NOTA BENE: READ THE INSTRUCTIONS CAREFULLY!

NAME: GABIASON KEITH JOSHUA G

COURSE AND SECTION:

TEST 1. TRUE OR FALSE. Write the word TRUE if the statement is false and the word FALSE if the
statement is true.
1. In a sale by auction, any bidder may retract his bid before the sale is perfected.
Answer: FALSE
2. In sale of real property where the buyer has defaulted after paying at least 2 years installments,
he shall be entitled to pay without additional interest, the unpaid installments due within the
grade period earned by him.
Answer: FALSE
3. Warranty against eviction is inherent in a contract of sale; hence, it is an essential element
thereof.
Answer: FALSE
4. The ownership of the thing sold is transferred upon the perfection of the contract of sale.
Answer: TRUE
5. In sale of personal property payable in installments, the seller may exact fulfillment of the
buyer’s obligation when the buyer defaults in the payment of one or more installments.
Answer: FALSE
6. A sales contract requires the delivery of the thing sold for its perfection.
Answer: FALSE
7. Earnest money is part of the purchase price of a thing; hence, deductible from the total selling
price.
Answer: FALSE
8. In a contract to sell, the full payment of the price is a suspensive condition which upon
fulfillment will require the execution of a contract of sale.
Answer: FALSE
9. A unilateral promise to buy or sell a determinate thing at a certain price is binding upon the
promissor if the promise is supported by a consideration distinct from the price.
Answer: FALSE
10. The sale of hope or expectancy is valid even if the thing hoped for does not come into existence.
Answer:FALSE

TEST II: MULTIPLE CHOICE. Select the best answer by writing the letter of your choice.
1. The sale of the hope itself
A. Dacion en pago
B. Payment by cession
C. Emptio spei
D. Emptio rei-speratae
Answer: C

2. X needs a size of 10 of model 101 of Leather Shoes regularly available to the public for her
boyfriend Z, but the same is out of stock so she placed an order for one. On the other hand, Z placed
an order for size No. 8, colored violet, (something not ordinarily made by the company) to be given
to X. Which is correct?
A. Both are contracts of sale
B. Both are contracts for a piece of work
C. First is a contract of sale second is a contract for a piece of work
D. First is a contract for a piece of work, second is a contract of sale
Answer: C

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3. V offered to sell for P12,000,000 her house and lot to DD who was interested in buying the same.
In her letter to DD, V stated that she is giving DD a period of one month within which to raise the
amount and that as soon as DD is ready, they will sign the deed of sale. Five days before the
expiration of the one month period. V went to DD and told her that she is no longer willing to sell the
property unless the price in increased to P15,000,000. Which is correct?
A. DD may compel V to accept the P12,000,000 first offered.
B. V may compel DD to pay P15,000,000
C. V and DD should shoulder the P3,000,000 difference
D. DD cannot compel V to accept the P12,000,000 first offered
Answer: A

4. The Realty Installment Buyer Protection Act applies to all transactions involving the sale or
financing of real estate on installment but it excludes the following except:
A. Sale or financing of industrial lots
B. Sale or financing of commercial building
C. Sale to tenants under the Land Reform Code
D. Sale of residential condominiums
Answer: C

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

A. Unenforceable
B. Voidable
C. Void
D. Rescissible
Answer: C

6. In a contract of sale, of personal property, the price of which is payable in installments, the
vendor may exercise any of the following remedies, except
A. Exact fulfillment of the obligation, should the vendee fail to pay any installment
B. Cancel the sale, should the vendee’s failure to pay cover two or more installment
C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s
failure to pay cover two or more installments
D. Rescind the sale should the vendee fail to pay any installment.
Answer: D

7. X sold to V her Yamaha organ. It was agreed that X would fix the price a week later. At the agreed
time, X named the price P10,000. V agreed. Was the sale perfected?
A. No, because the price was left to the discretion of one of the contracting parties
B. No, because at the time of sale the price was not fixed
C. Yes, because the price fixed by one of the parties was accepted by the other
D. Yes, because there was agreement that X would fix the price
Answer: C
8. A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B
and the balance at P10,000 per month until full payment of the purchase price. Later the car gets
burned in the possession of B through fortuitous event and without B’s fault, before full payment of
the balance. Is B obliged to pay the balance?
A. No, because the car was lost through fortuitous event and without B’s fault, hence B’s obligation is
extinguished.
B. No, because the loss should be borne by the seller as this an installment sale so until the buyer pays
the full amount of the price of the sale, A remains to be the owner.
C. Yes, but A must give another car to B because of the principle “genus nunquam perit” or generic thing
never perishes

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D. Yes, because the principle “res perit domino” or the thing perishes with the owner.
Answer: D

9. Which of the following cannot be the object of a contract of sale?

A. Sale of credit
B. Young animal not yet conceived at the time of perfection
C. Land which the seller expects to buy
D. Future inheritance
Answer: D

10. A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the
price offered at Z’s store in Cainta Market. The price is
A. Not certain because the price at Cainta Market is not stated
B. Certain because it has got reference to another thing which is certain
C. Certain because there is a price ceiling for price of land
D. Not certain so court may fix the price
Answer: B

11. X sold his motor vehicle to V who bought it for P200,000. It turned out however, that X has 2
motor vehicles: Toyota valued at P230,000 and Lancer valued at P220,000. Which is correct?
A. There is no contract of sale between X and V
B. The parties may ask for interpretation or reformation
C. The parties can ask for annulment of the contract
D. V may choose between the Toyota or Lancer
Answer: A

12. X offers to V 100 electric fans for P80,000 payable in 60 days with 12% interest per annum. V
accepted the offer by telegram provided that interest is reduced to 6%. If there is no further
communication between X and V relating to the terms
A. The contract is perfected because of the acceptance by V
B. There is no contract yet between X and V because V made a counter offer
C. The contract is perfected under the terms of X
D. There is no contract yet unless v gives earnest money
Answer: A

13. X sold her specific car to V for P200,00 payable in 5 equal installments. X delivered the car to V
but a mortgage was constituted on the car to answer for the unpaid installments. V paid the first 2
installments but failed to pay the last 3 installments. X foreclosed the mortgaged property and sold it
at public auction for P100,000. Which is correct?
A. X can recover from V the balance of P20,000 even if there is no stipulation to that effect
B. X can recover from V the balance of P20,000 if there is stipulation to that effect
C. X cannot recover the deficiency except if there is stipulation to that effect
D. X cannot recover the deficiency even if there is stipulation to the contrary
Answer: D

14. Ownership of the thing sold is

A. Retained by the seller in “sale or return
B. Transferred to the buyer upon constructive or actual delivery of the thing sold
C. Acquired by the buyer upon perfection of the contract
D. Transferred to the buyer upon acceptance of the price
Answer: B

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15. X sold his horse to Y for P40,000. No payment has yet been made and the sales document does
not provide the date of delivery. Before delivery and payment the horse gave birth to a baby horse,
which is correct?
A. Y is entitled to the baby horse which was born after the perfection of the contract
B. X is entitled to the fruit (baby horse) as Y has not paid the price yet
C. X is entitled to the (baby horse) because it was born before his obligation to deliver arises
D. Y should pay additional amount for the baby horse to be entitled to it
Answer: A

16. A contract of sale is in the stage of conception when

A. There is meeting of the minds
B. Negotiations are in progress
C. The parties come to an agreement
D. The contract is perfect
Answer: B

17. A seller sold to a buyer a piece of jewelry at a price of P25,000. The contract provides that the
buyer will pay the seller cash, P20,000 and for the balance, the buyer will give the seller a micro
oven worth P5,000. What is the nature of the contract?
A. Sale
B. Partly sale partly barter
C. Barter
D. Commodatum
Answer: C

18. X leased to V a 5 Freezer for two years at a lease rental fee of P1,000 per month and signed an
option in favor of V to buy the freezers at the end of the term of the lease at P50,000. All rental fee
paid are to be considered as partial payment of the sale. After 12 months V was able to pay the
rental fee for 9 months and was in arrears for three months. X terminated the lease contract and
repossessed the freezers. The consequence of the transaction is
A. X can collect the rental fees for three months which are in arrears.
B. X can collect the rental fees for the unexpired 12 months of the lease contract.
C. When X took possession of the freezer, he has no further action against V
D. X in terminating the lease and repossessing the freezer is obliged to refund the 9 months rental fee,
paid by V even if there is a stipulation to the contrary.
Answer: D

19. X sold his car to Z for P60,000. No date was fixed for the performance of the obligation of the
seller and the buyer. The obligation of X is
A. To deliver the car immediately because the sale is a perfected contract
B. To deliver the car only after Z writes to X demanding the delivery of the car.
C. To deliver the car only after Z pays the P60,000
D. To rescind the contract because there is no time fixed for the delivery
Answer: B

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20.
I. The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the
owner at the time the thing sold is delivered.

II. The sale of a vain hope or expectancy is voidable.

A. First statement is true, second statement is false.

B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false.
Answer: A

21.
I. There may be a contract of sale of goods, whose acquisition by the seller depends upon a
contingency which may or may not happen.

II. If the consideration of the contract consists partly in money and partly in another thing, it shall
be considered a barter if the value of the thing given as a part of the consideration exceeds the
amount of the money or its equivalent.

A. First statement is true, second statement is false.

B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: C

22.
I. If the price is grossly inadequate, the sale is void.

II. Whenever option money is given in a contract of sale, it shall be considered as part of the price
and a proof of the perfection of the contract.
A. First statement is true, second statement is false.
B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: D

23.
I. Earnest money and option money both apply to perfected sale.

II. In a contract of sale of personal property the price of which is payable in installment, the
vendor may cancel the sale should the vendee fail to pay.
A. First statement is true, second statement is false.
B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: B

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24.
I. Should the vendee’s failure to pay, cover two or more installments, the vendor may foreclose
the chattel mortgage on the thing sold but he shall have no further action against the purchaser to
recover any unpaid balance of the price, except if there is an agreement to the contrary.
II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection.

A. First statement is true, second statement is false.

B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: D

25.
I. The ownership of the thing sold shall be transferred to the vendee upon perfection of the
contract.

II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain is
binding upon the promissory.
A. First statement is true, second statement is false.
B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: C

26.
I. Option money is considered as part of the purchase price while earnest money is not.

II. The Maceda Law refers to the sale of personal property by installments while the Recto Law
refers to the sale of real property by installments.

A. First statement is true, second statement is false.

B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: D

27.
I. The ownership in the thing shall not pass to the purchaser until he has fully paid the price.

II. If at the time the contract of sale is perfected, the thing which is the object of the contract has
been partially lost, the contract shall be without effect.

A. First statement is true, second statement is false.

B. First statement is false, second statement is true.
C. Both statements are true.
D. Both statements are false
Answer: C

28. 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.

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C. Sale of car on installment where the buyer constituted a mortgage on his truck.
D. Sale of a piano on installments where the buyer constituted a chattel mortgage on the piano.
Answer: D

29. A contract of sale is perfected upon the:

A. Full payment of the purchase price by the buyer.
B. Delivery of the object of the contract to the buyer.
C. Meetings of minds between seller and the buyer on the object and the price.
D. Acknowledgment of the deed of sale by the seller and the buyer before a notary public.
Answer: C

30. Kindly write/encode the vision, mission and core values of DWCL.
Answer:
VISION
WE, THE MEMBERS OF THE DIVINE WORD COLLEGE OF LAOAG, A CATHOLIC INSTITUTION,
ENVISION OURSELVES TO BE TRULY EDUCATIVE AND EVANGELIZING COMMUNITY ABLE TO FACE LIFE’S
CHALLENGES WITH DIGNITY AND ACTIVELY PARTICIPATING IN THE UPLIFTMENT OF LIFE.

MISSION
AS MEMBERS OF THE DIVINE WORD COLLEGE OF LAOAG COMMUNITY WE COMMIT OURSELVES
TO PRACTICE JUSTICE, PEACE, TRUTH AND LOVE IN:
DEVELOPING INTELLECTUAL EXPERTISE FOR GOD AND COUNTRY;
NURTURING A SCHOLARLY ATTITUDE TOWARDS RESEARCH;
INSTILLING THE SPIRIT OF MEANINGFUL COMMUNITY INVOLVEMENT WITH PREFERENTIAL OPTION FOR
THE POOR;
IN ORDER TO IMPROVE THE QUALITY OF LIFE AND REALIZE THE FULL POTENTIAL OF EVERY MEMBER.

THE MEMBERS OF THE DIVINE WORD COLLEGE OF LAOAG ARE OUR GREATEST ASSETS. OUR
COMMUNITY IS BUILT ON A DYNAMIC AND PROFESSIONAL FOUNDATION THAT VALUES:

SPIRITUALITY
INTEGRITY
HONEST AND HARD WORK
INDIVIDUAL EXCELLENCE ABD EXPERTISE TEAMWORK
TEAMWORK
INNOVATIVENESS
SOCIAL RESPONSIBILITIES

END OF EXAM

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