LAW ON SALES

REVIEW QUESTIONS FOR FIRST EXAMINATION

1. A offered to sell his lot to B for P100,000. In his offer to sell it was stated that he is given 60 days to prepare the
P100,000 and as soon as B is ready with the money, A will execute a deed of sale. Before the end of 60 days, A
informed B that price of the lot was increased to P120,000. May B, compel A to accept P100,000 offered previously
by A and make him execute the deed of sale?
A. Yes, because A already signed his offer
B. No, For B never signified his acceptance of A’s offer.
C. Yes, because there was actual meeting of minds of the parties
D. Answer not any of the above.

2. Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten (10) days Mrs. Pat will
name and fix the price. On the tenth (10th) day, Mrs. Pat called up by telephone Mrs. Go and stated the price at
P10,000. Mrs. Go agreed. IS the sale perfected?
A. Yes, the price stated and named by one of the contracting parties was accepted by the other.
B. No, at the time of the sale the price was not fixed.
C. No, the price was left to the discretion of one of the parties
D. No, at the time of the sale the price is not known.

3. Three (3) of the following are option money. Which is the earnest money?
A. Given when contract of sale is perfected.
B. Given when there is no contract of sale.
C. Given to bid the offer or in a unilateral promise to sell or to buy.
D. Given as a separate consideration from purchase price.

4. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time:
A. The obligation to deliver the thing sold arises
B. The sale is perfected
C. The thing sold is delivered
D. The fruit of the thing sold is delivered.

5. Which of the following may not be the object of sale?

A. Things having potential existence
B. The sale of a vain hope or expectancy
C. Future goods
D. Answer not given.

6. Mr. Mar orders for his workers 1,000 pieces of T-shirt ranging in size from small to large from RDG Garments Mfg.
Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to its
sales outlets regularly. The contract entered into by Mr. Mar with the RDG Garments Mfg. Corp. is a:
A. Contract for a piece of work.
B. Contract subject to a resolutory condition
C. A contract of sale
D. Answer not given

7. A Seller sold to a Buyer a piece of jewelry at a price of P20,000. The contract provides that the Buyer will pay Seller
a micro wave oven worth P5,000. What is the nature of the contract?
A. Sale
B. Partly sale and partly barter
C. Barter
D. Commodatum

8. Mr. A. Abad signed a letter addressed and delivered to Mr. B. Baje. The terms of the letter are:

i. An offer to sell a 500 sq.m. lot for P300,000

ii. An option time up to October 31, 2010 for Mr. Baje to raise the P300,000
iii. Upon payment of the P300,000, Mr. Abad will execute and sign a Deed of Sale
iv. On October 31, 2010, Mr. A Abad sent a letter to Mr. B. Baje asking for a new price of P350,000 for the 500 sq.
m. lot.
 Can Mr. B. Baje compel Mr. A. Abad to accept the P300,000 and make him sign and execute a Deed of Sale?
A. No, Mr.B. Baje did not accept the offer of Mr. A. Abad
B. Yes, Mr. A. Abad is already stopped by his sighing the letter and offer.
C. Yes, there was actual meeting of the minds.
D. Yes, the contract is perfected.

9. A characteristic of the Contract of Sale which involves exchange of value, it is

A. Commutative
B. Nominate
C. Bilateral
D. Consensual

10. A appoints B to sell his land

Example 1. If the authority of B is oral and B sells the land in writing. The sale is valid.
Example 2. If the authority of B is in writing and B sells the land orally. The sale is unenforceable.
A. Both examples are true
B. Both examples are false
C. First example is true, but the second example is false
D. First example is false but the second example is true

11. Which of the following is not a characteristic of Sale?

A. Bilateral
B. Gratuitous
C. Consensual
D. Nominate

12. Which of the following statements is true and correct?

A. In a Contract of Sale, the full payment of the price is in the nature of a suspensive condition in that the seller
is obligated to transfer ownership of the thing sold.
B. The seller need not be the owner of the thing sold at the perfection of the sale.
C. There may be a transfer of ownership over the thing even if the seller has not delivered the thing sold to the
buyer.
D. In a Contract of Sale, the buyer becomes the owner of the thing sold upon full payment of the purchase price.

13. A and B are good friends. A sold and delivered his car to B. It was agreed and understood that on the next Sunday
A will name and fix the price of the car. Sunday came. A called B by phone and stated and fixed the price at
P150,000. Is the sale perfected?
A. Yes. The price was stated and fixed on the date agreed upon.
B. No. The price was left to the discretion of the seller.
C. No. at the time of the sale, the price is not fixed.
D. No. The price fixed by the seller was not accepted by the buyer.

14. A sells to B for P25,000 all the mango fruits to be harvested from the mango orchard which A plans to buy.
Statement I - The sale is valid because the mango fruits have potential existence.
Statement II - The sale is valid because the object of the contract need not exist at the time of the contract.
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

15. I. A promise to buy and sell a determinate thing for a price certain is reciprocally demandable.
II. An accepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the
promisor if the promise is supported by a consideration distinct from the price.
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

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. Warranty against hidden defects is

A. An essential element
B. A natural element
C. An accidental element
D. An artificial element

18. 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

19. 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 therein

20. 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

21. V offered to sell for P12,000,000 her house and lot to DD who was interested in buying the same. In her letter to
DD, V stated that she is giving DD a period of one month within which to raise the amount and that as soon as DD
is ready, they will sign the deed of sale. Five days before the expiration of the one month period. V went to DD and
told her that she is no longer willing to sell the property unless the price in increased to P15,000,000. Which is
correct?
A. DD may compel V to accept the P12,000,000 first offered.
B. V may compel DD to pay P15,000,000
C. V and DD should shoulder the P3,000,000 difference
D. DD cannot compel V to accept the P12,000,000 first offered

22. If the object of the contract is specially made or manufactured at the specific order of another, it is a contract for
a piece of work. This is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule

23. If the article already exists and subsequently acquired by another, it is a contract of sale, and if the article is still
to be manufactured at the instance of another, it is a contract for a piece of work. This is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule

24. If the material used in the manufacturer of the article is more valuable, it is a contract of sale, and if the labor or
skill is more valuable than the material used in the manufacture of the article, it is a contract for a piece of work.
This is
A. English rule
B. Massachusetts rule
 C. New York rule
D. Chicago rule

25. The rule observed in the Philippines is

A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule

26. In contract of sale, if the price is absolutely simulated, the sale is

A. Unenforceable B. Voidable C. Void D. Rescissible

27. After the death of C, A, C’s son, sold his inheritance though 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

28. A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered at Z’s
store in Cainta Market. The price is
A. Not certain because the price at Cainta Market is not stated
B. Certain because it has got reference to another thing which is certain
C. Certain because there is a price ceiling for price of land
D. Not certain so court may fix the price

29. X sold his motor vehicle to V who bought it for P200,000. It turned out however, that X 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 X and V
B. The parties may ask for interpretation or reformation
C. The parties can ask for annulment of the contract
D. V may choose between the Toyota or Lancer

30. I. 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.
II. The sale of a vain hope or expectancy is voidable.
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

31. Three of the following are characteristics of a contract of sale. Which one is the exception?
A. Onerous contract
B. Accessory contract
C. Commutative contract
D. Bilateral contract

32. Which of these is not a requisite of the object in a contract of sale?

A. That the object be determinate.
B. That the object be licit or lawful.
C. That the seller must already be the owner of the object at the time of the sale.
D. That the object should not be beyond the commerce of man.

33. S and B entered into a contract whereby S transferred to B a specific car for the price of P500,000, while B gave to
S P150,000 in cash and a Truck worth P350,000. The heading of the written contract signed by the parties reads
"Contract of Sale".
A. The contract is void because the intention of the parties is void since the value of the Truck is more than the
monetary consideration given.
B. The contract is a valid contract of sale as intended by the parties regardless of whether the monetary
consideration is more or less than the value of the property consideration.
 C. The contract is a valid contract of barter since the value of the property given is more than the monetary
consideration. The intention of the parties is immaterial.
D. The contract is partly a contract of sale and partly a contract of barter.

34. The following items pertain to either a contract of sale or a contract to sell.
I. The ownership of the thing sold is transferred to the buyer upon delivery.
II. The ownership of the thing sold is transferred to the buyer some future time.
III. The risk of loss is on the buyer upon delivery.
IV. The risk of loss is on the seller upon delivery.
Based on the above data, which of the following is correct?

A. Items I and III pertain to a contract to sell.

B. Items II and III pertain to a contract to sell.
C. Items II and IV pertain to a contract of sale.
D. Items I and III pertain to a contract of sale.

35. S hoe factory produces shoes for the general market of “Excellent shoes” from the size of 6 up to 12. Mr. Carlito
went to the shop of Shoe factory and for a particular size of 8 ½ excellent shoes but the same was not available at
present. He then places an order for five units to be delivered one week after. The contract is one of:
A. Sale B. Agency to buy C. Piece of work D. Agency to sell

36. In contract of sale, if the money paid is counterfeit, would the sale be still valid?
A. Yes, because the real consideration or cause is still the value or price agreed upon.
B. No, because there is no consideration since the money paid is counterfeit.
C. No, because this is an absolutely simulated contract and therefore void.
D. Yes, but this can be annulled on the ground of lack of consideration.

37. Unaccepted unilateral promise or offer to sell or buy a thing:

A. Policitation B. Caveat emptor C. Precarium D. Res ipsa loquitor

38. Which of these is an example of emptio spei?

A. Sale of a lottery ticket.
B. Sale of vine which be produced from a particular vineyard.
C. Sale of sugar which will be produced from the sugarcane of a particular field.
D. Sale of mangoes which will be harvested at some future time from a particular orchard.

39. Consideration in sale:

1st- If the price is grossly inadequate the contract of sale is affected. And if the price is absolutely simulated the
contract is void.
2nd- The fixing of the price can never be left to the discretion of one of the parties. However, it may be fixed by a
third person.

A. Both are True

B. 1st is True; 2nd is False
C. Both are False
D. 1st is False; 2nd is True

40. The following statement pertain to either emptio rei sperati or emptio spei.
I. Sale of hope or expectancy.
II. Sale of a present thing.
III. Sale of a future thing.
IV. The thing sold must come into existence.
Based on the above information, which of the following is correct?

A. Items I and II pertain to emptio spei

B. Items II and III pertain to emptio spei.
C. Items II and III pertain to emptio rei sperati.
D. Items III and IV pertain to emptio spei

---END OF MODULE---