FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in

transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…

a. Who in good faith recorded it in the Registry of Property.

b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.

In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity

The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception
Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica

FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in
transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…

a. Who in good faith recorded it in the Registry of Property.

b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.

In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity

The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception

Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica
Feedback
The correct answer is: Traditio longa manu

On June 1, 2020, S has shipped Cebu City-based goods worth P100,000.00 to B who is from
General Santos City, with the understanding that S remains to be owner until he is fully paid.
While the carrier was on a short stopover in Cagayan De Oro City, S’s bank informed him that
the check issued by B as payment for the goods was dishonored by reason of “DAIF” or drawn
against insufficiency of funds. He also learned from the bank that B had become insolvent. S then
notified the carrier of his claim over the goods and that he was taking possession of the goods. The
right availed of by S is:

a. Right of withholding delivery

b. Right of stoppage in transitu
c. Right of possessory lien
d. Right of rescission
Feedback
The correct answer is: Right of withholding delivery
FIRST: If the unpaid seller still retains ownership in the goods, he cannot be said to have a lien on
his goods. SECOND: Unless otherwise agreed, where goods are sent by the seller to the buyer
under circumstances in which the seller knows or ought to know that it is usual to insure, the seller
must give such notice to the buyer as may enable him to insure them during their transit, and, if
the seller fails to do so, the goods shall be deemed to be at his risk during such transit.
a. Only the SECOND is true.
b. Only the FIRST is true.
c. Both are false.
d. Both are true.
Feedback
The correct answer is: Both are true.

Seller and buyer agreed that payment and delivery would be made on July 15. On said date, seller
may offer to deliver the goods to the buyer, and if buyer refuses to receive the goods, the seller can
tell the buyer, “I am holding the goods, no longer as the seller, but as your depositary or as
bailee. You are now the owner of the goods.” Can the seller then maintain an action for the price?

a. Yes, if the goods cannot readily be resold for a reasonable price.

b. Yes, if the goods cannot are fungible.
c. No, because there was no delivery yet.
d. No, the seller can only choose one remedy in the alternative.
Feedback
The correct answer is: Yes, if the goods cannot readily be resold for a reasonable price.

FIRST: In the event of breach of warranty against hidden encumbrance, the action for rescission
must be brought within one (1) year from the execution of the deed of sale. Otherwise, the buyer
shall lose any other remedy. SECOND: There is implied warranty as to the quality or fitness for
any particular purpose of goods under a contract of sale when the buyer expressly or impliedly
manifests to the seller the particular purpose for which the goods are acquired and the buyer relies
upon the seller’s skill or judgment whether he be the grower or manufacturer or not.

a. Only the FIRST is true.

b. Both are false.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the SECOND is true.
On January 1, Shauntet sold Bette one unit of apartment, payment and delivery to be made on
January 15. It was stipulated that should payment not be made on January 15, the contract would
automatically be rescinded. On January 20, can Bette still pay?
a. Yes, as long as it has not yet been returned to the seller.
b. Yes, as long as there has been no judicial or notarial demand for the rescission of the contract.
c. No, because Bette is already in default.
d. No, because there was already a stipulation to that effect.
Feedback
The correct answer is: Yes, as long as there has been no judicial or notarial demand for the
rescission of the contract.

The following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired
b. Merchandise in quality
c. Right to sell the thing at the time of delivery
d. Free from charges or encumbrances declared or known to the buyer
Feedback
The correct answer is: Free from charges or encumbrances declared or known to the buyer

A contract of sale is not necessarily:

a. An onerous contract
b. A principal contract
c. Commutative
d. Bilateral
Feedback
The correct answer is: Commutative

Delivery of incorporeal property may be made through any of the following, except:
a. Use by the vendee of his rights, without the vendor’s consent
b. Placing the titles of ownership in the possession of the vendee
c. Execution of public instrument
d. None of the choices given; All are quasi-delivery
Feedback
The correct answer is: Use by the vendee of his rights, without the vendor’s consent
FIRST: Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
SECOND: Failure of the buyer to notify the seller within twenty four (24) hours after the buyer
knows or ought to know the breach shall release the seller from liability.
a. Both are false.
b. Only the FIRST is true.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: If the property is sold for non-payment of taxes due and made known to the buyer before
the sale, the seller is not liable for eviction. SECOND: When the waiver is made by the vendee
without knowledge of the risk of eviction and assumption of its consequences, the seller has no
liability at all.
a. Only the FIRST is true.
b. Both are false.
c. Only the SECOND is true.
d. Both are true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: The indorsement of a document of title shall not make the indorser liable for any failure
on the part of the bailee who issued the document or previous indorsers thereof to fulfill their
respective obligations. SECOND: Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent, the seller thereby reserves a right to the possession of the goods as against
the buyer.
a. Both are false.
b. Both are true.
c. Only the SECOND is true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.
Sansa sold and delivered to Brianna a parcel of land for P2 million payable within 30 days from
the date of the contract. Soon after the sale, Xavier surreptitiously entered the land and started
occupying therein. May Brianna suspend the payment of price?
a. No, because there is no truthfulness as to the claims of ownership by Xavier.
b. Yes, Brianna may suspend payment because Sansa may not have ownership over the property at
the time of sale.
c. Yes, Brianna may suspend the payment of the price because of a reasonable fear that an
vindicatory action will be brought against him.
d. No, it necessary that Xavier must assert his right or ownership.

FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in
transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…

a. Who in good faith recorded it in the Registry of Property.

b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.

In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity
The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception

Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica
Feedback
The correct answer is: Traditio longa manu

On June 1, 2020, S has shipped Cebu City-based goods worth P100,000.00 to B who is from
General Santos City, with the understanding that S remains to be owner until he is fully paid.
While the carrier was on a short stopover in Cagayan De Oro City, S’s bank informed him that
the check issued by B as payment for the goods was dishonored by reason of “DAIF” or drawn
against insufficiency of funds. He also learned from the bank that B had become insolvent. S then
notified the carrier of his claim over the goods and that he was taking possession of the goods. The
right availed of by S is:

a. Right of withholding delivery

b. Right of stoppage in transitu
c. Right of possessory lien
d. Right of rescission
Feedback
The correct answer is: Right of withholding delivery

FIRST: If the unpaid seller still retains ownership in the goods, he cannot be said to have a lien on
his goods. SECOND: Unless otherwise agreed, where goods are sent by the seller to the buyer
under circumstances in which the seller knows or ought to know that it is usual to insure, the seller
must give such notice to the buyer as may enable him to insure them during their transit, and, if
the seller fails to do so, the goods shall be deemed to be at his risk during such transit.
a. Only the SECOND is true.
b. Only the FIRST is true.
c. Both are false.
d. Both are true.
Feedback
The correct answer is: Both are true.

Seller and buyer agreed that payment and delivery would be made on July 15. On said date, seller
may offer to deliver the goods to the buyer, and if buyer refuses to receive the goods, the seller can
tell the buyer, “I am holding the goods, no longer as the seller, but as your depositary or as
bailee. You are now the owner of the goods.” Can the seller then maintain an action for the price?

a. Yes, if the goods cannot readily be resold for a reasonable price.

b. Yes, if the goods cannot are fungible.
c. No, because there was no delivery yet.
d. No, the seller can only choose one remedy in the alternative.
Feedback
The correct answer is: Yes, if the goods cannot readily be resold for a reasonable price.

FIRST: In the event of breach of warranty against hidden encumbrance, the action for rescission
must be brought within one (1) year from the execution of the deed of sale. Otherwise, the buyer
shall lose any other remedy. SECOND: There is implied warranty as to the quality or fitness for
any particular purpose of goods under a contract of sale when the buyer expressly or impliedly
manifests to the seller the particular purpose for which the goods are acquired and the buyer relies
upon the seller’s skill or judgment whether he be the grower or manufacturer or not.

a. Only the FIRST is true.

b. Both are false.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the SECOND is true.

On January 1, Shauntet sold Bette one unit of apartment, payment and delivery to be made on
January 15. It was stipulated that should payment not be made on January 15, the contract would
automatically be rescinded. On January 20, can Bette still pay?
a. Yes, as long as it has not yet been returned to the seller.
b. Yes, as long as there has been no judicial or notarial demand for the rescission of the contract.
c. No, because Bette is already in default.
d. No, because there was already a stipulation to that effect.
Feedback
The correct answer is: Yes, as long as there has been no judicial or notarial demand for the
rescission of the contract.

The following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired
b. Merchandise in quality
c. Right to sell the thing at the time of delivery
d. Free from charges or encumbrances declared or known to the buyer
Feedback
The correct answer is: Free from charges or encumbrances declared or known to the buyer

A contract of sale is not necessarily:

a. An onerous contract
b. A principal contract
c. Commutative
d. Bilateral
Feedback
The correct answer is: Commutative

Delivery of incorporeal property may be made through any of the following, except:
a. Use by the vendee of his rights, without the vendor’s consent
b. Placing the titles of ownership in the possession of the vendee
c. Execution of public instrument
d. None of the choices given; All are quasi-delivery
Feedback
The correct answer is: Use by the vendee of his rights, without the vendor’s consent

FIRST: Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
SECOND: Failure of the buyer to notify the seller within twenty four (24) hours after the buyer
knows or ought to know the breach shall release the seller from liability.
a. Both are false.
b. Only the FIRST is true.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: If the property is sold for non-payment of taxes due and made known to the buyer before
the sale, the seller is not liable for eviction. SECOND: When the waiver is made by the vendee
without knowledge of the risk of eviction and assumption of its consequences, the seller has no
liability at all.
a. Only the FIRST is true.
b. Both are false.
c. Only the SECOND is true.
d. Both are true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: The indorsement of a document of title shall not make the indorser liable for any failure
on the part of the bailee who issued the document or previous indorsers thereof to fulfill their
respective obligations. SECOND: Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent, the seller thereby reserves a right to the possession of the goods as against
the buyer.
a. Both are false.
b. Both are true.
c. Only the SECOND is true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

Sansa sold and delivered to Brianna a parcel of land for P2 million payable within 30 days from
the date of the contract. Soon after the sale, Xavier surreptitiously entered the land and started
occupying therein. May Brianna suspend the payment of price?
a. No, because there is no truthfulness as to the claims of ownership by Xavier.
b. Yes, Brianna may suspend payment because Sansa may not have ownership over the property at
the time of sale.
c. Yes, Brianna may suspend the payment of the price because of a reasonable fear that an
vindicatory action will be brought against him.
d. No, it necessary that Xavier must assert his right or ownership.
Feedback
The correct answer is: No, it necessary that Xavier must assert his right or ownership.

FIRST: Sale is a derivative mode of acquiring ownership whereby the seller is the previous owner,
and after the sale, the buyer becomes the new owner. SECOND: The actions for rescission or
reduction in price shall prescribe in sixty (60) days, counted from the day of delivery.
a. Only the FIRST is true.
b. Both are true.
c. Only the SECOND is true.
d. Both are false.
Feedback
The correct answer is: Both are false.

G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all
the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt.
Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith
and for value. P then claimed the goods from W, who released them. After the rice was loaded on a
ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who
has a better right to the rice?
a. W, since it appears that the warehouse charges have not been paid.
b. P, regardless of whether or not he is a purchaser for value and in good faith.
c. P, since he has superior rights as a purchaser for value and in good faith.
d. G, since as an unpaid seller, he has the right of stoppage in transitu.
Feedback
The correct answer is: P, since he has superior rights as a purchaser for value and in good faith.

A characteristic of a Contract of Sale which involves individuality and is therefore governed by its
own set of rules:
a. Bilateral
b. Consensual
c. Nominate
d. Commutative
Feedback
The correct answer is: Nominate

On January 10, 2020, Shontel sold a piece of land to Bertha in a public instrument. On January 11,
2020, Bertha paid for the price. On January 12, 2020 Bertha took possession of the land. On
January 13, 2020, she registered the public instrument. Under the circumstances given, Bertha
became the owner on:
a. January 12, 2020
b. January 11, 2020
c. January 13, 2020
d. January 10, 2020
Feedback
The correct answer is: January 10, 2020

Stan sells to Baxter his 2018 car, and leaves to Baxter to determine the price. Baxter refuses to fix
the price but took the car for his use. Which of the following statements is correct?
a. There is a sale and Baxter must pay a reasonable price.
b. There is no sale until and unless a third person fixes the price for the parties.
c. There is no sale because the price is not fixed by the parties.
d. Stan may go to court and ask for damages.

FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in
transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…
a. Who in good faith recorded it in the Registry of Property.
b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.

In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity

The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception

Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica
Feedback
The correct answer is: Traditio longa manu

On June 1, 2020, S has shipped Cebu City-based goods worth P100,000.00 to B who is from
General Santos City, with the understanding that S remains to be owner until he is fully paid.
While the carrier was on a short stopover in Cagayan De Oro City, S’s bank informed him that
the check issued by B as payment for the goods was dishonored by reason of “DAIF” or drawn
against insufficiency of funds. He also learned from the bank that B had become insolvent. S then
notified the carrier of his claim over the goods and that he was taking possession of the goods. The
right availed of by S is:

a. Right of withholding delivery

b. Right of stoppage in transitu
c. Right of possessory lien
d. Right of rescission
Feedback
The correct answer is: Right of withholding delivery

FIRST: If the unpaid seller still retains ownership in the goods, he cannot be said to have a lien on
his goods. SECOND: Unless otherwise agreed, where goods are sent by the seller to the buyer
under circumstances in which the seller knows or ought to know that it is usual to insure, the seller
must give such notice to the buyer as may enable him to insure them during their transit, and, if
the seller fails to do so, the goods shall be deemed to be at his risk during such transit.
a. Only the SECOND is true.
b. Only the FIRST is true.
c. Both are false.
d. Both are true.
Feedback
The correct answer is: Both are true.

Seller and buyer agreed that payment and delivery would be made on July 15. On said date, seller
may offer to deliver the goods to the buyer, and if buyer refuses to receive the goods, the seller can
tell the buyer, “I am holding the goods, no longer as the seller, but as your depositary or as
bailee. You are now the owner of the goods.” Can the seller then maintain an action for the price?

a. Yes, if the goods cannot readily be resold for a reasonable price.

b. Yes, if the goods cannot are fungible.
c. No, because there was no delivery yet.
d. No, the seller can only choose one remedy in the alternative.
Feedback
The correct answer is: Yes, if the goods cannot readily be resold for a reasonable price.

FIRST: In the event of breach of warranty against hidden encumbrance, the action for rescission
must be brought within one (1) year from the execution of the deed of sale. Otherwise, the buyer
shall lose any other remedy. SECOND: There is implied warranty as to the quality or fitness for
any particular purpose of goods under a contract of sale when the buyer expressly or impliedly
manifests to the seller the particular purpose for which the goods are acquired and the buyer relies
upon the seller’s skill or judgment whether he be the grower or manufacturer or not.

a. Only the FIRST is true.

b. Both are false.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the SECOND is true.

On January 1, Shauntet sold Bette one unit of apartment, payment and delivery to be made on
January 15. It was stipulated that should payment not be made on January 15, the contract would
automatically be rescinded. On January 20, can Bette still pay?
a. Yes, as long as it has not yet been returned to the seller.
b. Yes, as long as there has been no judicial or notarial demand for the rescission of the contract.
c. No, because Bette is already in default.
d. No, because there was already a stipulation to that effect.
Feedback
The correct answer is: Yes, as long as there has been no judicial or notarial demand for the
rescission of the contract.

The following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired
b. Merchandise in quality
c. Right to sell the thing at the time of delivery
d. Free from charges or encumbrances declared or known to the buyer
Feedback
The correct answer is: Free from charges or encumbrances declared or known to the buyer

A contract of sale is not necessarily:

a. An onerous contract
b. A principal contract
c. Commutative
d. Bilateral
Feedback
The correct answer is: Commutative

Delivery of incorporeal property may be made through any of the following, except:
a. Use by the vendee of his rights, without the vendor’s consent
b. Placing the titles of ownership in the possession of the vendee
c. Execution of public instrument
d. None of the choices given; All are quasi-delivery
Feedback
The correct answer is: Use by the vendee of his rights, without the vendor’s consent

FIRST: Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
SECOND: Failure of the buyer to notify the seller within twenty four (24) hours after the buyer
knows or ought to know the breach shall release the seller from liability.
a. Both are false.
b. Only the FIRST is true.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: If the property is sold for non-payment of taxes due and made known to the buyer before
the sale, the seller is not liable for eviction. SECOND: When the waiver is made by the vendee
without knowledge of the risk of eviction and assumption of its consequences, the seller has no
liability at all.
a. Only the FIRST is true.
b. Both are false.
c. Only the SECOND is true.
d. Both are true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: The indorsement of a document of title shall not make the indorser liable for any failure
on the part of the bailee who issued the document or previous indorsers thereof to fulfill their
respective obligations. SECOND: Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent, the seller thereby reserves a right to the possession of the goods as against
the buyer.
a. Both are false.
b. Both are true.
c. Only the SECOND is true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

Sansa sold and delivered to Brianna a parcel of land for P2 million payable within 30 days from
the date of the contract. Soon after the sale, Xavier surreptitiously entered the land and started
occupying therein. May Brianna suspend the payment of price?
a. No, because there is no truthfulness as to the claims of ownership by Xavier.
b. Yes, Brianna may suspend payment because Sansa may not have ownership over the property at
the time of sale.
c. Yes, Brianna may suspend the payment of the price because of a reasonable fear that an
vindicatory action will be brought against him.
d. No, it necessary that Xavier must assert his right or ownership.
Feedback
The correct answer is: No, it necessary that Xavier must assert his right or ownership.

FIRST: Sale is a derivative mode of acquiring ownership whereby the seller is the previous owner,
and after the sale, the buyer becomes the new owner. SECOND: The actions for rescission or
reduction in price shall prescribe in sixty (60) days, counted from the day of delivery.
a. Only the FIRST is true.
b. Both are true.
c. Only the SECOND is true.
d. Both are false.
Feedback
The correct answer is: Both are false.

G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all
the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt.
Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith
and for value. P then claimed the goods from W, who released them. After the rice was loaded on a
ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who
has a better right to the rice?
a. W, since it appears that the warehouse charges have not been paid.
b. P, regardless of whether or not he is a purchaser for value and in good faith.
c. P, since he has superior rights as a purchaser for value and in good faith.
d. G, since as an unpaid seller, he has the right of stoppage in transitu.
Feedback
The correct answer is: P, since he has superior rights as a purchaser for value and in good faith.

A characteristic of a Contract of Sale which involves individuality and is therefore governed by its
own set of rules:
a. Bilateral
b. Consensual
c. Nominate
d. Commutative
Feedback
The correct answer is: Nominate

On January 10, 2020, Shontel sold a piece of land to Bertha in a public instrument. On January 11,
2020, Bertha paid for the price. On January 12, 2020 Bertha took possession of the land. On
January 13, 2020, she registered the public instrument. Under the circumstances given, Bertha
became the owner on:
a. January 12, 2020
b. January 11, 2020
c. January 13, 2020
d. January 10, 2020
Feedback
The correct answer is: January 10, 2020

Stan sells to Baxter his 2018 car, and leaves to Baxter to determine the price. Baxter refuses to fix
the price but took the car for his use. Which of the following statements is correct?
a. There is a sale and Baxter must pay a reasonable price.
b. There is no sale until and unless a third person fixes the price for the parties.
c. There is no sale because the price is not fixed by the parties.
d. Stan may go to court and ask for damages.
Feedback
The correct answer is: There is a sale and Baxter must pay a reasonable price.
Sophie sold to Brooke orally a parcel of land for P600,000. Delivery was made of the land. The
payment of the price was to be made three months later. At the end of the three-month period,
a. Brooke may refuse to pay on the ground that there is no written contract to support the sale
b. Brooke may return the parcel of land to Sophie
c. Brooke may refuse to pay claiming as his defense the Statute of Frauds
d. Sophie can collect from Brooke because the contract was already executed partially
Feedback
The correct answer is: Sophie can collect from Brooke because the contract was already executed
partially

Sanders entered into a contract to sell with Borris, undertaking to convey to the latter one of the
five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties
could not agree which of five lots he owned Sanders undertook to sell to Borris. What is the
standing of the contract?
a. Voidable
b. Unenforceable
c. Rescissible
d. Void
Feedback
The correct answer is: Void

S, offered in writing to sell his house and lot for P1,000,000.00 to B on January 20, 2020. B
requested to give him one month to raise the amount. B paid only P1 as option money. On January
25, 2020, S informed B that he has raised the price to P1,200,000.00. Can B compel S to accept
the payment to P1,000,000.00 for the sale of the house and lot?
a. No, because the option money is inadequate and disproportionate to the price.
b. No, because there is as yet no perfected sale because there is no eanest money.
c. Yes, because the P1 option money is in reality an earnest money.
d. Yes, because the amount of the option money is immaterial.
Feedback
The correct answer is: Yes, because the amount of the option money is immaterial.

Shawn sold to Blake a specific car for P2,000,000. Shawn can maintain an action for the price if:
a. He has delivered the car to Blake and the latter wrongfully fails to pay.
b. Blake has refused to accept delivery with just cause and Shawn has notified Blake that he is
holding the car as bailee for him.
c. He has delivered the car but the period fixed for the payment has already arrived while the
period fixed for delivery is yet to come.
d. He has delivered the car to Blake and the latter paid it.
Feedback
The correct answer is: He has delivered the car to Blake and the latter wrongfully fails to pay.

Shynette orally offered to sell a certain diamond ring to Brenda for P50,000.00. Brenda accepted
the offer and to prove that she was in earnest, she gave Shynette P1,000.00. The parties agreed that
the delivery of the ring and the payment of the price would be made 30 days later. On due date:
a. Shynette cannot enforce payment because the contract was not reduced to writing.
b. Shynette cannot enforce payment because there was no contract of sale yet.
c. Shynette may collect from Brenda P50,000.00.
d. Shynette may collect from Brenda P49,000.00.
Feedback
The correct answer is: Shynette may collect from Brenda P49,000.00.

Bella purchased a pair of leather shoes from the store of Stella. Shortly after leaving the store,
Bella decided to return and requested Stella, the owner, to place a protective rubber covering on
the sole of each shoe. Since the job required at least 30 minutes to complete, Bella left the store of
Stella to shop at the neighboring stores. When he returned to the store of Stella after 30 minutes,
the pair of shoes was nowhere to be found. It turned out that Carla, a sales clerk, has sold the pair
of shoes that Bella bought to Tanya, another customer.
a. Tanya did not acquire ownership of the pair of shoes earlier bought by Bella.
b. Stella reacquired ownership of the pair of shoes when it was brought to her for additional work.
c. Tanya acquired ownership of the pair of shoes earlier bought by Bella.
d. Bella remained to be an owner of the air of shoes that she had bought despite its sale to Tanya.
Feedback
The correct answer is: Tanya acquired ownership of the pair of shoes earlier bought by Bella.

On March 1, 2020, Sonia sold and delivered to Bart a television set for P10,000.00 "on sale or
return" giving B up to March 16, 2020 within which to return the television set. On March 10,
2020, the television set was burned through no fault of Bart. Based on the foregoing, which of the
following statements is incorrect?
a. Sonia must bear the loss since the time for the return of the television set had not yet expired.
b. The ownership of the television set was transferred to Bart upon delivery to him.
c. Bart must bear the loss of the television set.
d. Bart must pay the price of the television set.
Feedback
The correct answer is: Sonia must bear the loss since the time for the return of the television set
had not yet expired.

Meldred, manufacturer of “Best Nap” beds, and Elena entered into a contract with the
following terms. Meldred was to furnish beds to Elena who must pay the price within 30 days
from the receipt of the shipment, minus a discount of 25%. What contract was entered into
between Meldred and Elena?

a. Contract of agency to sell

b. Contract to sell
c. Contract of consignment
d. Contract of sale
Feedback
The correct answer is: Contract of sale

FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in
transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…

a. Who in good faith recorded it in the Registry of Property.

b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.
In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity

The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception

Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica
Feedback
The correct answer is: Traditio longa manu

On June 1, 2020, S has shipped Cebu City-based goods worth P100,000.00 to B who is from
General Santos City, with the understanding that S remains to be owner until he is fully paid.
While the carrier was on a short stopover in Cagayan De Oro City, S’s bank informed him that
the check issued by B as payment for the goods was dishonored by reason of “DAIF” or drawn
against insufficiency of funds. He also learned from the bank that B had become insolvent. S then
notified the carrier of his claim over the goods and that he was taking possession of the goods. The
right availed of by S is:

a. Right of withholding delivery

b. Right of stoppage in transitu
c. Right of possessory lien
d. Right of rescission
Feedback
The correct answer is: Right of withholding delivery

FIRST: If the unpaid seller still retains ownership in the goods, he cannot be said to have a lien on
his goods. SECOND: Unless otherwise agreed, where goods are sent by the seller to the buyer
under circumstances in which the seller knows or ought to know that it is usual to insure, the seller
must give such notice to the buyer as may enable him to insure them during their transit, and, if
the seller fails to do so, the goods shall be deemed to be at his risk during such transit.
a. Only the SECOND is true.
b. Only the FIRST is true.
c. Both are false.
d. Both are true.
Feedback
The correct answer is: Both are true.

Seller and buyer agreed that payment and delivery would be made on July 15. On said date, seller
may offer to deliver the goods to the buyer, and if buyer refuses to receive the goods, the seller can
tell the buyer, “I am holding the goods, no longer as the seller, but as your depositary or as
bailee. You are now the owner of the goods.” Can the seller then maintain an action for the price?

a. Yes, if the goods cannot readily be resold for a reasonable price.

b. Yes, if the goods cannot are fungible.
c. No, because there was no delivery yet.
d. No, the seller can only choose one remedy in the alternative.
Feedback
The correct answer is: Yes, if the goods cannot readily be resold for a reasonable price.

FIRST: In the event of breach of warranty against hidden encumbrance, the action for rescission
must be brought within one (1) year from the execution of the deed of sale. Otherwise, the buyer
shall lose any other remedy. SECOND: There is implied warranty as to the quality or fitness for
any particular purpose of goods under a contract of sale when the buyer expressly or impliedly
manifests to the seller the particular purpose for which the goods are acquired and the buyer relies
upon the seller’s skill or judgment whether he be the grower or manufacturer or not.

a. Only the FIRST is true.

b. Both are false.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the SECOND is true.

On January 1, Shauntet sold Bette one unit of apartment, payment and delivery to be made on
January 15. It was stipulated that should payment not be made on January 15, the contract would
automatically be rescinded. On January 20, can Bette still pay?
a. Yes, as long as it has not yet been returned to the seller.
b. Yes, as long as there has been no judicial or notarial demand for the rescission of the contract.
c. No, because Bette is already in default.
d. No, because there was already a stipulation to that effect.
Feedback
The correct answer is: Yes, as long as there has been no judicial or notarial demand for the
rescission of the contract.

The following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired
b. Merchandise in quality
c. Right to sell the thing at the time of delivery
d. Free from charges or encumbrances declared or known to the buyer
Feedback
The correct answer is: Free from charges or encumbrances declared or known to the buyer

A contract of sale is not necessarily:

a. An onerous contract
b. A principal contract
c. Commutative
d. Bilateral
Feedback
The correct answer is: Commutative

Delivery of incorporeal property may be made through any of the following, except:
a. Use by the vendee of his rights, without the vendor’s consent
b. Placing the titles of ownership in the possession of the vendee
c. Execution of public instrument
d. None of the choices given; All are quasi-delivery
Feedback
The correct answer is: Use by the vendee of his rights, without the vendor’s consent

FIRST: Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
SECOND: Failure of the buyer to notify the seller within twenty four (24) hours after the buyer
knows or ought to know the breach shall release the seller from liability.
a. Both are false.
b. Only the FIRST is true.
c. Both are true.
d. Only the SECOND is true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: If the property is sold for non-payment of taxes due and made known to the buyer before
the sale, the seller is not liable for eviction. SECOND: When the waiver is made by the vendee
without knowledge of the risk of eviction and assumption of its consequences, the seller has no
liability at all.
a. Only the FIRST is true.
b. Both are false.
c. Only the SECOND is true.
d. Both are true.
Feedback
The correct answer is: Only the FIRST is true.

FIRST: The indorsement of a document of title shall not make the indorser liable for any failure
on the part of the bailee who issued the document or previous indorsers thereof to fulfill their
respective obligations. SECOND: Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent, the seller thereby reserves a right to the possession of the goods as against
the buyer.
a. Both are false.
b. Both are true.
c. Only the SECOND is true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

Sansa sold and delivered to Brianna a parcel of land for P2 million payable within 30 days from
the date of the contract. Soon after the sale, Xavier surreptitiously entered the land and started
occupying therein. May Brianna suspend the payment of price?
a. No, because there is no truthfulness as to the claims of ownership by Xavier.
b. Yes, Brianna may suspend payment because Sansa may not have ownership over the property at
the time of sale.
c. Yes, Brianna may suspend the payment of the price because of a reasonable fear that an
vindicatory action will be brought against him.
d. No, it necessary that Xavier must assert his right or ownership.
Feedback
The correct answer is: No, it necessary that Xavier must assert his right or ownership.

FIRST: Sale is a derivative mode of acquiring ownership whereby the seller is the previous owner,
and after the sale, the buyer becomes the new owner. SECOND: The actions for rescission or
reduction in price shall prescribe in sixty (60) days, counted from the day of delivery.
a. Only the FIRST is true.
b. Both are true.
c. Only the SECOND is true.
d. Both are false.
Feedback
The correct answer is: Both are false.

G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all
the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt.
Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith
and for value. P then claimed the goods from W, who released them. After the rice was loaded on a
ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who
has a better right to the rice?
a. W, since it appears that the warehouse charges have not been paid.
b. P, regardless of whether or not he is a purchaser for value and in good faith.
c. P, since he has superior rights as a purchaser for value and in good faith.
d. G, since as an unpaid seller, he has the right of stoppage in transitu.
Feedback
The correct answer is: P, since he has superior rights as a purchaser for value and in good faith.
A characteristic of a Contract of Sale which involves individuality and is therefore governed by its
own set of rules:
a. Bilateral
b. Consensual
c. Nominate
d. Commutative
Feedback
The correct answer is: Nominate

On January 10, 2020, Shontel sold a piece of land to Bertha in a public instrument. On January 11,
2020, Bertha paid for the price. On January 12, 2020 Bertha took possession of the land. On
January 13, 2020, she registered the public instrument. Under the circumstances given, Bertha
became the owner on:
a. January 12, 2020
b. January 11, 2020
c. January 13, 2020
d. January 10, 2020
Feedback
The correct answer is: January 10, 2020

Stan sells to Baxter his 2018 car, and leaves to Baxter to determine the price. Baxter refuses to fix
the price but took the car for his use. Which of the following statements is correct?
a. There is a sale and Baxter must pay a reasonable price.
b. There is no sale until and unless a third person fixes the price for the parties.
c. There is no sale because the price is not fixed by the parties.
d. Stan may go to court and ask for damages.
Feedback
The correct answer is: There is a sale and Baxter must pay a reasonable price.

Sophie sold to Brooke orally a parcel of land for P600,000. Delivery was made of the land. The
payment of the price was to be made three months later. At the end of the three-month period,
a. Brooke may refuse to pay on the ground that there is no written contract to support the sale
b. Brooke may return the parcel of land to Sophie
c. Brooke may refuse to pay claiming as his defense the Statute of Frauds
d. Sophie can collect from Brooke because the contract was already executed partially
Feedback
The correct answer is: Sophie can collect from Brooke because the contract was already executed
partially

Sanders entered into a contract to sell with Borris, undertaking to convey to the latter one of the
five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties
could not agree which of five lots he owned Sanders undertook to sell to Borris. What is the
standing of the contract?
a. Voidable
b. Unenforceable
c. Rescissible
d. Void
Feedback
The correct answer is: Void

S, offered in writing to sell his house and lot for P1,000,000.00 to B on January 20, 2020. B
requested to give him one month to raise the amount. B paid only P1 as option money. On January
25, 2020, S informed B that he has raised the price to P1,200,000.00. Can B compel S to accept
the payment to P1,000,000.00 for the sale of the house and lot?
a. No, because the option money is inadequate and disproportionate to the price.
b. No, because there is as yet no perfected sale because there is no eanest money.
c. Yes, because the P1 option money is in reality an earnest money.
d. Yes, because the amount of the option money is immaterial.
Feedback
The correct answer is: Yes, because the amount of the option money is immaterial.

Shawn sold to Blake a specific car for P2,000,000. Shawn can maintain an action for the price if:
a. He has delivered the car to Blake and the latter wrongfully fails to pay.
b. Blake has refused to accept delivery with just cause and Shawn has notified Blake that he is
holding the car as bailee for him.
c. He has delivered the car but the period fixed for the payment has already arrived while the
period fixed for delivery is yet to come.
d. He has delivered the car to Blake and the latter paid it.
Feedback
The correct answer is: He has delivered the car to Blake and the latter wrongfully fails to pay.

Shynette orally offered to sell a certain diamond ring to Brenda for P50,000.00. Brenda accepted
the offer and to prove that she was in earnest, she gave Shynette P1,000.00. The parties agreed that
the delivery of the ring and the payment of the price would be made 30 days later. On due date:
a. Shynette cannot enforce payment because the contract was not reduced to writing.
b. Shynette cannot enforce payment because there was no contract of sale yet.
c. Shynette may collect from Brenda P50,000.00.
d. Shynette may collect from Brenda P49,000.00.
Feedback
The correct answer is: Shynette may collect from Brenda P49,000.00.

Bella purchased a pair of leather shoes from the store of Stella. Shortly after leaving the store,
Bella decided to return and requested Stella, the owner, to place a protective rubber covering on
the sole of each shoe. Since the job required at least 30 minutes to complete, Bella left the store of
Stella to shop at the neighboring stores. When he returned to the store of Stella after 30 minutes,
the pair of shoes was nowhere to be found. It turned out that Carla, a sales clerk, has sold the pair
of shoes that Bella bought to Tanya, another customer.
a. Tanya did not acquire ownership of the pair of shoes earlier bought by Bella.
b. Stella reacquired ownership of the pair of shoes when it was brought to her for additional work.
c. Tanya acquired ownership of the pair of shoes earlier bought by Bella.
d. Bella remained to be an owner of the air of shoes that she had bought despite its sale to Tanya.
Feedback
The correct answer is: Tanya acquired ownership of the pair of shoes earlier bought by Bella.

On March 1, 2020, Sonia sold and delivered to Bart a television set for P10,000.00 "on sale or
return" giving B up to March 16, 2020 within which to return the television set. On March 10,
2020, the television set was burned through no fault of Bart. Based on the foregoing, which of the
following statements is incorrect?
a. Sonia must bear the loss since the time for the return of the television set had not yet expired.
b. The ownership of the television set was transferred to Bart upon delivery to him.
c. Bart must bear the loss of the television set.
d. Bart must pay the price of the television set.
Feedback
The correct answer is: Sonia must bear the loss since the time for the return of the television set
had not yet expired.

Meldred, manufacturer of “Best Nap” beds, and Elena entered into a contract with the
following terms. Meldred was to furnish beds to Elena who must pay the price within 30 days
from the receipt of the shipment, minus a discount of 25%. What contract was entered into
between Meldred and Elena?
a. Contract of agency to sell
b. Contract to sell
c. Contract of consignment
d. Contract of sale
Feedback
The correct answer is: Contract of sale

Sylver sells to Billy a parcel of land worth Php10,000,000.00. Such land was delivered to Billy
after the execution of a notarized Deed of Absolute Sale. If possession of Billy was disturbed by
an alleged co-heir and co-owner of Sylver, Billy may:
a. Claim warranty against eviction against Sylver.
b. Claim warranty against eviction against Sylver only after Billy filed a case against the alleged
co-heir and co-owner and after final judgment.
c. Not claim warranty against eviction against Sylver.
d. Not claim warranty against eviction, since it is Sylver who should claim warranty against the
alleged co-heir and co-owner and only after legal proceedings.
FIRST: Except when the unpaid seller has consented thereto, his right of lien or stoppage in
transitu is not affected by any sale, or other disposition of the goods which the buyer may have
made. SECOND: When notice of stoppage in transitu is given by the seller to the carrier, or other
bailee in possession of the goods, he must redeliver the goods to, or according to the directions of,
the seller, who shall bear the expenses of such delivery.
a. Only the SECOND is true.
b. Both are false.
c. Both are true.
d. Only the FIRST is true.
Feedback
The correct answer is: Both are true.

If the movable property should have been sold to different vendees, the ownership shall be
transferred to the person…

a. Who in good faith recorded it in the Registry of Property.

b. Who presents the oldest title in good faith.
c. Who have paid in good faith the purchase price in full.
d. Who have first taken possession in good faith.
Feedback
The correct answer is: Who have first taken possession in good faith.
In this type of sale, the sale is effective even if the thing hoped for does not come into existence:
a. Sale of an unborn young of an animal
b. Sale of a raffle ticket for charity
c. Emptio rei speratae
d. Sale of future harvest
Feedback
The correct answer is: Sale of a raffle ticket for charity

The stage where parties show their initial interest in entering a contract of sale?
a. Birth
b. Conception
c. Perfection
d. Consummation
Feedback
The correct answer is: Conception

Steve owns a mango tree bearing fruits ready for harvest. He sells all the fruits of that tree to Ben
who pays Steve the sum of P5,000. Steve tells Ben that he can just harvest the fruits anytime he
likes pointing at the particular tree. For legal purposes, Steve has fulfilled his obligation to deliver
the mango fruits to Ben by:
a. Traditio longa manu
b. Traditio brevi manu
c. Traditio constitutum possessorium
d. Traditio simbolica
Feedback
The correct answer is: Traditio longa manu

On June 1, 2020, S has shipped Cebu City-based goods worth P100,000.00 to B who is from
General Santos City, with the understanding that S remains to be owner until he is fully paid.
While the carrier was on a short stopover in Cagayan De Oro City, S’s bank informed him that
the check issued by B as payment for the goods was dishonored by reason of “DAIF” or drawn
against insufficiency of funds. He also learned from the bank that B had become insolvent. S then
notified the carrier of his claim over the goods and that he was taking possession of the goods. The
right availed of by S is:

a. Right of withholding delivery

b. Right of stoppage in transitu
c. Right of possessory lien
d. Right of rescission
Feedback
The correct answer is: Right of withholding delivery

FIRST: If the unpaid seller still retains ownership in the goods, he cannot be said to have a lien on
his goods. SECOND: Unless otherwise agreed, where goods are sent by the seller to the buyer
under circumstances in which the seller knows or ought to know that it is usual to insure, the seller
must give such notice to the buyer as may enable him to insure them during their transit, and, if
the seller fails to do so, the goods shall be deemed to be at his risk during such transit.
a. Only the SECOND is true.
b. Only the FIRST is true.
c. Both are false.
d. Both are true.
Feedback
The correct answer is: Both are true.

Seller and buyer agreed that payment and delivery would be made on July 15. On said date, seller
may offer to deliver the goods to the buyer, and if buyer refuses to receive the goods, the seller can
tell the buyer, “I am holding the goods, no longer as the seller, but as your depositary or as
bailee. You are now the owner of the goods.” Can the seller then maintain an action for the price?

a. Yes, if the goods cannot readily be resold for a reasonable price.

b. Yes, if the goods cannot are fungible.
c. No, because there was no delivery yet.
d. No, the seller can only choose one remedy in the alternative.
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The correct answer is: Yes, if the goods cannot readily be resold for a reasonable price.

FIRST: In the event of breach of warranty against hidden encumbrance, the action for rescission
must be brought within one (1) year from the execution of the deed of sale. Otherwise, the buyer
shall lose any other remedy. SECOND: There is implied warranty as to the quality or fitness for
any particular purpose of goods under a contract of sale when the buyer expressly or impliedly
manifests to the seller the particular purpose for which the goods are acquired and the buyer relies
upon the seller’s skill or judgment whether he be the grower or manufacturer or not.

a. Only the FIRST is true.

b. Both are false.
c. Both are true.
d. Only the SECOND is true.
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The correct answer is: Only the SECOND is true.

On January 1, Shauntet sold Bette one unit of apartment, payment and delivery to be made on
January 15. It was stipulated that should payment not be made on January 15, the contract would
automatically be rescinded. On January 20, can Bette still pay?
a. Yes, as long as it has not yet been returned to the seller.
b. Yes, as long as there has been no judicial or notarial demand for the rescission of the contract.
c. No, because Bette is already in default.
d. No, because there was already a stipulation to that effect.
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The correct answer is: Yes, as long as there has been no judicial or notarial demand for the
rescission of the contract.

The following are implied warranties in a contract of sale. Which is the exception?
a. Reasonably fit for the purpose they are acquired
b. Merchandise in quality
c. Right to sell the thing at the time of delivery
d. Free from charges or encumbrances declared or known to the buyer
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The correct answer is: Free from charges or encumbrances declared or known to the buyer

A contract of sale is not necessarily:

a. An onerous contract
b. A principal contract
c. Commutative
d. Bilateral
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The correct answer is: Commutative

Delivery of incorporeal property may be made through any of the following, except:
a. Use by the vendee of his rights, without the vendor’s consent
b. Placing the titles of ownership in the possession of the vendee
c. Execution of public instrument
d. None of the choices given; All are quasi-delivery
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The correct answer is: Use by the vendee of his rights, without the vendor’s consent

FIRST: Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
SECOND: Failure of the buyer to notify the seller within twenty four (24) hours after the buyer
knows or ought to know the breach shall release the seller from liability.
a. Both are false.
b. Only the FIRST is true.
c. Both are true.
d. Only the SECOND is true.
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The correct answer is: Only the FIRST is true.

FIRST: If the property is sold for non-payment of taxes due and made known to the buyer before
the sale, the seller is not liable for eviction. SECOND: When the waiver is made by the vendee
without knowledge of the risk of eviction and assumption of its consequences, the seller has no
liability at all.
a. Only the FIRST is true.
b. Both are false.
c. Only the SECOND is true.
d. Both are true.
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The correct answer is: Only the FIRST is true.

FIRST: The indorsement of a document of title shall not make the indorser liable for any failure
on the part of the bailee who issued the document or previous indorsers thereof to fulfill their
respective obligations. SECOND: Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent, the seller thereby reserves a right to the possession of the goods as against
the buyer.
a. Both are false.
b. Both are true.
c. Only the SECOND is true.
d. Only the FIRST is true.
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The correct answer is: Both are true.

Sansa sold and delivered to Brianna a parcel of land for P2 million payable within 30 days from
the date of the contract. Soon after the sale, Xavier surreptitiously entered the land and started
occupying therein. May Brianna suspend the payment of price?
a. No, because there is no truthfulness as to the claims of ownership by Xavier.
b. Yes, Brianna may suspend payment because Sansa may not have ownership over the property at
the time of sale.
c. Yes, Brianna may suspend the payment of the price because of a reasonable fear that an
vindicatory action will be brought against him.
d. No, it necessary that Xavier must assert his right or ownership.
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The correct answer is: No, it necessary that Xavier must assert his right or ownership.

FIRST: Sale is a derivative mode of acquiring ownership whereby the seller is the previous owner,
and after the sale, the buyer becomes the new owner. SECOND: The actions for rescission or
reduction in price shall prescribe in sixty (60) days, counted from the day of delivery.
a. Only the FIRST is true.
b. Both are true.
c. Only the SECOND is true.
d. Both are false.
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The correct answer is: Both are false.

G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all
the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt.
Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith
and for value. P then claimed the goods from W, who released them. After the rice was loaded on a
ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who
has a better right to the rice?
a. W, since it appears that the warehouse charges have not been paid.
b. P, regardless of whether or not he is a purchaser for value and in good faith.
c. P, since he has superior rights as a purchaser for value and in good faith.
d. G, since as an unpaid seller, he has the right of stoppage in transitu.
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The correct answer is: P, since he has superior rights as a purchaser for value and in good faith.

A characteristic of a Contract of Sale which involves individuality and is therefore governed by its
own set of rules:
a. Bilateral
b. Consensual
c. Nominate
d. Commutative
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The correct answer is: Nominate

On January 10, 2020, Shontel sold a piece of land to Bertha in a public instrument. On January 11,
2020, Bertha paid for the price. On January 12, 2020 Bertha took possession of the land. On
January 13, 2020, she registered the public instrument. Under the circumstances given, Bertha
became the owner on:
a. January 12, 2020
b. January 11, 2020
c. January 13, 2020
d. January 10, 2020
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The correct answer is: January 10, 2020

Stan sells to Baxter his 2018 car, and leaves to Baxter to determine the price. Baxter refuses to fix
the price but took the car for his use. Which of the following statements is correct?
a. There is a sale and Baxter must pay a reasonable price.
b. There is no sale until and unless a third person fixes the price for the parties.
c. There is no sale because the price is not fixed by the parties.
d. Stan may go to court and ask for damages.
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The correct answer is: There is a sale and Baxter must pay a reasonable price.

Sophie sold to Brooke orally a parcel of land for P600,000. Delivery was made of the land. The
payment of the price was to be made three months later. At the end of the three-month period,
a. Brooke may refuse to pay on the ground that there is no written contract to support the sale
b. Brooke may return the parcel of land to Sophie
c. Brooke may refuse to pay claiming as his defense the Statute of Frauds
d. Sophie can collect from Brooke because the contract was already executed partially
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The correct answer is: Sophie can collect from Brooke because the contract was already executed
partially

Sanders entered into a contract to sell with Borris, undertaking to convey to the latter one of the
five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties
could not agree which of five lots he owned Sanders undertook to sell to Borris. What is the
standing of the contract?
a. Voidable
b. Unenforceable
c. Rescissible
d. Void
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The correct answer is: Void

S, offered in writing to sell his house and lot for P1,000,000.00 to B on January 20, 2020. B
requested to give him one month to raise the amount. B paid only P1 as option money. On January
25, 2020, S informed B that he has raised the price to P1,200,000.00. Can B compel S to accept
the payment to P1,000,000.00 for the sale of the house and lot?
a. No, because the option money is inadequate and disproportionate to the price.
b. No, because there is as yet no perfected sale because there is no eanest money.
c. Yes, because the P1 option money is in reality an earnest money.
d. Yes, because the amount of the option money is immaterial.
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The correct answer is: Yes, because the amount of the option money is immaterial.

Shawn sold to Blake a specific car for P2,000,000. Shawn can maintain an action for the price if:
a. He has delivered the car to Blake and the latter wrongfully fails to pay.
b. Blake has refused to accept delivery with just cause and Shawn has notified Blake that he is
holding the car as bailee for him.
c. He has delivered the car but the period fixed for the payment has already arrived while the
period fixed for delivery is yet to come.
d. He has delivered the car to Blake and the latter paid it.
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The correct answer is: He has delivered the car to Blake and the latter wrongfully fails to pay.
Shynette orally offered to sell a certain diamond ring to Brenda for P50,000.00. Brenda accepted
the offer and to prove that she was in earnest, she gave Shynette P1,000.00. The parties agreed that
the delivery of the ring and the payment of the price would be made 30 days later. On due date:
a. Shynette cannot enforce payment because the contract was not reduced to writing.
b. Shynette cannot enforce payment because there was no contract of sale yet.
c. Shynette may collect from Brenda P50,000.00.
d. Shynette may collect from Brenda P49,000.00.
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The correct answer is: Shynette may collect from Brenda P49,000.00.

Bella purchased a pair of leather shoes from the store of Stella. Shortly after leaving the store,
Bella decided to return and requested Stella, the owner, to place a protective rubber covering on
the sole of each shoe. Since the job required at least 30 minutes to complete, Bella left the store of
Stella to shop at the neighboring stores. When he returned to the store of Stella after 30 minutes,
the pair of shoes was nowhere to be found. It turned out that Carla, a sales clerk, has sold the pair
of shoes that Bella bought to Tanya, another customer.
a. Tanya did not acquire ownership of the pair of shoes earlier bought by Bella.
b. Stella reacquired ownership of the pair of shoes when it was brought to her for additional work.
c. Tanya acquired ownership of the pair of shoes earlier bought by Bella.
d. Bella remained to be an owner of the air of shoes that she had bought despite its sale to Tanya.
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The correct answer is: Tanya acquired ownership of the pair of shoes earlier bought by Bella.

On March 1, 2020, Sonia sold and delivered to Bart a television set for P10,000.00 "on sale or
return" giving B up to March 16, 2020 within which to return the television set. On March 10,
2020, the television set was burned through no fault of Bart. Based on the foregoing, which of the
following statements is incorrect?
a. Sonia must bear the loss since the time for the return of the television set had not yet expired.
b. The ownership of the television set was transferred to Bart upon delivery to him.
c. Bart must bear the loss of the television set.
d. Bart must pay the price of the television set.
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The correct answer is: Sonia must bear the loss since the time for the return of the television set
had not yet expired.

Meldred, manufacturer of “Best Nap” beds, and Elena entered into a contract with the
following terms. Meldred was to furnish beds to Elena who must pay the price within 30 days
from the receipt of the shipment, minus a discount of 25%. What contract was entered into
between Meldred and Elena?

a. Contract of agency to sell

b. Contract to sell
c. Contract of consignment
d. Contract of sale
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The correct answer is: Contract of sale

Sylver sells to Billy a parcel of land worth Php10,000,000.00. Such land was delivered to Billy
after the execution of a notarized Deed of Absolute Sale. If possession of Billy was disturbed by
an alleged co-heir and co-owner of Sylver, Billy may:
a. Claim warranty against eviction against Sylver.
b. Claim warranty against eviction against Sylver only after Billy filed a case against the alleged
co-heir and co-owner and after final judgment.
c. Not claim warranty against eviction against Sylver.
d. Not claim warranty against eviction, since it is Sylver who should claim warranty against the
alleged co-heir and co-owner and only after legal proceedings.
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The correct answer is: Claim warranty against eviction against Sylver.

A person who validly negotiates a negotiable warehouse receipt for value does not warrant that:
a. He has a legal right to negotiate.
b. The goods in the possession of the warehouseman are in good condition.
c. He has no knowledge of any fact which would impair the validity of the receipt.
d. The receipt is genuine.
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The correct answer is: The goods in the possession of the warehouseman are in good condition.

Sydrick sold a racing horse to Blake on February 14, 2020. After three (3) days, the horse died.
Can Blake sue Sydrick for breach of warranty against hidden defects?
a. Yes, because it is presumed that the horse was already ill when sold.
b. No, because the disease did not exist at the time of the purchase.
c. No, because Sydrick was not aware of the disease at the time of the sale.
d. Yes, because Sydrick is in bad faith.
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The correct answer is: Yes, because it is presumed that the horse was already ill when sold.