1. I. A contract of sale is a consensual contract, 5.

S sells to B at P50 per liter 200 liters of

thus, is perfected by delivery gasoline stored in his truck tank, which is
II. A contract of sale is perfected by the unknown to the parties contains 500 liters.
meeting of the offer and the acceptance upon What is the status of the contract of sale
the thing and the cause which are to between S and B?
constitute the contract A. The sale is void because the quantity
A. Only I is true available is more than the quantity sold
B. Only II is true B. The sale is valid up to 500 liters of
C. Both are true gasoline. B must pay for the additional 300
D. Both are false liters
C. The sale is valid up to 200 liters of
2. I. Sale itself does not transfer or affect gasoline. B becomes the owner of 2/5 of the
ownership; the most that sale does is to whole stock, while S becomes the owner of
create the obligation to transfer ownership 3/5 thereof
II. The perfection of contract of sale should D. The sale rescissible because S will suffer
not, however, be confused with its lesion of more than 1/4 of the value of the
consummation. In relation to the acquisition whole stock
and transfer of ownership, it should be noted
that sale is not a mode but merely a title. 6. It occurs when it is placed under the control
A. Only I is true and possession of the vendee.
B. Only II is true A. Actual delivery
C. Both are true B. Constructive delivery
D. Both are false C. Delivery by operation of law
D. Other kinds of delivery as intended by the
3. Is manifested by the meeting of the offer and parties
the acceptance upon the thing and the cause
which are to constitute the agreement? 7. I. Payment of the purchase price is essential
A. Determinate subject matter to the transfer of ownership as long as the
B. Consent property sold has been delivered
C. Solicitation II. The ownership of the thing sold is
D. Price certain in money or its equivalent acquired by the vendee from the moment it
is delivered to him
4. Until acceptance, it is not, properly A. Only I is true
speaking, a contract, and does not vest, B. Only II is true
transfer, or agree to transfer, any title to, or C. Both are true
any interest or right in the subject matter, but D. Both are false
it is merely a contract by which the owner of
property gives the optionee the right or 8. When the sale is made through a public
privilege of accepting the offer and buying instrument
the property on certain terms A. Legal formalities
A. Option B. Symbolical tradition
B. Earnest C. Traditio simbolica
C. Absolute D. Traditio longa manu
D. Conditional
9. The following are the place of delivery, from, to selling to, Y certain properties
except. within a limited time at a specified price.
A. The place of delivery agreed upon A. Contract of sale
B. If there is no agreement and usage of B. Contract to sell
trade C. Option contract
C. If there is no agreement and usage of D. Conditional sale
trade, it is the seller’s place of business if he
has one, and if not his, residence 14. One of the contracting parties obligates
D. If there is no agreement and usage of himself to transfer the ownership of, and to
trade, it is the buyer’s place of business if he deliver, a determinate thing, and the other to
has one, and if not, his residence pay therefor a price certain in money or its
equivalent
10. I. In dation in payment, the undertaking A. Barter
really partakes in one sense of the nature of B. Sales
barter C. Partnership
II. The thing must be licit, and the vendor D. Agency
must have a right to transfer the ownership
thereof at the time of perfection 15. Legal or constructive delivery may be had
A. Only I is true through any of the following ways, except:
B. Only II is true A. The execution of a public instrument
C. Both are true evidencing the sale
D. Both are false B. Symbolical tradition such as the delivery
of the keys of the place
11. I. There may be a contract of sale of goods, C. Traditio longa manu or by mere consent
whose acquisition by the seller depends or agreement if the movable sold cannot yet
upon a contingency which may or may not be transferred to the possession of the buyer
happen. at the time of the sale
II. The sole owner of a thing may sell an D. Traditio possessorium if the buyer
undivided interest therein already had possession of the object even
A. Only I is true before the sale
B. Only II is true
C. Both are true 16. The following are examples of document of
D. Both are false title to goods, except:
A. Negotiable instrument
12. Sale of a mere hope or expectancy that the B. Bill of lading
thing will come to existence C. Dock warrant
A. Emptio rei speratae D. Warehouse receipt
B. Emptio spei
C. Sale of a future thing 17. There is no transfer of ownership
D. Unenforceable sale notwithstanding the delivery of the goods
A. Sale or return
13. A contract by virtue of which X, in B. Sale on trial
consideration of the payment of a certain C. Sale by sample
sum to Y, acquires the privilege of buying D. Sale by description
18. The prescriptive period for instituting II. Payment of the purchase price is essential
actions based on a breach of express to the transfer of ownership as long as the
warranty is that specified in the contract, and property sold has been delivered
in the absence of such period, the general A. Only I is true
rule on rescission of contract, which is: B. Only II is true
A. 4 years C. Both are true
B. 5 years D. Both are false
C. 6 years
D. 10 years 23. Where a seller sells things as being of a
particular kind, the buyer not knowing
19. . I. In sale on trial, the risk of loss rests upon whether the seller’s representations are true
the buyer II. In sale or return, the risk of loss or false, but relying on them as true; or as
remains with the seller otherwise stated, where the buyer has not
A. Only I is true seen the article sold and relies on the
B. Only II is true description given to him by the seller, or has
C. Both are true seen the goods, but the want of identity is
D. Both are false not apparent on inspection
A. Sale or return
20. . I. Ownership does not pass by mere B. Sale on approval
stipulation but only by delivery C. Sale by sample
II. The purpose of delivery is not only for D. Sale by description
the enjoyment of the thing but also a mode
of acquiring dominion and determines the 24. I. There must be first be a perfected contract
transmission of ownership, the birth of real of sale before we can speak of earnest
right money
A. Only I is true II. Earnest money applies to a perfected sale
B. Only II is true A. Only I is true
C. Both are true B. Only II is true
D. Both are false C. Both are true
D. Both are false
21. A deposit paid by a prospective buyer to
show a good faith intention to complete the 25. Sale of a thing with potential existence
transaction, and ordinarily forfeited if the A. Emptio rei speratae
buyer defaults B. Emptio spei
A. Option money C. Sale of a present thing
B. Earnest money D. Void sale
C. Consideration
D. Bid price 26. What is the test in determining whether it is
a contract “contract of sale or a mere
22. . I. The parties in a contract of sale may option?”
stipulate that ownership in the thing shall not A. Whether the agreement is valid
pass to the purchaser until he has fully paid B. Whether the agreement could be
the price specifically enforced
C. Whether the agreement is not rescissible
 D. Whether the agreement is covered by C. Deaf-mutes who do not know how to
Statute of Frauds write
D. Agents, the property whose
27. A special mode of payment where the debtor administration or sale may have been
offers another thing to the creditor who entrusted to them
accepts it as equivalent of payment of an
outstanding debt 31. A contract of sale is not a(an)
A. Application of payment A. Onerous contract
B. Cession in payment B. Accessory contract
C. Dation in payment C. Commutative contract
D. Tender of payment and consignation D. Bilateral contract

28. . I. Fixing the price can never be left to the 32. This serves as a proof of the perfection of
decision of one of the contracting parties. the contract of sale
But a price fixed by one of the contracting A. Dacion en pago
parties, if accepted by the other, gives rise to B. Option money
a perfected sale C. Delivery
II. The parties need not agree on the manner D. Arras
of payment of the price of the property to
give rise to a binding and enforceable 33. The Realty Installment Buyer Protection Act
contract of sale or contract to sell applies to all transactions involving the sale
A. Only I is true or financing of real estate on installment, but
B. Only II is true it excludes the following except:
C. Both are true A. Sale or financing of industrial lots
D. Both are false B. Sale or financing of commercial building
C. Sale to tenants under the Land Reform
29. Until acceptance, it is not, properly Code
speaking, a contract, and does not vest, D. Sale of residential condominiums
transfer, or agree to transfer, any title to, or
any interest or right in the subject matter, but 34. Goods are deemed in transit
it is merely a contract by which the owner of A. When the buyer accepts delivery of the
property gives the optionee the right or goods upon arrival at destination
privilege of accepting the offer and buying B. When the buyer intercepts and lawfully
the property on certain terms takes possession of the goods at any point
A. Option before destination.
B. Earnest C. From the time they are delivered by the
C. Absolute seller to a common carrier or other bailee for
D. Conditional transmission to the buyer, up to the time that
the buyer or his agent takes delivery of the
30. One of the following is not included as an goods from the carrier or bailee.
example of relative incapacity D. When the carrier or bailee, upon arrival
A. Husband and wife of the goods at destination acknowledges to
B. The guardian, the property of the person the buyer or his agent that he is holding the
or persons who may be under his goods as bailee for the latter.
guardianship
35. On January 15, 2010, X sold for P2M her 38. V offered to sell for P12,000,000 her house
house and lot to V. It was agreed that and lot to DD who was interested in buying
delivery of the house and lot, and the the same. In her letter to DD, V stated that
payment, therefore, would be made on she is giving DD a period of one month
March 10, 2010. Unfortunately, Z a stranger within which to raise the amount and that as
negligently set the house on fire on February soon as DD is ready, they will sign the deed
25, 2010, and the house was completely of sale. Five days before the expiration of
destroyed. Which is correct? the one-month period. V went to DD and
A. V is not required to pay the P2M since told her that she is no longer willing to sell
the contract had no subject matter. the property unless the price in increased to
B. X must still deliver the lot but is excused P15,000,000. Which is correct?
from delivering the house, while V must still A. DD may compel V to accept the
pay the P2M P12,000,000 first offered.
C. X must deliver the lot while V should pay B. V may compel DD to pay P15,000,000
only the amount equivalent to the value of C. V and DD should shoulder the
the lot. P3,000,000 difference
D. X need not deliver the lot while V need D. DD cannot compel V to accept the
not pay the P2M P12,000,000 first offered

36. A sold to B a parcel of land for P3.8M. The 39. X needs a size of 10 of model 101 of
sale is evidenced by a memorandum of Leather Shoes regularly available to the
agreement of sale written in the Bicolano public for her boyfriend Z, but the same is
dialect. One week later, A sold the same out of stock so she placed an order for one.
parcel of land to C for P4M. This is On the other hand, Z placed an order for size
evidenced by a formal deed of sale. Upon No. 8, colored violet, (something not
buying the property, C, who was aware of ordinarily made by the company) to be given
the first sale immediately took possession of to X. Which is correct?
the lot. When informed of the second sale, B A. Both are contracts of sale
subsequently registered an adverse claim to B. Both are contracts for a piece of work
the property. Later, C registered the deed of C. First is a contract of sale second is a
sale in her favor. The parcel of land shall contract for a piece of work
belong to D. First is a contract for a piece of work,
A. B because he has got an older title second is a contract of sale
B. C because he is the first to register
C. C because he is the first to take 40. One of the following is not correct
possession A. Things subject to a resolutory condition
D. No one as both sales are void may be the object of the contract of sale.
B. A thing is generic when it is particularly
37. The right of the seller to stop goods in designated or physically segregated from all
transit, upon discovering that the buyer does others of the same class.
not have the funds to pay for the goods C. Things having a potential existence may
A. Pre-emptive right be the object of the contract of sale.
B. Appraisal right D. The sole owner of a thing may sell an
C. Voting right undivided interest therein
D. Right of stoppage in transit
41. Action by the vendee against the vendor to D. Yes, because there was agreement that X
nullify the sale due to some vices or defects would fix the price
which render the object of sale unfit for the
use intended or knowledge of which the 45. Vi imported radios from Taiwan and asked
vendee should not have bought the thing for 220 volts radios. The radios arrived
A. Accion quanti minoris clearly labeled 220 volts and Vi sold them to
B. Accion reinvidicatoria the public as such. Later the customer
C. Accion pauliana complained that the radios have been
D. Redhibilitory action mislabeled by the manufacturer and that
they were good only for 110 volts. As a
42. In a contract of sale, of personal property, consequence,
the price of which is payable in installments, A. Vi is liable to the vendees for any hidden
the vendor may exercise any of the defects even though he is not aware.
following remedies, except B. Vi is not liable because he is in good faith
A. Exact fulfillment of the obligation, C. Vi is not liable under the principle of
should the vendee fail to pay any installment “caveat emptor” or let the buyer beware
B. Cancel the sale, should the vendee’s D. The vendees may hold the manufacturer
failure to pay cover two or more installment liable but not Vi because Vi specifically
C. Foreclose the chattel mortgage on the asked for 220 volts
thing sold, if one has been constituted
should the vendee’s failure to pay cover two 46. Which of the following cannot be the object
or more installments of a contract of sale?
D. Rescind the sale should the vendee fail to A. Sale of credit
pay any installment. B. Young animal not yet conceived at the
time of perfection
43. Not an implied warranty in a contract of sale C. Land which the seller expects to buy
A. Right to sell the thing at the time of D. Future inheritance
perfection of the contract
B. Reasonably fit for the purpose they are 47. A offered for sale to B 20 cavans of wagwag
acquired rice and fixed the price per cavan at P10
C. Merchantable in quality over the price offered at Z’s store in Cainta
D. Free from charges or encumbrances not Market. The price is
declared or known to the buyer A. Not certain because the price at Cainta
Market is not stated
44. X sold to V her Yamaha organ. It was agreed B. Certain because it has got reference to
that X would fix the price a week later. At another thing which is certain
the agreed time, X named the price P10,000. C. Certain because there is a price ceiling for
V agreed. Was the sale perfected? price of land
A. No, because the price was left to the D. Not certain so court may fix the price
discretion of one of the contracting parties
B. No, because at the time of sale the price 48. Ownership of the thing sold is
was not fixed A. Retained by the seller in “sale or return
C. Yes, because the price fixed by one of the B. Transferred to the buyer upon
parties was accepted by the other constructive or actual delivery of the thing
sold
 C. Acquired by the buyer upon perfection of
the contract
D. Transferred to the buyer upon acceptance
of the price

49. X, the guardian of V, sold V’s house and lot

worth P480,0000 for P430,000
A. The contract can be rescinded because of
inadequacy of price
B. The contract cannot be rescinded because
there is no fraud, mistake or undue influence
C. The contract cannot be rescinded because
all the elements of a contract are present
D. The contract can be rescinded by X.

50. X leased to V a 5 Freezer for two years at a

lease rental fee of P1,000 per month and
signed an option in favor of V to buy the
freezers at the end of the term of the lease at
P50,000. All rental fee paid are to be
considered as partial payment of the sale.
After 12 months V was able to pay the rental
fee for 9 months and was in arrears for three
months. X terminated the lease contract and
repossessed the freezers. The consequence
of the transaction is
A. X can collect the rental fees for three
months which are in arrears.
B. X can collect the rental fees for the
unexpired 12 months of the lease contract.
C. When X took possession of the freezer,
he has no further action against V
D. X in terminating the lease and
repossessing the freezer is obliged to refund
the 9 months rental fee, paid by V even if
there is a stipulation to the contrary.
ANSWER KEY 45. A
1. B 46. D
2. C 47. B
3. B 48. B
4. A 49. A
5. C 50. C
6. A
7. B
8. A
9. D
10. D
11. C
12. B
13. C
14. B
15. D
16. A
17. B
18. A
19. D
20. C
21. B
22. A
23. D
24. C
25. A
26. B
27. C
28. A
29. A
30. C
31. B
32. D
33. D
34. C
35. B
36. A
37. D
38. D
39. C
40. B
41. D
42. D
43. A
44. C