Law Quiz On Sales

Law on sales Quiz with answer

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Law Quiz On Sales

Law on sales Quiz with answer

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Christine Dael

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piret bayer 24. P authorized A to sell the former's car. A sold the car to X. Without knowledge of the sale to X, P sold the same car to Z. Which of the two buyers shail be preferred? KGW a. X, being the buyer of a duly authorized agent. _c. X, The first registrant in good faith of the sale. b. 2. being the buyer of the principal himself. _d. The first possessor in good faith of the car. © 25. S sold to B his parcel of land valued at P1M only for a measly sum of [Link] because of his poor judgment on the real value of the land and the ability of B to bargain for a low price. The sale therefore is: a. Voidable due to inadequacy of the price. # b, Rescissible because S suffered lesion or damage. . Presumed equitable mortgage due to the unusually inadequate price. 4. Valid although may be annulled because of vitiated consent of S. 6 26. In payment of his debt to X, A ceded his one half (1/2) share in a parcel of land he co-owned with B. B therefore: ‘a. Has the right of pre-emption as a co-owner; b. Has the right of redemption as a co-owner. . Has no right of redemption nor pre-emption since the transfer was not of sale . Has the right to compel X to buy his 1/2 share of the land to prevent co-ownership between X and himself AA 27. In case of doubt, a sale with a right of repurchase or without a right of repurchase shall be construed as an equitable mortgage. The seller therefore a. May ask for the reformation of the instrument. b, May ask for the annulment of the contract. c. May ask the court for the declaration of nullity of the contract. d, Shall be bound to perform his obligation as seller. B 28. A sold to X his 1/2 share of the parcel of land he co-owns with B. C owns the parcel of land adjoining that of A and B. Both B and C want to redeem the share of A which the latter sold to X a. Chall be preferred to 8 in the redemption from X b. B's right as co-owner excludes that of C, the latter being only an adjoining owner, c. Chas better right to the redemption as an adjoining owner. d. Band C shall equally redeem the share of A. © 29. In a contract to sell of a parcel of land, it was stipulated that upon failure to pay the price at the time pated upon for ae es is gytomaticaly rescinded. Hence, if the buyer fais to pay as agreed a. The sale shall not be rescinded as a matter of right and the buyer may still pay as long as there is no demand for rescission. b. The rescission of the contract of sale shall of right take place, c. The rescission of the contract to sell shall of right take place. d. Contract to sell or contract of sale, rescission of the sale shall of right take place af 30, S sold to B his dog which he knew was afflicted with a disease. The parties agreed that there is no ‘warranty against hidden defect. After delivery, the dog was struck by lightning and thus died. a. Sis not liable to pay B any amount because the dog was lost due to fortuitous event. b. Sis not liable because of the waiver agreed upon between 8 and himseff 499 c. Sis liable to return the price paid by B because the waiver is void. 1d. S's liable for the price less the value of the dog at the time of loss. ff 31. A form of delivery which takes place after the seller of the property continues in possession of said property ‘no longer as owner but as a mere possessor: a. Traditio constitutum possessorium c. Traditio brevi-manu. b. Traditiodais by “ymébc 4: Quasttradibe «coherent ome ere. ‘4.32 When goods are delivered to the buyer on “sale or return’, the ownership passes to the buyer a. Upon delivery of the goods b. Upon the expiration of the period agreed upon . Upon acceptance of the buyer of the seller's offer d. Upon perfection of the sale ‘b 33, When things ar delivered to the buyer on. approval, trial, or satisfaction, the ownership passes to. the buyer: Fhe ‘a. Upon delivery of the things c. Upon conception of the sale b. Upon meetings of minds d. Upon the return of the things to the seller + BUSINESS LAW - Quiz:mid RSA: The Review School of Accountancy Page 5 0f7 34. P orally appointed A as his agent to sell the former's land. On January 3, 2001, A sold the land to B who forthwith took possession thereof. It turned out however, that on January 1, 2001, P, without informing A, hhad already sold the same land to C, who up to now has not taken possession of the same land. Neither of the sales was registered. Whose contract shall prevail? a. The sale to B for he was first in possession in good faith; b. The sale to C for the land was first sold to him by the owner. c. The sale to B for the agent was duly authorized to sell the land. d. The sale to C because the sale to B was void, A was not duly authorized by P. 35. S sold to A in a memorandum of agreement of sale his parcel of land. After a week, S sold the same land to B in a formal deed of sale. Upon buying the land, B who was aware of the sale to A, immediately took possession thereof and registered the sale in his favor. When informed of the second sale, A subsequently registered an adverse claim with the Registry of Deeds. The parcel of land shall belong to: a. A, because he has the older tite b._ B, because the sale to him was in a formal deed of sale. cB, because he first registered the sale in his favor. d._B, because he was the first possessor of the land. 36. In case of redemption, which ofthe following will not be paid by the seller to the buyer? ‘a. Expenses incidental to the sale paid by the buyer. pok de he b. Necessary expenses made on the thing sold. . The consideration of the sale paid by the buyer. . The interest on the purchase price. 37. Dacion en pago as distinguished from sale: a. The object is always existing and specific There is no pre-existing obligation b. There is greater freedom in fixing the priced. The cause is the price 38. S sold to B his car. There was no fixed date for the performance of their respective obligations. The ‘obligation of S as vendor is: ‘a. To wait for the buyer to pay the price before he delivers. b. To deliver the immediately since the sale has been perfected. . To deliver the car after the buyer demands delivery. d. Rescind the contract for time of performance not fixed, 39. A, B, and C are co-owners of a parcel of land pro-indiviso. A sold his share to 8 in an absolute deed of sale. ‘Which is correct? a. The deed of sale between A and B is void since it was made not in favor of a third person. b. Cmay exercise his right of redemption on the interest of A sold to B. <. Cmay redeem only ¥2 of the share sold by A to B. d. Ccannot exercise the right of redemption since the sale was made to a co-owner. 40. If the same thing was sold to different buyers, the ownership shall pertain to the one who has taken possession there of in good faith if movables. ‘The seller is liable to the buyer for any hidden defect of the thing sold only if was aware thereof. a. First statement true, second is false. c. Both are true. b. Both are false. . First is false, second is true. 41, The buyer has a right to the fruits of the things: a. From the time the fruits have been delivered. b. From the time the obligation to deliver the thing bought arises. c. From the time of perfection of the sale. d. From the time the thing bought is delivered. 42. $ sold his cat to B for P2,000.00. No payment has been made and the sales document does not provide for the date of delivery. Before delivery and payment, the cat gave birth to a kitten. a. B entitled to the kitten which was born after the perfection of the sale. b. Sis entitled to the fruit as B has not yet paid the price. . Sis entitled to the fruit because it was born before his obligation to deliver the cat. d. B should pay an additional amount for the kitten to be entitled to it. 43. S delivered his car to B by way of sale with the understanding that on the day following such delivery S will ame and fix the price, The said day came and $ telephoned 8 and stated and fixed the price at Php 1M, Is the sale perfected? a. Yes, because the price was named and fixed on the agreed date. b. No. The price was left to the discretion of the seller only. c. Yes, since there was already delivery of the thing sold. d. No. The price fixed by the seller was not accepted by the buyer. “BUSINESS LAW - Quiz: LAW ON SALES - PARTIThe Review School of Accountancy Page 6 of 7 444. Three of the folowing are option money. Which is the exception?, a. Given when contract of sale i perfected. <> /owagmyment b. Given when there is no contract of sale, but asa consideration, Given to bind the offeror in a unilateral promise to buy or sel . Given as a consideration distinct from the price. 45. Ina sale, this is actual delivery a. Execution and signing of the deed of sale. bb. Goods sold are placed in the control and possession of the vendee, ¢. Delivery by the vendor of the keys to the place where the goods are kept or stored. Amctite vymbelica d._ The vende 's already in possession of the goods even before the sole. adi#t brevinnaao 46. A and B entered into a contract of lease with option the car of the former for a term of two years. For three months B failed to pay the rentals ae: sason thereof, A repossessed the car. Henc a. Acan collect the unpaid rentals for three months. b. -Acan collect the unpaid rentals for the duration of the term of the lease of two years © When A deprived B the possession of the leased car, he hag no further action against the latter for an ungld teataed PON e bows ncaa eae op oaceehe a rr age (eel HeNgeg) 4. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with ‘option to buy. 47. A offered in writing to sell his house and lot for Php 1M to B on January 20, 2001. B requested A to give him one month to raise the amount. On January 25, 2001 A informed 8 that he has raised the price to Php 1,5M. Can B compel A [Link] the payment to Php Im for the sale of the house and lot? a. Yes, because A is already estopped by his written offer of Pho IM. b. Yes, because the one-month option period has not yet expired No, because there is as yet no perfected sale d. No, because the seller has the sole discretion in fixing the price with or without the concurrence of the buyer. 48. Which of the following may not be the object of a contract of sale? a. Things having potential existence . Things, the acquisition of which depends upon a contingency which may or may not happen: Vain hope or expectancy d. Things subject to @ resolutory condition 49. When delivery takes place by mere consent or agreement of the parties as when the vendor merely points to the thing sold which shall thereafter be at the disposal of the vendee if the thing sold cannot be transferred to the possession of the vendee upon sale: a. Traditio symbolica . Traditio longa manu b. Traditio brevi manu 4. Traditio constitutum possessonium 50. A placed an order with B for one hundred pieces of T-shirts which were wen not available but ‘manufactured by B and consigned to its sales outlets regularly. The contract between A and B is: ‘a. Contract for a piece of work ¢. Comtract of sale b. Contract of Lease of service d, Renumeratory contract 51. A sold a parcel of land to 8. Thereafter, A sold the same land to C who immediately took possession of the land in good faith. In this case, the proper remedy of 8 is: a. Ask for the annulment of the sale to C. b. File an action in court against C to recover the land. . Institute an action for damages against A for breach of contract. 4d. File an action for rescission of the sale to C due to the damage suffered by him. 52. A seller sold to a buyer a piece of jewelry at a’price of Php 1M. The contract provides that the buyer will pay the seller cash of Php .4M and deliver the buyer’s car worth Php .6M. The contract is: a. Barter b. Sale 4. Commodatum Otek 7 He iafaFion 53. A delivers to 8 his parcel of land worth Php 1M in exchange for the car of B worth Php .5M and cash in the amount of Php .5M. The contract is: a. Barter b. Sale . Partly sale and partly barter d. Innominate contract 54. On January 2, 2001 A sold to B his car with the payment to be made on January 10, 2001. However, on January 6, 2001, A sold the same car to C who immediately took possession thereof. Decide: ‘a. B must wait for January 10, 2001 and sue A for damages b. B may recover the car from C because the former was first buyer cB may claim damages from A for breach of contract of sale d. Ban ile an action to annul the sale to C even if Cis in good faith in buying the car BUSINESS LAW - Quiz: Law ON SALES - PART!ReSA: The Review School of Accountancy Page 7 of7 55. A contract of sale is unenforceable if itis not in public instrument and it refers to a sale of real property. A sale of a house through an agent whose authority is oral is void. a. Both statements are true. c. Second is true, first is false. b. Both are false. d. First is true, second is false. {In case of double sale of real property, the possessor in good faith shall preferred to the registrant but in bad faith. In all cases of double sale, priority is given to the buyer in good faith, that is, whether registrant, possessor or with the oldest title. a. First statement is false, second is true. . Both are false. : b. First is true, second is false. d. Both are true. 57. A sold his land to B who began to possess it. Later, C, a stranger, sold the same land to D who in good faith registered the sale and thus obtained the title in his name. The owner is: a. Dis the owner for he was the first to register in good faith. b. Aremains to be the owner because C had no authority to sell. c. Ais still the owner because 8 did not register the sale. d. Bis the owner because the owner is his seller and he has taken possession of the land. 8 58. S sold his land to B. Then S became B's tenant on the land. Subsequently, S sold the same land to C. Neither sale was registered. Who should be the owner? a. Sremains to be the owner because neither of the contracts of sale was registered. b. Cis the owner because the possession of the land was not transferred to B as buyer thereof, . Bis the owner since he bought the land from S as owner thereof and has possession of the same. d. S retains the ownership of the land because he still has possession. 59. A Sold his land to B. Later, A sold the same land to C. 6 in tum sold the same land to D, who took possession of the land in good faith. C, a purchaser in good faith, registered the sale in his favor. Decide: Bis the owner of the land because he was the first buyer. Cis the owner of the land having registered the sale in good faith. D is the owner of the land being the transferee of the rights of B and who is in possession in good faith. Dis the owner because after A sold the land to B, A had no more right to transfer ownership to C, the second buyer. 60. A husband and his wife were living together under a conjugal partnership of gains. Later, because of a quarrel, the wife left the husband without judicial approval. They have thus been living apart for more than ten years. The wife later sold her land to the said husband. Is the sale valig? a. The sale is valid because the spouses have been separated for more than ten years. b. The sale is valid because after separation there is already 2 separation of properties between spouses. ¢. The sale is void because of the absence of separation of properties between spouses. d. The sale is void because the spouses are living apart: aoge BUSINESS LAW - Quiz: LAW ON SALES - PART |‘The Review School of Accountancy ®Tel. No. 735-9807 & 734-3989 BUSINESS LAW Auy. M.S. Bonsfe Jr. QUIZ ON SALES ~ PART IT 1. D obtained from C a foan amounting to 50,000.00, the same being secured by a mortgage on D's lot. Thereafter, C assigned his credit right to T with notice to D. based on the foregoing facts, which of the following statements is incorrect? 2. T cannot collect from D if D does not give his consent to the assignment. b. T can collect from D. D's consent to the assignment is not required. €. T can collect from D and D cannot pay, T can foreclose the mortgage on the lot. d. The notice to D of the assignment is sufficient. D must make his payment to T and no longer to C. p 2. Akind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, show the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as: a. Legal mortgage. _b. Equitable mortgage. _c. Conventional mortgage. d. Voluntary Mortgage el 3. Ifa movable property is sold separately to two or more different vendees, ownership shall belona to the person: {@. Who in good faith first paid the purchase price in ful 'b. Who in good faith first recorded the sale in the Registry of Property. [Link] in good faith presents the oldest title. . Who in good faith first took possession of the property. © 4. A contact of sale is perfected: 2. Upon compliance with the requirements of the law as to form. . Upon delivery of the object of the contract. ©. Upon the meeting of the minds on the thing which is the object of the contract and upon the price. d. Upon demand. d 5. Acontract of sale is not a: @. Principal contract —_b. Nominate contract. Consensual contract _—_d. Real contract © 6 The following may not be valid objects of a contract of sale except: a. Objects outside the commerce of men c. Future goods b. Mit things 4d, Impossible service © 7. This is a kind of symbolic delivery where the vendor remains in possession of the property sold, such as by virtue of a lease agreement with the vendee. 2. Traditio onga manu . Traditio constitutum possessorium b. Traditio brevi manu d. Delivery to common carrier B 8. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in; a. Sale on approval b. Sale or return C. Sale on trial d. Contract to sell A 9 $ bromised to sell his car to B for P 200,000.00 giving & 30 days to decide. B accepted the promise of S and informed S that he (B) would make known his decision before the lapse of 30 days. He also gave S P 2,000.00 as consideration so that S would hold on to his promise. The contract entered into between S and B and the consideration given by B to S are known as: ‘a. Option contract and option money, respectively. b. Contract of sale and earnest money, respectively. c. Contract of sale and down payment, respectively. 4. Contract of sale and reservation money, respectively. B10. Refer to No. 9. a. S may withdraw his offer to sell before the lapse of 30 days by informing B. b. Smay not withdraw his offer before the lapse of 30 days. . Smay withdraw the offer by returning the amount of P 2,000.00 that was paid to him by B. d. $ may withdraw his offer even before the lapse of 30 days if a favorable price, i.e., more than P 200,000.00, is offered to him by another prospective buyer. ed 11, The Recto Law applies to which of the following examples of sale? a. Sale of a car on straight term. b, Sale of house and lot on installment. c. Sale of car on installment where the buyer constituted a mortgage on his truck 4. Sale of a piano on installments where the buyer constituted a chattel mortgage on the piano. We ie aes aep ss BUSINESS LAW: QUIZ on Sales ~ Part II ReSA: The Review School of Accountancy Page 2 of 6 12. $ sold to 6 a lot through a deed of absolute sale duly acknowledged before a notary public. Three days later, S sold the same lot to X, also through a deed of sale duly acknowledged before a notary public. X had the sale registered with 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. Neither B nor X. d. S,as long as he does not surrender physical possession of the lot. 13. B purchased from S a laptop computer worth P 100,000.00. The terms of sale provide for a down payment of P 20,000.00 with the balance payable in 8 equal monthly installments. To secure the balance, S required B to execute a chatte! mortgage on the laptop computer and a real mortgage on B's lot. 8 complied with all the requirements but defaulted in the payment of the third and fourth installments. Theses remedies are — to S except one, Which is it? atleact of pecan are wapaid Cancel the sale. -Jp 207 wert Exact fulfilment ofthe obigation. - fp a 7 ¢. Foreciose the real mortgage and thereafter recover any deficiency from B. d. Foreciose the chattel mortgage and thereafter foreclose the real mortgage in case of deficiency. 14. S and B entered into a contract whereby S transferred to B a specific piano for the price of P 80,000.00, while B gave to S cash of P 30,000.00 and a diamond ring worth P50,000.00. What kind of contract was entered into between S and 8? ‘a. A contract of barter. b. Acontract of sale. . The contract is partly a contract of barter and partly a contract of sale. d. The contract is an innominate contract because the intention of the parties cannot be determined. 15. One of the distinctions between option money and earnest money is that earnest money is; 'a. The consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time. ; b. Not part of the purchase price. . Proof of the perfection of the contract of sale. Paid before the perfection of the contract of sale. 16. this refers to the warranty of the seller that he has the right to sell the thing at the time when ownership is, to pass, and which can be enforced if the buyer is deprived of the property sold by a final judgment in court, ‘a. Warranty against hidden defects. . Warranty against eviction. b. Warranty of merchantable quality, d. Warranty of possession. 17. P, who was in Hong Kong, made an overseas call to a, his friend, to sell P’s lot in Quezon City immediately as P needed cash. Accordingly, A sold the lot to B. the deed of sale as in a public document. The sale of PS lot is: a. Valid b. Rescissible ¢. Unenforceable d. Void 18, One of the distinctions between @ contract of sale and a contract for a piece of work is that a contract for a piece of work: /*aée . Is not governed by the Statue of fraud. b. Refers to a contract for the delivery goods which are manufactured in the ordinary course of business although the same are not available. c. Has for its parties the vendor and the vende. d. Has for its consideration the price of the thing. 19. A and B are co-owners of a rural lot not exceeding 1 hectare. The lot is surrounded on its four sides as follows: on the North, by the road; on the East, by the lot of X consisting of 2 hectares; on the south; by the lot of ¥ consisting of 2 Ys hectares; and on the West, by 2's lot consisting of 2 % hectares. A sells his: undivided interest in the agricultural lot to T, who owns several hectares of rural land in the area. Who has the right of legal redemption over the undivided interest in the jot sold by A to T? a 8 bx Oy dz 20. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to induce the buyer to purchase the same, relying on such promise or affirmation. ‘a. Condition b. False representation c. Warranty d. Seller's talk 21, In one of the following cases, the ownership of the thing object of the contract is transferred to the other party upon delivery. a. Contract to sell b. Agency to sell «. Sale or return 4. Sale on approval| ReSA: The Review School of Accountancy Page 3 of 6 © 22. Under the “Realty Installment Buyer Act", the buyer of real estate on installment payments may pay an installment defaulted without additional interest if he ahs paid at least two years of installments. The law is ‘applicable to sales/transactions involving: a. Industral lots ¢. Residential lots b. Commercial buildings d, Sales to tenants under the Land Reform Law. © 23.5, the owner of a rent-a-car business, leased one of his cars to B for one month. On the day of the expiration of the lease and while B was stil in possession of the car, B offered to buy the car from S for 200,000.00. Believing the price to be a good one, S readily accepted B's offer and then and there executed a deed of absolute sale in favor of 8 who immediately paid the price in cash. Thereafter, B drove away from place of S. ‘The delivery of the car by S to B is by constitutum manu, The delivery of the car by s to 8 is by traditio longa manu. ‘The delivery of the car by S to B is by traditio brevi manu. There was no delivery because 8 should have turned over the possession of the car to $ upon the expiration of the lease so that S could make the proper delivery to him upon the expiration of the lease so that S could make the proper delivery to him upon the execution of the contract of sale. @ 24. Balled on S at the shoe factory of S for the latter to make @ pair of shoes which B would be needing in the play “Romeo and Juliet.” B provided S with the description of the pair of shoes that he wanted since S did not manufacture the kind of shoes that B needed. S quoted a price of P1,000.00 which 8 agreed to pay upon delivery to him of the pair of shoes. Since S and B had been neighbors for a long time, their agreement was sealed with a handshake. a. The contract between S and B becomes enforceable if S had already completed making the pair of ‘shoes. 'b. The contract between S and 8 becomes enforceable if B had already paid the amount agreed upon for the work c. The contract between S and B is enforceable even if it is still executory. d. The contract cannot be enforced by either party because it, was not in writing. # | 25, Which of te fooing contrat of sale & vid? Oral sale of a piece of land made through an agent whose authority is in a public instrument. Bi: Sale ofa pect of tad in 8 pubic insrument made theugh an event whose aUthery was given orally by the principal, 1677. Sale of a piece of land in a private instrument made through an agent whose authority is in a public instrument. . d. Sale of a piece of land in a public instrument made through an agent whose authority is in a private instrument. p26, A contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver 2 determinate thing and the other to pay therefore a piece certain in money or its equivalent is a contract of: a. Barter. b. Sales «. Dacion en pago d. Mortgage. ef 27. The following are the essential [Link] a contiact of sale, except: ‘a. Consent of the contracting parties. b. Subject matter which should be determinate. a c. Price which is certain in money or its equivalent. d. Warranty against eviction and against hidden defects. »/red e/emeat eoge B 28. The following are the characteristics of a contract of sale, except: ‘a. Principal, which means that a contract of sale can exist by itself. b. Real, which requires the delivery of the object of the contract of sale for its perfection. c. Onerous. Where rights are acquired in exchange of a valuable consideration. . Bilateral, which means that both parties are bound reciprocally to each other. e/ 29. One of the following characteristics of dacion en pagois a characteristic of a contract of sale. Which is it? ‘a. There is a pre-existing credit. b. Obligations are extinguished. ¢. There is less freedom in fixing the price. d. Ownership of the object is transferred to the other party. eer “ page 30, The following are characteristics of a contract of sale except one which refers to payment by cession. ‘There is no pre-existing credit. b. The cause or consideration is the price. Cc. There is more freedom in fixing the price. d. Assignee of the property acquires the right to sell the thing but not the ownership thereof. BUSINESS LAW: QUIZ on Sales ~ Part IT ¢ makPc AS ea) MMi ee ReSA: The Review School of Accountancy Page 4 of 6 31. The following items pertain to either a contract of sale or a contract to sell. I. Ownership of the thing sold is transferred upon delivery. con fract F ole II. Ownership of the thing is transferred to the buyer at some future time. ‘carfrece /°

Law Quiz On Sales

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