1. Agents may purchase the thing that has been entrusted the Contract of Sale will still be valid.

till be valid. This shows what

to him/her by a principal characteristic of contract of Sale
 True  Commutative
 False  Nominate
 Consensual
2. The following is true about law on Sales, except?  Principal
 It covers payment through Bills of exchange
 The obligation derived therefrom are personal 8. As a general rule, the form of Sales Contract affects its
obligations validity
 The object can be non-existent at the perfection stage  True
of the contract  False
 The object should not be illicit
9. The fixing of price can be done by a third person
3. The following are not capacitated to enter in a contract  True
of Sale in all instances except:
 False
 A. Deaf-Mutes
 B. Husband and Wife 10. In a phone conversation, Mark verbally entered into a
 C. Lawyers buying the property litis pendentia contract of sale with Nicole. Part of the Agreement is
 D. Guardians buying the property of their ward during that Mark will send his goods thru LBC from Tanauan
guardianship City to the address indicated by Nicole in Calamba. After
 A and C the conversation of Mark to Nicole, who is the owner of
 A and B the goods?
 C and D  Nicole
 Cannot be determined using the same facts
4. Which of the following is true?  LBC
 A. Earnest money is part of purchase price while  Mark
option money is not
 B. Both earnest money and option money are given 11. Which of the following may give consent to a contract?
prior to perfection of sale  A minor who purchased a game console,
 Both A and B are true PlayStation 5
 Both A and B are false  An insane person
 A deaf-mute who is illiterate and without any
5. Which of the following is not a valid sale? education, formal or informal
 A seller who sells a property which he/she don't own  A newly wed couple who is governed by absolute
 A police who sells a property which was previously community of property in the marriage settlement
confiscated by him/her and with the consent of the
owner 12. Which type of price may result to a valid sale
 A Seller's agent who buys the property of the seller  Absolutely simulated price
generally  false price
 All of the above are not valid sale  Price that is still subject to determination by the Seller
at the time of consummation
6. The following is guided by the law on Sales except  None of the above
 A. Buying a house and lot from Camella Homes using
a check 13. Which of the following is true about option contract?
 B. Employing the services of an accountant to make  The consideration can be the price of the subject
Financial Statements and in return, payment in matter
installments  There can be a valid option contract even if the
 C. Ordering Pizza from Shakeys subject matter of the sale is not determinate
 D. Trading your cellphone to an I-pad  A valid option contract may be withdrawn at any
 A and C moment without producing legal effect
 B and D  All statements are not true

7. Lalaine promised to Sell her Cacao to Eleyna for Ten 14. The following may be a valid subject matter
Thousand Pesos in installment. The contract of Sale is  Sale of future harvest of strawberry in strawberry
further secured by a contract of Guaranty where in fields
Eleuterio personally guaranteed the payment of Eleyna.  Sale of morphine
Should Eleuterio be incapable of guaranteeing Eleyna,  Sale of brand name
  All can be valid objects of sale
21. A contract of sale is generally a formal type of contract
15. Executors may purchase the property under his/her because of the Statute of Frauds.
administration.  True
 True  False
 False
22. In contract to Sell, the ownership of the thing
16. Which of the following is guided by the law on Sales? automatically vests in the Buyer
 Contract for piece of work  True
 Dacion en Pago  False
 Barter
23. The Statute of fraud generally affects both the validity
 Donation
and enforceability of Sales
17. Joyce is a Seller of program and based in the  True
Philippines.  False
Maila, on the other hand, is the buyer and resident of
Singapore. Joyce offered her program through e-mail 24. The subject matter of the contract of Sale must be
correspondences. Maila agreed on the price and informed  A. Existing during perfection
Joyce through an e-mail. Was is the status of Sale?  B. Determinate
 Unenforceable because of lack of document  C. Determinable
 Not valid because one party is not a resident of the  D. Capable of existence at the time of policitation
Philippines (MAY CHOICES PA SA KABILANG COLUMN)
 Not a valid contract of Sale but a valid contract of  A and B
lease of services. Subject Matter is not a determinate  A and C
thing.
 B and C
 Valid and Enforceable Sale.
25. If there is an earnest money received by the Seller, most
18. Joyce verbally promised to deliver her laptop to Aira for probably, a sale has been made.
Ten Thousand Pesos. In case Joyce defaulted in her
obligation, Aira can sue Joyce because  True
 There is a consensual contract  False
 The Contract is onerous
26. A contract wherein the price is simulated is always void
 There is a contract because of the onerous
 True
obligations
 There is a contract of sale and one the characteristic  False
of sale is being nominate
27. Which of the following is not a valid subject matter?
19. The following are the obligations of the offeror in an  Sale of future things
option contract except  Sale of vain hope or expectancy
 Obligation to hold the subject matter for sale to the  Sale of transmissible rights
offeree in the event that the offeree exercises his  Sale of determinable things
option
 Personal obligation not to withdraw the option during 28. A contract wherein one of the contracting parties is a
the option period minor may be valid
 Obligation to offer first the subject matter of sale to  True
offeree in case the option period expires  False
 Personal obligation not to offer to anybody the object
of the option during the option period 29. A sale of things which are mere hope or expectancy is
void
20. Which of the following situations may be considered as  True
a valid sale?
 False
 Buying of Guardians from the person under
guardianship
30. Justin purchased a land Ayala Land Inc. In purchasing
 Agents buying the property entrusted to him the land, Justin applied for a loan and the land was
 Executor buying the property under administration offered as a security. A mortgage agreement was done
 Public officer buying property under his/her between Justin and the bank. Years after, Justin
administration decided to sell the land as he urgently needs money.
 Judges buying properties under litigation
 Justin offered to sell the land to Maria. Was the Sale
valid?
 Yes, because Justin is still the owner of the land.
 No, the mortgage affects the ownership of land.
 No, because it is unfair to Maria in case the Bank will
foreclose the property.
 No, the sale will affect the agreement of Justin with
the Bank. Maria, a third person, cannot affect the
contractual relations between Justin and the bank.
31. Partial Performance will remove the sale from the
coverage of Statute of Frauds.
 True
 False
32. Which of the following statements is true?
 From the point of perfection of Contract of Sale,
generally, the ownership is not yet transferred
 During policitation stage, all the parties in the contract
of sale are bound by their offers. Thus, default on the
offer, even though unaccepted, will give rise to a
demandable claim by the creditor
 At the Negotiation stage, generally, the Buyer can
demand the transfer of the determinate thing
 None of the above
33. Which of the following is not true when determining if the
subject matter is determinate or at least determinable?
 At the time of consummation stage, the subject matter
is capable of being made determinate
 The subject matter must pass the "no further
agreement test"
 A subject matter being chosen a person who is not a
seller and buyer
 All options are true
34. If withdrawn by any of the contracting parties, which of
the following does not produce legal effects?
 Accepted Offer
 Option Contract
 Unaccepted offer
 All produces legal effects
35. Other term for sale of future things
 Emptio Spei
 Emption Rei Speratae
 Res perit Domino
 Emptio Rei
36. Which of the following is permissible in a valid contract
of Sale with respect to price?
 Price is subject to determination by the Seller at
Consummation
 The price is subject to the determination of the third
party
 Price is determined by peso-dollar exchange rate at
the time of delivery.
 All of the above are permissible
37. A Buyer can bear the expenses of execution and
registration of Sale
 True
 False
38. Which of the following is true with regard to a "price"
with respect to a contract of sale
 There can a sale without a valuable consideration
 There can be a sale even if the price is absolutely
simulated
 The price can be paid through negotiable instrument
other than case or credit
 The price must be certain and can never be based
on a third party unlike sale
39. When is the price real in the contract of sale?
 When there is a value attached to the price of the
subject matter
 When the price has been expressed and agreed in
terms of specific pesos and/or centavos
 When there is intention of the seller to receive the
price as the value of the subject matter
 There can be a real price when there is an absolute
simulation
40. Chester and Cynthia wanted to get married. Being an
exceptional student in Law on Sales, both of them know
that:
 Husband and wife cannot sell property but can donate
to each other
 It is an absolute rule that husband and wife are
prohibited to enter in a Sale with each other
 They can only enter in a deed of sale with each other
if separation of property was agreed upon in their
marriage settlement
 All of the above
41. You plan to engage in a business of retailing. Which
industry has the least prohibition by law and
government?
 Sale of regulated drugs
 Sale of firearms
 Sale of organs of human body
 Sale of wild plants
42. Stage of the contract wherein negotiation and
bargaining between the parties happens
 Policitacion
 Perfection
 Consummation
43. Which of the following is not a valid sale?
 A guardian selling the properties of the minor to other
persons
 The administrator of the estate buying the properties
of the deceased
 A city mayor who buys from a private person an
 agricultural land that the latter holds for five years and
was previously a property of the State.
 All of the above are not a valid sale

44. Alona entered into a contract of sale with Maila. Alona

will sell Spanish Sardines to Maila for Two Hundred
Pesos. In this situation, the object is _________.
 Alona
 Maila
 Spanish Sardines
 Two Hundred Pesos

45. If the object of sale is entirely lost at the time of the

perfection, the Sales contract is without effect
 True
 False

46. Miko, a minor, bought one kilo of rice in a sari-sari store

near his house using his savings. His mother, Maila,
noticed that Miko bought NFA rice which is not usually
consumed by the Family. Maila went back to the Sari-
sari Store to return the goods saying that the sale is
unenforceable because it was sold to minor. However,
the Seller said that the minor already paid so the
transaction is valid. Who is correct?
 The seller on the ground that there is a valid sale
 The seller on the ground that there is already
payment of the purchase price
 Maila. The sale not valid because a minor cannot give
consent to a contract
 Maila. The sale is voidable because there is a vice of
consent for being an NFA Rice. It would have been
valid if the rice that was purchased was Sinandomeng
or Jasmin Rice
 None of the above because of wrong
grounds/premise

47. Alona entered into a contract of sale with Maila. Alona

will sell Spanish Sardines to Maila for Two Hundred
Pesos. In this situation, the consideration is _________.
 Alona
 Maila
 Spanish Sardines
 Two Hundred Pesos

48. Gross inadequacy of price affects the contract of sale

 True
 False