TRUE OR FALSE.

________1. The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the
owner at the time the thing sold is delivered.

________2. There may be a contract of sale of goods, whose acquisition by the seller depends upon a
contingency which may or may not happen.

________3. Sale is a consensual contract, therefore delivery or payment is not essential for perfection.

________4. The husband and the wife cannot sell property to each other, as a rule.

________5. The sale of a piece of land or interest therein when made thru an agent is void unless the agent’s
authority is in writing even if the sale itself is in s public instrument and has been
registered.

________6. The fixing of the price can never be left to the discretion on one of the contracting parties.
However, if the price fixed by one of the parties is accepted by the other, the sale is
perfected.

________7. There is no warranty against hidden defects of animals sold at fairs or at public auctions or of
livestock sold as condemned.

________8. Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time
of the sale, the buyer acquires a good title to the goods.

________9. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment.

________10. The creditors of the vendor cannot make use of the right of redemption against the
vendee, until they have exhausted the property of the vendor.

________11. Sale is a real contract because delivery is necessary to transfer ownership to the buyer.

________12. In case of doubt, a contract purporting to be an equitable mortgage shall be construed as a sale
with a right to repurchase.

________13. If the vendee has renounced the right to warranty in case of eviction, and eviction should take
place, the vendor shall only pay the value which the thing sold had at the time of sale.

________14. The ownership in the thing shall not pass to the purchaser until he has fully paid the price.
________15. If at the time the contract of sale is perfected, the thing which is the object of the contract has been
partially lost, the contract shall be without effect.

________16. If two or more animals are sold together, whether for lump sum or for a separate price for each of
them, the redhibitory defect of one shall give rise to the redhibition of the others.

________17. Option money is considered as part of the purchase price while earnest money is not.
________18. The Maceda Law refers to the sale of personal property by installments while the Recto Law refers
to the sale of real property by installments.

________19. If the animal sold should die within three (3) days after its purchase, the vendor shall be liable to
the vendee.

________20. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void.

________21. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold only if he
was aware thereof.

________22. The expenses for the execution and registration of the sale shall be borne by the vendee, unless
there is a stipulation to the contrary.

________23. If the same thing should have been sold to different vendees the ownership shall be
transferred to the person who may have taken possession thereof in good faith.

________24. The ownership of the thing sold shall be transferred to the vendee upon perfection of the contract.

________25. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain is binding
upon the promissory.

________26. Should the vendee’s failure to pay, cover two or more installments, the vendor may
foreclose the chattel mortgage on the thing sold but he shall have no further action against
the purchaser to recover any unpaid balance of the price, except if there is an agreement to
the contrary.

________27. Earnest money and option money both apply to perfected sale.

________28. In a contract of sale of personal property the price of which is payable in installment, the vendor
may cancel the sale should the vendee fail to pay.

________29. If the price is grossly inadequate, the sale is void.

________30. Whenever option money is given in a contract of sale, it shall be considered as part of the price
and a proof of the perfection of the contract.

MULTIPLE CHOICES.

____1. One of the following characteristics of dacion en pago is a characteristic a contract of sale. Which is it? A. There is
pre-existing credit. 1).
B. Obligations are extinguished.
C. There is less freedom in fixing the price.
D. Ownership of the object is transferred to the other party

____2. The following are the characteristics of a contract of sale, except:

A. Principal, which means that a contract of sale can exist by itself
B. Real, which requires the delivery of the object of the contract of sale for its perfection.
C. Onerous, where rights are acquired in exchange of a valuable consideration.
D. Bilateral, which means that both parties are bound reciprocally to each other.

____3. The following are the essential elements of a contract of sale, except:
A. Consent of the contracting parties
B. Subject matter which should be determinate
C. Price which is certain in money or its equivalent
D. Warranty against eviction and against hidden defects.

____4. S sold shares of stock of X Corporation to B at P2.00 per share. The transfer of the ownership of the shares of
stock may be made through any of the following means, except:
A. Execution of the sale in a public instrument.
B. The giving by S to B of the power to vote in the stockholder's meeting of X Corporation and the actual exercise thereof
by B.
C. The endorsement by S of the stock certificate covering the 500 shares of stock and placing it in the possession of B.
D. The issuance by S of the official receipt for the full payment of purchase of the shares by B.

____5. Which of the following may not be the object of a contract of sale?
A. Things having potential existence
B. The acquisition of things which depends upon a contingency which may or may not happen.
C. Vain hope or expectancy
D. Things subject to a resolutory condition;

____6. When the delivery takes place by mere consent or agreement of the parties as when the vendor merely points to the
thing sold which shall thereafter be at the disposal of the vendee if the thing sold cannot be transferred to the possession of
the vendee upon the sale?
A. Traditio symbolica
B. Traditio brevi manu
C. Traditio longa manu
D. Traditio constitutum possessorium6

____7. A seller sold to a buyer a piece of jewelry at a price of P1,000,000. The contract provides that the buyer will pay
the seller cash P400,000 and deliver the buyer's car worth P600,000. The contract is:
A. Barter
B. Sale
C. Partly sale partly barter
D. Commodatum

____8. A delivers B his parcel of land worth P1,000,000 in exchange for the car of B worth P500,000 and cash in the
amount of P500,000. The contract is:
A. Barter
B. Sale
C. Partly barter partly sale
D. Innominate contract

____9. A sold his land to B who began to possess it. Later, C, a stranger sold the same land to D, who in good faith
registered the sale and thus obtained the title in his name. The owner is:
A. D is the owner for he was the first to register in good faith.
B. A remains to be the owner because C had no authority to sell.
C. A is still the owner because B did not register the sale.
D. B is the owner because the owner is his seller and he has taken possession of the land.

____10. S sold to B a shoes with brand name “Adidasnike Armour”. After delivery, it was discovered that the shoes does
not function well prompting B to Complain. Therefore:
A. B does not have the right to complain for breach of warranty against hidden defect because the right has a brand name
when sold.
B. B has the right to complain for breach of warranty against hidden defect despite the thing being sold under a patent
name or trade name.
C. S is not liable for hidden defect even if the thing sold is unlit for the particular purpose for which it is sold.
D. S is liable for hidden defect only if it was stipulated.

____11. The buyer is obliged to pay interest on the price from the time of delivery of the thing sold up to the time of
payment in three of the following instances, except:
A. Should it have been stipulated
B. Should the thing produce fruits or income
C. Should the vendee be in default in the payment of the price
D. Should the vendee be insolvent

____12. A, guardian of B, sold B’s house and lot worth P480,000 for P 240,000.
A. The contract can be rescinded because of inadequacy of price
B. The contract cannot be rescinded because there is no fraud mistake or undue influence.
C. The contract cannot be rescinded because all the element of the contract are present.
D. The contract can be rescinded by A.
____13' A contract of sale is in stage of conception when:
A. There is meeting of the minds.
B. Negotiations are in progress.
C. The parties come to an agreement.
D. The contract is perfected.

____14' Ownership of the thing sold is

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

____15. A sold her specific car to B for P200,000 payable in 5 equal installments. A delivered the car to B but a mortgage
was constituted on the cart0 answer for the unpaid installments. B paid the first 2 installments but failed to pay the last 3
installments. A foreclosed the mortgaged property and sold it at public auction for P100,000. Which is correct?
A. A can recover from B the balance of P20, 000 even if there is no stipulation to that effect.
B. A can recover from B the balance of P20, 000 if there is stipulation to that effect.
C. A cannot recover the deficiency except if there is stipulation that effect.
D. A cannot recover the deficiency even if there is stipulation t0 the contrary.

____16. A sold his land to B. Later, A sold the same land to C. B in turn, sold the same land to D, who took possession of
the land in good faith. C, purchaser in good faith, registered the sale in his favor. Decide.
A. B is the owner of the land because he was the first buyer.
B. C is the owner of the land having registered the sale in good faith.
C. D is the owner of land being the transferee of the rights of B and who is in possession in good faith.
D. D is the owner because after A sold the land to B, A had no more right to transfer ownership to C, the second buyer.

____17 A sold to B in a private instrument a parcel of land for P5,000. B now wants A to place the contract in a public
instrument so that B could register the sale with the Registry of Deeds and secure the Transfer Certificate of Title in his
name. Decide:
A. A may not be forced or compelled to execute the public instrument since the sale is unenforceable being in private
instrument only.
B. A cannot be required to place the contract in a notarized deed of sale because the contract is void not being in public
instrument
C. A can be required to execute the public instrument only if B has paid the purchase price.
D. A has the obligation to execute the public instrument because the contract of sale is enforceable.17

____18. A bought a pair of shoes from a shoe store and repair shop. It was later discovered, however, that the shoes did
not belong to the store but a customer who had left the same for repair. Did A acquire good title to the shoes?
A. No, because it was sold by the store which is not the owner thereof.
B. No, because it is the fault of A in not exercising diligence in buying the shoes as to its real ownership. C. Yes, because
it was bought from a store in good faith and for value.
D. Yes, because the owner of the shoes was precluded from setting up want of authority of the store in selling the shoes.
____19. A, B and C are co-owners in equal shares of one hectare rural land, the adjoining owners to which are D and E,
the latter owning the smaller area . A donated his share of the land owned in common to X who is a landowner. Upon the
proper notice of the sale, B, C, D and E sought exercise the right of legal redemption over the shares sold. Who 3M have
the right to do so? '
A. A and B are preferred to D and E to redeem because co-owners have preference to adjoining owners. B. E shall have
the right to redeem because he has smaller area land than D.
C. The first one between A and B to request redemption shall be preferred in case both demand.
D. None of them has the right to redeem because the land alienated was not by onerous title.

____20. X, the Owner of a certain jewelry, delivered it to Y, “on sale or return” upon a specified period of time. Y sold
the said jewelry to Z, but retains the price. Can X recover the jewelry from Z?
A. X can recover the jewelry from Z being an unpaid seller whose ownership was not transferred to Y upon delivery to
him
B. X can recover the jewelry from Z but after reimbursement of the price paid.
C. X cannot recover the jewelry from Z because his seller Y has transferred ownership to him.
D. X cannot recover the jewelry from Z because it was sold by his agent, Y to Z his only recourse is to go after Y for his
failure to remit the payment to him.”

____21. Which of the following cannot be an object of a contract of sale?

A. lncorporeal property
B. Young animal not yet conceived at the time of perfection
C. Land which the seller expects to buy
D. Object outside the commerce of man.

____22. Which is not an element of the seller’s right of stoppage in transit?

A. The goods must be in transit.
B. The buyer must be insolvent.
C. The seller must be in possession of the goods.
D. The seller must be unpaid.

____23. If redemption is to be made by the seller, one of the following need not given to the buyer.
A. Expenses of the contract
B, Interest on the price of the sale
C. Necessary expenses on the thing sold
D. Price of the sale

____24. Not an implied warranty in a contract of sale:

A. Right to sell the thing at the time of perfection of the contract
B. Reasonably fit for the purpose for which they are acquired
C. Merchantable in quality
D. Free from charges or encumbrances not declared or known to the buyer

____25. A contract of sale whereby the seller acquires the right to redeem or repurchase the object of the sale from the
buyer within a certain period agreed upon.
A. Equitable Mortgage
B. Absolute sale
C. On sale or return
D. Pacto de retro sale

____26. The right of the seller to stop goods in transit upon discovering that the buyer does not have the funds to pay for
the goods.
A. Pre-emptive right
B. Appraisal right
C. Voting right
D. Right of stoppage in transitu

____27. In case of doubt, a sale with a right to repurchase or without a right to repurchhase shall be construed as an
equitable mortgage. The seller therefore:
A. May ask for the reformation of the instrument;
B. May ask for the annulment of the contract.
C. May ask the court for the declaration of nullity of the contract
D. Shall be bound to perform his obligation as seller.

____28. A sold to X his ½ share of the parcel of land he co-owns with B. C owns the parcel of land adjoining that of A
and B. Both B and C want to redeem die share of A which the latter sold to X.
a. C shall be preferred to B in the redemption from X.
B. B’s right as co-owner excludes that of C, the latter being only an adjoining owner.
C. C has a better right to the redemption as an adjoining owner.
D. B and C shall equally redeem the share of A.

____29. If immovable property should have been sold to different vendees, the ownership shall be transferred to the
person
A. Who have first taken possession in good faith.
B. Who presents the oldest title in good faith.
C. Who in good faith first recorded it in the Registry of Property.
D. Who have paid in good faith the purchase price in full.

____30. Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object
of sale unfit for the use intended or knowledge to which, the vendee would not have bought the thing.
A. Accion quanti minoris
B. Accion reinvindicatoria
C. Accion pauliana
D. Redhibitory action

____31. Action to seek a corresponding reduction in price by reason of somevms or defects in the thing purchased.
A. Accion quanti minoris
B. Accion reinvindicatoria
C. Accion pauliana
D. Redhibitory action
____32. The redhibitory action based on the faults or defects of animals must be brought within
A. 30 days from delivery to the vendee
B. 40 days from delivery to the vendee
C. 45 days from delivery to the vendee
D. 6 months from delivery to the vendee32

____33. In contract of sale, if the price is absolutely simulated, the sale is

a. Unenforceable
b. Voidable
c. Void
d. Rescissible.

____34. In a contract of sale of personal property, the price which is payable in installments, the vendor may exercise any
of the following remedy except:
A. Exact fulfillment of the obligation, should the vendee fail to pay any instalment.
B. Cancel the sale, should the vendee's failure to pay cover two or more installment.
C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s failure to pay cover
two or more installments.
D. Rescind the sale should the vendee fail to pay any instalment.

____35. This special form of payment is conveyance of the ownership of the thing as accepted equivalent of
performance.
A. Dacion in payment or dacion en pago
B. Assignment of property or cession en page
C. Application of payment
D. Tender of payment and consignation35

____36. X sold to Y for P50. 000. No date was fixed for the performance of the obligation of the seller and the buyer.
The obligation of X is:
A. To deliver the car immediately because the sale is a perfected contract.
B. To deliver the car only after Y writes to X demanding the delivery of the car.
C. To deliver the car after Y pays X the P 50,000.
D. To rescind the contract anytime.

____37. Unless there is stipulation to the contrary, the expenses for the execution or registration of the sale shall be borne
by:
A. The vendee.
B. The vendor
C. The vendee and the vendor
D. The agent or broker

____38. Y sold his horse to Z for P50, 000. No payment has yet been made and the sale document does not provide the
date of delivery. Before delivery and "M the horse gave birth to a baby horse.
A. Z is entitled to the baby horse which was born after the perfection of the contract.
B. V is entitled to the fruit (baby horse) as Z has not paid the price yet
C. Y is entitled to the fruit (baby horse) because it was born before his obligation to deliver the horse.
D. Z should pay additional amount for the baby horse to be entitled to it.

____39. Mr. 8 sold his car to Mr. G for P150,000. No date is fixed by the parties for the performance of their respective
obligations. The obligation of Mr. S is:
A. To deliver the car immediately as there is a perfected contract
B. To deliver the car upon payment of Mr. G of P150,000.
C. To rescind the contract since there is no time fixed for the delivery and payment of the car.
D. To deliver the car within a reasonable time after the demand of Mr.G.

____40. Mr. R and Mr. V are good friends. Mr. R sold and delivered his car to Mr. V. It was agreed and understood that
on Sunday, Mr. R will name and the price of the car. Sunday came. Mr. R called Mr. V by telephone and stated and fixed
the price at P150,000. Is the sale perfected?
A. Yes. The price was stated and fixed on the date agreed upon.
B. No. The price was left to the discretion of the seller.
C. No. At the time of the sale, the price is not fixed.
D. No. The price fixed by the seller was not accepted by the buyer."0

____41. Mr. G sold his owner-type jeep to Mr. M for P100,000. There was no fixed date for the performance of the
obligations of Mr. G and Mr. M. The obligation of Mr. G is:
A. To deliver the jeep immediately as there is a perfected contract
B. To wait for Mr. M to pay P100,000 and deliver the jeep.
C. To rescind the contract because no time is fixed for the performance of their respective obligations.
D. To deliver the jeep after Mr. M demands for the delivery of the jeep.

____42. Mr. B sold a parcel of land to Mr. J for P200,000. Mr. B delivered the Transfer Certificate of Title of the land to
Mr. J. Later, Mr. J wanted to register the land in his name and he needed a Deed of Sale. What can Mr. J do?
A. Mr. J may compel Mr. B to execute a Deed of Sale.
B. Mr. J cannot compel Mr. B to refund the P200,000 because the contract is not enforceable.
C. Mr. J can sue Mr. B for enriching himself at the expensed of another.
D. Mr. J can possess and utilize the land as buyer in good faith.

____43. The buyer of a thing has the right to the fruits of the thing.
A. From the time the thing bought is delivered.
B. From the time the sale is perfected.
C. From the time the obligation to deliver the thing bought arises
D. From the time the fruits are delivered.

____44. Three of the following are option money. Which is the earnest money?
A. Given when contract of sale is perfected
B. Given when there is no contract of sale
C. Given to bind the offer or in unilateral promise to sell or buy
D. Given as a separate consideration from purchase price

____45. In a sale, this is actual delivery

A. Execution and signing of the sales document.
B. When the goods sold are placed in the control and possession of the buyer.
C. Delivery by the seller to the buyer of the key where the goods are kept.
D. The buyer is already in actual possession of the goods

____46. In the sale, the buyer is entitled and has the right to the fruit of the thing sold from the time:
A. The obligation to deliver the thing sold arises
B. The sale is perfected
C. The thing sold is delivered
D. The fruit of the thing sold is delivered

____47. In distinguishing earnest money from option money, earnest money is:
A. Given when there is no contract of sale.
B. Given only when there is a perfected contract of sale
C. Given to bind the offeror in a unilateral promise to sell or buy
D. Given as a separate consideration from the purchase price

____48. A form of delivery which takes place after seller of the property continues in possession of said property no
longer as owner but as a mere possessor:
a. Traditio constitum possessorium
B. Traditio symbohca
C. Traditio brevi manu
D. Quasi-traditio

____49. When goods are delivered to the buyer on "sale or return" for seven days; ownership of the goods passes to the
buyer
A. Upon delivery of the goods
B. Upon expiration of seven days
C. Upon acceptance by the buyer of the offer of the seller
D. Upon perfection

____50. A sold 8 a parcel of land for P30, 000. The sale is evidenced by a memorandum of agreement of sale. One week
later, A sold the parcel of land to C for P40, 000 which was evidenced by a formal deed of sale. Upon buying the
property, C, who was aware of the first, immediately took possession of the land and registered the deed of sale in her
favour with the Registry of Deeds. When informed of the second sale, B subsequently registered an adverse claim to the
property. The parcel of land shall belong to:
A. B, because she has got an older title
B. C, because the sale was made on a formal deed of sale
C. C, because she is the first to register the deed of sale
D. C, because she is the first to take possession of the land

____51. In case of redemption, which of the following will not be paid by the seller to the buyer?
A. Expenses incidental to the sale paid by the buyer
B. All necessary expenses on the thing sold and to be redeemed
C. The consideration of the sale paid by the buyer
D. Interest on the price paid by the buyer

____52. Dacion en pago as distinguished from sale

A. The object is always existing and specific
B. There is a greater degree of freedom in fixing the price
C. There is no pre-existing obligation
D. The cause is the price

____53. When things are delivered to the buyer on approval, trial, or satisfaction. The ownership passes to the buyer:
A. Upon delivery of the things
B. Upon meeting of minds
C. Upon conception of the sale
D. Upon return of the things to the seller

____54. P orally appointed A as his agent to sell the farmer’s land. 0n January 3 2018, A sold the land to B who forthwith
took possession thereof. It turned out however, that on January 1, 2018, P, without informing A, had already sold the same
to land to C. Neither of the sales was registered. Whose contract shall prevail?
A. The sale to B for he was the first in possession in good faith.
B. The sale to C for the land was first sold to him by the owner.
C. The sale to B for the agent was duly authorized to sell the land.
D. The sale to C because the sale to B was void, A was not duly authorized by P.

____55. On January 1, S orally sold to B a specific ring for P4500. The parties agreed that S shall deliver the ring to B on
January 5, while B will pay the price on January 7.
A. The contract is perfected on January 5 when the ring is delivered by S to B.
B. The contract is perfected on January 1 when the parties had a meeting of minds on the object and price.
C. The contract is perfected on January 7 when the price is paid, since both parties would then have performed their
obligations in the contract.
D. There is no perfected contract because the sale was made orally.

____56. The price in a contract of sale is certain except:

A. When the parties have fixed or agreed upon a definite amount.
B. If the price is certain with reference to another thing certain.
C. If the fixing of the price is left to the discretion of one of the contracting parties.
D. If the price fixed is that which the thing sold would have on a definite day or in a particular exchange or market.

____57. S and B entered into a contract whereby S transferred to B a specific car for the price of P200,000, while B gave
to S P90,000 cash and a diamond ring worth P1 10,000. The heading of the written contract reads, "Contract of Sale.”
A. The contract is void because the intention of the parties is void since the value of the diamond ring is more than the
monetary consideration given.
B. The contract is a valid contract of sale as intended by the parties regardless of whether the monetary consideration is
more or less than the value of the property consideration.
C The contract is a valid contract of barter since the value of the property is more than the monetary consideration. The
intention of the parties is immaterial
D. The contract is partly a contract of barter and partly a contract of sale.
____58. A, B, and C are co-owners of a parcel of land pro-indiviso. A sold his share to B in an absolute deed of sale.
Which is correct?
A. The deed of sale between A and B is void since it was made not favor of a third person.
B. C may exercise his right of redemption on the interest of A sold to B.
C. C may redeem only 1/5 of the share sold by A to B.
D. C cannot exercise the right of redemption since the sale w made to a co-owner.

____59. S sold his cat to B for P2,000. No payment has been made and the sales document does not provide for the date
of delivery. Before delivery and payment, the cat gave birth to a kitten.
A. B is entitled to the kitten which was born after the perfection of the sale.
B. S is entitled to the fruit as B has not yet paid the price.
C. S in entitled to the fruit because it was born before his obligation to deliver the cat.
D. B should pay an additional amount for the kitten to be entitled to it.

____60. A and B entered into a contract of lease with option to buy the car of the former for a term of two years. For three
months B failed to pay the rentals and by reason thereof, A repossessed the car. Hence,
A. A can collect the unpaid rentals for three months.
B. A can collect the unpaid rentals for the duration of the term of the lease of two years.
C. When A deprived B the possession of the leased car, he has no further action against the latter for any unpaid rentals.
D. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with option to buy.

____61. A offered in writing to sell his house and lot for Php 1M to B on January 20,2018. B requested to give him one
month to raise the amount. 0n lanuary 25,2018, A informed B that he has raised the price to Php1.5M Can B compel A to
accept the payment of Php 1M for the sale of the house and lot?
A. Yes, because A is already estopped by his written offer of Php 1M
B. Yes, because the one month option period has not yet expired.
C. No, because there is as yet no perfected sale.
D. No, because the seller has the sole discretion in fixing the price with or without the concurrence of the buyer.

____62. S sells to B at P50 per liter 300 liters of gasoline stored in his truck tank, which is unknown to the parties
contains 500 liters. What is the status of the contract of sale between S and B?
A. The sale is void because the quantity available is more than the quantity sold.
B. The sale is valid up to 500 liters of gasoline. B must pay for the additional 200 litres.
C. The sale is valid up to 300 liters of gasoline. B becomes the owner of 3/5 of the whole stock, while 5 becomes the
owner of 2/5 thereof.
D. The sale is rescissible because S will suffer lesion of more than 1/4 of the value of the whole stock.

____63. Which of the following is not a requisite of the object of a contract of sale?
A. It must be within the commerce of men.
B. It must be licit.
C. It must be determinate thing.
D. Vendor must have the right to transfer the ownership of the thing at the time of sale.

____64. The following are characteristics of a contract of sale except one which mm the payment by cession.
A. There is no pre-existing credit.
B. The cause or consideration is the price.
C. There is more freedom in fixing the price.
D. Assignee of the property acquires the right to sell the thing but not the ownership thereof.

____65. I. A Contract to Sell does not sell a thing or property, it sells the right to buy property.
II. Conditional sale is a sale subject to the happening or performance of condition, such as payment of the full price or
the performance of other prestation to give, to do or not to do.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

____66. X granted Y the exclusive right to sell his furniture, the price is payable within 120 days from the delivery, and
promising Y a commission on 20% of all sales. After the delivery of the furniture to Y, but before he could sell any of
them. Y's store was completely burned without his fault together with all of X's furniture. ls Y liable for the lost furniture?
A. No, because the contract between X and Y is an agency to sell.
B. Yes, because the contract between X and Y is a contract of Sale.
C. No, because Y is an agent.
D. No. because delivery here did not transfer ownership

____67. On July 1, 2018. X sold a parcel of registered land to Y. On July 14, 2018 he sold the same land to Z. Who has
the better right if the first sale is registered ahead of the second sale? Y has knowledge of the sale to Z.
A. Z has a better right because knowledge of Y of the second Sale makes Y in had faith.
B. Z has a better right because he is in good faith.
C. Neither of Y and Z has a better right.
D. Y has a better right even though Y knew of the second sale.

____68. 0n luiy 1, 2018, X sold a parcel of registered land to Y. 0n Iuiy 14, 2018, he sold the same land to Z. Who has the
better right if the second sale is registered ahead of the first sale. Z has knowledge of the sale to Y?
A, Z has a better right because knowledge of Y of the second 5319 makes Y in bad faith.
B. Z has a better right because he is in good faith.
C. Neither of Y and Z has a better right.
D. Y has a better right as Z knew of the second sale.

____69. X Corp. has dealt business with Y Corp. for live years. All through the years, X Corp. accumulated an
indebtedness of P1,000,000 with Y Corp Upon demand, X Corp. paid Y Corp. by check the amount owed which was
however dishonored for insufficiency of funds. For and in consideration of P800,000, Y Corp. assigned the credits to Z
Corp. who brought suit against X Corp. for the recovery of the amount owed which later on was moved for dismissal by X
Corp. on the ground that X Corp. has not agreed for subrogation. Decide.
A. X Corp. is correct. This is a case of subrogation which needs it’s consent being the debtor.
B. X Corp. is not correct because this is a case of an assignment or credit. The debtor's consent is not essential for the
validity of the assignment.
C. X Corp. is not correct because this is a case of an assignment of credit. However, assignment of credit needs the
consent of the debtor.
D. This is a valid assignment of credit. However, Z Corp. did not acquire a right to sue in his own name.

____70. X and Y were co-owners of a parcel of land. Last March 31, 2018, when she paid her realty estate tax, X
discovered that Y had sold her share to Z on My 10, 2017. The following day, X offered to redeem her share from Z but
the latter replied that X’s right to redeem has already prescribed. Is Z correct or not?
A. Z is not correct. X can still enforce her right of legal redemption as a co-owner because the law gives X 30 days from
written notice of the sale by Y to exercise his right of legal redemption.
B. Z is not correct. X can still enforce her right of legal redemption as a co-owner because the law gives X 60 days from
written notice of the sale by Y to exercise his right of legal redemption.
C. 2 is correct because X’s right to redeem has already prescribed because the law gives X 30 days from date of the sale
by Y to exercise his right of legal redemption.
D. Z is correct because X's right to redeem has already prescribed because the law gives X 60 days from date of the sale
by Y to exercise his right of legal redemption.