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Sales ATP CredTrans 2
Sales ATP CredTrans 2
Quiz 1
Part One
True or False
1. By the contract of sale one of the contracting parties delivers a determinate thing, and the other
pays therefore a price certain in money or its equivalent.
FALSE.
4. The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is
the object of the contract and upon the price.
TRUE.
5. When the goods are delivered to the buyer “on trial”, the ownership passes to the buyer on
delivery.
FALSE.
6. Where goods are sold by a person who is not the owner thereof, and who does not sell them under
authority or with the consent of the owner, the buyer acquires no better title to the goods than the
seller had.
FALSE.
7. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void, if
he acted in bad faith.
TRUE.
8. A contract of absolute sale shall be presumed to be an equitable mortgage when the price is
unusually inadequate.
FALSE.
9. In case of doubt, a contract purporting to be a mortgage shall be construed as a sale with right to
repurchase.
FALSE.
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
11. If a movable property is sold to two persons, ownership shall belong to the person
a. Who paid in good faith the purchase price in full
b. Who in good faith first recorded it in the Registry of Property
c. Who presents the oldest title
d. Who have first taken possession in good faith
D
13. A, B, and C are co-owners of an undivided parcel of land. B sold his 1/3 interest to C absolutely.
Which is correct?
14. S sold his television set to B for P10,000. The parties agreed that buyer shall pay a down payment
of P4,000 and the balance in 3 monthly equal instalments. If the buyer fails to pay the last two
instalments, the right of S is
15. Where it is stipulated that the repurchase of the property sold could be made at any time, the
repurchase shall be exercised
16. A borrowed from B P200.00. To secure payment of the loan, A mortgaged his house and lot to B.
The mortgage is duly recorded. Then, without the consent of B, A sold and delivered the house and
lot to C and C took possession of the house and lot.
a. The sale to C is void
b. A cannot transfer ownership to C because B did not give his consent to the sale
c. A is liable to B for damages
d. Ownership is transferred to C subject to the rights of B
D
a. A principal contract
b. Commutative
c. Bilateral
d. An onerous contract
e. None of the above
B
19. When the goods are delivered to the buyer, the ownership passes to the buyer upon delivery in:
a. Sale on approval
b. Sale or return
c. Sale on trial
d. Contract to sell
B
20. The following may not valid objects of a contract of sale, except:
Part One
Multiple Choice. Choose the best answer. Write the letter only.
Consider the statement true only when it is absolutely true.
SET A
1. Statements
Legal redemption shall take place when the vendor reserves the right to repurchase the thing sold.
FALSE
Legal redemption is the right to be subrogated, upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by purchase only.
FALSE
2. Statements:
The contract shall be presumed to be a sale with a right to repurchase when the vendor remains in
possession as lessee or otherwise.
FALSE
In case of doubt, a contract purporting to be a mortgage shall be construed as a sale with right to
repurchase.
FALSE
3. Statements:
The creditors of the vendor cannot make use of the right of redemption against the vendee, until after
they have exhausted the property of the vendor.
FALSE
4. Statements:
The vendor cannot avail himself of the right of repurchase without returning to the vendee the price of
the sale and the necessary and useful expenses made on the thing sold.
FALSE
Should there have been fruits at the time of the redemption, they shall be prorated between the
redemptioner and the vendee.
TRUE
5. Statements:
The vendor who repurchases the thing shall respect the leases constituted by the vendee.
FALSE
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
6. In a sale with a right of repurchase, the vendee of a part of an undivided property who
subsequently acquires the whole, may compel the vendor to redeem the whole property, if the
latter wishes to make use of the right of redemption if the property is:
a. A divisible movable
b. An essentially indivisible movable
c. A divisible immovable
d. An essentially indivisible immovable
D
7. A, B & C, co-owners in equal parts over an undivided parcel of land, sold the land to X with a
right of repurchase. There being no stipulation to the contrary, A:
a. Can exercise his right as to 1/3 of the land even without the consent of B & C
b. Can exercise his right as to 2/3 of the land even without the consent of B & C.
c. Can exercise his right as to the entire land even without the consent of B & C
d. Can exercise the right of redemption only with the consent of either B or C
e. Can exercise the right of redemption with the consent of both B & C
A
8. The following are requisites for the exercise of the right of redemption of owners of adjoining rural
lands, except:
SET B
Part One
Multiple Choice. Choose the best answer. Write the letter only.
Consider the statement true only when it is absolutely true.
1. Statements
Legal redemption shall take place when the vendor reserves the right to repurchase the thing sold.
FALSE
The vendor who repurchases the thing shall respect the leases constituted by the vendee
FALSE (1618)
2. Statements:
Legal redemption is the right to be subrogated, upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by purchase only.
FALSE
Should there have been fruits at the time of the redemption, they shall be prorated between the
redemptioner and the vendee.
TRUE
3. Statements:
The contract shall be presumed to be a sale with a right to repurchase when the price in a mortgage is
unusually inadequate
FALSE
The vendor cannot avail himself of the right of repurchase without returning to the vendee the price of
the sale and the necessary and useful expenses made on the thing sold.
FALSE
4. Statements:
In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an
equitable mortgage.
TRUE
5. Statements:
The creditors of the vendor cannot make use of the right of redemption against the vendee, until after
they have exhausted the property of the vendor.
FALSE
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
a. Declaration of nullity
b. Annulment
c. Rescission
d. Any of the above
e. None of the above
E
7. In conventional redemption, the period for redemption, in the absence of an express agreement,
shall last:
8. Should there be an agreement as to the period of redemption, the period cannot exceed:
a. One year
b. Four years
c. Ten years
d. Thirty years
e. None of the above
C
9. In a sale of a parcel of land with a right to repurchase, there being no stipulation to the contrary,
ownership passes to the vendee upon:
10. The remedy of the creditors of the vendor as to the right of redemption against the vendee is:
a. A cumulative remedy
b. A principal remedy
c. A subsidiary remedy
d. All of the above
e. None of the above
C
Lease
Quiz 1
Part One
True or FalseConsider the statement true only when it is absolutely true.
1. A contract where on of the parties delivers a thing to another for the enjoyment or use of the thing is
a lease of thing.
FALSE
3. The husband and the wife cannot lease property to each other.
FALSE
4. The lessee cannot assign the lease without the consent of the lessor unless there is a stipulation to
the contrary.
TRUE
5. The sublessee is solidarily liable to the lessor for any rent due from the lessee.
FALSE
6. The lessor of a business or industrial establishment may continue engaging in the same business or
industry to which the lessee devotes the thing leased, unless there is a stipulation to the contrary.
TRUE
7. The lessor is not obliged to answer for a mere act of trespass which a third person may cause on the
used of thing leased.
TRUE
8. The lessee shall have no right to a reduction of the rend on account of the sterility of the land leased,
or by reason of the loss of fruits due to ordinary fortuitous events, save always when there is a
specific stipulation to the contrary.
FALSE
9. The lease of an urban land, when its duration has not been fixed is understood to have been for all
the time necessary for the gathering of the fruits which the whole estate may yield in one year, or
which it may yield once, although two or more years have to elapse for the purpose.
FALSE
10. Those who put their labor upon or furnish materials for a piece of work undertaken by the contractor
have an action against the owner up to the amount owing from the latter to the contractor at the time
the claim is made.
TRUE
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
11. In this contract, one of the parties binds himself to give another the use of the thing for a price
certain:
a. Commodatum
b. Mutuum
c. Lease
d. Deposit
e. Pledge
C
a. Consumable
b. Non-consumable
c. Fungible
d. Non-fungible
C
13. If the guardian lease the property of his ward, the contract is:
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
E
14. If the lessor failed to maintain the lessee in peaceful and adequate enjoyment of the thing leased, the
remedies of the lessee are, EXCEPT:
a. 5 years
b. 20 years
c. 50 years
d. 100 years
e. None of the above
E
16. If the thing leased is destroyed partially by a fortuitous event, the lessee may choose between a
proportional reduction of the rent and:
a. Specific performance
b. Rescission
c. Damages
d. Accion subrogatoria
e. Accion quanti minoris
B
17. If at the end of the contract the lessee should continue enjoying the thing leased for ___ with the
acquiescence of the lessor, and unless a notice to the contrary by either party has previously been
given, it is understood that there is an implied new lease.
a. 15 days
b. 30 days
c. 3 months
d. 6 months
e. 1 year
A
18. With regard to ornamental expenses, the lessee shall not be entitled to any reimbursement, but he
may remove the ornamental objects, provided no damage is caused to the principal thing and the
lessor does not choose to retain them by paying
19. The contractor is responsible for the damage if the edifice falls, within __ from the completion of
the structure on account of defects in the construction or the use of materials of inferior quality
furnished by him, or due to any violation of the terms of the contract. If the engineer or architect
supervises the construction, he shall jointly be liable with contractor.
a. 1 year
b. 4 years
c. 10 years
d. 15 years
e. 25 years
D
20. The lease of a rural land, when its duration has not been fixed, is understood to have been for all the
time necessary for the gathering of the fruits which the whole estate leased may yield in __, or
which it may yield once, although two or more years have to elapse for the purpose.
a. 1 season
b. 2 seasons
c. 1 year
d. 2 years
e. none of the above
C
Credit Transactions
Quiz 1
Part One
True or FalseConsider the statement true only when it is absolutely true.
1. Third persons who are not parties to the principal obligation may secure the latter by mortgaging
their own property.
TRUE
2. A mortgage may also be given as security for future debts, the amount of which is not yet known.
TRUE
3. The indivisibility of a pledge or mortgage is not affected by the fact that the debtors are not
solidarily liable.
TRUE
4. A guaranty may be entered into without the knowledge or consent, or against the will of the
principal debtor.
TRUE
5. A compromise between the creditor and the principal debtor benefits the guarantor.
TRUE
6. The bailee in commodatum is liable for the loss of the thing, even if it should be through a fortuitous
event.
FALSE
7. The bailor cannot demand the return of the thing loaned till after the expiration of the period
stipulated.
FALSE
8. The bailor shall be liable to the bailee for the damages which the bailee may suffer by reason of the
flaws of the thing loaned.
FALSE
9. Fixed, savings, and current deposits of money in banks and similar institutions shall be governed by
the provisions concerning depositum.
FALSE
10. A deposit is constituted from the moment there is a meeting of the minds upon the thing which is the
object of the contract.
FALSE
11. The bailor in commodatum acquires the use of the thing loaned but not its fruits; if any
compensation is to be paid by him who acquires the use, the contract ceases to be a commodatum.
FALSE
12. Consumable goods may be the subject of commodatum
TRUE
Part Two
Multiple Choice. Choose the best answer. Write the letter only.
a. May be gratuitous
b. May be onerous
c. Essentially gratuitous
d. Essentially onerous
C
a. Mutuum
b. Commodatum
c. Deposit
d. Guaranty
D
a. Mutuum
b. Commodatum
c. Gratuitous deposit
d. Onerous deposit
e. Gratuitous guaranty
C
a. Mutuum
b. Commodatum
c. Gratuitous deposit
d. Onerous deposit
e. A&B
f. A&C
g. A,B&C
F
a. Judicial deposit
b. Extra-judicial deposit
c. Voluntary deposit
d. Necessary deposit
D
17. The depositor is obliged to reimburse the depositary for the expenses he may have incurred for the
preservation of the thing deposited if:
a. Mutuum
b. Pledge
c. Mortgage
d. Antichresis
e. Lease
A
a. Commodatum
b. Deposit
c. Mortgage
d. Pledge
e. Antichresis
D
22. If a personal property is delivered to a creditor to secure the performance of an obligation, the
contract is a:
a. Pledge
b. Chattel mortgage
c. Real mortgage
d. Antichresis
e. Sale
A
a. Mutuum
b. Commodatum
c. Gratuitous deposit
d. Onerous deposit
e. Gratuitous guaranty
B
Agency
Quiz 1
Part One
True or FalseConsider the statement true only when it is absolutely true.
1. When a sale of a piece of an immovable property is through an agent, the authority the latter shall be
in writing; otherwise, the sale shall be void.
FALSE (1874)
3. The agency shall remain in full force and effect even after the death of the principal.
FALSE (1930)
4. Anything done by the agent, without knowledge of the death of the principal, is valid.
FALSE (1931)
6. If an agent acts in his own name, the principal has no right of action against the persons with whom
the agent has contracted; neither have such persons against the principal.
TRUE (1883)
7. The principal is not liable for the expenses incurred by the agent if the agent acted in contravention
of the principal’s instructions.
FALSE (1918[1])
8. By the contract of agency a person renders some service or does something in representation or on
behalf of another, with the consent or authority of the latter.
TRUE (1868)
9. Even when the agent has exceeded his authority, the principal is jointly liable with the agent if the
former allowed the latter to act as though he had full powers.
FALSE (1911)
10. When two or more principals have granted a power of attorney for a common transaction, any one
of them may revoke the same without the consent of the others.
TRUE (1925)
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
a. Consensual
b. Preparatory
c. Essentially Onerous
d. Principal
C
12. The following acts may not require a special power of attorney to be enforceable, except
a. To make payment
b. To waive an obligation
c. To accept an inheritance
d. To make gifts
e. To loan or borrow money
C
13. If the third person with whom the agent contracted was aware that the agent was acting outside the
scope of his authority
a. The contract is void and the principal will be liable to the third person
b. The contract is void and this contract cannot be ratified
c. The contract is void and the agent will be liable to third person
d. The contract is void and the agent will be liable to the third person if he undertook to secure
the principal obligation
e. None of the above
D
16. A characteristic which is common to agency, negotiorum gestio, and guardianship is:
19. Even if the agents bound themselves solidarily, they will not be held solidarily if:
20. If the agent has exceeded his authority and the principal allowed the agent to act as though he had
full powers:
1. A person who is not a partner may not be liable as though he were a partner.
FALSE (1825)
2. Every partner is a debtor of the partnership for whatever he may have promised to contribute
thereto.
TRUE (1786)
5. The receipt by a person of a share of the profits of a business is prima facie evidence that he is a
partner in the business
FALSE (1769[4])
6. Every partnership shall operate under a firm name, which may or may not include the name of one
or more of the partners
TRUE (1815)
7. Persons who are prohibited from giving each other any donation or advantage cannot enter into a
particular partnership
FALSE (1872)
8. The contributions of a limited partner may be cash or other property, but not services.
TRUE (1845)
10. A person may be general partner and a limited partner in the same partnership at the same time.
FALSE
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
12. The receipt by a person of a share of the profits of a business is prima facie evidence that he is a
partner in the business, but no such inference shall be drawn if such profits were received in
payment
a. As an annuity to a widow
b. As interest on a loan
c. As the consideration for the sale of goodwill of a business
d. All of the above
e. None of the above
D
13. This partnership comprises all that the partners may acquire by their industry or work during the
existence of the partnership
14. Articles of universal partnership, entered into without specification of its nature, shall be deemed:
15. Persons who are prohibited from giving each other any donation or advantage cannot enter into a:
16. This partnership has for its object determinate things, their use or fruits, or a specific undertaking, or
the exercise of a profession or vocation:
17. This partner cannot engage in business for himself, unless the partnership expressly permits him to
do so:
a. Capitalist
b. Industrial
c. Limited
d. General partner
e. Incoming
B
18. The risk of specific and determinate things contributed to the partnership so that only their use and
fruits may be for the common benefit shall, in the absence of a contrary stipulation, be borne by the
partnership except if the things:
19. This partner cannot engage for his own account in any operation which is of the kind of business in
which the partnership is engaged, unless there is a stipulation to the contrary:
a. Capitalist
b. Industrial
c. Limited
d. General partner
e. Managing
A
20. Except when authorized by other partners or unless they have abandoned the business, on or more
but less than all the partners have no authority to:
a. Confess a judgment
b. Submit a partnership claim or liability to arbitration
c. Renounce a claim of the partnership
d. All of the above
e. None of the above
D
Torts & Damages
Quiz 1
Part One
True or FalseConsider the statement true only when it is absolutely true.
1. The defense of a good father of a family is a complete and proper defense in breach of contract.
FALSE
3. The liability of the employer for the acts of its employees is a direct and primary liability.
FALSE
4. The pendency of a criminal action is a bar to an action under quasi-delict for the same act or
omission.
FALSE
7. In motor vehicle mishaps, the owner is solidarily liable with his driver, if he was inside the vehicle
at the time of the mishap.
FALSE
8. The State is responsible when the damage has been caused by an official to whom the task done
properly pertains.
FALSE
9. The father and, in case of his death or incapacity, the mother, are responsible for the damages
caused by their children who live in their company.
FALSE
10. The owner of the building or a part thereof, is responsible for damages caused by things thrown or
falling from the same.
FALSE
Part Two
Multiple Choice.
Choose the best answer. Write the letter only.
11. As a source of obligations, quasi-delict may be distinguished from delict in that, in quasi-delict:
12. As a source of obligations, quasi delict may be distinguished from contract in that, in quasi-delict:
a. There must There must be no pre-existing contractual relation between the parties
b. The defense of “good father of a family” is a complete and proper defense
c. Negligence is merely incidental to the performance of an obligation
d. There is a presumption of negligence as long as there was breach
B
a. Act or ommission
b. Fault or negligence
c. Damage or injury
d. Pre-existing contractual relation between the parties
D
15. This pertains to the liability of a person resulting from the negligent act of another who is
considered to be under the control and supervision of the former.
a. Direct
b. Subsidiary
c. Solidary
d. Vicarious
e. None of the above
D
a. Insane persons
b. Elective officials of the governement
c. Public corporations
d. All of the above
e. None of the above
E
17. A
a. M
b. M
c. E
d. E
B
18. Where both parties are negligent, but the negligent act of one is appreciably later in time than that
of the other, or when it is impossible to determine whose fault or negligence should be attributed to
the incident, the one who had the last clear opportunity to avoid the impending harm and failed to
do so is chargeable with the consequences thereof. This doctrine is known as:
a. Proximate cause
b. Last clear change
c. Res ipsa loquitur
d. Intervening cause
e. Concurrent cause
B
a. Moral damages
b. Dano emergente
c. Exemplary damages
d. Liquidated damages
e. Nominal damages
B
20. In case of death caused by a quasi-delict, the following may be awarded except:
a. Interest
b. Nominal damages
c. Indemnity
d. Moral damages
e. None of the above
B