Long quiz answer key

1. Option moneyLONG QUIZ LAW

I. IDENTIFICATION

1. It is a non-refundable fee paid by the buyer to the seller in exchange for the right to option
within a specific periodwithout penalty.

Option Money

2. It is a good faith deposit that a buyer provides to show they are serious about purchasing a
property.

Earnest Money

3. In contract of sale, if the price is absolutely simulated, the sale is ____

Void

4. Quasi-traditio is equivalent to ______

Execution of public instrument

5. In a contract of sale, when shall ownership be required to be transferred to the seller?

Upon the delivery

6. Under the Maceda Law, the actual cancellation of the contract shall take place
after _______ days from receipt by the buyer of the notice of cancellation or the demand for
rescission of the contract by a notarial act and upon full payment of the cash surrender value
to the buyer

30days

7. If the sale of condominium unit is paid via installments, what law shall govern the
installments?

Maceda Law

8. It take place whenever by a final judgment based on a right prior to the sale or an act
imputable to the vendor, the vendee is deprived of the whole or of a part of the thing
purchased.

Eviction

9. If the object of the contract is specially made or manufactured at the specific order of
another, it is a contract for a piece of work.

Bonus
10. If the article already exists and subsequently acquired by another, it is a contract of sale,
and if the article is still to be manufactured at the instance of another, it is a contract for a
piece of work.

Bonus

11. It is a corporation which insures the deposits of all banks which are entitled to the benefits
of insurance.

PDIC

12. It refers to a bank placed under liquidation by the Monetary Board.

-Closed Bank

13. How much is the amount due to any bona fide depositor for legitimate deposits in an
insured bank net of any obligation of the depositor to the insured bank as of date of closure?

500k

14. It is where a property is alienated to the creditor in satisfaction of a debt in money.

Dation in payment

15. Where a debtor transfers all his properties not subject to execution in favor of his
creditors so that the latter may sell them and thus apply the proceeds to their credits.

Payment Cessions

16. The act of offering the creditor what is due him together with a demand that the creditor
accept the same.

Tender of payment

17. The meeting in one person of the qualities of creditor and debtor with respect to the same
obligation.

Confussion

18. It is present when one of the contracting parties is compelled by a reasonable and well
grounded is fear of an imminent and grave evil upon his person or property.

Intimidation

19. It is present when, through insidious words or machinations of one of the contracting
parties, the other is induced to enter into a contract which without them, he would not have
agreed to.

Fraud

20. It is the remedy of the parties in case of an absolutely simulated contract.

Contract of loan
21. It refers to the immediate and proximate purpose of the contract or the essential reason
which impels the contracting to enter into it and which explains and justifies the creating of
the obligation through such as contract.

Null and void

22. A stipulation provides that the student’s private scholarship is good only if he continues in
same school and that he waives his right to transfer to another school without refunding the
equivalent of his scholarship in cash is null and void.

Null and voided

23. A contract where consent is given through mistake, violence, intimidation, undue influence
or fraud is_______

Voidable

II. TRUE OR FALSE

24. Statement I: The object of every contract must be determined as to its kind.

Statement II: The parties need not agree on the manner of payment of the price of the
property to give rise to a binding and enforceable contract of sale or contract to sell.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

25. Statement I: A contract of sale is normally commutative but not onerous.

Statement II: A contract to sell may not be considered as Contract of Sale because the
second essential element is lacking.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

26. Statement I: In contract to sell, what the seller agrees or obliges himself to do is to fulfil
his promise to sell the subject property when the entire amount of the purchase price is
delivered to him.

Statement II: In general, the object is the why of the contract or the essential reason which
moves the contracting parties to enter into the contract.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

27. Statement I: For the cause to be valid, il must be lawful such that it is not contrary to law,
morals, good customs. Public order or public policy.

Statement II: A contract of sale is perfected by the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute the contract.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

28. Statement I: A contract for a piece of work labor and materials Mav be distinguished from
a contract of sale by the inquiry as to Whether the thing transferred is one not in existence
and which would never have existed but for the order of the person desiring it. In such case.
the contract is one for a piece of work. not a sale
Statement II: The sale of vain hope or expectancy is voidable.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

SDASDSADASDASDASDASDSDASDASDASDSADSAD

29. Statement I: If the animal sold die within three (3) days after its purchase, the vendor
shall be liable to the vendee.

Statement II: The fixing price can never be left to the discretion on one of the contracting
parties. However, if the price fixed by one of the parties is accepted by the other, the sale is
perfected.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

30. Statement I: The husband and wife cannot sell property to each other, as a rule.

Statement II: The sale of land or interest therein when made thru an agent is void unless the
agent’s authority is in writing even if the itself is in public instrument and has been registered.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

31. Statement I: Earnest money and option money both apply to perfected sale.

Statement II: In contract of sale of personal the price of which is payable in installment, the
vendor may cancel the sale should the vendee fail to pay.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

32. Statement I: When two or more principal have granted a power of attorney for a common
transaction or undertaking, anyone of them may revoke the same without the consents of the
others.

Statement II: The Agency is revoked if the principal directly manages the business entrusted
to the agent dealing directing with third persons.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

33. Statement I: Unless otherwise agreed, the buyer of goods is not bound to accept delivery
thereof by installment

Statement II: In case of doubt, a contract purporting to be an equitable mortgage shall be

construed as a sale with a right to repurchase.
a. Statement I is true; Statement II is false
b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

34. Statement I:Depositors with account not eligible for early payment, regardless of type of
account or account balance per advice of PDIC are not required to file deposit insurance
claim.

Statement II: Joint Accounts are accounts held under one more than one name.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

35. Statement I: In case of a joint account, only one of the depositors can sign the deposit
insurance claim form.

Statement II: Depositors with valid deposit accounts with balances of more than Php100,000
are required to file deposit insurance claims.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

36. Statement I: Under R.A. No. 9657, the PDIC may propose to adjust the MDIC, Subject to
the approval of the President of the Philippines.

Statement II: Depositors have 2 years from PDIC takeover of the closed bank to file their
deposit insurance claims

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

39. Statement I:Joint accounts held in the names of a juridical entity and a natural person
shall not be presumed to belong solely to the juridical entity.

Statement II: Depositors have 2 years from PDIC takeover of the closed bank to file their
deposit insurance.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

40. Statement I: Depositors below 18 years old can signed the deposit insurance claim form

Statement II: Latest amendment to RA 3591 was RA 10864 in May 23, 2016.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

41. Statement I: According to 1305 a contract is a promise made by one party to another
without any obligations

Statement II: Perfection of a contract is the moment when the parties come to agree on the
terms of the contract.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

42. Statement I: Consummation or death, which is the fulfillment or performance of the terms
agreed upon.

Statement II: Public policies are the measures or principles aimed at promoting the overall

public order.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

43. Statement I: Article 1306 of the Philippine New Civil Code provides that parties to a

contract may establish such stipulations, clauses, terms and conditions as they may deem
favorable, provided they are contrary to law, morals, good customs, public order, or public
policy

Statement II: Perfection or birth of the contract, which is the moment when the parties

come to disagree on the terms of the contract.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

44. Statement I: Preparation, conception, or generation, which is the period of negotiation

and bargaining, ending at the moment of agreement of the parties

Statement II: The subject matter of the contract must not be certain or capable of being
made certain.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

45. Statement I: Force Majeure clause excuses a party from fulfilling their contractual
obligation under any circumstance.

Statement II: A breach of contract occurs when one party fails to fulfill their obligation under
the agreement.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

46. Statement I: A legally enforceable contract requires offer, acceptance, consideration, and
legal capacity.

Statement II: All contracts must be in writing to be valid.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

47. Statement I: The sale of hope or expectancy is valid even if the thing hoped for does not
come into existence.

Statement II: It is not necessary that the vendor of a thing must be the owner thereof at the
time of sale as long as he can transfer its ownership to the buyer upon delivery.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

48. Statement I: Warranty against eviction is inherent in a contract of sale; hence, it is an

essential element thereof.

Statement II: Dacion en pago partakes of the nature of a sale; hence, there is more freedom
in fixing the price of the thing conveyed.

a. Statement I is true; Statement II is false

b. Statement I is false Statement II is True

c. Both statements are false

d. Both statements are true

III. ENUMERATION
5 points. Enumerate the vices of consent

Mistake
Intimidation
Violence
Undue Influence
Fraud

4 points Give the remedies unpaid seller

Lien
Stoppage in transit
Recession
Resale

5 points Give the types of constructive delivery

Execution of public instrument

Symbolic Delivery
Constitutum Possessorium
Traditio Brevi Manu
Traditio Longa Manu

5 points Give at. least causes of extinguishment

Payment or performance of obligation

Loss of the thing due
Condonation or remission of debt
Confusion or merger of rights
Compensation
Novation

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13Long quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money
3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element
8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANK. CLOSED BANK

14 INSURED BANKLong quiz answer key

1. Option money

2. Earnest money

3. Void

4. Execution of public instrument

5. The seller must be in possesion of the goods

6. Between husband and wife

7. Natural Element

8. Delivery

9. The goods are perishable in nature

10. 30days

11. Maceda law

12. PDIC

13. CLOSED BANK

14. INSURED BANK