Since 1977
BUSINESS LAW
BL.2804- DRILL 2 – SALES
1. Three of the following are elements of the vendor's right of
stoppage in transitu. Which is the exception?
a. The buyer must be insolvent
b. The goods must be in transit
c. The seller must be unpaid
d. The seller must be in possession of the goods
2. B imports electric fans from China and specifically asks for
220 volts fans. The fans arrived duly labeled 220 volts and sells
them to the public as such. Later, it turned out that the fans has
been mislabeled by the manufacturer and were only good for
110 volts.
a. B is liable to the vendee for any hidden defects in the thing
sold, even though he was not ware thereof
b. B is not liable because he was in good faith, and this is
shown by specifically asking for 220 volts
c. B is not liable under the principle of "let the buyer beware"
d. B is liable because the vendee did not enjoy legal and
peaceful possession of the object of sale.
3. In a sale of personal property on the installment basis, should
the buyer fail to pay one installment, the unpaid seller has this
remedy or remedies -
a. To exact fulfillment only
b. To cancel the sale only
c. To foreclose the chattel mortgage only
d. To choose from exacting fulfillment cancellation of the
sale or foreclosure of the chattel mortgage, if any has been
constituted
4. Abel, Ben, and Cain are co-owners of an undivided parcel of
land. Ben sold his 1/3 interest to Cain absolutely. Which is
correct?
a. Abel may exercise his right of redemption on the interest
sold by Ben to Cain.
b. Abel cannot exercise his right of redemption because the
sale was made in favor of a co-owner.
c. The sale made by Ben to Cain is void because it was not
made in favor of a stranger.
d. Able may redeem only 1/4 of the interest sold by Ben to
Cain.
5. On June 10, 2018, S sold to B a specific car which S acquired
from a friend last June 1, 2018. On August 10, 2018, the car
was totally destroyed which was traced to a crack in the engine
block. S was not aware of the defect. Is S, the seller, liable to
B?
a. No because S was innocent and a seller in good faith.
b. No, because S has all the opportunity to examine the car
before buying it
c. Yes, S is liable to return the price and expenses incurred by
B d. Statement 1 is false, but statement 2 is true.
d. Yes, S is liable to return the price, expenses and damages
actually suffered by B.
6. Barrameda bought a piece of land from Sarmiento for a lump
sum of P120,000.00. Aside from mentioning the boundaries in
the contract which is required in the sale of real estate, the
contract also states that the piece of land consists of 1,000
square meters. Before delivery, Sarmiento discovered that the
piece of land actually contains 1,200 square meters.
a. Sarmiento must deliver all the 1,200 square meters;
Barrameda must pay P120,000.00 plus an additional
amount for the excess of 200 square meters.
b. Sarmiento is required to deliver only 1,000 square
meters; Barrameda must pay the contract price of
P120,000.00.
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ATTY. ONG/LOPEZ
MAY 2020
c. Sarmiento must deliver all the 1,200 square meters;
Barrameda has to pay only P120,000.00.
d. Neither party is required to perform the obligation
because of mistake.
7. Three of the following are the requisites in order that the buyer
may enforce the seller's liability for hidden defects. Which
one is not?
a. The defects of the thing sold must not be patent or visible.
b. The defects render the thing unfit for the use for which is
intended, or which diminish its fitness for such use to such
an extent that had the buyer been aware thereof, he would
not have bought it.
c. The defects must be existing at the time of sale.
d. The defects must be capable of determination by an expert.
8. Which of the statements is not true?
a. In sale or return ownership is transferred to the buyer upon
delivery
b. Warranty against hidden defects is an accidental element
of a contract of sale
c. In sale the obligation of the buyer is not only the payment
of the price
d. In dacion en pago, an obligation is extinguished while in a
contract of sale, obligation arise.
9. In the same sale of personal property, should the unpaid seller
choose foreclosure of the chattel mortgage as his remedy,
which is true or false?
Statement 1: If the proceeds of the sale of the public auction
are more than the remaining obligation, excess shall appertain
to the buyer.
Statement 2: If the proceeds of the sale are less than the
remain obligation, the deficiency judgment cannot recovered
by the unpaid seller from the buyer and if there is an agreement
to that effect, such agreement is considered null and void
according to the Recto Law.
a. Both statements are true.
b. Both statements are false.
c. Statement 1 is true, but statement 2 is false.
d. Statement 1 is false, but statement 2 is true.
10. Statement 1: O is the owner of a book which T stole and then
sold to B. Upon discovery of the book in the possession of B -
O will be considered as having a better right to the book.
Statement 2: If T sold the book of CBS, a merchant store and
then B bought it from the latter - O will still have the better
right to the book.
a. Both statements are true.
b. Both statements are false.
c. Statement 1 is true, but statement 2 is false.
11. In which of these cases is there no warranty against hidden
defects?
a. In a sale by description
b. In a sale by sample
c. In a sale of things sold as second hand
d. In sale of goods covered by a patent
e. Both (c) and (d)
12. Within what time should be the action for a proportionate
reduction of the price or rescission be filed if the object is
immovable property?
a. Within forty (40) days from delivery.
b. Within six (6) months from delivery.
c. Within one (1) year from delivery.
d. Within four (4) years from delivery.
BL.2804
EXCEL PROFESSIONAL SERVICES, INC.
13. S sold to B a residential lot said to be containing an area of
1,000 sq. meters at P10,000 per sq. meter. In this connection,
which of these is a correct statement?
a. If the lot should contain 1,500 sq. meters, B can reject the
excess of 500 sq. meters, but if he accepts, B should pay
for the excess at the contract rate of P10,000 per sq. meter.
b. If the lot should contain 950 sq. meters only, B can only
ask for a proportionate reduction of the price but not
rescission.
c. If the lot should contain 900 sq. meters, B can choose
between proportionate reduction of the price or rescission
of the sale.
d. All of the above.
14. Goods are still in transit:
a. if the buyer or his agent obtains delivery of the goods
before their arrival at the appointed destination.
b. when the carrier acknowledges possession of the goods as
bailee for the buyer after the arrival of the goods at the
place of destination.
c. if the carrier or other bailee wrongfully refuses to deliver
the goods to the buyer or his agent.
d. if the goods are rejected by the buyer, and the carrier or
other bailee continues in possession of them, even if the
seller has refused to received them back.
15. In the event the unpaid seller chooses the cancellation of the
sale –
a. Only the buyer shall return the thing sold.
b. Only the seller shall return the price of the sale.
c. The buyer shall return the thing sold and the seller shall
return the price paid.
d. The buyer shall return the thing sold and the seller shall
not return the price paid if there is an agreement to that
effect provided it shall not turn out to be unconscionable.
e. both (c) and (d).
16. S and B agreed on the sale of car where B alone shall designate
the price. In which of the following cases will the contract be
valid?
a. B fixed the price of the car at P600,000 which is more than
reasonable.
b. B fixed the price at P600,000 and communicated it to S.
c. B fixed the price of the car at P600,000 and communicated
it to S who agreed.
d. None of the above.
17. An owner of a rural land has the right of legal redemption of an
adjoining rural land sold if the following requisites are present,
except when:
a. the adjoining rural land is not separated by any apparent
servitudes for the benefit of other estates.
b. the land sold does not exceed one hectare.
c. the grantee owns another rural land.
d. the grantee owns an urban land.
18. A, B, and C, are co-owners of an undivided parcel of land. On
May 1, A sold his share to X; on June 1, B sold his share" X;
and on July 1, C sold his share also to X. Each sale was with a
right-to repurchase.
a. X may compel A, B and C to come to an agreement to
repurchase the whole land.
b. Each co-owner may exercise his right of redemption the
whole property including the share of the other two co-
owners.
c. Each co-owner may exercise his right of redemption only
with respect to his share.
d. Any two of the three co-owners may redeem the
property proportionately.
19. Dave sold to Babe orally a parcel of land for P500.000.
Delivery was made of the land. The payment of the price was
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to be made three months later. At the end of the three month
period
a. Babe may refuse to pay claiming in his defense the Statute
of Frauds.
b. Babe may return the parcel of land to Dave.
c. Dave can collect from Babe because the contract was
already executed partially.
d. Babe may refuse to pay on the ground that there is no
written contract to support the sale.
20. The following are the essential elements of a contract of sale,
except:
a. consent of the contracting parties.
b. subject matter which should be determinate.
c. price which is certain in money or its equivalent.
d. warranty against eviction and against hidden defects.
21. Three of the following are the requisites in order that the
vendee may enforce the vendor's liability in case of eviction.
Which one is not?
a. There must be a final judgment depriving the vendee of a
part or the whole of the thing sold.
b. The vendee must have appealed from such judgment
rendered against him.
c. The deprivation of the vendee is based on a right prior to
the sale or an act imputable to the vendor.
d. The vendor is notified of the suit at the instance of the
vendee.
22. In three of the following there is no warranty against hidden
defects of animals. Which is the exception?
a. Animals sold at fairs
b. Livestock sold as condemned, declared known to the buyer
c. Animals sold at public auction
d. None of the above
23. S sold to B a lot through a deed of absolute sale duly
acknowledged before a notary public. Three days later, S sold
same lot to X, also through a deed of sale duly
acknowledged before a notary public. X had the sale registered
the Register of Deeds. Neither B nor X was aware of the sale
made by S to the other and neither took physical possession of
the lot. Who is the present owner of the lot?
a. B, because he was the first purchaser in good faith.
b. X, because he registered the sale in good faith.
c. Neither B nor X.
d. S, as long as he does not surrender physical possession of
the lot.
24. The justified refusal of the buyer to accept the goods produces
the following effects, except:
a. buyer has no duty to return the goods, unless otherwise
stipulated.
b. title to the goods does not pass on to him.
c. buyer shall not be obliged to pay the price.
d. buyer is obliged to constitute himself as depositary until
he returns the goods.
25. In three of the following cases, the buyer is not entitled to
suspend the payment of the price. Which one will give him the
right to suspend payment?
a. Disturbance in the possession or ownership of the thing
purchased.
b. The seller gives him security for the return of the price.
c. It has been stipulated that the buyer shall pay the price
notwithstanding any disturbance,
d. The disturbance is a mere act of trespass.
BL.2804