Vencint C.

Laran BSA 2-B

SAINT JOSEPH COLLEGE

REGULATORY FRAMEROWRK AND LEGAL ISSUES IN BUSINESS PART
1
PRE-FINAL EXAMINATIONS COVERING SALES

Since this exam will be given online, you are required to turn-over your answer
sheet, preferably in word or other downloadable app form, after one-hour and 30
minutes. Please do not send me pictures of your answers and do not forget to use
your family name as well as your section as your file name. You can send them to
me via email or via private message.

Essay which is 5 points each question requires explanation. No explanation, no

credit points.

Honestly is still the best policy.

I. IDENTIFICATION

1. A contractual right given to a person to be first person allowed to

purchase a certain object if it is ever offered for sale.
Right of First Refusal
2. The right which the vendors reserves to himself to reacquire a
property previously sold
Right of Conventional Redemption
3. One which lacks the formalities of a mortgage but shoes the intention
of the parties to make the property as security
Equitable
4. It grants privilege to buy and sell within an agreed time and a
determined price
Options Contracts
5. This happens when property is alienated to the creditor in satisfaction
of a debt in money in favour of the creditor.
mortgage
Vencint C. Laran BSA 2-B

6. An action that shows a party’s intention to fail to perform or fulfil its

contractual obligations to another party breach of contract
7. It is the unmaking of a contract between parties. Extinguishment of
sale
8. Includes one who has received as conditional payment for the goods a
negotiable instrument but the condition has been broken by reason of
the dishonour of the instrument of the insolvency of the buyer unpaid
seller
9. The right to be subrogated upon the same terms and conditions
stipulated in the contract legal redemption
10. Warranty that goods e reasonably fit for the general purpose to which
they are sold
implied warranty

II. ENUMERATION
1. X offered to A his car for P500,000.00 Although A like the car, he does not
have the P500,000 to pay it off. Instead, A offered to give X P5,000 today
to suspend offering the car for sale to other interested buyers up to May 31,
2020. Is the P5,000 part of the purchase price? Explain?

No the P5,000 IS NOT PART pf the purchase price because this can be
considered as Option Money because although an offer was floated
there was still no Sale made.

2. X sells various essential merchandise with his business located at Tacloban

City. A bought various merchandise from X, FOB Destination. While the
merchandise were in transit, A obtained possession of the goods while it was
still in Inopacan, Leyte. On the same day, X learned that A was already
insolvent. In the foregoing instance, can X serious his right to stoppage in
transitu?

No X cannot exercise his right because the Buyer has already lawfully
obtained his goods in Inopacan and it overrides the right of Stoppage in
Transitu.
Vencint C. Laran BSA 2-B

3. X bought a real property from A with an area of 200 square meters at P1,000
per square meter. A few months after the sale, X had the property surveyed
and it was then that he found out that the actual area of the property he
purchased is only 195 square meters. Can X rescind the sale?

He can but since the area was just deficient by less than 1/10 of the Price the
more appropriate thing to do is ask for a reduction of Price.

4. A was looking for a business bag which would fit a standard folder they
used at work. B advertised a bag which matches A’s needs and A bought
such bag. Later, A found out that folder on which he intended the bag will
be used for does not fit on said bag. A interposed that the vendor violated
his right against hidden defects because the fact that the folder would not fit
in the bag diminishes the fitness for such use to such extent that A would not
have acquired it had he been aware thereof. Did B violate the vendor’s
warranty against hidden defects?

No B did not violate it because I think A must have known of the defect
since he uses the bag for his work.

5. A purchased from B certain goods which amounted to P500,000. After the

delivery of the goods to the warehouse of A, B learned that A does not have
the full capacity to pay full price of the goods. B does exercised his
possessory lien on the goods. Later, A paid B P250,000. Upon A’s
payment, is the lien already lifted?
No partial payment does not destroy or lifts lien.
6. IN problem 5 above, A paid P250,000 cash and the balance, he issued a
check. Will there be an effect on the lien?.
Until such check is incashed the Lien still subsists .
7. A sold a bulldozer to B for P1,000,000. B paid P500,000 upon delivery and
the balance to be paid 30 days after. B did not claim the goods and also did
not pay the balance. AS such, A was forced to sell the bulldozer to C for
P300,000.00

a) Is B liable for the difference of P200,000?

Yes B is liable since he was the reason why A had to sell the
bulldozer at a lower price.
Vencint C. Laran BSA 2-B

b) How about if A sold the bulldozer for P1,000,000. Can B share in the
profit?
No B cannot share in the profit because as the old buyer he does not
have a right to share in such profits

8. A, B and C are co-owners of a parcel of land located in Asuncion,

Macrohon, Southern Leyte. A sold his share to the land to C. Can B
exercise his right of redemption? No because C is also an owner

9. Suppose in Problem 8 above, A sold his share to X. Can B exercise right of

redemption?

Yes because as a co -owner B has a right to redeem the land .

10.Pedro intended to build a factory and expand his business. He offered to buy
Maria’s 500 square meter property at P10,000 per square meter. The sale
pushed through but six months later, Pedro was evicted of 100 square meters
of the land. Pedro would not have bought the land had he known that he
could not use all the 500 square meters. What remedies are available to
Pedro?

Recession of the contract or enforcement of the vendor’s liability since Pedro

experience partial eviction.

11.Pedro bought two carabaos from Juan for P5,000 each. Should one carabao
be defective, can Juan refuse to accept the other one?
Yes Juan can because those re Fungible goods and the defectivity of one can
cancel the whole.

12.Pedro sold his ipad to Maria. When is Pedro bound to deliver?

Pedro is bound to deliver either when the parties stipulate when to deliver or
Pedro can deliver right away since the obligation to deliver happens after
perfection.
Vencint C. Laran BSA 2-B

13.Pedro sold to Maria for lump sum his land with an area of 300 square meters
for P300,000. Subsequently, it was ascertained that the actual area is 400
square meters. What are the obligations of Pedro?
Perdro has to give all within the boundaries of the land to Maria even
though it is less or more .

14.In the problem above, would you answer be the same if the land was not
sold for lump sum but at P1,000 per square meter?
No Pedro still has to give the land as prescribed in the contract if Maria
elects to chose such action for Pedro

III. Modified True or False. Should your answer be False, State the correct
statement. Two (2) points each.

1. Redhibitory action has to be brought within forty (40) days from date of
delivery of the animal to the vendee. True
2. Warranty against eviction applies in judicial sale. True
3. Conventional Redemption is the right reserved by a third person to reacquire
the property sold. False reserved to a vendor
4. Servitude can be imposed on both movable and immovable object. False
Immovables only
5. Legal redemption arises from the voluntary agreement of the parties.
Involuntary
6. Payment by negotiable instrument completes the obligation of the buyer.
False Cash or its equivalent
7. All the fruits shall pertain to the vendee from the day on which the contract
was perfected. True
8. A contract of sale may be absolute or conditional. True
9. Co-owners does not have a right of redemption against each other. True
10.The co-owner who redeems a property in its entirety becomes the sole owner
thereof. True