22.

Ownership of incorporeal property is transferred to the buyer:

a. execution of the sale of the public instrument
b. Placing the titles of ownership in the possession of the buyer
c. Use of the buyer of his right, with the sellers consent
d. All of the above

As a rule, in the absence of agreement, ownership is not transferred, even if sold,
unless there has been a delivery.

Incorporeal properties may be delivered:
(a) by constructive tradition execution of public instrument.
(b) by quasi-tradition placing of titles of ownership in the
possession of the buyer, or the use by the buyer of his rights, with
the sellers consent.
(c)So is the use of the vendors right with the vendors consent.

23. Consideration in sale:
Statement 1: if the price is grossly inadequate, the contract of sale is affected.
And if the price is absolutely, the contract is void.
Statement 2: the fixing of the price can never be left to the discretion of one of the
parties. However, it may be fixed by a third person.
a. Both are true
b. Both are false
c. No. 1 is true: No. 2 is false
d. No. 1 is false: No. 2 is true
Statement 1 is false. Gross inadequacy of price does not affect a contract of sale,
except as it may indicate a defect in the consent.
Statement 2 is true. The fixing of the price can never be left to the discretion of
one of the parties. However, it may be fixed by a third person who must be a specified
third person or persons.


24. What mode of extinguishing a contract of sale is affected when a person is
subrogated upon the same term and condition stipulated in the contract in the
place of one who acquires a thing by onerous title?
a. Compensation
b. Conventional redemption
c. Legal redemption
d. None of the above
Sales are extinguished:
(a) by same causes as in other obligations (such as novation);
(b) by redemption (whether conventional or legal)

Legal redemption is the right to be subrogated, upon the same terms and
conditions stipulated in the contract, in the place of one who acquires a thing by
purchase or dation in payment, or by any other transaction whereby ownership is
transmitted by onerous title.


25. S sold to B a parcel of land for a lump sum of P50,000. The contract states
that the area is 500 square meters. Subsequently, it was ascertained that the area
included within the boundaries is really 550 square meters.
a. S is bound to deliver 500 square meters and B to pay P50, 000.
b. S is bound to deliver 500 square meters and B to pay P55,000.
c. S or B can rescind the sale because here is no meeting of minds.
d. None of the above
S is bound to deliver 550 square meters and B to pay P50, 000. Furthermore,
the price should not be increased. This is so because S should deliver all which are
included in the boundaries. If S does not deliver the remaining 50, B has the right
(a) either to rescind the contract for the sellers failure to deliver what has
been stipulated, or
(b) to pay a reduced proportional price.

As the law provides that In the sale of real estate, made for a lump sum and not
at the rate of a certain sum for a unit of measure or number, there shall be no increase
or decrease of the price, although there be a greater or less area or number than that
stated in the contract.
The same rule shall be applied when two or more immovables are sold for a
single price; but if, besides mentioning the boundaries, which is indispensable in every
conveyance of real estate, its area or number should be designated in the contract, the
vendor shall be bound to deliver all that is included within said boundaries, even when it
exceeds the area or number specifi ed in the contract; and, should he not be able to do
so, he shall suffer a reduction in the price, in proportion to what is lacking in the area or
number, unless the contract is rescinded because the vendee does not accede to the
failure to deliver what has been stipulated.

26. In the preceding question, if the land contains 445 square meters, which of the
following is correct?
a. S is bound to deliver 500 square meters and to B to pay P50,000.
b. S is bound to deliver 445 square meters and B t pay P44, 500.
c. B may rescind the sale because the lack in area is more than 1/10 of the total
area
d. None of the above.
S is bound to deliver 445 square meters and to B to pay P50,000. The law
provides that in the sale of real estate, made for a lump sum and not at the rate of a
certain sum for a unit of measure or number, there shall be no increase or decrease of
the price, although there be a greater or less area or number than that stated in the
contract.
The Civil Code presumes that the purchaser had in mind a determinate piece of
land and that he ascertained its area and quality before the contract was perfected. If he
did not do so, or if having done so, he made no objection and consented to the
transaction, he can blame no one but himself.

27. If the price is uncertain:
a. the transaction is void
b. the price is to be fixed by the court
c. the buyer must pay a reasonable price
d. None of the above
By the contract of sale one of the contracting parties obligates himself to transfer
the ownership of and to deliver a determinate thing, and the other to pay therefor a price
certain in money or its equivalent.
The price must be certain; otherwise, there is no true consent between the
parties. There can be no sale without a price. If the price is fixed but is later on remitted
or condoned, this is perfectly all right, for then the price would not be fictitious. The
failure to pay the agreed price does not cancel a sale for lack of consideration, for the
consideration is still there, namely, the price.

28. Present in every contract of sale:
a. Implied warranty of fitness
b. Implied warranty of merchantability
c. Implied warranty against eviction
The warranty in case of eviction is a natural element in the contract of sale;
hence, the vendor answers for eviction even if the contract be silent on this point.
Natural elements according to the law are those which are inherent in the contract, and
which in the absence of any contrary provision, are deemed to exist in the contract.

30. in question no. 61, if S did not foreclose the mortgage property and instead, he filed
his action as an ordinary creditor, what would be your answer?
a. S can recover from B the balance of P 2000
b. S can recover from B the balance of P 2000 if there is stipulation to that effect
c. S cannot recover from B the deficiency anymore if there is stipulation to that
effect
d. None of the above
Where there has been no foreclosure of the chattel mortgage or a foreclosure
sale, the prohibition against further collection of the balance of the price does not apply.

*61. B bought a refrigerator on instalment from S and to secure his indebtedness, B
executed a chattel mortgage on refrigerator in favour of S. Upon default by his 2
payments, the refrigerator was foreclosed and sold for P8000 which was less than the
balance of 10000 due to S. How much can S still collect from B
a. 2000 c. 10000
b. 8000 d. Nothing
In a contract of sale of personal property the price of which is payable in
installments, the vendor may foreclose the chattel mortgage on the thing sold, if one has
been constituted, should the vendees failure to pay cover two or more installments. In
this case, he shall have no further action against the purchaser to recover any unpaid
balance of the price. Any agreement to the contrary shall be void.

31. Three of the following are the elements of the vendors right of stoppage in
transittu. What is the exception?
a. the buyer must be insolvent
b. The goods must be in transit
c. The seller must be unpaid
d. The seller must be in possession of the goods.

This refers to the right of stoppage in transitu, availableto the unpaid seller
(a) if he has parted with the possession of the goods( in transit);
(b) AND if the buyer is or becomes insolvent.


32. A.B, and C are co-owner of an undivided parcel of land. B sold his 1/3 interest to C
absolutely. Which is correct.
a. A may exercise his right to redemption on the interest sold by B to C
b. A cannot exercise the right of redemption because it was made in favour of a
co-owner.
c. The sale made by B to C is void because it was not made in favour of a
stranger
d. A may redeem only of the interest sold by B to C
According to the law, it provides that a co-owner of a thing may exercise the right
of redemption in case the shares of all the other co-owners or of any of them, are sold
to a third person. If the price of the alienation is grossly excessive, the redemptioner
shall pay only a reasonable one.
Right of Legal Redemption of Co-Owner to apply, the share must have been sold
to a third person. Hence, if the purchaser is also a co-owner, there is no legal
redemption.
In the case at bar, C is a co-owner of the undivided land and not a stranger.

33. P the owner of a piece of residential land orally authorized A to sell the land
for P500 with 5% commission
a. C, being the first buyer
b. C, because A was given authority by P.
c. D, because the sale made by A to C is only voidable.
d. D because the sale between A and C is void.
Problem is incomplete. However, when a sale of land or any interest therein is
through an agent, the authority of the latter shall be in writing; otherwise, the sale shall
be void. In the case at bar, it is made orally.

34. Which statement is true?
a. In contract to sell, ownership is transferred upon the buyer before delivery.
False(Article 1495)
b. In sale with a right to repurchase, upon delivery the buyer is the absolute owner.
c. Sale con pacto de retro is an example of sale subject to a suspensive condition.
False subject to resolutory condition.
d. When the vendor binds herself to pay the taxes on the things sold. it is presumed
that the transaction is a mortgage and not governed by contract of sale . FALSE (article
1602)
Ownership of the object sold is transferred only after delivery (tradition), actual,
legal or constructive. After delivery to buyer, he becomes an absolute owner subject to
the right of re-demption which is a resolutory condition at the option of the seller. It
should be noted that things subject to a resolutory condition may be the object of the
contract of sale.

35. B went to a store and offered to buy a certain watch for P1000. S said that he
is willing to give it for 1200. B turned to go away because he did not want to pay
the price. S called him (B) and said he was willing to sell the watch for P1000. Is
the contract perfected?
a. Yes, because there was meeting of minds between S and B
b. No, S made another offer not accepted by B
c. Yes, because the consent was already manifested at the time of the offer
d. Yes, because Bs acceptance is not qualified.
Bs offer was P1000. This was not accepted. Or granting that the proposal of
P1200 was a sort of acceptance, the statement that the buyer could have it for P1200
was not absolute. It was a qualified acceptance and hence, under the law, constitutes a
counter-offer. Hence, when the seller said P120,000, he was not really accepting the
offer to buy. Now, when he was going to give it for P100,000, he was not really
accepting the offer of A, but was making another offer, a counter-offer since the offer
made by A previously had been rejected by him (the seller).
A counter-offer as a matter of fact extinguishes the offer. Moreover, it may or
may not be accepted by the original offeror.


36. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B
and B bought it for P50,000. It turned however, that S has three motor vehicles gallant
valued at P80000; Hi-ace van valued at P 70,000: and a jeep valued at P60, 000. Which
of the following is correct?
a. The contract shall be reformed because there was mistake
b. the parties can ask for interpretation because the word motor vehicle is
ambiguous
c. The parties can ask for annulment of the contract
d. There is no contract, because the object is not certain
Where there has been a meeting of the minds, but there is mistake, fraud,
inequitable conduct or accident in the contract as written, the remedy is reformation.
When there has been no meeting of the minds, because of vitiated consent, the
proper remedy is annulment.

37. Which of the following cannot be the object of a contract of sale?
a. hereditary right
b. sale of credit
c. Young animal not yet conceived at the time of perfection
d. land which the seller expects to buy
e. None of the above
The seller not be the owner at the time of the perfection of the contract.It is
sufficient that he is the owner at the time the object is delivered; otherwise, he may be
held liable for breach of warranty against eviction. Furthermore, the goods which form
the subject of a contract of sale may be either existing goods, owned or possessed by
the seller, or goods to be manufactured, raised, or acquired by the seller after the
perfection of the contract of sale, in this Title called future goods.
Future goods are those still to be raised like the young of animals, whether
already conceived or not at the time of perfection of the contract, or future agricultural
products, acquired by seller after the perfection of the contract like land which the seller
expects to buy, things whose acquisition depends upon a contingency which may or
may not happen.

38. Bidder in sale:
Statement 1: Invitation to bid are not definite offers, the advertisers is not bound to
accept the highest or the lowest bidder
Statement 2: by-bidder are person in an auction sale in behalf of the seller; the purpose
is to raise the price by fictitious id.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

Statement 1 is true. Advertisements are mere invitations to make an offer and,
therefore, one cannot compel the advertiser to sell.
Every bidding is merely an offer and, therefore, before it is accepted, it may be
withdrawn. The assent is signifi ed on the part of the seller by knocking down the
hammer.
Statement 2 is true. By-bidders or puffers: persons employed by auctioneer who will
bid w/o being bound but whose bids will have a tendency to induce or provoke higher
bids from interested buyers, thus misleading the latter because of the inflated bid price.

39. In distinguishing earnest money from option money, earnest money is;
a. Given when there is no contract of sale
b. given only when there is no contract of sale
c. Given to bind the offeror in a unilateral promise to sell or buy
d. Given as a separate consideration from the purchase price
The earnest money must not be confused with the money given as consideration
for an option. Earnest money applies to a perfected sale; the money is part of the
purchase price; the buyer is required to pay the balance. Upon the other hand, option
money applies to a sale not yet perfected; the money is not part of the purchase price;
the would-be buyer is not required to buy.

40. Statement 1: in sale for a lump sum price (LSP), the vendee may ask for
reduction in the price, if the vendor cannot deliver all what is stated in the
boundaries
Statement 2: there is an implied warranty in the contracts of sale that the vendor
must have right to sell at the time the contract is perfected
a. Both are true
b. Both are false
c. No.1 is true; No. 2 is false
d. No. 1 is false; No, 2 is true
Statement 1 is true. Under Art. 1542 If B does not deliver the remainder, A has the
right
(a) either to rescind the contract for the sellers failure to deliver what has been
stipulated, or
(b) to pay a reduced proportional price.
What is important is the delivery of all the land included in the boundaries.

Statement 2 is false. In a contract of sale, unless a contrary intention appears,
there is an implied warranty on the part of the seller that he has a right to sell the thing
at the time when the ownership is to pass, and that the buyer shall from that time have
and enjoy the legal and peaceful possession of the thing. It is not at the time of
perfection of the contract of sale.

41. X after death of his father, sold his inheritance though its amount has not yet
been determined to B, for a consideration of P50,000
a. The contract is valid only if the inheritance values at the least equal to or more
than P50000
b. the contract is rescissible
c. The contract is valid even though nothing remains, the inheritance to be turned
over to B.
d. Contract is void, future inheritance cannot be object of sale
The rights to the succession are transmitted from the moment of death of
the decedent. (Art. 777, CC)
In the case at bar, there is already transmission of the inheritance to x upon
the death of his father giving him the right to sell said properties inherited. Gross
inadequacy of price does not affect a contract of sale, except as it may indicate a
defect in the consent. Furthermore there is a certain price agreed upon in the
amount of 50k.


42. S, 16 yrs. Old, sold to B of legal age, a specific diamond ring for P10000. Later, B
sold it to X.
Which of the following statement is incorrect?
a. S got voidable title because the time of sale he is a minor
b. X if in good faith, shall become the owner upon delivery to him
c. X if in bad faith, shall also be the owner, except that his title is voidable
d. None of the above
Those where one party is incapacitated to give consent like a minor is a voidable
contract. Where the seller of goods has a voidable title thereto, but his title has not been
avoided at the time of the sale, the buyer acquires a good title to the goods, provided he
buys them in good faith, for value, and without notice of the sellers defect of title.
If buyer is in bad faith then he does not acquire a good title but a voidable title
which is subject to ratification or annulment of the minor seller upon attaining the age of
majority.