QUIZ 1

● State the status of the contract ___ Pactum Leonina

o Void
● State the status of the contract ___ Motive is illegal
o Valid
● The action for rescission is _____; it cannot be instituted except when the party suffering damage has
no other legal means to obtain reparation for the same.
o Subsidiary
● Acceptance made by letter or telegram does not bind the offeror except from the time it came to his
knowledge. The contract, in such a case, is presumed to have been entered into in the _____.
o Place where the offer was made
● Unenforceable contracts cannot be assailed by third persons.
o True
● The usual exaggerations in trade, when the other party had an opportunity to know the facts, are in
themselves fraudulent.
o False
● _____ cleanses the contract from all its defects from the moment it was constituted.
o Ratification
● There is causal fraud when, through insidious words or machinations of one of the contracting parties,
the other is induced to enter into a contract which, without them, he would not have agreed to.
o True
● Innominate contracts shall be regulated by the stipulations of the parties, by the provisions of Titles I
and II of this Book, by the rules governing the most analogous nominate contracts, and by the _____ of
the place.
o Customs
● Contracts take effect only between the parties, their assigns and heirs, except in cases where the rights
and obligations arising from the contract are transmissible by their nature, or by stipulation or by
provision of law. The heir is not liable beyond the value of the property he received from the decedent.
o False
● Registration creates a real right on the contract.
o True
● State the status of the contract _____ Fraud committed against the creditor
o Rescissible
● Payments made in a _____ for obligations to whose fulfillment the debtor could not be compelled at the
time they were affected, are also rescissible.
o State of insolvency
● A contract entered into in the name of another by one who has no authority or legal representation, or
who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly,
by the person on whose behalf it has been executed, after it is revoked by the other contracting party.
o False
● When it is absolutely impossible to settle doubts by the rules established in the preceding articles, and
the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and
interests shall prevail. If the contract is onerous, the doubt shall be settled in favor of the _____.
o The greater reciprocal of interest
o google: greater reciprocal of interest
● State the status of the contract _____ Oral Sale of personal property below P400
o Valid
● State the status of the contract _____ Sale of the right to inherit
o Valid
● State the status of the contract _____ Spouses entering into Limited partnership
 o Valid
● If mistake, fraud, inequitable conduct, or _____ has prevented a meeting of the minds of the parties, the
proper remedy is not reformation of the instrument but annulment of the contract.
o Accident
● State the status of the contract _____ Payments made in state of insolvency
o Rescissible
● In onerous contracts the cause is understood to be, for each contracting party, the prestation or
promise of a thing or service by the other; in remuneratory ones, the service or benefit which is
remunerated; and in contracts of _____, the mere liberality of the benefactor.
o Pure beneficence
● State the status of the contract _____ Both are prohibited
o Void
● State the status of the contract _____ Ratification of a void contract
o Cannot be ratified
o google: a void contract cannot be ratified
● State the status of the contract _____ Issuance of watered stock
o Void
o google/quizlet: valid
● State the status of the contract _____ Oral Loan
o Valid

QUIZ 2
● In sale of _____________, the acquisition of the minor is valid.
o Necessaries
● In sale or return, the seller retains ownership over the thing.
o False
● If it is a pacto de retro sale, the it is subject to _____ condition
o Resolutory
● In contract to sell, the buyer must signify his acceptance on the thing sold otherwise ownership will not
be transferred.
o False
● In emptio spei, if the thing does not come into existence, the sale is still valid.
o True
● If it is sale of personal property and the value must exceed P500, then it must be in writing for it to be
enforceable.
o False
● In sale of personal property by installments, if the seller opted for cancellation of the sale or its
rescission, seller can exercise deficiency judgment.
o False
● In the following instances, the ownership will not pass to the buyer, except:
o Sale or return
● _____ means imperfect promise or unaccepted unilateral promise to buy or sell a thing.
o Policitacion
● If the donation involves personal property and the value exceeds P5,000, then it must appear in a
private instrument for it to be valid.
o True
● Res perit domino means _____
o The thing perishes with the owner
o google: The thing is lost to the owner.
● If the contract of sale is absolutely simulated, the contract is voidable.
 o False
● The contract of Sale is a commutative contract only.
o False
● If the sale is simulated, the sale is voidable, but the act may be shown to be in reality a donation.
o False
● The Statute of Frauds requires a contract to be in writing for it to be valid.
o False
● After the contract of sale is perfected and before delivery, the buyer bears the loss of the thing subject
matter of the sale.
o True
● The court may fix the price of the sale if there is disregard of a procedure given by the parties.
o False
● In Recto Law, the foreclosure of the chattel mortgage must fully satisfy the existing obligation,
otherwise, the seller can demand the deficiency.
o False
● An accepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon
the promisor if the promise is supported by a consideration _____ from the price.
o Distinct
● In Agency to sell, if the buyer does not pay the price, then the agent is liable and he must remit the
price.
o False
● Illicit per accidens means that the object of the sale is inherently wrong.
o False
● If the property donated is a real property, both the donation and acceptance must be in private
document for it to be valid.
o False
● If the sale is made by an insolvent person, the sale is void.
o True
● Sale on trial is subject to a resolutory condition.
o False
● The sale of a vain hope or expectancy is void.
o True

QUIZ 3
● All the fruits shall pertain to the vendee from the day on which the contract was obligated.
o False
● _____ is the mode of delivery of incorporeal property.
o Quasi delivery
● The judgment debtor is also responsible for eviction in judicial sales, unless it is otherwise decreed in
the judgment.
o True
● Where the price cannot be determined in accordance with the preceding articles, or in any other
manner, the contract is inefficacious. However, if the thing or any part thereof has been delivered to
and appropriated by the buyer he must pay a reasonable price therefore. What is a reasonable price is
a question of fact dependent on the circumstances of each particular case.
o True
● The husband and the wife cannot sell property to each other, except:
(1) When a separation of property was agreed upon in the marriage settlements during the marriage
(2) When there has been a judicial separation of property during the marriage
o False
● Where the seller of goods has a _____ title thereto, but his title has not been avoided at the time of the
sale, the buyer acquires a good title to the goods, provided he buys them in good faith, for value, and
without notice of the seller's defect of title.
o Voidable
● When a sale of a piece of land or any interest therein is through an agent, the authority of the latter
shall be in writing; otherwise, the sale shall be void.
o True
● Should fungible things be sold for a price fixed according to weight, number, or measure, the risk shall
be imputed to the seller until they have been weighed, counted, or measured and delivered, unless the
latter has incurred in delay.
o True
● If the hidden defect of animals, even in case a professional inspection has been made, should be of
such a nature that expert knowledge is not sufficient to discover it, the defect shall be considered as
redhibitory.
o True
● When goods are delivered to the buyer "on sale on trial" to give the buyer an option to return the goods
instead of paying the price, the ownership passes to the buyer on delivery, but he may revest the
ownership in the seller by returning or tendering the goods within the time fixed in the contract, or, if no
time has been fixed, within a reasonable time.
o False
● The indorsement of a document of title shall 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.
o False
● _____ is the Roman term for Sales.
o Venditio
● If the thing sold should be lost in consequence of the hidden faults, and the vendor was aware of them,
the seller shall bear the loss, and shall be obliged to return the price and refund the expenses of the
contract, with damages. If the seller was not aware of them, he shall only return the price and interest
thereon, and reimburse the expenses of the contract which the buyer might have paid.
o True
● This _____ delivery requires that the thing sold shall be understood as delivered, when it is placed in
the control and possession of the vendee.
o Real
● Another name for traditio simbolica or symbolical delivery is _______.
o Traditio clavium
● ____ is the period of prescription for sale of animals in case of hidden defects.
o 40 days
● In double of sale of personal property, the one first registers it is the owner.
o False
● 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.
o True
● If the sale of real estate should be made with a statement of its area, at the rate of a certain price for a
unit of measure or number, the vendor shall be obliged to deliver to the vendee, if the latter should
demand it, all that may have been stated in the contract; but, should this be not possible, the vendee
may choose between a proportional reduction of the price and the rescission of the contract, provided
that, in the latter case, the lack in the area be not more than one-tenth of that stated.
o False
 ● If the document is non-negotiable, such person also acquires the right to notify the bailee who issued
the document of the transfer thereof, and thereby to acquire the direct obligation of such bailee to hold
possession of the goods for him according to the terms of the document.
o True
● If goods are delivered to a bailee by the owner or by a person whose act in conveying the title to them
to a purchaser in good faith for value would bind the owner and a negotiable document of title is issued
for them they cannot thereafter, while in possession of such bailee, be attached by garnishment or
otherwise or be levied under an execution unless the document be first surrendered to the bailee or its
negotiation enjoined. The bailee shall in no case be compelled to deliver up the actual possession of
the goods until the document is surrendered to him or impounded by the court.
o True
● Payment of the purchase price is not essential to the transfer of ownership, unless it is otherwise
stipulated.
o True
● If two or more animals are sold together, whether for a lump sum or for a separate price for each of
them, the redhibitory defect of one shall only give rise to their redhibition, and that of the others; unless
it should appear that the vendee would not have purchased the sound animal or animals without the
defective one.
o False
● If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to
the buyer or his agent that he holds the goods on his behalf and continues in possession of them as
bailee for the buyer or his agent; and it is immaterial that further destination for the goods may have
been indicated by the buyer, then the goods are still considered in transit.
o False
● If the object is tangible, then it is called a choice in action.
o False

Prelim Exam / Long Quiz (SALES) - NOT CHECKED 33/50

● Anselmo and Baquiran are co=owners of a parcel of land. Daniela owns the parcel of land adjoining the
co-ownership. Anselmo sold his share to Capricot. Both Baquiran and Daniela want to redeem the
share of Anselmo which the latter sold to Caricot.
○ The right of Baquiran as co-owner is preferred over Daniela who is only an adjoining owner.
● I. A bearer negotiable document of title can be negotiated by mere delivery.
II. A negotiable document of title marked “non-negotiable” can still be further negotiated.
III. The general rule is that the vendor should not deliver the thing sold if the vendee has not paid the
price.
○ I and II are true; III is false
● Secillo offered to sell Buensalida his 5-door apartment house in Cubao, Quezon City for P3 million.
Buensalida agreed to buy it but requested to give him 20 days to raise the money. After two weeks,
Buensalida informed Secillo that he had raised the money. However, Buensalida informed him that he
is no longer interested in selling the property. Can Buensalida compel Secillo to sell the property?
○ No, because the contract of sale has not yet been perfected.
● S1 - In option money, there is a sale
S2 - In earnest money, there is a sale
○ S1 is false, S2 is true
● Sesty sold to Batok his dog without knowledge that the animal was suffering from a disease at the time
of sale. Is the seller liable for breach of warranty against redhibitory defects of animals?
○ Yes because he should have known the defect before selling it to somebody.
● S1 - In an agency to sell the buyer pays the price.
 S2 - In sale, the buyer pays the price.
○ All statements are true
● Ababao and Bancaso entered into a “contract to sell” in private writing involving a specific parcel of land
worth P2M. Bancaso paid 50% of the purchase price, balance payable in 3 years. Ababao delivered the
land to Bancaso. What is the effect of the delivery of the land to Bancaso?
○ Ababao is still the owner because the price is not yet totally paid
● A mortgaged his land to B, but sold the land to C. Which of the following statements is correct?
○ A, can still sell the land there being no delivery of the same, delivery being essential in every
contract to perfect the contract.
● Dacion en pago as distinguished from sale:
○ There is no pre-existing obligation
● Silva sold to Bien a piece of land, which is owned by Canuto. Is the sale valid?
○ No, because Silva does not have the right to sell things which he does not own.
○ Yes, it is sufficient that he be the owner
● Barayoga sold his motorcycle to Narcisa. No date was fixed for the performance of their respective
obligations. The obligation of Barayoga is:
○ To wait for Narcisa to pay the price before he delivers the motorcycle.
● Sesno owns a piece of land and sells it to Bicaldo with a right or repurchase within one year from the
date of sale. Can Bicaldo sell the land he purchased from Sesno to Burat, a third party?
○ Yes, but Sesno can still redeem the land from Burat.
● Statement No. 1 - In a contract of sale, after delivery has been made, the seller has lost ownership and
cannot recover it unless the contract is resolved or rescinded.
Statement No. 2 - In a contract to sell, title over the property generally passes to the buyer upon
delivery.
○ S1 is true, S2 is false
● Which of the following statements is not correct?
○ All the fruits of the thing sold shall pertain to the vendor from the day on which the contract was
perfected.
● Connie transferred to Violeta a parcel of land for a cause of P100,000: P30,000 to be paid in cash and
for the difference, they will convey her car worth P70,000. What kind of contract is this?
○ Barter
● B went B went to a car show and manifested his interest in a particular car and asked for the price from
A. A replied that it is worth P800,OOO. B, however, could not make up his mind whether to buy or not.
So A told him, "B, I'll give you 2 weeks to decide". B accepted, and gave a Pl ,OOO for the option. After
two weeks, B decided to buy the car but the car had already been sold to M before the end of the
2week period given to B. In this case -
○ A is liable for there being a violation of the option contract.
● Abion sold to Bagamasbad a piece of jewelry at a price of P20,000. The contract provides that
Bagamasbad will give the Abion a microwave oven worth P5,000. What is the nature of the contract?
○ Sale
● Abagat, Barra and Caballero are co-owners of an undivided parcel of land. Barra sold his ⅓ interest to
Caballero absolutely. Which is correct?
○ Abagat cannot exercise the right of redemption because the sale was made in favour of a co-
owner.
● S1 - Donation of real property must be in public instrument for it to be valid.
S2 - Sale of real property must be in writing for it to be enforceable.
○ All statements are false
● S1 - Traditio brevi manu is part of the legal formalities.
S2 - Quasi traditio involves incorporeal property
 ○ S1 is false, S2 is true
● A appoints B to sell his land
Example 1 - If the authority of B is oral and B sells the land in writing, the sale is valid.
Example 2 - If the authority of B is in writing and B sells the land orally, the sale is valid.
○ Both examples are false
● B, in good faith, bought a diamond ring from C, a friend of his. Later, M identifies the rings as the one
she had lost about a year ago in a theft incident. There is no question that M is the true owner. In this
case -
○ B should return the ring but is not entitled to reimbursement.
● A case where a contract of sale must not necessarily be in writing:
○ Sale at public auction
● A, B, and C are co-owners in equal shares of a one hectare rural land, the adjoining owner the smaller
area. A donated his share of the land owned in common to X who is a rural land owner. Upon proper
notice of the conveyance, B, C and D and E sought to exercise the right of legal redemption over the
share conveyed. Who among them, if any, should be preferred?
○ Neither of them
● Solano sold his land to Batacan who began to possess it. Later Cawatan, a stranger, sold the same
land to Dausdos who in good faith registered the sale in the Registry of Dead. Who should be
considered as the owner?
○ Dausdon being the registrant in good faith
● Which of the following options is not correct? If Selerio delivered to Bayeran a television “on sale or
return”
○ The ownership is retained by the seller.
● Which is policitacion in the following events?
○ Maria promised to sell her stereo set to Petra which the latter ignored and did not accept
● S has a fishpond that harvests 100 kilos of tilapia per season at P80 a kilo, sold the next harvest to B
for only P1,000.00. The sale is:
○ Valid because it is emptio res speratae sale
● Which is not correct? In sale by auction
○ The auctioneer may withdraw the goods before the hammer falls whether or not the auction has
been announced to be without recourse
● S1 - If TP was not able to fix the price, sale is inefficacious
S2 - Delivery is required at the time of termination
○ S2 is true
● S1 - Cognition theory is followed in the termination of the contract.
S2Policitation creates a sale.
○ Both are false
● X sold to Y his vehicle for P500,000.00. Upon receipt of the payment, X gave the car keys to Y.
However, before reaching the car, it was bumped by a speeding truck, destroying it totally.
○ Under the situation, Y shall bear the loss for there is already delivery of the vehicle
● Mimmodto entered the Sugbo Restaurant and ordered a dozen fresh oysters in their shell. While eating,
Mommidto notices an almost perfect pearl in one of the shells. He is about to take it when Maliksi, the
restaurant owner, claims the pearl. To whom does the pearl belong?
○ To Mimmodto because the contract of sale was already perfected.
● S stole a fountain pen from “O” and sold it to z bazaar which pays for it in good faith, not knowing it was
stolen. The bazaar then sold it to B, a student.
○ The bazaar, having bought it in good faith, becomes the legal owner, and such it can transfer
ownership to B. Ownership passed to B because he bought it in a merchant store.
● The following, except one, are the alternative remedies available to the buyer in case of breach of
warranty by the seller:
○ Rescind the sale and retain the goods
● Soreta sold his land to Biares. Later, Soreta sold the same land to Baduy. Biares in turn sold the same
land to Bastos, who took possession of the land in good faith. Baduy, a purchaser in good faith,
registered the sale in his favor. Decide:
○ Baduy is the owner of the land having registered the sale in good faith.
● Sawana offered his car to bacopa with the understanding that the price shall be at the discretion of
Bacopa. As agreed upon, Bacopa fixed the price at P350,000 although it’s fair market is beneficial to
Sawana. Before acceptance of the price by Sawana, is there already a sale?
○ No perfected sale as there was no consent on the price
● Statement No. I - Actual knowledge is equivalent to registration of the sale in real property.
Statement No. II - In case of personal property, the buyer who first registered it is the owner of the
thing.
Statement No. III - The vendee must appeal the decision in order that the vendor may become liable for
eviction.
○ II and III are false; I is true
● Statement 1 - One who sells an inheritance without enumerating the things of which it is composed,
shall only be answerable for his character as an heir.
Statement 2 - The interest in mutuum must be in writing to be enforceable.
○ All statements are true
● S1 - Sale or return is subject to suspensive conditions.
S2 - Sales on approval is subject to suspensive conditions,
○ S1 is false, S2 is true
● Which of the following statements is incorrect?
○ In a contract of sale the full payment of the price is in the nature of suspensive condition in that
the seller is obligated to transfer ownership of the things sold,
● If the seller is not the owner, the sale is null and void. Which is not an exemption?
○ When the seller subsequently acquires the title
● S1 - In sale, ordinary diligence can be waived by parties.
S2 - In sale, payment of expenses can be waived by the parties.
○ All statements are false
● Mr. Marcial Bonifacio orders for his workers 1,000 pieces of T-shirts ranging in size from small to large
from the Magellan Garments mfg. Corp. The specified sizes are manufactured by said corporation and
consigned to its sales outlets regularly. The contract entered into by Mr. Bonifacio with the Magellan
Garments mfg. Corp is a:
○ A contract of sale
● Saholo sold to Balo his land worth P2,000,000 for P1,500,000 only, thus resulting in an inadequate
price. The sale is:
○ Valid
● Pacto de retro sale as distinguished from mortgage:
○ There is no foreclosures unless it is declared as an equitable mortgage
● Which of the following does not belong in the enumeration?
○ Declaration of absolute nullity
● S1 - Sale is reciprocal in character
S2 - Consent of creditor is required in Assignment of Credit
 ○ S1 is true, S2 is false
● It is the right to be subrogated, upon the same terms and conditions stipulated in the contract, in the
place of one who acquires a thing by any other transaction where ownership is transmitted by onerous
title.
○ Legal redemption
● S1 - Pacto de retro is subject to suspensive condition
S2 - Sale is subject to resolutory conditions
○ All statements are false
Quiz No. 5 (Agency, Guaranty, Deposit, Loan) - NOT CHECKED 22/25
● The contract of Guaranty must be in _____ for it to be enforceable.
○ writing
● The purpose of deposit is _____
○ safekeeping
● The assignor guarantees the solvency of the debtor
○ False
● When there are two or more depositors, if they are not joint, and the thing admits of division, each one
cannot demand more than his share.
○ true
● The term of Commodatum without a period agreed upon by the parties.
○ precarium
● A judicial depositi or ____ takes place when an attachment or seizure of property in litigation is ordered.
○ extrajudicial
● An ____ deposit can be used by the depositary as an exception to the rule
○ judicial
● An accepted promise to deliver something by way of commodatum or simple loan is binding upon
parties, but the commodatum or simple loan itself shall not be perfected until the delivery of the object
of the contract.
○ true
● The responsibility of two or more agents, even though they have been appointed simultaneously, is not
solidary, if solidarity has not been expressly stipulated.
○ true
● When a sale of a piece of land or any interest therein is through an agent, the authority of the latter
shall be in writing otherwise, the sale shall be void.
○ true
● When there are two or more bailees to whom a thing is loaned in the same contract, they are liable
solidarily.
○ true
● GR - the bailor suffers the loss in Commodatum
○ true
● If the borrower pays interest when there is a stipulation therefore, the provisions of this Code
concerning solutio indebiti, or natural obligations, shall be applied, as the case may be.
○ false
● No interest shall be unless it has been expressly stipulated in writing. This form is a requirement for
validity, enforceability or to bind third persons. This is a form for ___
○ validity
● The right of legal preemption or redemption shall not be exercised except within ____ from the notice in
writing by the prospective vendor, or by the vendor, as the case may be. The deed of sale shall not be
recorded in the Registry of Property, unless accompanied by an affidavit of the vendor that has given
written notice thereof to all possible redemptioners.
○ thirty days
● For Acts of Administration, a special power of attorney is required (SPA).
○ false
● The purpose of Mutuum is consumption
○ true
● S1 - The fruits are included in Commodatum
S2 - The deterioration of the thing in Commodatum is borne by the bailor
S3 - The basis of interest if it is payable in kind is value at the time of perfection.
S4 - TP can be a pledgor or mortgagor.
○ Two are false
● The bailor cannot demand the return of the thing loaned till after the expiration of the period stipulated,
or after the accomplishment of the use for which the commodatum has been constituted. However, if in
the meantime, he should have ____ of the thing, he may demand its return or temporary use.
○ urgent need
● Every agent is bound to render an account of his transactions and to deliver to the principal whatever
he may receive by virtue of the agency, even though it may not be owing to the principal.
Every stipulation exempting the agent from the obligation to render an account shall be void.
○ true
● If what was loaned is a fungible thing other than money, the debtor owes another thing of the same
kind, quantity and quality, even if it should change in value. In case it is impossible to deliver the same
kind, its value at the time of the ____ of the loan shall be paid.
○ perfection
● One who sells an inheritance without enumerating the things of which it is composed, shall only be
answerable for his character as an heir.
○ true
● Commodatum covers non consumable goods, the exemption that it can be consumable is ____
○ exhibition
● If the extraordinary expenses arise on the occasion of the actual use of the thing by the bailee, even
though he acted without fault, they shall be borne ____ by both the bailor and the bailee, unless there is
a stipulation to the contrary.
○ equally
● The bailee is liable for extraordinary expenses brought about by a Fortuitous event.
○ false