Test Bank Sales, Agency and Pledge

TEST BANK 4. Mr. AB owes Mr.
CD P150,000 due on
SALES, AGENCY and PLEDGE August 1, 2010. Mr. AB executed mortgage
in favor
1.Unless there is stipulation to the contrary of Mr. CD on Mr. AB’s building to
the expenses for the execution or registration guaranty the obligation. On August 10,
of the 2010, the
sale shall be borne by: mortgage building was totally lost due
to a strong typhoon. On August 12, 2010,
A. The Vendee Mr. CD
B. The Vendor demanded payment from Mr. AB. Is
C. The Vendee and Vendor Mr. CD’s demand valid?
D. The agent or broker
A. No, the obligation is one with a
2. A offered to sell his lot to B for definite period, thus the creditor
P100,000. In his offer to sell it was stated cannot demand fulfillment of the
that he is given 60 obligation as such would the
days to prepare the P100,000 and as soon prejudicial to the rights of the debtor.
as B is ready with the money, A will execute B. No, the obligation is extinguished
a deed because the obligation is lost through
of sale. Before the end of 60 days, A a fortuitous event.
informed B that price of the lot was C. Yes, the debt becomes due at once
increased to because the guaranty was lost even
P120,000. May B, compel A to accept through a fortuitous event. Unless
P100,000 offered previously by A and make the debtor can mortgage another
him property that is equally
execute the deed of sale? satisfactory.
D. Yes, the debt becomes due at once
A. Yes, because A already signed his because, from the tenor benefit is
offer given solely to the creditor thereby
B. No, For B never signified his giving the creditor the right to
acceptance of A’s offer. demand performance even before the
C. Yes, because there was actual date.
meeting of minds of the parties
D. Answer not any of the above. 5. Mrs. Go sold and delivered her diamond
ring to Mrs. Pat. It was agreed upon that
3. A wrote a letter to B wherein A offered after ten
to sell a piece of land to B for P200,000. B (10) days Mrs. Pat will name and fix the
signified price. On the tenth (10th) day, Mrs. Pat
his desire to buy the land. In A’s letter called up by
he gives B a period of two (2) months within telephone Mrs. Go and stated the price
to at P10,000. Mrs. Go agreed. IS the sale
produce the P200,000. After 45 days, A perfected?
told B that the price of the land is now
P250,000. A. Yes, the price stated and named by
Can B compel A to accept the P200,000 one of the contracting parties was
first offered by A and execute the deed of accepted by the other.
sale? B. No, at the time of the sale the price
was not fixed.
A. Yes, because there was actual C. No, the price was left to the
meeting of the minds of A’s offer discretion of one of the parties
B. No, for B did not signify his D. No, at the time of the sale the price is
acceptance of A’s offer not known.
C. Yes, because A is already estoppels
by his signed letter 6. Mr. Sy sold a parcel of land to Mr. Tan
D. Yes, because the period of two (2) for P200,000. Mr. Sy delivered the transfer
months has not expired Certificate
of Title of the land to Mr. Tan. Later, Mr. C. Delivery by the seller to the buyer of
Tan wanted to register the land to his name the key where the goods sold are
and he kept.
needed a Deed of Sale. What can Mr. D. The buyer is already in actual
Tan do? possession of the goods.
A. Mr. Tan can compel Mr. Sy to 11. This is a mode to extinguish an agency:
execute a Deed of Sale
B. Mr. Tan cannot compel Mr. Sy to A. Death of the principal, but the
refund the P200,000 because the agency is for the interest of the
contract is not enforceable principal and agent.
C. Mr. Tan can sue Mr. Sy enriching B. Partial accomplishment of the
himself at the expense of another. agency.
D. Mr. Tan can possess and utilize the C. Upon withdrawal of the principal.
land as a buyer in good faith. D. Insanity of principal or agent.
7. Bonds which are not secured by any 12. D pledged his Singer Sewing Machine to
specific mortgage lien of pledge or corporate C for P8,000. D was unable to pay the
property obligation
but by the general corporation are: 60 days after it was due. C sold the
machine at public auction for P6,000.
A. Guaranteed bonds
B. Debenture bonds A. C cannot recover the deficiency of
C. Income bonds P2,000 even if there is stipulation
D. Redeemable bonds that he can.
B. C can recover the deficiency of
8. The buyer of a thing has the right to the P2,000 even without stipulation.
fruits of the thing: C. C cannot recover the deficiency of
P2,000
A. From the time the thing bought is D. C can recover the deficiency of
delivered P2,000.
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. 13. In a sale, the buyer is entitled and has
the right to the fruit of the thing sold from
9. Three (3) of the following are option the time:
money. Which is the earnest money?
A. The obligation to deliver the thing
A. Given when contract of sale is sold arises
perfected. B. The sale is perfected
B. Given when there is no contract of C. The thing sold is delivered
sale. D. The fruit of the thing sold is
C. Given to bid the offer or in a delivered.
unilateral promise to sell or to buy.
D. Given as a separate consideration 14. Mr. AB offered in writing to sell his
from purchase price. house and lot for P750,000 to Mr. CD on
July 1, 2010.
10. In a sale, this is actual delivery. Mr. CD requested Mr. AB to give him
60 days within which to raise the P750,000.
A. Execution and signing of the sale On
document. August 15, 2010 Mr. AB informed Mr.
B. When the goods sold are placed in CD that the price is raised and now at
the control and possession of the P1,000,000.
buyer.
Can Mr. CD compel Mr. AB to sell his 18. B pledged his Rolex to C for P4,000. B
house and lot at P750,000 which was offered failed to pay C the P4,000 on due date. C
in sold the
writing by Mr. AB? Rolex watch at a public auction to the
highest bidder at P3,500.
A. Yes, because Mr. AB is already
stopped by his written offer. A. C can recover the deficiency of P500
B. Yes, because the 60 days offer has from B.
not yet expired B. C can recover the deficiency of P500
C. No, because Mr. CD has not even without stipulation.
accepted the offer of Mr AB. C. C cannot recover the deficiency of
D. Yes, there was meeting of the minds. P500 unless there is stipulation.
D. C cannot recover the deficiency of
15. In distinguishing Earnest Money from P500 even if there is stipulation.
Option money, earnest Money is:
19. Which of the following may not be the
A. Given when there is no contract of object of sale?
sale,
B. Given only when there is perfected A. Things having potential existence
contract of sale. B. The sale of a vain hope or
C. Given to bind the offer or in a expectancy
unilateral promise to sell or buy C. Future goods
D. Given as a separate consideration D. Answer not given.
from the purchase price.
20. When delivery takes place by the mere
16. Gay appointed May to sell the former’s consent or agreement of the contracting
car for P200,000. May sold the car to Pam, parties as
Pam when the vendor merely points to the
inspected the car and found hidden thing sold which shall thereafter be at the
defects in the car. Can Pam file an action control and
against Gay disposal of the vended if the thing sold
even when May acted in her own name? cannot be transferred to the possession of
the vendee
A. No, under “Caveat Emptor” let the at the time of sale, delivery is effected:
buyer beware.
B. Yes, because this is contract A. By tradition symbolica
involving property belonging to B. By traditio longa manu
the principal C. By traditio brevoi manu
C. No, because, May acted in her own D. Answer not given
name not of the principal.
D. No, because the contract of sale is 21. The distinction between a chattel
already perfected. mortgage and a pledge is that in chattel
mortgage:
17. Mr. San authorized Mr. Soy to sell his
car for p200,000 with 5% agent’s A. The delivery of the personal property
commission. Mr. is necessary
Soy sold the car to Mr. Dy for P250,000. B. The registration of the property in
For how much is Mr. Soy accountable to the Registry of Property is not
Mr. San? necessary
C. The excess over the amount due
A. P200,000 after foreclosure, goes to the
B. P190,000 debtor
C. P250,000 D. Answer not given.
D. P240,000
22. Sale is distinguished from dation in
payment in that in sale
A. There is a pre-existing obligation or 25. Mr. Rene owns a mango tree bearing
credit fruits, ready for harvest. He sells all the
B. The cause is the price fruits of that
C. It is a mode of extinguishing an tree to Mr. Mar who pays Mr. Rene the
obligation in the form of payment. sum of P5,000. Rene tells Mar that he can
D. Answer not given. just
harvest the fruits anytime he likes
pointing at the particular tree. For legal
purposes, Rene has
23. Mr. Mar orders for his workers 1,000 fulfilled his obligation to deliver the
pieces of T-shirt ranging in size from small mango fruits to Mar by:
to large
from RDG Garments Mfg. Corp. The A. Traditio brevi manu
specified sizes, although not then available, B. Traditio longa manu
are C. Traditio simbolica
manufactured by said corporation and D. Answer not given
consigned to its sales outlets regularly. The
contract 26. Mar Garci, before going to Spain
entered into by Mr. Mar with the RDG appointed Jc Legaspi as his agent to
Garments Mfg. Corp. is a: administer his
properties in the Philippines.
A. Contract for a piece of work. Afterwards, Legaspi wrote Garci that he
B. Contract subject to a resolutory ( Legaspi) was
condition withdrawing from the agency because
C. A contract of sale of failing health. Legaspi, in the same letter
D. Answer not given said that
he appointed Eg Legaspi as his
24. Mr. Amado owes the BIR P100,000 in substitute and that Mar should extend a new
delinquent taxes and penalties. In order to appointment to
evade the Eg. Eg took over the duties of Jc but
payment of said liability, he executed a Mar did not bother to appoint Eg to act as
deed of sale of his only parcel of land valued his agent
for until Mar’s death. Now Mar’s heirs
P200,000 in favor of his brother Pedro, brought an action against Eg for accounting.
where P20,000 was stated as the purchase Eg raised
price but the defense that he was not validly
the BIR has evidence that said price had constituted as an agent of Mar. In the case at
never been paid, the purpose of the sale bar, defense
being to is not tenable because there is:
prevent the BIR to levy upon the land to
satisfy the tax liability of Mr. Amado. In this A. An actual agency
case: B. An implied agency
C. A general agency
A. The BIR may not levy upon the land D. Answer not given
because the sale is void
B. The BIR without annulling the sale 27. Maria is authorized by Dulfo to sell the
may levy upon the land of Amado latter’s washing machine for P5,000 each at
pursuant to the provisions of the 10%
National Internal Revenue Code commission. One day, Dulfo sells one
C. The BIR should first annul the sale washing machine to Carla on credit (payable
before it may levy upon the land in 90
pursuant to the provisions of the days) but for a price of P6,000. If Dulfo
National Internal Revenue Code. does not ratify this sale on credit, he can
D. Answer not given. collect cash
payment from Maria:
A. P4,500 (P5,000 less P500
commission)
B. P5,000 (the price without
commission)
C. P5,400 (P6,000 less P600) 31. A Seller sold to a Buyer a piece of
D. Answer not given jewelry at a price of P20,000. The contract
provides that
28. Tony sold a piece of land to Rene the Buyer will pay Seller a micro wave
binding himself not to sell the same to oven worth P5,000. What is the nature of the
another person. On contract?
the following day, Tony sold the land to
Carla who immediately took possession in A. Sale
good B. Partly sale and partly barter
faith. In the case at bar, the proper C. Barter
remedy of Rene is to: D. Commodatum
A. Institute an action for the annulment 32. Mr. A. Abad signed a letter addressed
of the sale to Carla and delivered to Mr. B. Baje. The terms of
B. Institute an action for the recovery of the letter
the land are:
C. Institute an action for damages
against Tony 1. An offer to sell a 500 sq.m. lot for
D. Answer not given P300,000
29. Ces kidnapped and tortured Ed for 2. An option time up to October 31,
refusing to sell his (Ed’s) land to Ces. Ed 2010 for Mr. Baje to raise the
who could no P300,000
longer bear the physical pains inflicted 3. Upon payment of the P300,000, Mr.
upon him signed a document of sale in favor Abad will execute and sign a Deed
of Ces. of Sale
This sale is: 4. On October 31, 2010, Mr. A Abad
sent a letter to Mr. B. Baje asking for
A. Void a new price of P350,000 for the 500
B. Voidable sq. m. lot.
C. Valid
D. Answer not given Can Mr. B. Baje compel Mr. A. Abad to
accept the P300,000 and make him sign
30. A sold a residential land to B. B paid the and execute a Deed of Sale?
consideration. When B wanted to register
the sale at A. No, Mr.B. Baje did not accept the
the Register of Deeds, the latter refused offer of Mr. A. Abad
to register and requires the presentation of B. Yes, Mr. A. Abad is already stopped
the by his sighing the letter and offer.
certificate of capital gains tax payment. C. Yes, there was actual meeting of the
What can B do? minds.
D. Yes, the contract is perfected
A. B may sue A to refund the
consideration paid by B under the 33. Mr. A mortgaged his residential land to
maxim, “no one shall enrich himself Mr. B as a guarantee for the payment of
at the expenses of another.” P400,000
B. B cannot compel A to return the obligation of Mr. A. They agreed that
selling price because the contract is Mr. A shall not sell the land while the
not enforceable obligation
C. B may possess the residential land as exists. The maturity of the mortgaged, C
a buyer in good faith offered to buy the land from Mr. A.
D. B may compel A to pay the capital
gains tax and secure the certificate A. A cannot sell the land to Mr. C
of capital gains tax payment because of the agreement not to sell
B. A can sell the land to Mr. C only if B D. To bind a third person, it must be
consents in writing recorded in the office of the Register
C. A can sell the land to Mr. C of Deeds
despite the agreement not to sell
(?) 38. The leviable properties of the debtor are
D. A cannot sell the land to Mr. C transferred to the creditors to be sold and
unless A pays the obligation from the
proceeds, the creditor are paid;
34. Mr. D. Dy constituted Mr. S. Sim as his
authorized agent to sell the former’s Lancer A. Pledge
car for B. Cession
P300,000 and to pay him a 5% C. Dacion en pago
commission on the selling price. Mr. S. Sim D. Chattel mortgage
sold the car for
P320,00. Mr. S. Sim shall remit to Mr. 39. A characteristic of the Contract of Sale
D Dy: which involves exchange of value, it is
A. P300,000 A. Commutative
B. P320,000 B. Nominate
C. P285,000 C. Bilateral
D. P305,000 D. Consensual
40. The principal is not liable for expenses

35. Ownership of the thing sold is incurred by the agent:
transferred / acquired / retained:
A. When it was stipulated that the
A. Retained by the seller in “sale of agent would only be allowed a
return” certain sum
B. Transferred to the buyer upon B. When the agent has complied with
constructive or actual delivery of his obligations by acting according
the thing sold to the principal’s instructions
C. Acquired by the buyer upon C. When the agent incurred them with
D. Transferred to the buyer upon the knowledge that an unfavorable
acceptance of the price. result would ensue and the principal
was aware of it
36. If redemption is made, which of the D. When the expenses were incurred
following will not be paid by the seller to without the fault of the agent
the buyer
41. An assignor of credit warrants:
A. Price paid by the buyer
B. Expenses in the execution of the A. Solvency of the debtor
sales contract paid by the buyer B. Existence and legality of credit
C. All necessary expenses on the thing C. Collectibility
sold and to be redeemed D. Assurance of payment
D. Interest of the price paid by the
buyer 42. A appoints B to sell his land
37. The following are requisites of Pledge Example 1. If the authority of B is oral
except: and B sells the land in writing. The sale is
valid.
A. The disposal of the pledge
B. The absolute ownership of the Example 2. If the authority of B is in
property pledged writing and B sells the land orally. The sale
C. The thing pledge may be placed in is valid
the possession of a third person
A. Both examples are true
B. Both examples are false
C. First example is true, but the second B. P30,000 from X
example is false C. P30,000 from Y and Z
D. First example is false but the D. P30,000 from either X, Y and Z
second example is true
47. Pledge and Mortgage are accessory
43. Which of the following is not a contracts because they:
characteristic of Sale?
A. Are meant to secure the fulfillment
A. Bilateral of a principal obligation.
B. Gratuitous B. Cannot exist if the principal
C. Consensual obligation is void.
D. Nominate C. Can exist by themselves.
D. Cannot secure fulfillment of
44. The following are the alternative rescissible obligation.
remedies, except one available to the buyer
in case of 48. Mr. A offered to sell his land to Mr. B
breach of warranty by the seller: for P300,000. Mr. B accepted the offer and
paid Mr. A
A. Keep the goods and ask for damages the purchase price. Mr. A delivered the
B. Refuse to accept the goods and ask owner’s certificate of the Transfer certificate
for damages of Title
C. Rescind the sale and retain the to the land. Mr. B wants to register the
goods land in his name but the Register of Deeds
D. Keep the goods and set up against asks Mr. B
the seller by way of recoupment in for the Deed of Sale. What can Mr. B
price. do ?
45. Which of the following statements is A. He may occupy the land as a buyer
true and correct? in good faith.
B. He cannot compel Mr. A to return
A. In a Contract of Sale, the full the payment because the contract is
payment of the price is in the nature unenforceable.
of a suspensive condition in that the C. He may compel Mr. A to execute
seller is obligated to transfer the Deed of Sale because the
ownership of the thing sold. contract is valid.
B. The seller need not be the owner of D. He may sue Mr. A to return the
the thing sold at the perfection of purchase price under the legal
the sale. principle that no one may enrich
C. There may be a transfer of ownership himself at the expense of another.
over the thing even if the seller has
not delivered the thing sold to the 49. Pacto de retro sale as distinguished from
buyer. mortgage:
D. In a Contract of Sale, the buyer
becomes the owner of the thing sold A. There is redemption by payment
upon full payment of the purchase principally of the debt.
price. B. There is no transfer of possession of
the thing sold
46. X, Y and Z were appointed by R as his C. There is no foreclosure unless it is
agents to administer his building which was declared as an equitable mortgage.
rented by D. There is no transfer of ownership of
various tenants while R was abroad for the thing sold.
three years. In the course of management, X
cause 50. A is authorized by B to sell the latter’s
through his fault damage to the building books for P100 each. A sells 10 books to C
which was assessed at P30,000. R can claim: on credit
A. P10,000 from each of X, Y and Z.

but for a price of P120 each. After signified his desire to buy the land. In
ratifying the sale on credit, B can collect. A’s letter, he gives B a period of two (2)
After ratifying months
the sale on credit, B can collect cash within which to produce the P200,000.
payment from C. After 45 days, A told B that the price of the
land is
A. P1,000 now P250,000. Can B compel A to
B. P1,200 accept the P200,000 first offered by A and
C. P1,080 execute the
D. P 900 deed of sale?
which is the object of the sale. A. Yes, there was actual meeting of the
minds of the parties
II. Payment of price is essential to B. No, for B did not signify his
delivery of the thing sold. acceptance of A’s offer.
C. Yes, because A is already stopped
A. Both statements are true. by his signed letter
B. Both statements are false D. Yes, because the period of two
C. First statement is true, second months has not expired.
statement is false.
D. First statement is false, second 55. A and B are good friends. A sold and
statement is true. delivered his car to B. It was agreed and
understood
52. Three of the following are essential that on the next Sunday A will name and
requisites of a contract of mortgage. Which fix the price of the car. Sunday came. A
one is not? called B by
phone and stated and fixed the price at
A. The person instituting the mortgage P150,000. Is the sale perfected?
has the free disposal of his property.
B. The contract must be in writing. A. Yes. The price was stated and fixed
C. The mortgagor is the absolute owner on the date agreed upon.
of the thing mortgaged. B. No. The price was left to the
D. The mortgage is constituted to secure discretion of the seller.
the fulfillment of a principal C. No. at the time of the sale, the price
obligation. is not fixed.
D. No. The price fixed by the seller
53. In real mortgage, the following rules are was not accepted by the buyer.
valid, except one:
56. In sale, this is actual delivery:
A. A stipulation in the mortgage
contract prohibiting the owner from A. Execution and signing of the sales
alienating the immovable mortgaged document.
is valid. B. When the goods sold are p0laced
B. The mortgage may alienate the in the control and possession of the
mortgage credit or assign to a third buyer.
person in whole or in part. C. Delivery by the seller to the buyer of
C. Any stipulation allowing the the key where the goods are kept.
mortgage creditor to appropriate D. The buyer is already in actual
the property mortgaged is null and possession of the goods.
void.
D. If alienation of the mortgage credit is 57. This is a mode of extinguishing an
not registered, it is still valid agency:
between the parties.
A. Death of the principal, but the
54. A wrote a letter to B wherein A offered agency is for the interest of the
to sell his piece of land to B for P200,000. B principal and agent.
B. Partial accomplishment of the D. When goods are delivered to an
agency. agent to be sold by him and the agent
C. Upon withdrawal of the principal. is not liable to the manufacturer of
D. Insanity of the principal or agent. the goods.
62. A stipulation whereby the pledge or

58. D pledged his Singer Sewing Machine to mortgagee automatically becomes the owner
C for P8,000. D was unable to pay the of the thing
obligation pledged or mortgaged:
60 days after due date. C sold the
machine at public auction for P6,000. A. Pactum commisorio
B. Consolidation of ownership
A. C cannot recover the deficiency of C. Conventional redemption
P2,000 even if there is stipulation D. Consignation
that he can.
B. C can recover the deficiency of 63. Which of the following statements is
P2,000 even without stipulation. true and correct:
C. C cannot recover the deficiency of
P2,000 A. Pledge and mortgage are accessory
D. C can recover the deficiency of contracts because they cannot exist
P2,000. by themselves.
B. In both pledge and mortgage, the
59. In a contract wherein a person binds creditor is entitled to deficiency
himself to render special service to do judgment.
something in C. Where an obligation is secured by a
behalf of another with consent of the pledge or mortgage and it is not paid
latter. when due the pledge or mortgagee
may dispose of the thing pledged or
A. Contract of piece of work mortgaged if there is an agreement to
B. Contract of service that effect between the parties.
C. Contract of agency D. Unless otherwise agreed upon by the
D. Contract of exchange parties, the sale of the mortgage
property extinguishes in full the
60. Which of the following obligations of obligation of the mortgagor to the
the vendor cannot be waived: mortgagee.
------------------------------------------------------
A. To allow the buyer to examine the ------------------------------------------------------
goods sold. ---------
B. To transfer ownership to the 64. I. A sales contract is a real contract
buyer. because no ownership is transferred unless
C. To pay the expenses of the deed of there is
sale. delivery.
D. To warrant the thing sold.
II. A sales contract is a real contract
61. A appoints B as his agent to sell his land, because the seller suffers the risk of loss
which of the following is valid: until the
object of the sale has been delivered.
A. The authority of B is in writing and
the sale of the land in favor of C is A. First statement is true, second
oral. statement is false.
B. The authority of B from A is by B. First statement is false, second
way of letter and B sells the land to statement is true.
C in writing. C. Both statements are true.
C. The authority of B is oral and B sells D. Both statements are false
the land to C for P50,000 in a written
contract of sale.
65. A sells to B for P25,000 all the mango B. First statement is false, second
fruits to be harvested from the mango statement is true.
orchard which C. Both statements are true.
A plans to buy. D. Both statements are false
I. The sale is valid because the 68. A sells his TV set to B for P50,000 on
mango fruits have potential sale or return. Subsequently, the TV set is
existence. lost by
fortuitous event.
II. The sale is valid because the object
of the contract need not exist at the time of I. The risk of loss pertains to the
the seller because the buyer is not at
contract. fault.
A. First statement is true, second II. The risk of loss pertains to the seller
statement is false. until the buyer signifies to the seller that he
B. First statement is false, second accepts
statement is true. the TV set.
C. Both statements are true.
D. Both statements are false A. First statement is true, second
statement is false.
66. A who plans to buy a piece of land from B. First statement is false, second
B, enters into contract of sale respecting the statement is true.
same C. Both statements are true.
land with X for the price of P100,000. D. Both statements are false
The contract is in writing.
69. A offered to sell for P500,000 his house
I. The sale is not valid because a seller and lot to B who was interested in buying
cannot sell that which he does not the same.
own. A gave B thirty days to raise the amount
and as soon as B is ready they will sign the
II. The sale is not valid because a public deed of
document is required. sale. On the 25th day, A notified B that
he is no longer willing to sell the property
A. First statement is true, second unless the
statement is false. price is increased to P550,000.
B. First statement is false, second
statement is true. I. B can compel a to accept the
C. Both statements are true. P500,000 first offered because there exists a
D. Both statements are false bilateral offer to
sell and to buy a definite property for
67. Husband owes C. Subsequently, a definite price.
husband sold his car to his wife. If husband
cannot pay C II. B cannot compel A to accept the
on due date: P500,000 because this is merely an
unaccepted unilateral
I. C can question the sale because the promise to sell.
sale prejudices C, a creditor.
A. First statement is true, second
II. C can question the sale because statement is false.
husband is relatively disqualified to enter B. First statement is false, second
into this kind of statement is true.
sale. C. Both statements are true.
D. Both statements are false
statement is false.
70. I. A promise to buy and sell a D. Both statements are false
determinate thing for a price certain is
reciprocally 73. Maria purchased a quantity of bed sheets
demandable. which were wrapped up in bales. The sale
was done
II. An accepted unilateral promise to buy in the warehouse of Seller. Some bed
or to sell a determinate thing for a price sheets were pulled out from the bales
certain is displayed and
binding upon the promissor if the fount to be all right. Maria then
promise is supported by a consideration purchased 100 bales and paid the price.
distinct from After delivery, Maria
the price. discovered that some of the bed sheets
contain holes.
statement is false. I. Maria can return the bed sheets and
B. First statement is false, second recover the money she paid.
statement is true. II. Maria cannot return the bed sheets
C. Both statements are true. and recover the money she paid because the
D. Both statements are false principle
“caviat emptor” applies.
71. A specific boat was sold to B for the
price of P1 million on credit. Shortly after A. First statement is true, second
perfection of statement is false.
the sale but before delivery, the boat was B. First statement is false, second
destroyed by a fortuitous event. statement is true.
I. The seller suffers the loss because at D. Both statements are false
time of loss he was still the owner.
II. The buyer suffers the loss because if 74. A entered into a contract of sale of his
it were not for the fortuitous event car to B for a price of P50,000. The terms
ownership would are: Upon
have transferred to him. payment of P20,000 A shall deliver the
car and the balance to be paid after one
A. First statement is true, second month. B also
statement is false. executed a chattel mortgage on the car to
B. First statement is false, second secure the payment of the balance. B
statement is true. defaulted in
C. Both statements are true. the payment of the balance, therefore A
D. Both statements are false foreclosed the mortgage. The proceeds
realized in
72. I. Should fungible things be sold for a the foreclosure sale were not sufficient
price independently and for a single price, to pay the entire balance.
the risk of
loss before perfection pertains I. A can still recover the deficiency.
always to the seller. II. A cannot recover the deficiency
because the law prohibits him from doing
II. Should fungible things be sold for a so.
price fixed according to weight, number or
measure A. First statement is true, second
the risk of loss pertains to the buyer statement is false.
after perfection even before delivery. B. First statement is false, second
statement is true.
A. First statement is true, second C. Both statements are true.
statement is false. D. Both statements are false
statement is true.
(?)75. Guardian sells the property of the II. If seller has ownership but no
ward to X for a price certain. The property is possession he cannot transfer ownership by
rural land, constructive
area 1 /2 hectare. X already owns rural delivery.
land. Guardian is an adjacent owner of 1/ 4
area and A. First statement is true, second
the other adjacent owner is C of 1/ 2 statement is false.
hectare. B. First statement is false, second
I. Guardian cannot legally redeem statement is true.
because he is relatively incapacitated. C. Both statements are true.
II. Guardian cannot legally redeem D. Both statements are false
because he is the owner of a lesser area.
78. I. A contract of “sale or return” is a sale
76. S owns 10 sacks of rice for sale in his with a resolutory condition.
store. B came into the store and buys the 10 II. A contract of “sale on trial or
sacks at approval” is a sale with a suspensive
the price of P1,200 per sack and condition.
promised S to pay as soon he is paid for the
bags of cement A. First statement is true, second
which are then being unloaded from a statement is false.
truck parked opposite the store. Upon B. First statement is false, second
request of B, S statement is true.
ordered the loading of the sacks of rice C. Both statements are true.
on the truck, continuously watching the D. Both statements are false
loading.
After the sacks of rice were loaded on 79. I. If the bill of lading covering the goods
the truck, B did not appear to pay the price. sold is by its terms the goods described
So S again therein are
ordered the unloading of the sacks of deliverable to the order of the seller,
rice. At this moment, the driver of the truck and retained by the seller, the seller has
objected to reserved his
the unloading of the sacks of rice ownership over the goods.
claiming the he purchased the sacks of rice
from B and II. If the bill of lading is by its terms the
therefore acquired ownership thereof. goods described therein are deliverable to
the order
I. S cannot order the unloading of the buyer and retained by the seller,
because B acquired ownership when the the seller ha reserved his right of possession
sacks or rice were of the
loaded on the truck. goods as against the buyer.
II. S cannot order the unloading because A. First statement is true, second
ownership was transferred to the driver by B statement is false.
who B. First statement is false, second
had ownership of the sacks of rice. statement is true.
A. First statement is true, second D. Both statements are false
statement is false.
B. First statement is false, second 80. B bought a pair of shoes from shoe store
statement is true. and repair shop. It was later discovered that
C. Both statements are true. the pair
D. Both statements are false of shoes bought by B belonged to a
customer who left it there for repair.
77. I. If seller has ownership he can I. B acquired ownership provided he

always transfer ownership. acted in good faith.
II. B did not acquire ownership because
a seller cannot transfer ownership if he I. The seller shall suffer a
himself has proportionate reduction in price if
no ownership. the area delivered is less than
the area specified in the contract
A. First statement is true, second even though the boundaries were
statement is false. followed.
statement is true. II. The seller shall also be entitled to a
C. Both statements are true. proportionate increase in price if the area
D. Both statements are false exceeds the
number specified in the contract.
81. I. An unpaid seller loses his possessory
lien after he has delivered the goods to a A. First statement is true, second
carrier for statement is false.
the purpose of transmission to the B. First statement is false, second
buyer without reserving the ownership in the statement is true.
goods or C. Both statements are true.
the right to the possession thereof. D. Both statements are false.
II. The unpaid seller who loses his 84. S sells his piece of land to B for
possessory lien does not lose his lien for the P100,000. Consequently, another contract
payment of was entered into
the purchase price. between the parties whereby B leases the
land to S.
statement is false. I. This contract shall be construed as an
B. First statement is false, second equitable mortgage.
statement is true. II. This contract is a contract of sale
C. Both statements are true. with leaseback.
D. Both statements are false.
statement is false.
statement is true.
82. I. Once the goods have been accepted C. Both statements are true.
by the buyer, the seller is no longer D. Both statements are false.
responsible to
him for any breach of warranty. 85. A sold his piece of land to B last
November 10, 2009.
II. Acceptance by the buyer does not as
a general rule release the seller from liability I. S shall repurchase the land within 4
for years from date of sale.
breach of warranty. II. S shall have within 10 years from
date of sale to repurchase the land so long as
A. First statement is true, second the period
statement is false. of repurchase shall not exceed 10
B. First statement is false, second years.
statement is true.
C. Both statements are true. A. First statement is true, second
D. Both statement are false. statement is false.
83. A enters into a contract of sale with B statement is true.
respecting 2 immovables for P200,000, the C. Both statements are true.
boundaries D. Both statements are false.
are mentioned and the area is 20,000 sq.
meters.
86. A, B and C are co-owners of rural land
with an area of 9 hectares. A sold his II. A needs a special power of attorney
undivided to bring a court action because the agency of
interest to X who does not own rural A
land. pertains only to acts of
administration.
I. B and C cannot legally redeem
because the sale was an absolute sale. A. First statement is true, second
II. B and C as co-owners can legally statement is false.
redeem for the purpose of reducing the B. First statement is false, second
number of co- statement is true.
ownership. C. Both statements are true.
statement is false. 90. I. A special power to mortgage includes
B. First statement is false, second the special power to constitute a second
statement is true. mortgage.
D. Both statements are false. II. A special power to mortgage does
not include the power to sell.
87. I. Conventional redemption is a
privilege. A. First statement is true, second
II. Legal redemption is a right granted statement is false.
by law. B. First statement is false, second
statement is true.
statement is false. D. Both statements are false.
statement is true. 91. Agent was authorized by Principal to sell
C. Both statements are true. the latter’s TV set for P10,000 on the
D. Both statements are false. installment
plan. A was able to sell it for P10,000
88. A sold his piece of land to B with a cash basis.
right of repurchase when A has sold his car.
I. The sale is not binding upon the
I. A can repurchase within 4 years principal unless the principal
from date of sale. ratifies it.
II. A can repurchase within 4 years
from date of sale of his car. II. The sale is not binding upon the
principal because the agency was performed
A. First statement is true, second in a manner
statement is false. not included in the agency.
statement is true. A. First statement is true, second
C. Both statements are true. statement is false.
D. Both statements are false. B. First statement is false, second
statement is true.
89. P authorized his agent to direct and C. Both statements are true.
administer his commercial business, among D. Both statements are false.
others “to
collect sums of money and exact their
payment by legal means.” 92. I. An agency cannot revoked at
principal’s will if the agency depends upon a
I. A can bring a court action for bilateral
collection provided he brings it in contract.
the principal’s name
under his agency.
II. An agency cannot be revoked at II. The sale in favor of Y must be
principal’s will if the agency is for a respected because C was
compensation. specially granted with authority
to sell.
statement is false. A. First statement is true, second
B. First statement is false, second statement is false.
statement is true. B. First statement is false, second
C. Both statements are true. statement is true.
D. Both statements are false. C. Both statements are true.
93. A and B were appointed simultaneously
by P as his agents. Solidary liability of the 95. A, B and C appointed Z as their agent to
agents sell their separate houses. The appointment
was stipulated. was
made under one special power of
I. Any one of the agents shall be liable authority.
for any damage suffered by the
principal for the I. A, B and C shall be solidarily
nonperformance of the agency. liable under the agency to Z
II. Solidary liability will apply in case II. A, B and C shall be jointly liable
of damages suffered by the principal caused under the agency to Z even though the
by the appointment was
negligence of either agent provided made in one common instrument
the agent acted within the scope of his because A, B and C are not co-owners.
authority.
A. First statement is true, second statement is false.
statement is false. B. First statement is false, second
B. First statement is false, second statement is true.
statement is true. C. Both statements are true.
C. Both statements are true. D. Both statements are false.
96. I. The pledge extends to the interest and
94. On September 1, 2010, P owns a piece earnings of the thing pledged unless there is
of land gave a general power of attorney to a
A. On stipulation to the contrary.
October 1, 2010, P, without the
knowledge of A executed in favor of C a II. In case of pledge of animals, their
special power of offsprings shall be subject to the pledge if
attorney to sell said piece of land. there is a
November 10, 2010, A as attorney-in-fact of stipulation to that effect.
P executed a
deed of sale over the piece of land in A. First statement is true, second
favor of X. On the same date, C under the statement is false.
special B. First statement is false, second
power given by P, sold the same piece statement is true.
of land t Y. Both purchasers acted in good C. Both statements are true.
faith. X D. Both statements are false.
registered his sale. Y did not.
97. If there are reasonable grounds to fear
I. The sale in favor of X must be the destruction or impairment of the thing
respected because he registered it pledged
in good faith. without the fault of the pledge: First
statement is true, second statement is false.
I. The right of the pledgor to demand
the return of the thing, upon offering I. C has to respect the pledge because
another thing in pledge, provided the the contract of pledge is in a public
latter is of the same kind as the document.
former and not of inferior quality II. C has to respect the pledge if the
must always be respected. alienation of the pledged was consented to
II. The right of the pledge to cause the by the pledge.
thing pledged to be sold at a public sale is
subordinate A. First statement is true, second
to the above right of the pledgor. statement is false.
A. First statement is true, second statement is true.
statement is false. C. Both statements are true.
B. First statement is false, second D. Both statements are false.
statement is true.
C. Both statements are true. 101.I. A stipulation in a contract of pledge
D. Both statements are false. allowing the pledge to purchase the thing
pledged at
98. I. The creditor pledge cannot the current purchase price if the debt
appropriate the thing pledged. is not paid on time is valid.
II. But he can dispose of the thing II. A stipulation in a contract of pledge
pledged with the consent of the allowing the pledgor to assign the thing
pledgor. pledged to
the pledge in payment of the debt
A. First statement is true, second due is not paid on time is valid.
statement is false.
B. First statement is false, second A. First statement is true, second
statement is true. statement is false.
C. Both statements are true. B. First statement is false, second
D. Both statements are false. statement is true.
99. I. A mortgage or pledge is indivisible D. Both statements are false.
although the principal obligation is divisible.
102.I. Future property cannot be the object
II. The principal obligation must be of a pledge or mortgage unless there is a
necessarily indivisible because the mortgage stipulation
or pledge to the contrary.
securing is indivisible. II. Future property cannot be the object
of a pledge or mortgage unless there is a
A. First statement is true, second stipulation
statement is false. to the contrary.
statement is true. A. First statement is true, second
C. Both statements are true. statement is false.
D. Both statements are false. B. First statement is false, second
statement is true.
100. A borrows P10,000 from B, so A C. Both statements are true.
delivered his diamond ring to B as a pledge D. Both statements are false.
to secure his
obligation. The contract of pledge was 103.I. Two things are prohibited in a pledge
executed in a public document but the or mortgage, which are: (a) the
description of appropriation by the
the ring and the date of the pledge did pledge or mortgagee of the object of
not appear thereon. A, pledgor alienates the the pledge or mortgage and (b) the
ring in disposition of
favor of C.
the object by the pledgor or
mortgagor. I. The mortgage on A’s share of the land
is extinguished.
II. Two things are prohibited in a pledge II. The mortgage on A’s share cannot be
or mortgage, which are: (a) the disposition extinguished unless B pays his share of debt.
of the
object by the pledgee or mortgagee A. First statement is true, second
and (b) the return of the pledge or mortgage statement is false.
to the B. First statement is false, second
pledgor or mortgagor before debt is statement is true.
fully paid. C. Both statements are true.
statement is false. 107. I. Unless there is stipulation to the
B. First statement is false, second contrary, the debtor mortgagor can alienate
statement is true. the property
C. Both statements are true. mortgage.
II. The debtor mortgagor can alienate
104.A, minor borrows P10,000 from B. To the property mortgaged with the consent of
secure A’s debt, X a good friend of A the
pledges his mortgagee.
gold watch to B.
I. The pledge is not valid because the statement is false.
principal obligation is not valid. B. First statement is false, second
II. The pledge is not valid, the thing statement is true.
pledged should belong to the debtor. C. Both statements are true.
statement is false. 108. A, minor borrows money from B. The
B. First statement is false, second contract although voidable is secured by a
statement is true. pledge or
C. Both statements are true. mortgage of A’s property.
I. A can validly constitute a pledge or
105.I. In mortgage and chattel mortgage mortgage of his personal or real property.
there is recovery of deficiency as a general II. The pledge or mortgage constituted
rule. by a minor is valid provided he is the
absolute owner
II. In pledge, absolutely, there is no of the property pledged or mortgaged.
recovery of deficiency.
109.A, agent is authorized by Principal to
106.A and B are co-owners of a piece of lend money of the principal.
land. They mortgaged their land in favor of
C. While I. A, the agent can borrow the money
the mortgage debt is pending, A and B provided the loan is without interest.
partitioned the land between them. On due II. A, the agent cannot borrow the
date, A money if the loan is with interest.
paid his share of the debt of C.
statement is true. 113.I. In mortgage the mortgagor may
C. Both statements are true. alienate the property mortgaged.
II. In mortgage the mortgagee may
110.I. Agency is a nominate, principal, alienate the mortgage credit.
unilateral, preparatory, commutative and
generally A. First statement is true, second
onerous contract. statement is false.
II. Agency is a nominate, accessory, statement is true.
bilateral, preparatory, commutative and C. Both statements are true.
generally D. Both statements are false.
onerous contract.

statement is false.
statement is true. SALES (cpar)
D. Both statements are false. 1.As a rule, this contract of sale involving a
piece of land is void,
111. I. A general power of authority may
also include a special power. A. Between a minor and a capacitated
person.
II. A special power of authority does B. Between two insane persons who did
not include a general power. not act during lucid interval
C. Between first degree cousins
A. First statement is true, second D. Between husband and wife
statement is false.
B. First statement is false, second 2. X, 17 years old, sold to Z, of legal age,
statement is true. her necklace worth P20,000 for P15,000.
C. Both statements are true. Later, Z
D. Both statements are false. sold the necklace to Y for P20,000.
Which of the following statements is
112 I. If the third person contracts with the correct?
agent knowing that the agent exceeds the
scope of A. X has got a voidable title because at
his authority, the contract is void not the time of sale, she is a minor
only as against the principal but also as B. X can ask for rescission of the sale to
between Y because she suffered a lesion of
agent and the third person. more than ¼ of the value of the
property.
II. If a third person contracts with the C. If Y is in bad faith, Y becomes the
agent knowing that the agent exceeds the owner of the necklace upon
scope of his delivery to him but his title is
authority the contract is void as voidable.
against the principal but valid between the D. X can ask for the annulment of the
agent and the sale to Y because at the time of sale
third person. she is a minor.
A. First statement is true, second 3. This serves as a proof of the perfection

statement is false. of the contract of sale
statement is true. A. Dacion en pago
B. Option money D. The sole owner of a thing may sell
C. Delivery an undivided interest therein
D. Arras
11. X needs a size of 10 of model 101 of
4.A contract of sale is not a(an) Leather Shoes regularly available to the
public for her
A. Onerous contract boyfriend Z, but the same is out of stock
B. Accessory contract so she placed an order for one. On the other
C. Commutative contract hand, Z
D. Bilateral contract placed an order for size No. 8, colored
violet, (something not ordinarily made by
5.Warranty against hidden defects is the
company) to be given to X. Which is
A. An essential element correct?
B. A natural element
C. An accidental element A. Both are contracts of sale
D. An artificial element B. Both are contracts for a piece of
work
6. C. First is a contract of sale second is
7. When a sale of a piece of land or any a contract for a piece of work
interest therein is through an agent, the D. First is a contract for a piece of
authority of the work, second is a contract of sale
agent shall be in writing, otherwise the
sale is 12. V offered to sell for P12,000,000 her
house and lot to DD who was interested in
A. Valid buying the
B. Voidable same. In her letter to DD, V stated that
C. Unenforceable she is giving DD a period of one month
D. Void within which
to raise the amount and that as soon as
8. The sale of an expected thing DD is ready, they will sign the deed of sale.
Five days
A. Dacion en pago before the expiration of the one month
B. Payment by cession period. V went to DD and told her that she is
C. Emptiospei no
D. Emptio rei-speratae longer willing to sell the property unless
the price in increased to P15,000,000.
9. The sale of the hope itself Which is
correct?
A. Dacion en pago
B. Payment by cession A. DD may compel V to accept the
C. Emptio spei P12,000,000 first offered.
D. Emptio rei-speratae B. V may compel DD to pay
P15,000,000
10. One of the following is not correct C. V and DD should shoulder the
P3,000,000 difference
A. Things subject to a resolutory D. DD cannot compel V to accept the
condition may be the object of the P12,000,000 first offered
contract of sale.
B. A thing is generic when it is 13. If the object of the contract is specially
particularly designated or made or manufactured at the specific order
physically segregated from all of
others of the same class. another, it is a contract for a piece of
C. Things having a potential existence work. This is
may be the object of the contract of
sale. A. English rule
B. Massachusetts rule
C. New York rule C. Traditio constitutum possessorium
D. Chicago rule D. Traditio symbolica
14. If the article already exists and

subsequently acquired by another, it is a 19. Effected when the object of sale is
contract of sale, and already in the possession of the vendee at
if the article is still to be manufactured the time of sale
at the instance of another, it is a contract for so that delivery need no longer be made
a piece is
of work. This is
A. Traditio longa manu
A. English rule B. Traditio brevi manu
B. Massachusetts rule C. Traditio constitutum possessorium
C. New York rule D. Traditio symbolica
D. Chicago rule
20. When the owner of the thing sells it to
15. If the material used in the manufacturer vendee, but continues to have possession or
of the article is more valuable, it is a occupation of the thing not as owner but
contract of as tenant or lessee
sale, and if the labor or skill is more
valuable than the material used in the A. Traditio longa manu
manufacture of B. Traditio brevi manu
the article, it is a contract for a piece of C. Traditio constitutum possessorium
work. This is D. Traditio symbolica
A. English rule 21. Goods are deemed in transit

B. Massachusetts rule
C. New York rule A. When the buyer accepts delivery of
D. Chicago rule the goods upon arrival at destination
B. When the buyer intercepts and
16. The rule observed in the Philippines is lawfully takes possession of the
goods at any point before
A. English rule destination.
B. Massachusetts rule C. From the time they are delivered
C. New York rule by the seller to a common carrier
D. Chicago rule or other bailee for transmission to
the buyer, up to the time that the
17. The Realty Installment Buyer Protection buyer or his agent takes delivery of
Act applies to all transactions involving the the goods from the carrier or
sale or bailee.
financing of real estate on installment D. When the carrier or bailee, upon
but it excludes the following except: arrival of the goods at destination
acknowledges to the buyer or his
A. Sale or financing of industrial lots agent that he is holding the goods as
B. Sale or financing of commercial bailee for the latter.
building
C. Sale to tenants under the Land 22. Goods are deemed no longer in transit
Reform Code
D. Sale of residential condominiums A. If the goods are rejected by the buyer
for a valid reason and the carrier or
18. Delivery by merely pointing to the other bailee continues in possession
object of sale if it cannot be delivered to the of them, even if the seller has refused
vendee at the to receive them back.
time of the sale is B. From the time they are delivered to a
carrier by land, water or air for the
A. Traditio longa manu purpose of transmission to the buyer.
B. Traditio brevi manu
C. From the time they are delivered to a A. Who have first taken possession in
bailee for the purpose of good faith
transmission to the buyer until the B. Who presents the oldest title in good
buyer or his agent in that behalf, faith
takes delivery of them from such C. Who in good faith first recorded it
bailee. in the Registry of Property
D. If the carrier or other bailee D. Who have paid in good faith the
wrongfully refuses to deliver the purchase price in full
goods to the buyer or his agent in
that behalf. 26. Using the preceding number, if movable
property, it shall belong to the person
23. X sold to V orally a parcel of land for
P200,000. X effected the delivery of the A. Who have paid in good the purchase
land. The price in full
payment of the price was to be made B. Who in good faith first recorded it in
three month later. At the end of three month the Registry of Property
period C. Who presents the oldest title in good
faith
A. V may refuse to pay claiming in his D. Who have first taken possession in
defense the Statute of Frauds good faith
B. V may return the parcel of land to X
C. X can collect from V because the 27. Action by the vendee against the vendor
contract has already been executed to nullify the sale due to some vices or
D. V may refuse to pay on the ground defects
that there is no written contract to which render the object of sale unfit for
support the sale. the use intended or knowledge of which the
vendee
24. On January 15, 2010, X sold for P2M should not have bought the thing
her house and lot to V. It was agreed that
delivery of A. Accion quanti minoris
the house and lot, and the payment B. Accion reinvidicatoria
therefore, would be made on March 10, C. Accion pauliana
2010. D. Redhibilitory action
Unfortunately, Z a stranger negligently
set the house on fire on February 25, 2010, 28. Action to seek a corresponding
and the reduction in price by reason of some vices or
house was completely destroyed. Which defects in the
is correct? thing purchased
A. V is not required to pay the P2M A. Accion quanti minoris

since the contract had no subject B. Accion reinvidicatoria
matter. C. Accion pauliana
B. X must still deliver the lot but is D. Redhibilitory action
excused from delivering the house,
while V must still pay the P2M 29. The redhibitory action based on the
C. X must deliver the lot while V faults or defects of animals must be brought
should pay only the amount within
equivalent to the value of the lot.
D. X need not deliver the lot while V A. 30 days from delivery to the vendee
need not pay the P2M B. 40 days from delivery to the
vendee
25. If immovable property should have been C. 45 days from delivery to the vendee
sold to different vendees, the ownership D. 6 months from delivery to the vendee
shall be
transferred to the person 30. In contract of sale, if the price is
absolutely simulated, the sale is
A. Unenforceable D. No one as both sales are void
B. Voidable
C. Void 34. Voluntary renunciation made by the
D. Rescissible buyer of his right to warranty against
eviction where in
31. In a contract of sale, of personal case the buyer is evicted, the seller is
property, the price of which is payable in liable to the value of the thing at the time of
installments, the eviction.
vendor may exercise any of the
following remedies, except A. Waiver intentionada
B. Waiver consciente
A. Exact fulfillment of the obligation, C. Waiver cursunada
should the vendee fail to pay any D. Waiver inocente
installment
B. Cancel the sale, should the vendee’s 35. Using the preceding number, where the
failure to pay cover two or more seller is no longer liable
installment
C. Foreclose the chattel mortgage on A. Waiver intentionada
the thing sold, if one has been B. Waiver consciente
constituted should the vendee’s C. Waiver cursunada
failure to pay cover two or more D. Waiver inocente
installments
D. Rescind the sale should the vendee 36. A contract of sale whereby the seller
fail to pay any installment. acquires the right to redeem or repurchase
the object of
the sale from the buyer within a certain
32. The right of the seller to stop goods in period agreed upon
transit, upon discovering that the buyer does
not have A. Equitable mortgage
the funds to pay for the goods B. Absolute sale
C. On sale or return
A. Pre-emptive right D. Pacto de retro sale
B. Appraisal right
C. Voting right 37. A sold to B his car and promised to
D. Right of stoppage in transit deliver ten days later. The next day, after the
sale to B,
33. A sold to B a parcel of land for P3.8M. A sold the same car to C and
The sale is evidenced by a memorandum of immediately affected delivery. On the day
agreement of sale written in the agreed upon, A did
Bicolano dialect. One week later, A sold the not deliver the car to B. Which is
same parcel of correct?
land to C for P4M. This is evidenced by
a formal deed of sale. Upon buying the A. B can cancel the contract between A
property, C, and C, because the contract between
who was aware of the first sale A and B was perfected ahead of the
immediately took possession of the lot. contract between A and c
When informed of B. B should make the demand to make
the second sale, B subsequently A in default
registered an adverse claim to the property. C. A is liable to B for the value of the
Later, C car plus damages after B makes a
registered the deed of sale in her favor. demand
The parcel of land shall belong to D. A is liable to B for damages and is
in default without need of any
A. B because he has got an older title demand
B. C because he is the first to register
C. C because he is the first to take
possession
38. X sold to V her Yamaha organ. It was B. P may recover the fountain pen from
agreed that X would fix the price a week C without reimbursement because
later. At the he is the legal owner.
agreed time, X named the price C. C became the owner because he
P10,000. V agreed. Was the sale perfected? purchased the pen from a
merchant store
A. No, because the price was left to the D. C became the owner regardless of
discretion of one of the contracting whether the seller is a store for pens
parties or not because C bought it in good
B. No, because at the time of sale the faith.
price was not fixed
C. Yes, because the price fixed by 42. When goods are delivered to the buyer
one of the parties was accepted by on “sale or return” for period of seven days,
the other ownership of the goods passes to the
D. Yes, because there was agreement buyer
that X would fix the price
A. Upon perfection of the contract
39. Not an implied warranty in a contract of B. Upon acceptance by the buyer of the
sale offer of the seller
C. Upon expiration of seven days
A. Right to sell the thing at the time D. Upon delivery of the goods
of perfection of the contract
B. Reasonably fit for the purpose they 43. Quasi-traditio is equivalent to
are acquired
C. Merchantable in quality A. Traditio longa manu
D. Free from charges or encumbrances B. Traditio brevi manu
not declared or known to the buyer C. Traditio constitutum possessorium
D. Execution of a public instrument
40. After the death of C, A, C’s son, sold
his inheritance though its amount has not yet 44. Vi imported radios from Taiwan and
been asked for 220 volts radios. The radios
determined to B for a consideration of arrived clearly
P1,000,000. Which is correct? labeled 220 volts and Vi sold them to
the public as such. Later the customer
A. The contract is valid if the value of complained that
inheritance is at least equal to the radios have been mislabeled by the
P1,000,000 manufacturer and that they were good only
B. The contract is valid even though for 110
the inheritance to be turned over volts. As a consequence
to B is less than P1M
C. The contract is void as future A. Vi is liable to the vendees for any
inheritance cannot be the object of hidden defects even though he is
sale not aware.
D. The contract is unenforceable B. Vi is not liable because he is in good
faith
41. X stole a fountain pen from P and sold it C. Vi is not liable under the principle of
to Z Merchandise, a “store for pens”, which “caveat emptor” or let the buyer
paid for beware
it in good faith, not knowing it was D. The vendees may hold the
stolen. The “store” then sold it to C, a manufacturer liable but not Vi
student.Which is because Vi specifically asked for 220
correct? volts
A. C cannot be considered as the owner 45. If the redemption is to be made by the

because the original seller (X) is not seller, one of the following need not be
the real owner. given to the
Buyer
C. The sale made by A to B is void
A. Expenses of the contract because it was not made in favor of a
B. Interest on the price of the sale stranger
C. Necessary expenses on the thing sold D. C may redeem only 1 /2 of the
D. Price of the sale interest sold by A to B
46. Not an element of the sellers right of 49. Using the preceding number, suppose,
stoppage in transit instead of selling his interest to B, A sold it
to D, who
A. The goods must be in transit can exercise the right of redemption?
B. The buyer must be insolvent
C. The seller must be in possession of A. Both B and C
the goods B. B but not C
D. The seller must be unpaid C. C but not B
D. A, B and C
47. A sold his only car to B for P300,000 to
be paid as follows: P150,000 upon delivery 50. Which of the following cannot be the
of the object of a contract of sale?
car to B and the balance at P10,000 per
month until full payment of the purchase A. Sale of credit
price. Later B. Young animal not yet conceived at
the car gets burned in the possession of the time of perfection
B through fortuitous event and without B’s C. Land which the seller expects to buy
fault, D. Future inheritance
before full payment of the balance. Is B
obliged to pay the balance? 51. A offered for sale to B 20 cavans of
wagwag rice and fixed the price per cavan at
A. No, because the car was lost through P10 over
fortuitous event and without B’s the price offered at Z’s store in Cainta
fault, hence B’s obligation is Market. The price is
extinguished.
B. No, because the loss should be borne A. Not certain because the price at
by the seller as this an installment Cainta Market is not stated
sale so until the buyer pays the full B. Certain because it has got
amount of the price of the sale, A reference to another thing which is
remains to be the owner. certain
C. Yes, but A must give another car to C. Certain because there is a price
B because of the principle “genus ceiling for price of land
nunquam peruit” or generic thing D. Not certain so court may fix the price
never perishes
D. Yes, because the principle “res 52. X sold his motor vehicle to V who
perit domino” or the thing bought it for P200,000. It turned out
perishes with the owner. however, that X has
2 motor vehicles: Toyota valued at
48. A, B and C are co-owners of an P230,000 and Lancer valued at P220,000.
undivided parcel of land, A sold his 1/ 3 Which is
interest to B correct?
absolutely. Which is correct?
A. There is no contract of sale
A. C may exercise his right of between X and V
redemption of the interest sold by A B. The parties may ask for
to B interpretation or reformation
B. C cannot exercise the right of C. The parties can ask for annulment of
redemption because the sale was the contract
made in favor of a co-owner D. V may choose between the Toyota or
Lancer
53. X offers to V 100 electric fans for D. X cannot recover the deficiency
P80,000 payable in 60 days with 12 % even if there is stipulation to the
interest per annum. contrary
V accepted the offer by telegram
provided that interest is reduced to 6%. If 56. Ownership of the thing sold is
there is no
further communication between X and A. Retained by the seller in “sale or
V relating to the terms return
B. Transferred to the buyer upon
A. The contract is perfected because of constructive or actual delivery of
the acceptance by V the thing sold
B. There is no contract yet between C. Acquired by the buyer upon
X and V because V made a perfection of the contract
counter offer D. Transferred to the buyer upon
C. The contract is perfected under the acceptance of the price
terms of X
D. There is no contract yet unless v 57. X sold his horse to Y for P40,000. No
gives earnest money payment has yet been made and the sales
document
does not provide the date of delivery.
54. X owns 50 mango trees bearing fruits, Before delivery and payment the horse gave
ready for harvest. She told all the fruits of all birth to a
the trees baby horse, which is correct?
to V who paid P100,000. X told V that
he can harvest her fruits anytime he likes A. Y is entitled to the baby horse
and which was born after the
pointing at the mango trees. For legal perfection of the contract
purposes, X has fulfilled her obligation to B. X is entitled to the fruit (baby horse)
deliver the as Y has not paid the price yet
mango fruits to V by C. X is entitled to the (baby horse)
because it was born before his
A. Traditio longa manu obligation to deliver arises
B. Traditio brevi manu D. Y should pay additional amount for
C. Traditio constitutum possessorium the baby horse to be entitled to it
D. Execution of a public instrument
58. A contract of sale is in the stage of
55. X sold her specific car to V for P200,00 conception when
payable in 5 equal installments. X delivered
the car A. There is meeting of the minds
to V but a mortgage was constituted on B. Negotiations are in progress
the car to answer for the unpaid installments. C. The parties come to an agreement
V paid D. The contract is perfect
the first 2 installments but failed to pay
the last 3 installments. X foreclosed the 59. A seller sold to a buyer a piece of
mortgaged jewelry at a price of P25,000. The contract
property and sold it at public auction for provides that
P100,000. Which is correct? the buyer will pay the seller cash,
P20,000 and for the balance, the buyer will
A. X can recover from V the balance of give the seller
P20,000 even if there is no a micro oven worth P5,000. What is the
stipulation to that effect nature of the contract?
B. X can recover from V the balance of
P20,000 if there is stipulation to that A. Sale
effect B. Partly sale partly barter
C. X cannot recover the deficiency C. Barter
except if there is stipulation to that D. Commodatum
effect
60. X, the guardian of V, sold V’s house and D. To rescind the contract because there
lot worth P480,0000 for P430,000 is no time fixed for the delivery
A. The contract can be rescinded 63. I. The vendor need not be the owner at
because of inadequacy of price the time the sale is perfected. It is sufficient
B. The contract cannot be rescinded that he is
because there is no fraud, mistake or the owner at the time the thing sold is
undue influence delivered.
C. The contract cannot be rescinded
because all the elements of a contract II. The sale of a vain hope or expectancy
are present is voidable.
D. The contract can be rescinded by X.
61. X leased to V a 5 Freezer for two years statement is false.
at a lease rental fee of P1,000 per month and B. First statement is false, second
signed statement is true.
an option in favor of V to buy the C. Both statements are true.
freezers at the end of the term of the lease at D. Both statements are false
P50,000. All
rental fee paid are to be considered as 64. I. There may be a contract of sale of
partial payment of the sale. After 12 months goods, whose acquisition by the seller
V was depends upon a
able to pay the rental fee for 9 months contingency which may or may not
and was in arrears for three months. X happen.
terminated the
lease contract and repossessed the II. If the consideration of the contract
freezers. The consequence of the transaction consists partly in money and partly in
is another thing, it
shall be considered a barter if the
A. X can collect the rental fees for three value of the thing given as a part of the
months which are in arrears. consideration
B. X can collect the rental fees for the exceeds the amount of the money or
unexpired 12 months of the lease its equivalent.
contract.
C. When X took possession of the A. First statement is true, second
generator, he has no further action statement is false.
against V B. First statement is false, second
D. X in terminating the lease and statement is true.
repossessing the generator is obliged C. Both statements are true.
to refund the 9 months rental fee, D. Both statements are false
paid by V even if there is a
stipulation to the contrary. 65. I. If the price is grossly inadequate, the
sale is void.
62. X sold his car to Z for P60,000. No date
was fixed for the performance of the II. Whenever option money is given in a
obligation of contract of sale, it shall be considered as part
the seller and the buyer. The obligation of the
of X is price and a proof of the perfection of
the contract.
A. To deliver the car immediately
because the sale is a perfected A. First statement is true, second
contract statement is false.
B. To deliver the car only after Z writes B. First statement is false, second
to X demanding the delivery of the statement is true.
car. C. Both statements are true.
C. To deliver the car only after Z D. Both statements are false
pays the P60,000
66. I. Earnest money and option money
both apply to perfected sale. II. The sale of a piece of land or interest
therein when made thru an agent is void
II. In a contract of sale of personal unless the
property the price of which is payable in agent’s authority is in writing even if
installment, the the sale itself is in s public instrument and
vendor may cancel the sale should the has been
vendee fail to pay. registered.
A. First statement is true, second A. First statement is true, second

statement is false. statement is false.
B. First statement is false, second B. First statement is false, second
statement is true. statement is true.
C. Both statements are true. C. Both statements are true.
D. Both statements are false D. Both statements are false
67. I. Should the vendee’s failure to pay, 70. I. The expenses for the execution and
cover two or more installments, the vendor registration of the sale shall be borne by the
may vendee,
foreclose the chattel mortgage on the unless there is a stipulation to the
thing sold but he shall have no further action contrary.
against
the purchaser to recover any unpaid II. If the same thing should have been
balance of the price, except if there is an sold to different vendees the ownership shall
agreement to be
the contrary. transferred to the person who may
have taken possession thereof in good faith.
II. Sale is a consensual contract,
therefore delivery or payment is not A. First statement is true, second
essential for perfection. statement is false.
B. First statement is false, second D. Both statements are false
statement is true.
C. Both statements are true. 71. I. Any stipulation exempting the vendor
D. Both statements are false from the obligation to answer for eviction
shall be
68. I. The ownership of the thing sold shall void.
be transferred to the vendee upon perfection
of the II. The vendor is responsible to the
contract. vendee for any hidden faults or defects in
the thing sold
II. An unaccepted unilateral promise to only if he was aware thereof.
buy or to sell a determinate thing for a price
certain A. First statement is true, second
is binding upon the promissory. statement is false.
B. First statement is false, second D. Both statements are false
statement is true.
C. Both statements are true. 72. I. If the animal sold should die within
D. Both statements are false three (3) days after its purchase, the vendor
shall be
69. I. The husband and the wife cannot sell liable to the vendee.
property to each other, as a rule.
II. The fixing of the price can never be II. If at the time the contract of sale is
left to the discretion on one of the perfected, the thing which is the object of
contracting parties. the contract
However, if the price fixed by one of has been partially lost, the contract
the parties is accepted by the other, the sale shall be without effect.
is
perfected. A. First statement is true, second
statement is false.
A. First statement is true, second B. First statement is false, second
statement is false. statement is true.
B. First statement is false, second C. Both statements are true.
statement is true. D. Both statements are false
D. Both statements are false 76. I. Where the seller of goods has a
voidable title thereto, but his title has not
73. I. Option money is considered as part been avoided at
of the purchase price while earnest money is the time of the sale, the buyer
not. acquires a good title to the goods.
II. The Maceda Law refers to the sale of II. If the vendee has renounced the right
personal property by installments while the to warranty in case of eviction, and eviction
Recto should
Law refers to the sale of real take place, the vendor shall only pay
property by installments. the value which the thing sold had at the
time of sale.
D. Both statements are false C. Both statements are true.
74. I. If two or more animals are sold
together, whether for lump sum or for a 77. I. Unless otherwise agreed, the buyer of
separate price for goods is not bound to accept delivery
each of them, the redhibitory defect thereof by
of one shall give rise to the redhibition of installment.
the others.
II. In case of doubt, a contract
II. There is no warranty against hidden purporting to be an equitable mortgage shall
defects of animals sold at fairs or at public be construed as a
auctions sale with a right to repurchase.
or of livestock sold as condemned.
C. Both statements are true. D. Both statements are false
78. I. The creditors of the vendor cannot
make use of the right of redemption against
75. I. The ownership in the thing shall not the
pass to the purchaser until he has fully paid vendee, until they have exhausted the
the price. property of the vendor.
II. Sale is a real contract because 4.A borrowed P100,000 from B with A’s
delivery is necessary to transfer ownership ring given to B by way of pledge. It was
to the buyer. stipulated that
in case of non-payment on due date, the
A. First statement is true, second ring would belong to B. This for feature is
statement is false.
B. First statement is false, second A. Caveat emptor
statement is true. B. Dacion en pago
C. Both statements are true. C. Pactum comisorio
D. Both statements are false D. Pacto de retro
5.A borrowed P100,000 from B, and as a

CREDIT TRANSACTIONS (Cpar) security A pledged his ring to B. After the
obligation
PLEDGE falls due, A goes to b relinquishing
AND MORTGAGE ownership of the ring in favor of B. This is
1.Which of the following statements is true? A. Caveat emptor

B. Dacion en pago
A. Any stipulation in a contract of C. Pactum comisorio
pledge authorizing the pledge to sell D. Pacto de retro
the thing pledged if the pledgor
cannot pay is void. 6.A borrowed P30,000 from B, and as
B. In mortgage, the mortgagee is security, he pledged his ring, pair of earrings
entitled to the entire proceeds of the and
sale of the thing mortgaged. necklace. On due date, A paid P20,000.
C. In mortgage and in pacto de retro As a result,
sale, the title to the property which is
the subject matter of the contract is A. A can demand the return of one (1)
transferred to the other party. of the things pledged
D. Real estate mortgage is an B. A can demand the return of any two
accessory contract. (2) of the things pledged
C. A can demand the return of the ring
2. In real estate mortgage, the mortgagor D. A cannot demand the return of
can sell the property mortgaged any of the things pledged
A. Only if with the oral consent of the 7. A mortgaged his residential land to B as
mortgagee a guarantee for the payment of P400,000
B. Only if with the written consent of obligations
the mortgagee to B. They agreed that A should not sell
C. If not prohibited to sell the land while the obligation exists. Before
D. Even without the consent of the the
mortgagee maturity of the mortgage, C offered to
buy the land from A. Which is correct?
3. Elements of contracts of pledge and
mortgage, except A. A cannot sell the land to C because
of the agreement not to sell
A. Pledgor or mortgagor must be the B. A can sell the land to C only if B
absolute owner consents in writing
B. Pledgor or mortgagor must have the C. A can sell the land to C despite the
free disposal of the thing pledged. agreement not to sell
C. The thing pledged or mortgaged D. A cannot sell the land to C unless A
may be appropriated if the debtor pays the obligation
cannot pay.
D. Pledge and mortgage are accessory 8. S, minor of 16 years old, sold her
contracts bracelet to B for P8,000. Later, B, needing
money to pay
her daughter’s tuition fee, borrowed 10. S sold to b a specific car for P200,000
P15,000 from C and as a security, pledged payable in four equal installments. S
the bracelet delivered the car
to the latter. B failed to pay C resulting to B but required B to mortgage it back
into auction sale of the bracelet in favor of D to S to answer for the unpaid installments. B
for paid the
P10,000 only. Which of the following 1st and 2nd installments but he failed to
statements is correct? pay the balance. S foreclosed the mortgaged
property
A. The title of B over the bracelet is and sold it at public auction for
not valid, hence the pledge, as well P80,000. As a result,
as the sale of said bracelet is
likewise defective. The pledgor A. S can recover from B the balance of
must be the owner of the thing P20,000
pledged. B. S can recover from B the balance of
B. The deficiency of P5,000 may still P20,000 if there is stipulation to that
be recovered by C from B if there is effect.
a stipulation to this effect. C. S cannot recover the deficiency
C. C can no longer recover the any more even if there is
deficiency of P5,000 from B. The stipulation to that effect
pledge together with the sale is D. S cannot recover the deficiency
valid. The voidable title of B is except if there is stipulation.
valid because it is not yet
annulled. PLED
D. If D was a purchaser in bad faith as GE
he knew of the defective title of B
over the bracelet from S, ownership 11. I. The creditor cannot appropriate the
will not pass to him (D). things given by way of pledge or mortgage,
or
9. In the preceding number, assuming dispose of them, except if there is a
what was executed by B in favor of C was stipulation to the contrary.
valid chattel
mortgage which was eventually II. The indivisibility of a pledge or
foreclosed and the bracelet was old to D at mortgage is affected by the fact that the
the public debtors are
auction for the same amount, which solidarily liable.
statement is correct?
A. The title of B over the bracelet is not statement is false.
valid, hence the chattel mortgage, as B. First statement is false, second
well as the sale of said bracelet is statement is true.
likewise defective. The mortgagor C. Both statements are true.
must be the owner of the thing D. Both statements are false.
mortgaged.
B. The deficiency of P5,000 may still 12. I. A pledge or mortgage is indivisible,
be recovered by C from B except if the debt may be divided among the
C. C can no longer recover the successors in interest of the debtor or
deficiency of P5,000 from B as the of the creditor.
mortgage, together with the
foreclosure sale, was valid. The title II. In case of pledge of animals, their
of B was still valid. offspring shall pertain to the pledge of the
D. If D was a purchaser in bad faith as animals.
he knew of the defective title of B
over the bracelet, ownership will not A. First statement is true, second
pass to him (D). statement is false.
statement is true.
16. I. The sale of the thing pledged shall
extinguish the principal obligation provided
13. I. The creditor can use the thing pledged the
even without the authority of the pledgor. proceeds of the sale are equal to the
amount of the principal obligation.
II. If through the negligence or willful
act of the pledge, the thing pledge is in II. If the price of the sale is more than
danger of the amount of the obligation, the debtor shall
being lost or impaired, the pledge may be
cause the same to be sold at a public auction. entitled to the excess, unless it is
otherwise agreed.
14. I. If the thing pledged is returned by
the pledge to the pledgor or owner, the 17. I. If the price of the sale is less than the
pledged is amount of the obligation the creditor shall
extinguished, except if there is not be
stipulation to the contrary. entitled to recover the deficiency
except if there is a stipulation to the
II. If subsequent to the perfection of the contrary.
pledge, the thing is in the possession of the
pledgor II. If two or more things are pledged,
or owner there is a conclusive the pledgor may choose which he will cause
presumption that the same has been returned to be sold,
by the pledge. unless there is a stipulation to the
contrary.
15. I. A statement in writing by the pledge
that he renounces or abandons the pledge is
sufficient to extinguish the pledge
only if accepted by the pledgor or owner and 18. I. A pledge shall not take effect against
the thing third person if a description of the thing
pledged is returned. pledged and
the date of the pledge do not appear
II. At the public auction, the pledge may in a public instrument.
also bid and his ofer shall be valid even if he
is the II. If after the auction sale, the thing
only bidder. pledged is not sold, the pledge can
appropriate the thing
A. First statement is true, second pledged.
statement is false.
C. Both statements are true. B. First statement is false, second
D. Both statements are false. statement is true.
19. I. Z pledged his ring to B for P20,000. D. Both statements are false.
Z failed to pay his obligation on time. B sold
the ring 22. I. The right of redemption refers to the
at a public auction for P16,000. B right of the mortgagor to redeem the
cannot recover P4,000 from Z even if there mortgaged
is property after his default in payment
stipulation. but before the sale.
II. Using the same facts, if the proceeds II. The registration in the Registry of
of sale is P24,000, Z can recover the excess Property is necessary for the validity of a
of contract of
P4,000 if stipulated. real estate mortgage.

D. Both statements are false. D. Both statements are false.
20. I. In sale at public auction, the pledgor 23. I. Except in case of sale of personal
or owner may be abider and shall have a property in installments, if the proceeds of
better right the sale is
if he should offer the same terms as less than the principal obligation, the
the highest bidder. creditor-mortgagee can recover the
deficiency.
II. Pledge is a real contract.
II. A borrowed P100,000 from B
A. First statement is true, second payable in 10 equal monthly installments.
statement is false. To secure
B. First statement is false, second payment of the loan, A executed
statement is true. chattel mortgage on his Mercedes Benz car.
C. Both statements are true. If A
D. Both statements are false. violates the condition of the
mortgage, and the car was foreclosed and
sold at a public
MOR auction but the proceeds is less than
TGAG the collectible amount, B cannot recover the
E deficiency.
21. I. A stipulation prohibiting the owner A. First statement is true, second

from alienating the immovable mortgaged statement is false.
shall be B. First statement is false, second
void. statement is true.
II. The equity of redemption refers to D. Both statements are false.
the right of the mortgagor to redeem the
mortgaged 24. I. In real estate mortgage the mortgagor
property within a certain period of can sell the property mortgage even without
time after it was sold to third person. the
consent of the mortgagee.
II. In chattel mortgage, the mortgagor
cannot sell the thing mortgage even with the
written 28. I. In commodatum one of the parties
consent of the mortgagee appearing delivers money or consumable thing upon
at the back of the mortgage. the
condition that the same amount of the
A. First statement is true, second same kind and quality shall be paid.
statement is false.
B. First statement is false, second II.In commodatum and mutuum
statement is true. ownership of the thing loan is
C. Both statements are true. transferred to the borrower.
25. I. Chattel mortgage like pledge is a statement is false.
real contract. B. First statement is false, second
statement is true.
II. In chattel mortgage like pledge the C. Both statements are true.
possession of the thing mortgaged is vested D. Both statements are false.
in the
creditor. 29. I. Commodatum and mutuum involve
real and personal property.
statement is false. II. The bailee in commodatum acquires
B. First statement is false, second the use of the thing loaned and its fruits.
statement is true.
C. Both statements are true. A. First statement is true, second
D. Both statements are false. statement is false.
L statement is true.
O C. Both statements are true.
A D. Both statements are false.
N
30. I. The bailee in commodatum can lend
26. D deposits his momey by way of a or lease the object of the contract to a third
savings account with C Bank. The contract person.
between D
and C is II. When there are two or more bailees
to whom a thing is loaned in the same
A. Deposit contract, they
B. Agency are liable jointly.
C. Commodatum
D. Mutuum A. First statement is true, second
statement is false.
27. I. In mutuum or loan, one of the parties B. First statement is false, second
delivers to another something not statement is true.
consumable so C. Both statements are true.
that the latter may use the same for a D. Both statements are false.
certain time and return it.
31. I. A contract whereby one person
II.Mutuun is essentially gratuitous. transfers the ownership of non-fungible
things to another
A. First statement is true, second with the obligation on the part of the
statement is false. latter to give things of the same kind,
B. First statement is false, second quantity and
statement is true. quality shall be considered a loan.
II. Precarium is a kind of mutuum II. The depositary can demand that the
where the bailor may demand the thing depositor prove his ownership of the thing
loaned at will. deposited.

D. Both statements are false. D. Both statements are false.
35. I. Unless there is a stipulation to the

contrary, the depositary cannot deposit the
DEPOSIT thing with a
third person.
32. I. An agreement to constitute a deposit
is binding and is perfected from the moment II. When the depositary has permission
there is to use the thing deposited, the contract loses
meeting of minds. the
concept of a deposit and becomes a
II. Movable and immovable things may loan or commodatum even when
be the object of judicial deposit. safekeeping is still
the principal purpose of the contract.
36. I. The thing deposited shall be returned

with all its products, accessories and
accessions.
33. I. A contract of deposit must be in
writing. II. A contract of deposit is perfected
from the moment there is meeting of minds.
II. The depositary can make use of the
things deposited even without the express A. First statement is true, second
permission statement is false.
of the depositor. B. First statement is false, second
statement is true.
statement is true.
34. I. Fixed, savings, and current deposits

of money in banks and similar institutions
shall be
governed by the provisions
concerning simple loan.

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TEST BANK 4. Mr. AB owes Mr.

40. The principal is not liable for expenses

A. P10,000 from each of X, Y and Z.

62. A stipulation whereby the pledge or

77. I. If seller has ownership he can I. B acquired ownership provided he

A. First statement is true, second

A. First statement is true, second 3. This serves as a proof of the perfection

14. If the article already exists and

A. English rule 21. Goods are deemed in transit

A. V is not required to pay the P2M A. Accion quanti minoris

A. C cannot be considered as the owner 45. If the redemption is to be made by the

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

5.A borrowed P100,000 from B, and as a

1.Which of the following statements is true? A. Caveat emptor

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

21. I. A stipulation prohibiting the owner A. First statement is true, second

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

35. I. Unless there is a stipulation to the

36. I. The thing deposited shall be returned

34. I. Fixed, savings, and current deposits

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