BUSS LAWS & REGULATIONS

1. Part of Purchase Price ; Given only where there is a sale ; When earnest money is
given, buyer is bound to pay the balanceSingle choice.
(2/2 Points)
EARNEST MONEY
OPTION MONEY
AUCTION MONEY

Correct answers: EARNEST MONEY

2.Those which are deemed to exist in certain contracts, in the absence of any contrary
stipulations like warranty against eviction or hidden defects .Single choice.
(2/2 Points)
CONTRACT OF SALE
NATURAL ELEMENTS
ARTIFICIAL ELEMENT

Correct answers: NATURAL ELEMENTS

3.A contract whereby one of the parties (called the seller or vendor) obligates himself
to deliver something to the other (called the buyer or purchaser or vendee) who, on
his part, binds himself to pay therefore a sum of money or its equivalent.Single choice.
(2/2 Points)
CONTRACT OF AGENCY
CONTRACT OF SALE
CONTRACT OF CREDITS

Correct answers: CONTRACT OF SALE

4.Goods of which any unit is, from its nature or by mercantile usage, treated as the
equivalent of any other unit such as grain, oil, wine, gasoline, etc.Single choice.
(2/2 Points)
DETERMINATE GOODS
FUNGIBLE GOODS
PARTICULAR GOODS

Correct answers: FUNGIBLE GOODS

5.Sale contemplates a contingency and in general where the contract is subject to
certain conditions, usually the full payment of the purchase priceSingle choice.
(2/2 Points)
CONDITIONAL SALE
UNCONDITIONAL SALE
DESCRIPTIONS SALE

Correct answers: CONDITIONAL SALE

6. Applies to a sale not yet perfected; Would-be-buyer is not required to buy when he
gives option money; and Money given as distinct consideration for the option
contract.Single choice.
(2/2 Points)
OPTION MONEY
EARNEST MONEY
AUCTION MONEY

Correct answers: OPTION MONEY

7.Occurs where a seller sells things as being of a particular kind, the buyer not
knowing whether the seller’s representations are true or false. o Note: If the bulk of
the goods delivered do not correspond with the description, the contract may be
rescindedSingle choice.
(2/2 Points)
SALE ON CONSIGNMENT
SALE WITH CONDITIONS
SALE BY DESCRIPTION

Correct answers: SALE BY DESCRIPTION

8.Thing sold is conveyed in consideration of price and vice versa .Single choice.
(2/2 Points)
GRATUITOUS
ONEROUS
NOMINATE

Correct answers: ONEROUS

9.It does not depend for its existence and validity upon another contract.Single choice.
(2/2 Points)
 PRINCIPAL
AGENT
INTERMEDIARY

Correct answers: PRINCIPAL

10.The thing sold is considered the equivalent of the price paid and vice versa .Single
choice.
(2/2 Points)
COMPARATIVE
ACCUMULATIVE
COMMUTATIVE

Correct answers: COMMUTATIVE

11.Contracts of sale that must NOT be in writing to be enforceable by court action

(Under Statute of Frauds): such as the following: Sale of personal property at a price
not less than P500 Sale of real property or an interest therein regardless of the price
involved Sale of property not to be performed within a year from the date thereof
regardless of the nature of the property and the price involved.Single choice.
(2/2 Points)
TRUE
FALSE

Correct answers: FALSE

12.Things which are needed for sustenance, dwelling, clothing and medical
attendance, in keeping with the financial capacity of the family of the incapacitated
person.Single choice.
(2/2 Points)
COMPROMISE
NECESSARIES
PARTICULAR

Correct answers: NECESSARIES

13.People who may enter into a contract of sale - As a general rule, all persons,
whether natural or juridical, who can bind themselves by contract have also legal
capacity to buy and sell.Single choice.
(2/2 Points)
 TRUE
FALSE

Correct answers: TRUE

14.Relative incapacity of husband and wife - Husband and wife are prohibited from
selling property to each other .Single choice.
(2/2 Points)
TRUE
FALSE

Correct answers: TRUE

15.Goods identified and agreed upon at the time a contract of sale is made.Single
choice.
(2/2 Points)
FUNGIBLE GOODS
SPECIFIC GOODS
PARTICULAR GOODS

Correct answers: SPECIFIC GOODS

16.Its consideration is made up of several parts .Single choice.

(2/2 Points)
INDIVISIBLE CONTRACT
DIVISIBLE CONTRACT
JOINT AND SEVERAL CONTRACT

Correct answers: DIVISIBLE CONTRACT

17.Mode of legal delivery which happens when the vendee has already the possession
of the thing sold by virtue of another title as when the lessor sells the thing leased to
the lessee.Single choice.
(2/2 Points)
SALE OR RETURN
TRADITIO BREVI MANU
TRADITION

Correct answers: TRADITIO BREVI MANU

18.A contract by which property is sold but the buyer (who becomes the owner of the
property on delivery), has the option to return the same to the seller instead of paying
the price. o Option to ‘sale or return’ rests on the buyer .Single choice.
(2/2 Points)
RETURN OR SALE
TRADITION
TRADITIO BREVI MANU

Correct answers: RETURN OR SALE

19.A derivative mode of acquiring ownership by virtue of which one who has the right
and intention to alienate a corporeal thing, transmits it by virtue of a just title to one
who accepts the same .Single choice.
(2/2 Points)
TRADITIO BREVI MANU
TRADITION
SALE OR RETURN

Correct answers: TRADITION

20.A defect in the article sold against which defect the seller is bound to warrant o
Defect must be hidden.Single choice.
(2/2 Points)
FACTORY DEFECT
HIDDEN DEFECT
REDHIBITORY DEFECT

Correct answers: REDHIBITORY DEFECT

21.Seller guarantees that the thing sold is reasonably fit for the known particular
purpose for which it was acquired by the buyer. If bought by description, it should be
reasonably fit on its merchantable quality.Single choice.
(2/2 Points)
IMPLIED WARRANTY OF FITNESS
CAVEAT VENDITOR
EVICTION

Correct answers: IMPLIED WARRANTY OF FITNESS

22.Judicial process whereby the vendee is deprived of the whole or part of the thing
purchased by virtue of a final judgement based on a right prior to the sale or an act
imputable to the vendor.Single choice.
(2/2 Points)
IMPLIED WARRANTY OF FITNESS
CAVEAT VENDITOR
EVICTION

23.Doctrine that states that the vendor is liable to the vendee for any hidden faults or
defects in the thing sold, even though he was not aware thereofSingle choice.
(2/2 Points)
IMPLIED WARRANTY OF FITNESS
CAVEAT VENDITOR
EVICTION

24.An action whereby a buyer accepts the goods and set up the seller’s breach to
reduce or extinguish the price.Single choice.
(2/2 Points)
RELINGUISMENT
RECOUPMENT
REIMBURSEMENT

Correct answers: RECOUPMENT

25.An action when there is a breach of contract that cancels the contract of sale by
returning or offering the return of the goods and recover the priceSingle choice.
(2/2 Points)
RECOUPMENT
RECESSION
RESCISSION

Correct answers: RESCISSION

26.EXPLAIN THE CONSEQUENCES WHEN THE THINGS IS LOST IN THE POSSESSION

OF THE OWNER.Single line text.
(10/10 Points)

Correct answers: Risk of loss by fortuitous event after perfection but before delivery o Borne by the buyer (as an exception
to the rule of res perit domino)
“The thing is lost to the owner. This phrase is used to express that when a thing is lost or destroyed, it is lost to the person wh
o was the owner of it at the time. For example, an article is sold; if the seller have perfected the title of the buyer so that it is h
is, and it be destroyed, it is the buyer's loss; but if, on the contrary, something remains to be done before the title becomes v
ested in the buyer, then the loss falls on the seller. ”
27.DISTINGUISH BETWEEN CONTRACT OF AGENCY AND CONTRACT OF SALE.Single
line text.
(10/10 Points)

Correct answers: Buyer receives the goods as owner; Agent receives the goods as the goods of the principal who retains his
ownership over them Buyer has to pay the price; Agent has simply to account for the proceeds of the sale he may make on
the principal’s behalf Buyer, as a general rule, cannot return the object sold ; Agent can return the object in case he is unable
to sell the same to a third person Seller warrants the thing sold; Agent makes no warranty for which he assumes personal
liability as long as he acts within his authority and in the name of the seller Buyer can deal with the thing sold as he pleases;
The agent in dealing with the thing received, must act and is bound according to the instructions of his principal .