisition by the seller depends upon a contingency which may or may not happen. S2: If the consideration of the contract consists partly in money and partly in another thing, it shall be considered a barter if the value of the thing given as part of the consideration exceeds the amount of the money or its equivalent | back 13 S1: TRUE [Goods involved in this type of contract are contingent goods which is also an agreement to sell; "may be a contract of sale'] S2: FALSE [Even if the acquisition of a thing is paid for by another object of greater value than the money component, it may still be a sale and not a barter when such was the intention of the parties] |
front 14 Determine which statement/s are true or false: S1: If the price is grossly inadequate, the sale is void. S 2: Wherever option money is given in a contract of sale, it shall be considered as part of the price and a proof of the perfection of the contract | back 14 Both are false S1: Gross inadequacy of price does not affect the validity of a contract of sale S2: Earnest money is considered as part of the price and a proof of the perfection of the contract |
front 15 In a contract of sale of personal property, the price of which is payable in installments, the vendor may exercise of any of the following remedies, except: a. Exact fulfillment of the obligation, should the vendee fail to pay any installment b. Cancel the sale, should the vendee’s failure to pay cover two or more installments c. 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 d. Rescind the sale should the vendee fail to pay any installments | back 15 d. Rescind the sale should the vendee fail to pay any installments *a, b, and c are vendor's remedies under Recto Law if the vendee fails to pay installments |
front 16 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 | back 16 Right of stoppage in transit |
front 17 A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of agreement of sale written in Bicolano dialect. One week later, A sold the same parcel of land to C for P4M. This is evidenced by a formal deed of sale. Upon buying the property, C who was aware of the first sale, immediately took possession of the lot. When informed of the second sale, B subsequently registered an adverse claim to the property. Later, C registered the deed of sale in her favor. The parcel of land shall belong to: a. B because he has got an older title b. C because he is the first to register c. C because he is the first to take possession d. No one as both sales are void | back 17 a. B because he got an older title *Although C was the first to register the deed of sale, he registered it in bad faith (C was aware of the first sale). Hence, the parcel of land shall belong to B |
front 18 Voluntary renunciation made by the buyer of his right to warranty against eviction where in case the buyer is evicted, the seller is liable to the value of the thing at the time of eviction. a. Waiver intentionada b. Waiver consciente c. Waiver cursunada d.Waiver inocente | back 18 b. Waiver consciente *Waiver of warranty against eviction: (1) Waiver consciente: buyer made the waiver WITHOUT knowledge of the risks of eviction; Seller IS liable to the value of the thing at the time of eviction (2) Waiver intentionada: buyer made the waiver WITH knowledge of the risks of eviction and assume its consequences; Seller is NOT liablef |
front 19 Voluntary renunciation made by the buyer of his right to warranty against eviction where in case the buyer is evicted, the seller is no longer liable | back 19 waiver intentionada |
front 20 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 | back 20 d. Pacto de retro sale |
front 21 A sold to B her Yamaha organ. It was agreed that A would fix the price a week later. At the agreed time, A name the price P10,000. B agreed. Was the sale perfected? a. No, because the price was left to the discretion of one of the contracting parties b. No, because at the time of sale the price was not fixed c. Yes, because the price fixed by one of the parties was accepted by the other d. Yes, because there was agreement that A would fix the price | back 21 c. Yes, because the price fixed by one of the parties was accepted by the other *A & B agreed that only one of them would fix the price. B, then agreed to the price fixed by A. Sales is perfected since there was an acceptance/confirmation of the price |
front 22 After the death of C, A, C’s son, sold his inheritance through its amount has not yet been determined to B for a consideration of P1,000,000. Which is correct? a. The contract is valid if the value of inheritance is at least equal to P1,000,000 b. The contract is valid even though the inheritance to be turned over to B is less than P1M c. The contract is void as future inheritance cannot be the object of sale d. The contract is unenforceable | back 22 b. The contract is valid even though the inheritance to be turned over to B is less than P1M |
front 23 Determine which of the following statement/s is true or false: S1: Earnest money and option money both apply to perfected sale. S2: In a contract of a personal property the price of which is payable in installment, the vendor may cancel the sale should the vendee fail to pay. | back 23 Both are false S1: Only earnest money perfects a sale S2: The vendor may cancel the sale if the vendee fails to pay two or more installments |
front 24 Not an implied warranty in a contact of sale a. Right to sell the thing at the time of perfection of the contract b. Reasonably fit for the purpose they are required c. Merchantable in quality d. Free from charges and encumbrances not declared or known to the buyer | back 24 a. Right to sell the thing at the time of perfection of the contract |
front 25 Effected when the object of sale is already in the possession of the vendee at the time of sale so that the delivery need no longer be made is | back 25 Traditio brevi manu (short-hands delivery) |
front 26 Quasi-traditio is equivalent to a. Traditio longa manu b. Traditio brevi manu c. Traditio constitutum possessorium d. Execution of a public instrument | back 26 d. Execution of a public instrument |
front 27 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 | back 27 d. between husband and wife |
front 28 X, 17 years old, sold to Z, of legal age, her necklace worth P20,000 for P15,000. Later, Z sold the necklace to Y for P20,000. Which of the following statements is correct? A. X has got a voidable title because at the time of sale, she is a minor B. X can ask for rescission of the sale to Y because she suffered a lesion of more than ¼ of the value of the property. C. If Y is in bad faith, Y becomes the owner of the necklace upon delivery to him but his title is voidable. D. X can ask for the annulment of the sale to Y because at the time of sale she is a minor. | back 28 C. If Y is in bad faith, Y becomes the owner of the necklace upon delivery to him but his title is voidable. |
front 29 A contract of sale is not a(an) A. Onerous contract B. Accessory contract C. Commutative contract D. Bilateral contrac | back 29 B. Accessory contract *all other choices are characteristics of a contract of sale |
front 30 Warranty against hidden defects is A. An essential element B. A natural element C. An accidental element D. An artificial element | back 30 b. a natural element |
front 31 When a sale of a 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 | back 31 d. void |
front 32 The sale of an expected thing | back 32 Emptio rei speratae |
front 33 The sale of the hope itself | back 33 Emptio spei |
front 34 One of the following is not correct A. Things subject to a resolutory condition may be the object of the contract of sale. B. A thing is generic when it is particularly designated or physically segregated from all others of the same class. C. Things having a potential existence may be the object of the contract of sale. D. The sole owner of a thing may sell an undivided interest therein11 | back 34 B. A thing is generic when it is particularly designated or physically segregated from all others of the same class. *should be specific, not generic |
front 35 X needs a size of 10 of model 101 of Leather Shoes regularly available to the public for her boyfriend Z, but the same is out of stock so she placed an order for one. On the other hand, Z placed an order for size No. 8, colored violet, (something not ordinarily made by the company) to be given to X. Which is correct? A. Both are contracts of sale B. Both are contracts for a piece of work C. First is a contract of sale second is a contract for a piece of work D. First is a contract for a piece of work, second is a contract of sale | back 35 C. First is a contract of sale second is a contract for a piece of work |
front 36 Delivery by merely pointing to the object of sale if it cannot be delivered to the vendee at the time of the sale is | back 36 Traditio longa manu |
front 37 When the owner of the thing sells it to vendee, but continues to have possession or occupation of the thing not as owner but as tenant or lessee A. Traditio longa manu B. Traditio brevi manu C. Traditio constitutum possessorium D. Traditio symbolica | back 37 c. traditio constitutum possessorium |
front 38 Goods are deemed in transit A. When the buyer accepts delivery of the goods upon arrival at destination B. When the buyer intercepts and lawfully takes possession of the goods at any point before destination. C. From the time they are delivered by the seller to a common carrier or other bailee for transmission to the buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee. D. When the carrier or bailee, upon arrival of the goods at destination acknowledges to the buyer or his agent that he is holding the goods as bailee for the latter. | back 38 C. From the time they are delivered by the seller to a common carrier or other bailee for transmission to the buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee. |
front 39 Goods are deemed no longer in transit A. If the goods are rejected by the buyer for a valid reason and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back. B. From the time they are delivered to a carrier by land, water or air for the purpose of transmission to the buyer. C. From the time they are delivered to a bailee for the purpose of transmission to the buyer until the buyer or his agent in that behalf, takes delivery of them from such bailee. D. If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf. | back 39 D. If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf. |
front 40 X sold to V orally a parcel of land for P200,000. X effected the delivery of the land. The payment of the price was to be made three month later. At the end of three month period A. V may refuse to pay claiming in his defense the Statute of Frauds B. V may return the parcel of land to X C. X can collect from V because the contract has already been executed D. V may refuse to pay on the ground that there is no written contract to support the sale. | back 40 C. X can collect from V because the contract has already been executed |
front 41 On January 15, 2010, X sold for P2M her house and lot to V. It was agreed that delivery of the house and lot, and the payment therefore, would be made on March 10, 2010. Unfortunately, Z a stranger negligently set the house on fire on February 25, 2010, and the house was completely destroyed. Which is correct? A. V is not required to pay the P2M since the contract had no subject matter. B. X must still deliver the lot but is excused from delivering the house, while V must still pay the P2M C. X must deliver the lot while V should pay only the amount equivalent to the value of the lot. D. X need not deliver the lot while V need not pay the P2M | back 41 B. X must still deliver the lot but is excused from delivering the house, while V must still pay the P2M |
front 42 If immovable property should have been sold to different vendees, the ownership shall be transferred to the person A. Who have first taken possession in good faith B. Who presents the oldest title in good faith C. Who in good faith first recorded it in the Registry of Property D. Who have paid in good faith the purchase price in full | back 42 C. Who in good faith first recorded it in the Registry of Property |
front 43 if there is a double sale on a movable property, it shall belong to the person A. Who have paid in good the purchase price in full B. Who in good faith first recorded it in the Registry of Property C. Who presents the oldest title in good faith D. Who have first taken possession in good fait | back 43 d. who have first taken possession in good faith |
front 44 Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object of sale unfit for the use intended or knowledge of which the vendee should not have bought the thing A. Accion quanti minoris B. Accion reinvidicatoria C. Accion pauliana D. Redhibilitory action | back 44 d. redhibitory action |
front 45 The redhibitory action based on the faults or defects of animals must be brought within A. 30 days from delivery to the vendee B. 40 days from delivery to the vendee C. 45 days from delivery to the vendee D. 6 months from delivery to the vendee | back 45 b. 40 days from delivery to the vendee |
front 46 In contract of sale, if the price is absolutely simulated, the sale is A. Unenforceable B. Voidable C. Void D. Rescissible | back 46 c. void |
front 47 When goods are delivered to the buyer on “sale or return” for period of seven days, ownership of the goods passes to the buyer: A. Upon perfection of the contract B. Upon acceptance by the buyer of the offer of the seller C. Upon expiration of seven days D. Upon delivery of the goods | back 47 d. upon delivery of the goods |
front 48 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 | back 48 d. sale of future inheritance |
front 49 Ownership of the thing sold is 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 | back 49 B. Transferred to the buyer upon constructive or actual delivery of the thing sold |
front 50 A contract of sale is in the stage of conception when A. There is meeting of the minds B. Negotiations are in progress C. The parties come to an agreement D. The contract is perfec | back 50 B. Negotiations are in progress |
front 51 I. Should the vendee’s failure to pay, cover two or more installments, the vendor may foreclose the chattel mortgage on the thing sold but he shall have no further action against the purchaser to recover any unpaid balance of the price, except if there is an agreement to the contrary. II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are fa | back 51 A. First statement is true, second statement is false. |
front 52 I. The ownership of the thing sold shall be transferred to the vendee upon perfection of the contract. II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promissory. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are false | back 52 d. both statements are false |
front 53 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. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are false | back 53 d. both statements are false |
front 54 I. If the animal sold should die within three (3) days after its purchase, the vendor shall be liable to the vendee. II. The fixing of the price can never be left to the discretion on one of the contracting parties. However, if the price fixed by one of the parties is accepted by the other, the sale is perfected. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are false | back 54 B. First statement is false, second statement is true. |
front 55 I. Option money is considered as part of the purchase price while earnest money is not. II. The Maceda Law refers to the sale of personal property by installments while the Recto Law refers to the sale of real property by installments. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are fals | back 55 d. both statements are false |
front 56 One of the distinctions between pledge and mortgage is that
pledge: | back 56 d. requires the actual delivery of the thing given as security to the creditor or a third person by common agreement. |
front 57 In order to bind third persons, a pledge: b. must be in a public instrument showing a description of the
thing pledged and the date of c. is sufficient that it be in a private instrument showing a
description of the thing pledged d. must be accompanied by an affidavit of good faith. | back 57 b. must be in a public instrument showing a description of the thing
pledged and the date of |
front 58 The following is required in order that a chattel mortgage will bind
third persons. | back 58 a. The chattel mortgage must be accompanied by an affidavit of good
faith and recorded in |
front 59 The following is required in order that a real mortgage will bind
third persons. | back 59 d. The real mortgage must be recorded in the Registry of Property. |
front 60 When is appropriation by the creditor of the thing given as security
allowed in pledge, real | back 60 b. When the thing given as security in pledge is not sold at two public auctions. |
front 61 This is a stipulation in pledge or mortgage providing that the
ownership of the thing given as b. Pactum commissorium c. Legal subrogation d. Redemption | back 61 b. Pactum Commissorium |
front 62 D borrowed P30.000.00 from C. To secure the debt, D pledged his ring,
wristwatch, and necklace. Before the debt could be paid, C died
leaving X, Y and Z as heirs. By agreement among the heirs who
inherited the credit, the ring would secure the share of X of the
credit, the wristwatch the share of Y, and the necklace the share of
Z. Later, D pays X P10,000.00. b. X may release the pledge of the ring. c. The pledge of the ring will remain until the shares of Y and Z are paid by D. d. D can demand the extinguishment of the pledge of the ring,
wristwatch and necklace | back 62 c. The pledge of the ring will remain until the shares of Y and Z are paid by D. |
front 63 The following may be the object of pledge, except: | back 63 d. parcels of land |
front 64 A kind of mortgage which lacks the formalities required by law but
nevertheless shows the intention of the parties to secure a debt with
real property is known as: b. voluntary mortgage. c. equitable mortgage. d. legal mortgage. | back 64 c. equitable mortgage. |
front 65 The debtor/pledgor has the following rights, except to: | back 65 d. alienate the thing pledged without the consent of the pledgee. |
front 66 The creditor/pledgee has the following rights, except to: | back 66 d. automatically appropriate the thing pledged upon default of the
debtor in the payment of |
front 67 On March 1, 2014, D obtained a loan of P10,000.00 from C. To secure
the debt which is payable on May 1, 2014, D pledged a promissory note
amounting to P12,000.00 which was | back 67 b. On April 25, 2014, C can collect the note of P12,000.00 from M. However, he must give P2,000.00 to D. |
front 68 A third person who pledges his property to secure another person's
debt is released from liability in the following cases,
except: | back 68 c. if an extension of time is granted to the debtor by the creditor with the pledgor's consent. |
front 69 A pledge is extinguished through any of the following,
except: | back 69 b. appropriation of the thing pledged after the thing is not sold at one public auction. |
front 70 D pledged his 100 shares of stock of San Miguel Corporation to C to
secure his debt of P5,000.00. On due date, D was not able to pay the
debt, so C caused the sale of the shares at public auction. The shares
of stock were sold at P4,500.00. b. To extinguish the obligation, C may recover the deficiency even if there is no stipulation to that effect. c. The obligation is extinguished even if there is a deficiency of P500.00. Accordingly, C can no longer recover the deficiency. d. The obligation is extinguished only if the proceeds of sale amount to P5,000.00 or more. | back 70 c. The obligation is extinguished even if there is a deficiency of P500.00. Accordingly, C can no longer recover the deficiency. |
front 71 This refers to the right of a person to retain a thing until he
receives payment of his claim in the cases provided by
law such as one who has executed work on a
movable. b. Voluntary pledge. c. Legal pledge. d. Chattel Mortgage. | back 71 c. Legal pledge. |
front 72 One of the following may not be the object of a real
mortgage: b. Fertilizer actually used on a piece of land. c. Animal houses, pigeon houses or other breeding places intended by the owner to be permanently attached to the land, including the animals therein. d. Growing fruits that have been gathered from trees planted on land. | back 72 d. Growing fruits that have been gathered from trees planted on land. |
front 73 D borrowed P100,000.00 from C. To secure the debt, D mortgaged his
land and building in favor of C. The mortgage is registered with the
Registry of Property. Sometime later, D sold the land and building to
X who was not aware of the mortgage of the land and
building. b. X was not bound by the mortgage because he was not aware of it. c. If C forecloses the mortgage and the proceeds of the foreclosure sale are not enough to pay for the debt, C can recover the deficiency from D. d. If C forecloses the mortgage and the proceeds of the
foreclosure sale exceed the | back 73 b. X was not bound by the mortgage because he was not aware of it. |
front 74 It is the right of the mortgagor to redeem the property that
was mortgaged after it was sold. b. Right of redemption. c. Right of subrogation. d. Right of pre-emption | back 74 b. Right of Redemption |
front 75 A chattel mortgage may have the following as object, except: | back 75 d. floating docks and structures which are intended by their nature and object to remain at a fixed place on a river, lake or coast |
front 76 D borrowed P50,000.00 from C. The obligation bears interest of 10%
per annum. To secure the debt, D agreed with C that the fruits from
the agricultural lot of D shall answer for the interest and the
principal obligation. Assuming the form required by law was complied
with, the contract entered into between D and C for the application of
the fruits of the lot to the interest and principal obligation is
known as: b. pledge. c. real estate mortgage. d. chattel mortgage. | back 76 a. antichresis |
front 77 A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B and the balance at P10,000 per month until full payment of the purchase price. Later the car gets burned in the possession of B through fortuitous event and without B’s fault, before full payment of the balance. Is B obliged to pay the balance? A. No, because the car was lost through fortuitous event and without B’s fault, hence B’s obligation is extinguished. B. No, because the loss should be borne by the seller as this an installment sale so until the buyer pays the full amount of the price of the sale, A remains to be the owner. C. Yes, but A must give another car to B because of the principle “genus nunquam perit” or generic thing never perishes D. Yes, because the principle “res perit domino” or the thing perishes with the owner | back 77 D. Yes, because the principle “res perit domino” or the thing perishes with the owner |
front 78 X sold her specific car to V for P200,00 payable in 5 equal installments. X delivered the car to V but a mortgage was constituted on the car to answer for the unpaid installments. V paid the first 2 installments but failed to pay the last 3 installments. X foreclosed the mortgaged property and sold it at public auction for P100,000. Which is correct? A. X can recover from V the balance of P20,000 even if there is no stipulation to that effect B. X can recover from V the balance of P20,000 if there is stipulation to that effect C. X cannot recover the deficiency except if there is stipulation to that effect D. X cannot recover the deficiency even if there is stipulation to the contrary | back 78 D. X cannot recover the deficiency even if there is stipulation to the contrary |
front 79 X leased to V a 5 Freezer for two years at a lease rental fee of P1,000 per month and signed an option in favor of V to buy the freezers at the end of the term of the lease at P50,000. All rental fee paid are to be considered as partial payment of the sale. After 12 months V was able to pay the rental fee for 9 months and was in arrears for three months. X terminated the lease contract and repossessed the freezers. The consequence of the transaction is A. X can collect the rental fees for three months which are in arrears. B. X can collect the rental fees for the unexpired 12 months of the lease contract. C. When X took possession of the freezer, he has no further action against V D. X in terminating the lease and repossessing the freezer is obliged to refund the 9 months rental fee, paid by V even if there is a stipulation to the contrary | back 79 C. When X took possession of the freezer, he has no further action against V |
front 80 I. The expenses for the execution and registration of the sale shall be borne by the vendee, unless there is a stipulation to the contrary. II. If the same thing should have been sold to different vendees the ownership shall be transferred to the person who may have taken possession thereof in good faith | back 80 True, False |
front 81 For its validity, a contract with antichresis: | back 81 a. must be in writing, whether public or private. |
front 82 D pledged his computer to secure a loan which he obtained from C. The
debt which amounts to P10,000.00 is due after 60 days. Before the due
date, C executed an instrument Based on the foregoing, which is false among the four
statements? | back 82 a. I and III |
front 83 In a contract of pledge, the pledgee/creditor may do the following,
except to: | back 83 c. ask for a substitute if he was deceived on the substance or quality of the thing pledged. |
front 84 The following are the characteristics of a chattel mortgage, except: a. the mortgagor must be the absolute owner of the property mortgaged. b. it is an accessory contract. c. it involves movable or immovable property. d. the deed of chattel mortgage must be accompanied by an affidavit of good faith to be binding against third persons | back 84 c. it involves movable or immovable property. |
front 85 The following elements are common in both pledge and mortgage,
except: | back 85 b. the property on which the security is constituted must be delivered to the creditor. |
front 86 In the sale of the thing pledged at public auction, which of the
following statements is incorrect? | back 86 b. The pledgee can appropriate the thing pledged if it is not sold at the first public auction. |
front 87 Which of the following is a similarity of chattel mortgage and
pledge? | back 87 b. The object of the contract is a movable property. |
front 88 D borrowed 100,000.00 from C. The loan is secured by a mortgage of
T's lot. On due date, D was unable to pay. Accordingly, C foreclosed
the mortgage on the lot and during the public auction, the lot was
sold for P90,000.00. | back 88 a. C can recover the deficiency from D. |
front 89 Consider the following cases: II. D bought a car for P360,000.00 from C. The price, which is payable in 12 equal monthly installments of P30,000.00, is secured by a chattel mortgage on the car. After paying 2 installments, D defaults in the payment of 3 installments. C forecloses the chattel mortgage and the car is sold at the public auction for P280,000.00. The deficiency is recoverable in: b. I only. c. II only. d. No deficiency is recoverable in both I and II. | back 89 d. No deficiency is recoverable in both I and II. |
front 90 D pledged his diamond ring and gold watch to C to secure a debt of
P10,000.00. | back 90 d. If C renounces the pledge in writing, the pledge is extinguished although C continues to possess the ring and the watch. |
front 91 Alpine Corporation obtained a loan amounting to P1,000,000.00 from
Eastern Bank. To secure the obligation, P, the president of Alpine,
mortgaged his own building in favor of the bank. The contract of loan
and deed of mortgage have been signed by the parties but have | back 91 b. P may validly mortgage his own property to secure the obligation of Alpine to the bank. |
front 92 Pledge and real mortgage are similar in what respect? | back 92 d. The fact that third persons may pledge or mortgage their property
to secure another |
front 93 D obtained an interest-bearing loan from ABC Bank amounting to
P100,000.00. To secure the obligation, D mortgaged his building to ABC
Bank. As added requirement of the loan, a fire insurance on the
building was also obtained by D with ABC Bank as beneficiary. Before
the due date of the loan, the building was razed by fire. | back 93 c. The proceeds of the insurance policy will be the new security of the loan obligation which will subsist. |
front 94 D borrowed P20,000.00 from C. To secure the obligation, D pledged his
ring to C. Before the due date, C executed a public instrument stating
that he was abandoning the pledge and informed D about it. In the
meantime, the ring remained in the possession of C. b. C must return the ring to D to extinguish the pledge. c. D's loan obligation is extinguished by reason of the abandonment of the pledge. d. The pledge of the ring is extinguished although D does not
accept the renunciation or | back 94 d. The pledge of the ring is extinguished although D does not accept
the renunciation or |
front 95 To bind third persons, the following contracts must comply with
certain b. I and II are true. c. I and III are true. d. II and III are true. | back 95 d. II and III are true |
front 96 As a general rule, any deficiency in the foreclosure sale may be
recovered in the following b. real mortgage. c. conventional pledge. d. antichresis. | back 96 conventional pledge |
front 97 As a general rule, in case of excess of the proceeds of the
foreclosure sale over the creditor's claim, the excess shall belong to
the creditor in: b. real mortgage. c. conventional pledge. d. antichresis. | back 97 conventional pledge |
front 98 D contracted the services of T, a tailor, to sew D's pair of pants
with D providing the cloth for the purpose. The parties agreed that
T's labor shall be P500.00. The security that T holds for the payment
of the labor agreed upon is in the nature of: b. legal pledge. c. conventional pledge. d. antichresis. | back 98 b. legal pledge [the right of a person to retain a thing until he receives payment of his claim] |
front 99 D obtained a loan of P5,000.00 from C. The obligation is secured by a
pledge of D's ring which he delivered to C. Both the loan and the
pledge were in a private instrument. While the loan was outstanding, D
sold the ring through a public instrument to X who was not aware of
the pledge. Under the deed of sale, D obliged himself to deliver the
ring physically to X after a week. Before X could obtain actual
delivery of the ring, he learned that D had earlier pledged the same
and that C was selling the ring in a public sale because of D's
default in the payment of his debt. | back 99 b. X is not bound by the pledge made by D to C. |
front 100 When the thing pledged is in danger of deterioration or impairment
without the fault of the | back 100 b. Pledgee |