BM1808

Name: DATE: SCORE:

I. MULTIPLE CHOICE (5 items x 2 points)

Encircle the letter of the correct answer.

1. It is a mode of acquiring ownership whereby the object of the contract is placed in the control and
possession of the vendee, either actually or constructively.

a. Delivery c. Perfection of contract

b. Payment of purchase price d. Execution of document

2. In sale or return, when is the ownership of the goods transferred to the buyer?
a. Upon payment of the purchase price
b. Upon delivery of the goods
c. Upon approval by the buyer
d. Upon return of the goods to the seller

3. When the goods are sold and delivered by a person who is NOT the owner thereof, what title is
acquired by the buyer as a rule?
a. He acquires no better title than the seller had.
b. He acquires a perfectly valid title.
c. He acquires a voidable title.
d. He acquires a rescissible title.

4. Which of the following is NOT a right of an unpaid seller?

a. Right to retain possession of the goods
b. Right to rescind the sale
c. Right to declare the sale null and void
d. Right to resell

5. Which of the following is NOT a ground for the exercise of right of resale by the unpaid seller?
a. The goods are of perishable nature
b. The seller has expressly reserved the right to resell the goods in case the buyer should make
default.
c. The buyer has been in default for an unreasonable time.
d. The buyer becomes insolvent.

II. TRUE OR FALSE (5 items x 2 points)

Write TRUE if the statement is correct; otherwise, write FALSE on the space provided.

1. The vendor/seller is obliged to deliver the thing sold including its accession and accessories
in the condition in which they were upon the perfection of the contract.

2. In traditio longa manu, there is no need to deliver the thing sold because the vendee is
already in possession of the object even before the sale and thereafter continues in
possession thereof in the concept of an owner.
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3. If the seller’s title is voidable, but the same has not been avoided at the time of sale, the
buyer acquires a good title to the goods, provided he buys them in good faith, for value and
without notice of the seller’s defect of title.

4. In the absence of a stipulation as to the place of delivery and a place fixed by usage or trade,
the thing sold must be delivered to the seller’s place of business if he has one; if none, the
seller’s place of residence.

5. When the quantity is more than what was contracted to sell, the buyer may reject the whole
of the goods if they are divisible.

III. SITUATIONAL (5 items x 3 points)

Read and analyze the following situations. Encircle the letter of the correct answer.

1. On January 1, Chris delivered an electronic calculator to David under a sale or return arrangement.
Chris gave David up to March 10 to return the calculator. Before May 10, the calculator was
destroyed by fire. Should David pay for the purchase price?
a. No, because David is not yet the owner of the calculator.
b. No, because the calculator is destroyed through fortuitous event.
c. Yes, because David becomes the owner of the calculator upon delivery.
d. Yes, if the fire is due to the fault of David.

2. Using the same data in the preceding number except the fact that the arrangement is sale on trial or
approval, should David pay the purchase price?
a. No, even if the fire is due to the fault of David.
b. Yes, because David becomes the owner of the calculator upon delivery.
c. No, if David does not signify his approval before the fire because he is not yet the owner.
d. Yes, even if David signifies his approval before the fire.

3. Nico, a minor of 17 years, sold his watch for P2,000 to Chase, 30 years old. The guardian was not
aware of the sale; hence, no action for annulment has yet been filed. Chase subsequently sold the
watch to Alex, who acquired it in good faith. Which of the following is CORRECT?
a. Alex acquires no title to the watch because the seller’s title is voidable.
b. Alex acquires good title to the watch even if he buys it in bad faith.
c. Alex acquires good title to the watch even if the voidable title of the seller has been avoided
before the time of sale, as long as Alex acquires the watch in good faith, for value and
without notice of the seller’s defect of title.
d. Alex acquires good title to the watch even if the seller’s title is voidable, provided the same
has not been avoided at the time of sale, and Alex acquires the watch in good faith, for value
and without notice of the seller’s defect of title.

4. S and B entered into a contract of sale of a specific car. They pointed over that particular car. What
kind of constructive delivery is present?
a. Traditio brevi manu
b. Traditio clavium
c. Traditio longa manu
d. Traditio simbolica

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5. Ronel ordered 500 cans of corned beef from Jhun at P20 per can. On the due date, however, Ronel
delivered 520 cans. Which of the following is/are NOT the right/s of Jhun?
a. Accept only 500 cans and reject the excess of 20 cans.
b. Accept the 520 cans and pay for them at the contract rate of P20 per can.
c. Reject all the 520 cans because it is divisible.
d. Both a and b

IV. ENUMERATION (5 items x 2 points)

Give what is asked in the following item.

1. Cite at least five (5) kinds of constructive delivery.

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