QUIZ 1 MIDTERM

S sold a computer to B for P120,000.00 under the following terms: P20,000.00

down; balance payable in 10 equal monthly installments with an acceleration clause.
To secure payment of the balance, B executed a chattel mortgage on the computer and
a real estate mortgage on his lot.  After paying the first two installments, B defaulted in
the payment of the third, fourth and fifth installments.  S wants to recover in full the
balance of P80,000.00 even in case of deficiency so he consults you which of the
following courses of action to take to achieve that purpose:
I. Exact fulfillment of the balance by suing B and have the computer sold for the
execution of the judgment against B.
II. Foreclose chattel mortgage on the computer.
III. Foreclose the real estate mortgage on the lot.
EITHER I OR III

An unpaid seller having the right of lien or having stopped the goods in transitu, may
rescind the transfer of title and resume the ownership in the goods where:
Group of answer choices

The buyer has been in default in the payment of the price for an unreasonable time

The seller expressly reserved the right to do so

None of the above choices

All of the choices

I. If two or more animals are sold together, wether for a lump sum or for a separate price
for each of them, the redhibitory defect of one shall only give rise to its redhibition, and
not that of the others. TRUE
II. There is no warranty against hidden defects of animals sold at fairs or at public
auctions, or of live stick sold as condemned TRUE
The following are the rules of preference in case of double sale in case of immovable property,
except:
PERSON WITH THE OLDEST TRANSFER CERTIFICATE OF TITLE IN GOOD FAITH
An unpaid seller loses his lien on the goods in the following cases, except:
WHEN HE OBTAINED JUDGEMENT FOR THE PRICE OF THE GOODS
An unpaid seller loses his lien on the goods in the following cases, except:
NONE OF THE CHOICES
* ART. 1529. The unpaid seller of goods loses his lien thereon:
(1) When he delivers the goods to a carrier or other bailee for the purpose of transmission to
the buyer without reserving the ownership in the goods or the right to the possession thereof;
(2) When the buyer or his agent lawfully obtains possession of the goods;
(3) By waiver thereof.
The unpaid seller of goods, having a lien thereon, does not lose his lien
by reason only that he has obtained judgment or decree for the price of the goods. (n)

Is that which law derives by application or interference from the nature of the transaction or the
relative situation circumstances of the parties, irrespective of any intention of the seller to create it.
IMPLIED WARRANTY
I. As a general rule there is no implied warranty in the sale of secondhand articles. TRUE
II. Where the goods are brought by description from a seller who deals in the goods of that
description, there is an implied warranty that the goods are the merchandise quality.
TRUE

If the thing sold should be lost in consequence of the hidden faults, and the vendor was aware of
the, one of the following is not an effect of loss.
HE SHALL NOT PAY THE DAMAGES
In order that the vendor’s liability for eviction may be enforced, the following requisites must
concur, except: THE VENDOR HAS BEEN SUMMONED AND MADE CO-DEFENDANT
IN THE SUIT FOR EVICTION AT TE INSTANCE OF THE VENDEE

B bought from Century Properties, Inc.- a 1,000 square-meter lot located beside the Manila
International Airport on which he intended to construct a warehouse condominium. The terms of
the sale provided for the payment of the contract price of P300,000.00 in 60 equal monthly
installments of P5,000.00 each. After having paid 36 installments, B defaulted in the payment of
the succeeding - installments. As a consequence, Century cancelled the sale. B now wants to
claim the return of the cash surrender value of the payments he had made pursuant to the "Realty
Installment Buyer Act", otherwise known as the Maceda Law
B IS ENTITLED TO CASH SURRENDER VALUE OF % OF 180,000 OR, 99,000
UNDER THE MACEDA LAW
S sold a laptop computer to B for P120,000.00 with B giving a down payment of P10,000.00 and
promising to pay the balance in 11 equal monthly installments. B likewise executed a chattel
mortgage on the computer and a real mortgage on his lot to secure the payment of the balance of
the purchase price. After paying the first two installments, B defaulted in the payment of next
three installments. S may avail himself of any of the following remedies except to:
FORECLOSE THE CHATTEL MORTGAGE AND RECOVER ANY DEFICIENCY
DURNG THE FORECLOSURE SALE IF THERE IS AN AGREEMENT TO THAT
EFFECT
The principle of double sale is not applicable in the following except:
a. Where one of the contracts of sale is genuine and the other is also genuine
b. The two different contracts of sale are made by two different persons, one of them not
being the owner of the property sold
c. Where one of the contracts of sale is subject to a suspensive condition which was not
complied with and the other is an absolute sale
d. Where one of the contracts of sale is forger

The requisites of double sale are the following except: TWO OR MORE VALID CONTRACT
OF SALE
If a movable property is sold separately to two or more different vendees, ownership shall belong
to the person: WHO IN GOOD FAITH FIRST TOOK POSSESSION OF THE PROPERTY

I. If a vendee in a double sale registers the sale after he has acquired knowledge that
there was a previous sale of the same property to a third party of that another person
claims said property in a previous sale, the registration will constitute a registration in
bad faith and will not confer upon him any right. FALSE??

II. In a case of double sale, what finds relevance and materiality is not whether or not the
second buyer is in good faith but whether or not said second buyer registers such
second sale in good faith, that is, without knowledge of any defect in the title of the
property sold. TRUE

On June 1, S sold to B in a private instrument a certain computer. Two days later, S orally sold
the same computer to C who immediately took possession of the computer. Neither party was
aware of the sale made to the other
THE COMPUTER BELONGS TO C

I. A second buyer of the property who may have had knowledge of such defect in the seller's
title, or at least was charged with the obligation to discover such defect, can be a registrant in
good faith. FALSE (CANNOT)
  II. When the thing sold twice is an immovable, the one who acquires it and first records it in the
Registry of Property, both made in good faith, shall be deemed the owner. TRUE

Under the Maceda Law, in determining the number of installments paid by the buyer, the
following payments are included, except: NONE OF THE CHOICES (Deposits, Down
payments, Option money)

An unpaid seller’s right to resell the goods is available in the following cases, except:
WHEN THE SELLER LOST HIS LIEN ON THE GOODS

Under the following circumstances, the unpaid seller has possessory lien, except:
WHERE THE BUYER BECOMES SOLVENT

An unpaid seller having a right of lien or having stopped the goods in transit may resell the
goods, in one of the following cases: GOODS ARE NOT PERISHABLE OF NATURE
Three of the following are the requisites in order that an unpaid seller may exercise his right of
stoppage in transitu. Which one is not?
THE SELLER HAS NOT PARTED WITH THE POSSESSION OF THE GOODS

S shipped FOB Manila, perishable goods worth P50,000.00 to B who is based in Cebu. B
remitted a check amounting to P50,000.00 for the price of the goods. while the carrier was on its
way to Cebu, S was informed by his bank that the check issued by B was dishonored for
insufficient funds. On further inquiry, he learned that B had become insolvent. Accordingly, S
obtained physical possession of the goods from the carrier. After notifying B, S resold the goods
I. if the goods are resold for P52,000.00, the profit of P2,000.00 belongs to B since title
had already passed to him
II. if the proceeds of sale, net of incidental expenses, amounted to P47,000.00, S can
recover the loss of P3,000.00 from B.
 ONLY II IS TRUE

I. The redhibitory action, based on the faults or defects of animals, must be brought
within 6 months from the date of their delivery to the vendee. FALSE (40 DAYS)

II. If the animal should die within 5 days after its purchase, the vendor shall be liable if
the disease which caused the death existed at time of the contract. FALSE (3 DAYS)

I. The sale of animals suffering from contagious diseases shall be void TRUE

II. A contract of sale of animals shall also be void if the use or service for which they are
acquired has been stated in the contract, and they are found to be unfit therefore
TRUE

A sold her specific car to B for P200,00 payable in 5 equal installments. A delivered the car to B
but a mortgage was constituted on the car to 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 CANNOT RECOVER THE DEFICIENCY EVEN IF THERE IS STIPULATION OF
THE CONTRARY