kupdf com test bank cpar sales

TEST BANK SALES, AGENCY and PLEDGE 1.Unless there is stipulation to the contrary the expenses for the execution or registration of the sale shall be borne by: A B C D The Vendee The Vendor The Vendee and Vendor The agent or broker A offered to sell his lot to B for P100,000 In his offer to sell it was stated that he is given 60 days to prepare the P100,000 and as soon as B is ready with the money, A will execute a deed of sale Before the end of 60 days, A informed B that price of the lot was increased to P120,000 May B, compel A to accept P100,000 offered previously by A and make him execute the deed of sale? A B C D Yes, because A already signed his offer No, For B never signified his acceptance of A’s offer Yes, because there was actual meeting of minds of the parties Answer not any of the above A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000 B signified his desire to buy the land In A’s letter he gives B a period of two (2) months within to produce the P200,000 After 45 days, A told B that the price of the land is now P250,000 Can B compel A to accept the P200,000 first offered by A and execute the deed of sale? A B C D Yes, because there was actual meeting of the minds of A’s offer No, for B did not signify his acceptance of A’s offer Yes, because A is already estoppels by his signed letter Yes, because the period of two (2) months has not expired Mr AB owes Mr CD P150,000 due on August 1, 2010 Mr AB executed mortgage in favor of Mr CD on Mr AB’s building to guaranty the obligation On August 10, 2010, the mortgage building was totally lost due to a strong typhoon On August 12, 2010, Mr CD demanded payment from Mr AB Is Mr CD’s demand valid? A No, the obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation as such would the prejudicial to the rights of the debtor B No, the obligation is extinguished because the obligation is lost through a fortuitous event C Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous event Unless the debtor can mortgage another property that is equally satisfactory D Yes, the debt becomes due at once because, from the tenor benefit is given solely to the creditor thereby giving the creditor the right to demand performance even before the date Mrs Go sold and delivered her diamond ring to Mrs Pat It was agreed upon that after ten (10) days Mrs Pat will name and fix the price On the tenth (10th) day, Mrs Pat called up by telephone Mrs Go and stated the price at P10,000 Mrs Go agreed IS the sale perfected? A Yes, the price stated and named by one of the contracting parties was accepted by the other B No, at the time of the sale the price was not fixed C No, the price was left to the discretion of one of the parties D No, at the time of the sale the price is not known Mr Sy sold a parcel of land to Mr Tan for P200,000 Mr Sy delivered the transfer Certificate of Title of the land to Mr Tan Later, Mr Tan wanted to register the land to his name and he needed a Deed of Sale What can Mr Tan do? A Mr Tan can compel Mr Sy to execute a Deed of Sale B Mr Tan cannot compel Mr Sy to refund the P200,000 because the contract is not enforceable C Mr Tan can sue Mr Sy enriching himself at the expense of another D Mr Tan can possess and utilize the land as a buyer in good faith Bonds which are not secured by any specific mortgage lien of pledge or corporate property but by the general corporation are: A B C D Guaranteed bonds Debenture bonds Income bonds Redeemable bonds The buyer of a thing has the right to the fruits of the thing: A B C D From the time the thing bought is delivered From the time the sale is perfected From the time the obligation to deliver the thing bought arises From the time the fruits are delivered Three (3) of the following are option money Which is the earnest money? A B C D Given when contract of sale is perfected Given when there is no contract of sale Given to bid the offer or in a unilateral promise to sell or to buy Given as a separate consideration from purchase price 10 In a sale, this is actual delivery A B C D Execution and signing of the sale document When the goods sold are placed in the control and possession of the buyer Delivery by the seller to the buyer of the key where the goods sold are kept The buyer is already in actual possession of the goods 11 This is a mode to extinguish an agency: A B C D Death of the principal, but the agency is for the interest of the principal and agent Partial accomplishment of the agency Upon withdrawal of the principal Insanity of principal or agent 12 D pledged his Singer Sewing Machine to C for P8,000 D was unable to pay the obligation 60 days after it was due C sold the machine at public auction for P6,000 A B C D C cannot recover the deficiency of P2,000 even if there is stipulation that he can C can recover the deficiency of P2,000 even without stipulation C cannot recover the deficiency of P2,000 C can recover the deficiency of P2,000 13 In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time: A B C D The obligation to deliver the thing sold arises The sale is perfected The thing sold is delivered The fruit of the thing sold is delivered 14 Mr AB offered in writing to sell his house and lot for P750,000 to Mr CD on July 1, 2010 Mr CD requested Mr AB to give him 60 days within which to raise the P750,000 On August 15, 2010 Mr AB informed Mr CD that the price is raised and now at P1,000,000 Can Mr CD compel Mr AB to sell his house and lot at P750,000 which was offered in writing by Mr AB? A B C D Yes, because Mr AB is already stopped by his written offer Yes, because the 60 days offer has not yet expired No, because Mr CD has not accepted the offer of Mr AB Yes, there was meeting of the minds 15 In distinguishing Earnest Money from Option money, earnest Money is: A B C D Given when there is no contract of sale, Given only when there is perfected contract of sale Given to bind the offer or in a unilateral promise to sell or buy Given as a separate consideration from the purchase price 16 Gay appointed May to sell the former’s car for P200,000 May sold the car to Pam, Pam inspected the car and found hidden defects in the car Can Pam file an action against Gay even when May acted in her own name? A B C D No, under “Caveat Emptor” let the buyer beware Yes, because this is contract involving property belonging to the principal No, because, May acted in her own name not of the principal No, because the contract of sale is already perfected 17 Mr San authorized Mr Soy to sell his car for p200,000 with 5% agent’s commission Mr Soy sold the car to Mr Dy for P250,000 For how much is Mr Soy accountable to Mr San? A B C D P200,000 P190,000 P250,000 P240,000 18 B pledged his Rolex to C for P4,000 B failed to pay C the P4,000 on due date C sold the Rolex watch at a public auction to the highest bidder at P3,500 A B C D C can recover the deficiency of P500 from B C can recover the deficiency of P500 even without stipulation C cannot recover the deficiency of P500 unless there is stipulation C cannot recover the deficiency of P500 even if there is stipulation 19 Which of the following may not be the object of sale? A B C D Things having potential existence The sale of a vain hope or expectancy Future goods Answer not given 20 When delivery takes place by the mere consent or agreement of the contracting parties as when the vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vended if the thing sold cannot be transferred to the possession of the vendee at the time of sale, delivery is effected: A B C D By tradition symbolica By traditio longa manu By traditio brevoi manu Answer not given 21 The distinction between a chattel mortgage and a pledge is that in chattel mortgage: A B C D The delivery of the personal property is necessary The registration of the property in the Registry of Property is not necessary The excess over the amount due after foreclosure, goes to the debtor Answer not given 22 Sale is distinguished from dation in payment in that in sale A B C D There is a pre-existing obligation or credit The cause is the price It is a mode of extinguishing an obligation in the form of payment Answer not given 23 Mr Mar orders for his workers 1,000 pieces of T-shirt ranging in size from small to large from RDG Garments Mfg Corp The specified sizes, although not then available, are manufactured by said corporation and consigned to its sales outlets regularly The contract entered into by Mr Mar with the RDG Garments Mfg Corp is a: A B C D Contract for a piece of work Contract subject to a resolutory condition A contract of sale Answer not given 24 Mr Amado owes the BIR P100,000 in delinquent taxes and penalties In order to evade the payment of said liability, he executed a deed of sale of his only parcel of land valued for P200,000 in favor of his brother Pedro, where P20,000 was stated as the purchase price but the BIR has evidence that said price had never been paid, the purpose of the sale being to prevent the BIR to levy upon the land to satisfy the tax liability of Mr Amado In this case: A The BIR may not levy upon the land because the sale is void B The BIR without annulling the sale may levy upon the land of Amado pursuant to the provisions of the National Internal Revenue Code C The BIR should first annul the sale before it may levy upon the land pursuant to the provisions of the National Internal Revenue Code D Answer not given 25 Mr Rene owns a mango tree bearing fruits, ready for harvest He sells all the fruits of that tree to Mr Mar who pays Mr Rene the sum of P5,000 Rene tells Mar that he can just harvest the fruits anytime he likes pointing at the particular tree For legal purposes, Rene has fulfilled his obligation to deliver the mango fruits to Mar by: A Traditio brevi manu B Traditio longa manu C Traditio simbolica D Answer not given 26 Mar Garci, before going to Spain appointed Jc Legaspi as his agent to administer his properties in the Philippines Afterwards, Legaspi wrote Garci that he ( Legaspi) was withdrawing from the agency because of failing health Legaspi, in the same letter said that he appointed Eg Legaspi as his substitute and that Mar should extend a new appointment to Eg Eg took over the duties of Jc but Mar did not bother to appoint Eg to act as his agent until Mar’s death Now Mar’s heirs brought an action against Eg for accounting Eg raised the defense that he was not validly constituted as an agent of Mar In the case at bar, defense is not tenable because there is: A B C D An actual agency An implied agency A general agency Answer not given 27 Maria is authorized by Dulfo to sell the latter’s washing machine for P5,000 each at 10% commission One day, Dulfo sells one washing machine to Carla on credit (payable in 90 days) but for a price of P6,000 If Dulfo does not ratify this sale on credit, he can collect cash payment from Maria: A B C D P4,500 (P5,000 less P500 commission) P5,000 (the price without commission) P5,400 (P6,000 less P600) Answer not given 28 Tony sold a piece of land to Rene binding himself not to sell the same to another person On the following day, Tony sold the land to Carla who immediately took possession in good faith In the case at bar, the proper remedy of Rene is to: A Institute an action for the annulment of the sale to Carla B Institute an action for the recovery of the land C Institute an action for damages against Tony D Answer not given 29 Ces kidnapped and tortured Ed for refusing to sell his (Ed’s) land to Ces Ed who could no longer bear the physical pains inflicted upon him signed a document of sale in favor of Ces This sale is: A B C D Void Voidable Valid Answer not given 30 A sold a residential land to B B paid the consideration When B wanted to register the sale at the Register of Deeds, the latter refused to register and requires the presentation of the certificate of capital gains tax payment What can B do? A B may sue A to refund the consideration paid by B under the maxim, “no one shall enrich himself at the expenses of another.” B B cannot compel A to return the selling price because the contract is not enforceable C B may possess the residential land as a buyer in good faith D B may compel A to pay the capital gains tax and secure the certificate of capital gains tax payment 31 A Seller sold to a Buyer a piece of jewelry at a price of P20,000 The contract provides that the Buyer will pay Seller a micro wave oven worth P5,000 What is the nature of the contract? A B C D Sale Partly sale and partly barter Barter Commodatum 32 Mr A Abad signed a letter addressed and delivered to Mr B Baje The terms of the letter are: An offer to sell a 500 sq.m lot for P300,000 An option time up to October 31, 2010 for Mr Baje to raise the P300,000 Upon payment of the P300,000, Mr Abad will execute and sign a Deed of Sale On October 31, 2010, Mr A Abad sent a letter to Mr B Baje asking for a new price of P350,000 for the 500 sq m lot Can Mr B Baje compel Mr A Abad to accept the P300,000 and make him sign and execute a Deed of Sale? A B C D No, Mr.B Baje did not accept the offer of Mr A Abad Yes, Mr A Abad is already stopped by his sighing the letter and offer Yes, there was actual meeting of the minds Yes, the contract is perfected 33 Mr A mortgaged his residential land to Mr B as a guarantee for the payment of P400,000 obligation of Mr A They agreed that Mr A shall not sell the land while the obligation exists The maturity of the mortgaged, C offered to buy the land from Mr A A B C D A cannot sell the land to Mr C because of the agreement not to sell A can sell the land to Mr C only if B consents in writing A can sell the land to Mr C despite the agreement not to sell (?) A cannot sell the land to Mr C unless A pays the obligation 34 Mr D Dy constituted Mr S Sim as his authorized agent to sell the former’s Lancer car for P300,000 and to pay him a 5% commission on the selling price Mr S Sim sold the car for P320,00 Mr S Sim shall remit to Mr D Dy: A B C D P300,000 P320,000 P285,000 P305,000 35 Ownership of the thing sold is transferred / acquired / retained: A B C D Retained by the seller in “sale of return” Transferred to the buyer upon constructive or actual delivery of the thing sold Acquired by the buyer upon Transferred to the buyer upon acceptance of the price 36 If redemption is made, which of the following will not be paid by the seller to the buyer A B C D Price paid by the buyer Expenses in the execution of the sales contract paid by the buyer All necessary expenses on the thing sold and to be redeemed Interest of the price paid by the buyer 37 The following are requisites of Pledge except: A B C D The disposal of the pledge The absolute ownership of the property pledged The thing pledge may be placed in the possession of a third person To bind a third person, it must be recorded in the office of the Register of Deeds 38 The leviable properties of the debtor are transferred to the creditors to be sold and from the proceeds, the creditor are paid; A B C D Pledge Cession Dacion en pago Chattel mortgage 39 A characteristic of the Contract of Sale which involves exchange of value, it is A B C D Commutative Nominate Bilateral Consensual 40 The principal is not liable for expenses incurred by the agent: A When it was stipulated that the agent would only be allowed a certain sum B When the agent has complied with his obligations by acting according to the principal’s instructions C When the agent incurred them with the knowledge that an unfavorable result would ensue and the principal was aware of it D When the expenses were incurred without the fault of the agent 41 An assignor of credit warrants: A B C D Solvency of the debtor Existence and legality of credit Collectibility Assurance of payment 42 A appoints B to sell his land Example If the authority of B is oral and B sells the land in writing The sale is valid Example If the authority of B is in writing and B sells the land orally The sale is valid A B C D Both examples are true Both examples are false First example is true, but the second example is false First example is false but the second example is true 43 Which of the following is not a characteristic of Sale? A B C D Bilateral Gratuitous Consensual Nominate 44 The following are the alternative remedies, except one available to the buyer in case of breach of warranty by the seller: A B C D Keep the goods and ask for damages Refuse to accept the goods and ask for damages Rescind the sale and retain the goods Keep the goods and set up against the seller by way of recoupment in price 45 Which of the following statements is true and correct? A In a Contract of Sale, the full payment of the price is in the nature of a suspensive condition in that the seller is obligated to transfer ownership of the thing sold B The seller need not be the owner of the thing sold at the perfection of the sale C There may be a transfer of ownership over the thing even if the seller has not delivered the thing sold to the buyer D In a Contract of Sale, the buyer becomes the owner of the thing sold upon full payment of the purchase price 46 X, Y and Z were appointed by R as his agents to administer his building which was rented by various tenants while R was abroad for three years In the course of management, X cause through his fault damage to the building which was assessed at P30,000 R can claim: A B C D P10,000 from each of X, Y and Z P30,000 from X P30,000 from Y and Z P30,000 from either X, Y and Z 47 Pledge and Mortgage are accessory contracts because they: A B C D Are meant to secure the fulfillment of a principal obligation Cannot exist if the principal obligation is void Can exist by themselves Cannot secure fulfillment of rescissible obligation 48 Mr A offered to sell his land to Mr B for P300,000 Mr B accepted the offer and paid Mr A the purchase price Mr A delivered the owner’s certificate of the Transfer certificate of Title to the land Mr B wants to register the land in his name but the Register of Deeds asks Mr B for the Deed of Sale What can Mr B ? A B C D He may occupy the land as a buyer in good faith He cannot compel Mr A to return the payment because the contract is unenforceable He may compel Mr A to execute the Deed of Sale because the contract is valid He may sue Mr A to return the purchase price under the legal principle that no one may enrich himself at the expense of another 49 Pacto de retro sale as distinguished from mortgage: A B C D There is redemption by payment principally of the debt There is no transfer of possession of the thing sold There is no foreclosure unless it is declared as an equitable mortgage There is no transfer of ownership of the thing sold 50 A is authorized by B to sell the latter’s books for P100 each A sells 10 books to C on credit but for a price of P120 each After ratifying the sale on credit, B can collect After ratifying the sale on credit, B can collect cash payment from C A P1,000 B P1,200 C P1,080 D P 900 which is the object of the sale II Payment of price is essential to delivery of the thing sold A B C D Both statements are true Both statements are false First statement is true, second statement is false First statement is false, second statement is true 52 Three of the following are essential requisites of a contract of mortgage Which one is not? A B C D The person instituting the mortgage has the free disposal of his property The contract must be in writing The mortgagor is the absolute owner of the thing mortgaged The mortgage is constituted to secure the fulfillment of a principal obligation 53 In real mortgage, the following rules are valid, except one: A A stipulation in the mortgage contract prohibiting the owner from alienating the immovable mortgaged is valid B The mortgage may alienate the mortgage credit or assign to a third person in whole or in part C Any stipulation allowing the mortgage creditor to appropriate the property mortgaged is null and void D If alienation of the mortgage credit is not registered, it is still valid between the parties 54 A wrote a letter to B wherein A offered to sell his piece of land to B for P200,000 B signified his desire to buy the land In A’s letter, he gives B a period of two (2) months within which to produce the P200,000 After 45 days, A told B that the price of the land is now P250,000 Can B compel A to accept the P200,000 first offered by A and execute the deed of sale? A B C D Yes, there was actual meeting of the minds of the parties No, for B did not signify his acceptance of A’s offer Yes, because A is already stopped by his signed letter Yes, because the period of two months has not expired 55 A and B are good friends A sold and delivered his car to B It was agreed and understood that on the next Sunday A will name and fix the price of the car Sunday came A called B by phone and stated and fixed the price at P150,000 Is the sale perfected? A B C D Yes The price was stated and fixed on the date agreed upon No The price was left to the discretion of the seller No at the time of the sale, the price is not fixed No The price fixed by the seller was not accepted by the buyer 56 In sale, this is actual delivery: A B C D Execution and signing of the sales document When the goods sold are p0laced in the control and possession of the buyer Delivery by the seller to the buyer of the key where the goods are kept The buyer is already in actual possession of the goods 57 This is a mode of extinguishing an agency: A B C D Death of the principal, but the agency is for the interest of the principal and agent Partial accomplishment of the agency Upon withdrawal of the principal Insanity of the principal or agent 58 D pledged his Singer Sewing Machine to C for P8,000 D was unable to pay the obligation 60 days after due date C sold the machine at public auction for P6,000 A B C D C cannot recover the deficiency of P2,000 even if there is stipulation that he can C can recover the deficiency of P2,000 even without stipulation C cannot recover the deficiency of P2,000 C can recover the deficiency of P2,000 59 In a contract wherein a person binds himself to render special service to something in behalf of another with consent of the latter A B C D Contract of piece of work Contract of service Contract of agency Contract of exchange 60 Which of the following obligations of the vendor cannot be waived: A B C D To allow the buyer to examine the goods sold To transfer ownership to the buyer To pay the expenses of the deed of sale To warrant the thing sold 61 A appoints B as his agent to sell his land, which of the following is valid: A The authority of B is in writing and the sale of the land in favor of C is oral B The authority of B from A is by way of letter and B sells the land to C in writing C The authority of B is oral and B sells the land to C for P50,000 in a written contract of sale D When goods are delivered to an agent to be sold by him and the agent is not liable to the manufacturer of the goods 62 A stipulation whereby the pledge or mortgagee automatically becomes the owner of the thing pledged or mortgaged: A B C D Pactum commisorio Consolidation of ownership Conventional redemption Consignation 63 Which of the following statements is true and correct: A Pledge and mortgage are accessory contracts because they cannot exist by themselves B In both pledge and mortgage, the creditor is entitled to deficiency judgment C Where an obligation is secured by a pledge or mortgage and it is not paid when due the pledge or mortgagee may dispose of the thing pledged or mortgaged if the��res perit domino” or the thing perishes with the owner 48 A, B and C are co-owners of an undivided parcel of land, A sold his 1/ interest to B absolutely Which is correct? A C may exercise his right of redemption of the interest sold by A to B B C cannot exercise the right of redemption because the sale was made in favor of a co-owner C The sale made by A to B is void because it was not made in favor of a stranger D C may redeem only /2 of the interest sold by A to B 49 Using the preceding number, suppose, instead of selling his interest to B, A sold it to D, who can exercise the right of redemption? A B C D Both B and C B but not C C but not B A, B and C 50 Which of the following cannot be the object of a contract of sale? A B C D Sale of credit Young animal not yet conceived at the time of perfection Land which the seller expects to buy Future inheritance 51 A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered at Z’s store in Cainta Market The price is A Not certain because the price at Cainta Market is not stated B Certain because it has got reference to another thing which is certain