DLSU Manila ACTREG2 Midterm Examination 1. LA Lakers entered into a contract with Nike Inc to provide two pairs of basketball shoes for Kobe Bryant and
... [Show More] Andrew Bynum. No pair was, however, available at the time of perfection of the contracts. Kobe wears 10” basketball shoes which Nike normally manufactures for the general market while Andrew wears 20” basketball shows which will be manufactured specially for Andrew. What contracts are entered into by the parties? a. Both contracts of sale b. Both contracts for a piece of work c. Contract of sale for Kobe’s shoes and contract for a piece of work for Andrew’s shoes d. Contract of sale for Andrew’s shoes and contract for a piece of work for Kobe’s shoes 2. A sold his laptop to B at a price P10,000 cash and a cellphone with a fair value of P10,000. What is the name of the contract? a. Contract of Barter b. Contract of Agency c. Contract of Sale d. Contract of Pledge 3. On January 1,2012, S sold to B a specific car owned by X for P50,000. S promised to deliver the car to B on January 11,2012. S bought the car from X on January 10,2012 and delivered it to B on January 11,2012. Is the contract of sale between S and B valid? a. No because there is no delivery of the car on January 1,2012 which is an essential requisite of a contract of sale. b. No because the seller or vendor shall be the owner of the thing sold at the time of perfection of contract. c. Yes even if X is not the owner of the thing sold on January 11,2012 because future thing can be the object of a contract of sale. d. Yes because the vendor need not possess the title to the thing sold at the perfection of the contract but he must have the right to transfer the ownership of the thing at the time that the thing is to be delivered. 4. On January 1,2012, D borrowed from C P100,000 and as a security D mortgaged his land to C. On January 2,2012, D sold the same land to X for P50,000 to be delivered on January 5,2012. D failed to pay the loan. Is the contract of sale between D and X valid? a. No because D is no longer the owner of the land on January 2,2012. b. No because D is no longer the owner of the land on January 5,2012. c. Yes because D is still the owner of the land although it was mortgaged to C. d. Yes provided D will pay the amount due to C. 5. S sold a lottery ticket No. 143 to B on January 2,2012. The draw was already made on January 1,2012 and ticket No. 143 did not win. B purchased the ticket with intent to win the jackpot price. Is the contract of sale between S and B valid? a. Yes because it involves emptio spei or sale of mere hope. b. No because the sale of vain hope or expectancy is void. c. No even if the ticket is considered collector’s item. contact: royfields212@gmail.com d. Yes because the essential elements of contract of sale are present. 6. S is the sole owner of a condominium unit. S sells ½ undivided interest therein to B. Is the contract of sale valid? a. No because the object of a contract of sale must be determinate. b. No because the object of a contract of sale must be whole interest. c. Yes the sole owner of a thing may sell an undivided interest therein and such sale shall produce the effect of making the seller and the buyer co-owners of the thing sold. d. Yes provided that the condominium unit shall be physically divided. 7. S sells to B 200 sacks of rice from a mass stored in the warehouse of S. The mass, however, actually consist of 300 sacks of rice. Which of the following statements is correct? a. The sale is null and void because the object is not determinate. b. The sale is valid provided B will pay for the excess 100 sacks of corn. c. The sale is valid, thus, S and B will become co-owners of the whole mass to the extent of 2/3 for B and 1/3 for S. d. The sale is null and void because there is no consent. 8. S sells to B 300 sacks of yellow corn from a mass stored in the warehouse of S. The mass, however, actually consists of 280 sacks of yellow corn. Which of the following statements is correct? a. The sale is null and void because there is no consent. b. The sale is null and void because there is no determinate object. c. B becomes the owner of all the 280 sacks and S is bound to deliver additional 20 sacks in the absence of contrary agreement. d. B becomes the owner of all the 280 sacks and S is not bound to deliver the additional 20 sacks. 9. Which of the following contracts of sale is void? a. S sold to B a specific watch for P2,500 which both parties agreed upon. b. S sold to B a certain ring of which the price is the salary of the faculty member of La Salle School. c. S sold to B a specific car the price of which is subject to determination of X, third person. d. S sold to B 500 shares of ordinary stocks of BPI at the price equivalent to the closing price of the ALI’s ordinary shares on April 30,2020 at the Philippine Stock Exchange. 10. S sold to B a specific good. The price of the good cannot be determined. The good has been delivered to and appropriated by B. What is the obligation of B? a. B has no obligation because the contract of sale is null and void having no price. b. B has no obligation because the contract of sale is inefficacious because the price of the good cannot be determined. c. B has the obligation to rescind the contract. d. B has the obligation to pay a reasonable price which depends on the circumstances of each particular case. 11. What is the effect of gross inadequacy of price in a contract of sale? a. It renders the contract of sale null and void. b. In renders the contract of sale unenforceable. c. It does not affect a contract of sale, except as it may indicate a defect in the consent which makes the contract voidable or except as it may indicate that the intention of the parties is another contract such as donation or loan with equitable mortgage. d. It does not affect a contract of sale even if the parties really intended a donation or some other act or contract. 12. X and Y are good friends. X sold and delivered his car to Y. It was agreed and understood that on next Sunday X will name and fix the price of the car. Sunday came, X called Y by telephone and stated and fixed the price at P150,000. Is the contract of sale perfected? a. No because the purchase price is not yet paid. b. No because the title is not registered to the buyer. c. Yes because the car has already been delivered to Y. d. No because the price of the sale was left to the discretion of one of the parties, that is, the seller, and it was not consented by the buyer. 13. Which of the following contracts of sale is void? a. Executory oral sale of real property or any interest therein regardless of the price. b. Executory oral sale of goods, chattels or things in action the price of which is P500 or more. c. Sale of a piece of land by the agent in the name of principal wherein his authority is not in writing. d. Sale of a piece of land by a third person in the name of owner but who has not been given any authority 14. S promised to sell his car to B for P100,000 giving B one week to decide whether to buy or not. B accepts the promise and gives a consideration of P1,000 for the one week period. If B decides to buy the car, how much should B pay to S? a. P100,000 because the P1,000 is an earnest money. b. P99,000 because the P1,000 is an option money. c. P100,000 because the P1,000 is an option money. d. P99,000 because the P1,000 is an earnest money. 15. B purchased the car of S for P100,000 payable within 30 days from the date of sale. As a downpayment, B gives S P1,000 upon the execution of their agreement. How much should B pay to S on the 30th day? a. P100,000 because the P1,000 is an earnest money. b. P99,000 because the P1,000 is an option money. c. P100,000 because the P1,000 is an option money. d. P99,000 because the P1,000 is an earnest money. 16. On January 1, S delivered an electronic calculator to B under a sale or return arrangement. S gave B up to May 7 to return the electronic calculator. Before May 7, the calculator was destroyed by fire. Should B pay for the purchase price? a. No because B is not yet the owner of the calculator. b. No because the calculator is destroyed through fortuitous event. c. Yes because B becomes the owner of the calculator upon delivery. d. Yes if the fire is due to the fault of B. 17. Using the same data in preceding number except the fact that the arrangement is a sale on trial or approval, should B pay the purchase price? a. No even if the fire is due to the fault of B. b. Yes even if B signifies his approval before the fire. c. No if B does not signify his approval before the fire because B is not yet the owner. d. Yes because B becomes the owner of the calculator upon delivery. 18. Lebron is the registered owner of a vacant lot. Kevin stole the certificate of title of the registered lot of Lebron and through connivance with a notary public, he was able to execute a notarized deed of sale through forging the signature of Lebron. With connivance with a Registry of Deeds, Kevin was able to transfer the title of the lot to his name. Afterwards, Kevin sold the said lot to Carmelo who acquired the said lot after inspecting the title and the vacant lot. Carmelo is a purchaser in good faith and for value. Which of the following statements is correct? a. The contract of sale between Kevin and Carmelo is void because it is the product of a previous void contract. b. Lebron can recover the land from Carmelo because the title acquired by Carmelo is that of a thief even without reimbursing Carmelo. c. Lebron can recover the land from Carmelo provided he will reimburse him for the price Carmelo paid. d. Lebron cannot recover the land from Carmelo because a forged document or deed of sale, in case of registered lot, can be a root of a valid title if the title is already in the hand of a purchaser for value and in good faith. 19. Manny, a Filipino, sold his private land to Ippo, a Japanese national. The contract of sale has already been executed. Which of the following statements is correct? a. The contract of sale is void because it is violative of Constitutional provision against ownership of private land by foreigners. Therefore, Manny cannot ask for declaration of nullity because of principle of pari delicto. b. The contract of sale is unenforceable because it is violative of Constitutional provision against ownership of private land by foreigners. c. Ownership of the land will transfer to Ippon and the contracts can no longer be avoided since the contract is already executed. d. Manny can still recover the land by filing an action for declaration of nullity because the principle of pari delicto is not applicable in the case since it will frustrate the state policy to reserve the land to Filipinos. 20. Naruto, a Filipino, sold his private land to Hinata, a Japanese national. Afterwards, Hinata sold the said private land to Kakashi, a Filipino. Which of the following statements is correct? a. Both contracts of sale are subject to declaration of nullity because they are violative of Constitutional provision against ownership of private land by foreigners. b. Both contracts of sale are unenforceable because they are violative of Constitutional provision against ownership of private land by foreigners. c. Ownership of the land will transfer to Kakashi and the contracts cannot be avoided since the land is finally with a Filipino. d. The second contract of sale is void because it is the product of the first contract of sale. 21. S, a minor of 17 years, sold his watch for P1,500.00 to B, 30 years old. The guardian of S was not aware of the sale; hence, no action for annulment has yet been filed. Subsequently, B sold the watch to T, who acquired it in good faith. Which of the following statements is correct? a. T acquires no title to the watch because the seller’s title is voidable. b. T acquires good title to the watch even if he buys it in bad faith. c. T acquires good title to the watch even if the voidable title of the seller has been avoided before the time of sale as long as T acquires the watch in good faith, for value and without notice of seller’s defect of title. d. T acquires good title to the watch even if the seller’s title is voidable provided the same has not been avoided at the time of sale and T acquires the watch in good faith, for value and without notice of seller’s defect of title. 22. The following are the instances when goods are no longer in transit and therefore the unpaid seller can no longer exercise his right of stoppage in transitu, except a. If the buyer obtains delivery of the goods before arrival at the appointed destination. b. If the carrier or other bailee acknowledges to the buyer or his agent, that he is holding the goods in his behalf, after arrival of the goods at their appointed destination. c. If the carrier or other bailee wrongfully refuses to deliver the goods to buyer or his agent. d. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back. 23. What is the prescriptive period available to the buyer for filing the legal action (action quanti minoris or action for cancellation) regarding contract of sale of lot with lacking area or with poor quality? a. 6 months from the date of delivery b. 12 months from the date of delivery c. 3 months from the date of delivery d. 1 month from the date of delivery 24. S sold his watch to B in a public document. However, B informed S that he would obtain actual delivery of the watch after 3 days. The day after the sale to B, S sold the same watch to X in a private document and X immediately took possession of the watch. X was not aware of the sale to B. Who has a better right over the watch? a. B because he has the older title. b. B because he first took constructive possession of the watch in good faith. c. X because he first took actual possession of the watch in good faith. d. X because X has not registered the watch in good faith. 25. On May 1, S sold his registered/titled lot to X. The deed of sale was in a private instrument. On May 3, S sold the same lot to Y in a public instrument. On May 5, S sold again the said lot to Z in a public instrument. Z immediately registered the sale with Register of Deeds on May 5. X took actual possession of the lot on May 6. X, Y and Z were not aware of the sale made to others. Who among the buyers has the better right? a. X because he first took actual possession in good faith. b. X because he has the oldest title in good faith. c. Y because he first took constructive possession in good faith. d. Z because he is the first registrant in good faith. 26. What is the prescriptive period for the warranty against hidden or non-apparent burden, encumbrances or servitude on immovable? a. 6 months from the execution of deed of sale or discovery of encumbrance or burden b. 40 days from the execution of deed of sale or discovery of encumbrance or burden c. 1 year from the execution of deed of sale or discovery of encumbrance or burden d. 3 days from the execution of deed of sale or discovery of encumbrance or burden 27. What is the prescriptive period of the accion redhibitoria, accion quanti minoris or all other actions to enforce the seller’s liability for hidden defect? a. 1 year from the delivery of the thing sold b. 1 month from the delivery of the thing sold c. 6 months from the delivery of the thing sold d. 3 months from the delivery of the thing sold 28. What is the prescriptive period of redhibitory action in case of sale of animal with redhibitory defect? a. 30 days from the delivery of animal to the vendee. b. 20 days from delivery of animal to the vendee. c. 40 days from delivery of animal to the vendee. d. 10 days from delivery of animal to the vendee. 29. What is the status of the contract of sale when the animals are suffering from contagious diseases or when the animals are found to be unfit for the use or service for which they were acquired as stated in the contract? a. Void b. Voidable c. Rescissible d. Unenforceable 30. The following are the requisites in order for the vendor to be liable in case the animal dies of disease, except a. The disease exists at the time of sale. b. The disease is the cause of death of the animal. c. The animal dies within 3 days from time of purchase. d. The disease is redhibitory. 31. UST sold its accounts receivable worth P1M from its students to BPI for P900,000. The students paid UST in the amount of P1M. What is the effect of payment? a. The students are released from the obligation if they pay UST before the knowledge of the assignment. b. The students must still pay BPI the amount of P1M. c. BPI can no longer recover the P1M from UST. d. The basis of liability of UST to BPI is quasi-delict. 32. Which of the following may become a subject matter of contract of sale? a) Future inheritance b) Pig with African Swine Fever c) Kidney organ d) Patrimonial property of the state 33. A franchisee of PCSO sold an undrawn lottery ticket No. 23 to a bettor. This contract is considered a) Emptio spei b) Emptio rei speratae c) Empio pour autrui d) Emptio commissorium 34. In which of the following cases is the price of the contract of sale considered uncertain making the contract void ab initio? a) Sale of a specific cellphone whereby the price is left by the buyer and seller to the judgment of a specified third person b) Sale of a specific laptop whereby the price is the monthly salary of Atty. John Lloyd Cruz c) Sale of a specific tablet whereby the price of P40,000 is fixed by the seller but voluntarily accepted by the buyer d) Sale of preferred stock of Globe Incorporated equivalent to the closing price of common stock of Smart Incorporated in the Philippine Stock Exchange on October 4, 2020 35. S and B orally entered into a contract involving a production of a particular dining table based on the design specifically customized for B at a price of P500 with the payment and delivery to be made one month from the date of oral agreement. The estimated production cost of the said dining table is P800. What is the status of contract between S and B? a) Perfectly valid contract b) Rescissible contract c) Voidable contract d) Unenforceable contract 36. In which of the following contracts is full payment of the price generally the operative act that transfers ownership from the seller to the buyer? a) Contract of sale b) Agency to sell c) Consignment sale d) Contract to sell 37. S sold and delivered a mass of black pepper (100 sacks) in his specific warehouse to B at a lump sum price P100,000 per sack. Which of the following statements is correct? a) The contract of sale is void because the subject matter is not determinate at the time of constitution of the contract. b) If the content of the mass is 150 sacks, B will own all the mass of black pepper provided he will pay P100,000 to S. c) If the content of the mass is only 80 sacks, S is still required to deliver additional 20 sacks to B unless there is stipulation to the contrary. d) None of the above 38. S and B orally agreed for the sale of a specific car at a price of P100,000. As a downpayment, B paid manager’s check with amount of P10,000 to S on the date of oral agreement. Delivery of the car will happen after the full payment of the price which will happen 2 years after the date of oral agreement. Which of the following statements is correct? a) B may legally compel S to sign and execute the notarized deed of sale of car. b) The oral contract of sale of car between S and B is unenforceable by court action. c) I B decides to buy the car 2 years after the oral agreement, he must still the total purchase price of P100,000 to S. d) The oral contract entered between S and B is a contract of option perfected by the issuance by B of manager’s check to S. 39. A, an adult, sold and delivered a specific ballpen to M, a minor, at a reasonable price of P10. Is M legally required to pay the reasonable price? a) No because the contract is covered by statute of fraud, therefore, unenforceable. b) Yes because the subject matter specific ballpen is a necessary. c) No because the contract is voidable, therefore, subject to annulment of contract. d) Yes because M is guilty of bad faith. 40. S, an insane, sold in writing a specific car to D, a demented person, at a price of P100,000. What is the status of contract of sale? a) Rescissible contract b) Voidable contract c) Unenforceable contract d) Void contract 41. H and W entered into a contract of marriage on year 1990 without any ante-nuptial agreement. H, through force and intimidated, compelled W to give consent and to sign the deed of sale involving the exclusive property of W to H at a bargain price of P100,000 whereby W suffered lesion amounting to P30,000. What is the status of the contract of sale? a) Rescissible contract b) Voidable contract c) Unenforceable contract d) Void contract 42. H and W entered into a contract of marriage on year 2020 with prenuptial agreement of complete separation of property regime. H, through force and intimidated, compelled W to give consent and to sign the deed of sale involving the exclusive property of W to H at a bargain price of P500,000 whereby W suffered lesion amounting to P130,000. What is the status of the contract of sale? a) Rescissible contract b) Voidable contract c) Unenforceable contract d) Void contract 43. S sold the mass of Dinorado Rice stored in his specific warehouse to B at a price of P100,000. At the agreed date of delivery, S delivered the key of the warehouse to B. What type of constructive delivery is done by S to B? a) Traditio clavium b) Traditio longa manu c) Traditio brevi manu d) Traditio constitutum possessorium 44. S sold a specific van to B at a price of P100,000. Before the physical delivery of the said van to B, B leased it back to S so the physical delivery did not prosper. What What type of constructive delivery is present in the case at bar? a) Traditio clavium b) Traditio longa manu c) Traditio brevi manu d) Traditio constitutum possessorium 45. On August 1, 2020, S orally sold and delivered a specific laptop to B at a price of P25,000 under a sale or return arrangement with a return period of one month. The contract provides the payment of the price will be done on August 31, 2020. On August 15, 2020, B was robbed of the said laptop by a holdaper. Which of the following statements is correct? a) The contract of sale is unenforceable because it is covered by statute of fraud. b) B is no longer required to pay the price of P25,000 because the contract of sale is extinguished by robbery which is considered a fortuitous event. c) B is still required to pay the price because of the concept of res perit domino. d) The contract of sale is void ab initio because of the absence of subject matter. 46. T surreptitiously stole the specific necklace of S. Afterwards, T sold and delivered the said necklace to B at a price of P10,000. B acquired the said necklace in good faith and for value. Which of the following statements is correct? a) S can legally recover the necklace from B even without reimbursing B. b) S may legally recover the necklace from B but S must reimburse B of the amount of P10,000. c) S can never legally recover the necklace from B because the latter is a purchaser in good faith and for value. d) S cannot legally recover the necklace from B unless he reimburses B of the amount of P10,000. 47. T surreptitiously stole the specific necklace of S. Afterwards, T conducted a public auction then sold and delivered the said necklace to B at a price of P10,000. B acquired the said necklace in such public auction. Which of the following statements is correct? a) S can legally recover the necklace from B even without reimbursing B. b) S may legally recover the necklace from B but he must reimburse B of the amount of P10,000. c) S can never legally recover the necklace from B because the latter is a purchaser in good faith and for value. d) S cannot legally recover the necklace from B even if he reimburses B of the amount of P10,000. 48. D deposited his specific laptop to the baggage counter of SM Appliance Store. The store manager displayed the said laptop at the said store and placed a tag price of P20,000. B saw the said displayed laptop and acquired it from SM Appliance Store for P20,000. Which of the following statements is correct? a) D can legally recover the laptop from B even without reimbursing B. b) D may legally recover the laptop from B but he must reimburse B of the amount of P20,000. c) D cannot legally recover the laptop from B because the latter obtained good title over the laptop. d) D cannot legally recover the laptop from B unless he reimburses B of the amount of P10,000. 49. M, a minor, sold and delivered a specific cellphone to B at a price of P15,000. Afterwards, B sold and delivered the said cellphone to T, a purchase in good faith and for value, at a price of P10,000. Which of the following statements is correct? a) T obtained a voidable title over the specific cellphone. b) T obtained a good title over the specific cellphone. c) T obtained a void title over the specific cellphone. d) T obtained a rescissible title over the specific cellphone. 50. What is the only ground for right of stoppage in transitu? a) Where the goods have been sold without any stipulation as to credit b) Where the goods have been sold on credit, but the credit term has expired c) Where the buyer is insolvent d) Where the goods are perishable in nature 51. S sold to B a lot with an area of 100 square meters at a price of P1,000 per square meter. Within six (6) months from the date of delivery of the lot, B discovered that the actual area of the said lot is only 90 square meters. What is the remedy available to B regarding this deficiency in the area of the lot? a) Ask for proportionate reduction of price by paying only P90,000 b) Ask for rescission or cancellation of contract of sale of the 100 square meters lot c) Either a or b d) Neither a nor b 52. S sold to B a lot with an area of 100 square meters of garden soil at a price of P1,000 per square meter. Within six (6) months from the date of delivery of the lot, B discovered that the actual area of the said lot consists of 89 square meters garden soil and 11 square meters sand soil. What is the remedy available to B regarding this inferior quality of the lot? a) Ask for proportionate reduction of price b) Ask for rescission or cancellation of contract of sale of the 100 square meters lot c) Either a or b d) Neither a nor b 53. S sold to B a lot with an area of 100 square meters bounded by bamboo fence at a lump sum price of P100,000. Within six (6) months from the date of delivery of the lot, B discovered that the actual area of the said fenced lot is only 95 square meters. What is the remedy available to B regarding this deficiency in the area of the lot? a) Ask for proportionate reduction of price by paying only P95,000 b) Ask for rescission or cancellation of contract of sale of the 100 square meters lot c) Either a or b d) Neither a nor b 54. Which of the following is not a requisite to enforce vendor’s liability in case of eviction of the buyer on the ownership of the thing sold? a) There must be a final judgment depriving the vendee of the whole or part of the thing sold. b) The vendee must not appeal from the decision or judgment depriving him of the thing sold. c) The deprivation is based on a right prior to the sale or an act imputable to the vendor. d) The vendor must have been notified of the suit for eviction at the instance of the vendee. e) The vendor must have acted in bad faith. 55. It refers to a type of waiver of warranty against eviction that is made by the buyer when he acted in good faith because he has no knowledge of risk of eviction. In this case, the seller is still liable for eviction but only up to the extent of the value of the thing at the time of eviction. a) Waiver consciente b) Waiver intentionada c) Waiver possessionada d) Waiver reindivicatoria 56. On January 1, 2021, S sold a specific lot to B. Unfortunately, the said lot is encumbered by a nonapparent and unregistered burden or servitude of septic tank. On July 1, 2022, B discovered the said servitude. What is the legal remedy still available to B? a) Action for rescission or cancellation of the sale of the lot b) Action for indemnification for damages c) Either a or b d) Neither a nor b 57. Which of the following is not a requisite for the enforcement of vendor’s liability for hidden defect on the thing sold? a) The defect must exist at the time of sale. b) The defect must be hidden. c) The defect must render the thing unfit for the use for which it is intended or diminishes its fitness for such use to such an extent that had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it. d) The action to enforce the warranty against hidden defect must be made within the 6-month period provided by law from the time of delivery. e) The warranty against hidden defect must be expressly stipulated in a contract of sale. 58. In which of the sale is warranty for hidden defect available to the buyer? a) Sale of second hand item or pre-owned item or pre-loved item b) Sale by Junk-shop operators c) Sale in auction d) Sale of brand new item by online sellers 59. It refers to one of the two alternative remedies available to buyer of a thing in case of breach of warranties against hidden defects, of merchantability, of merchantable quality or fitness for a particular purpose whereby there is a prayer by the buyer for withdrawal or for rescission or for cancellation of the contract of sale. a) Accion redhibitoria b) Accion quanti minoris c) Accion pauliana d) Accion reindivicatoria 60. Which of the following statements about liability of seller for hidden defect is correct? a) The seller is liable for selling object with hidden defect only if he was aware of the said defect. b) The seller is liable for selling object with hidden defect only if the reason of the loss is the said hidden defect itself. c) The seller is liable for selling object with hidden defect regardless of the awareness of the presence of defect and regardless of the reason of the loss of the said object with hidden defect. d) The seller is not liable for selling object with hidden if there is a buyer’s waiver of the warranty against hidden defect even if the buyer has knowledge of the presence of the hidden defect. 61. It refers to a defect in an animal and it is of such nature that expert knowledge, even after a professional inspection has been made, is not sufficient to discover it. a) Redhibitory defect b) Contagious disease c) Voidable defect d) Uncurable disease 62. What is the prescriptive period for filing action redhibitoria or action quanti minoris based on breach of warranty against presence of redhibitory defect in an animal sold? a) 3 days from the date of delivery b) 40 days from the date of delivery c) 6 months from the date of delivery d) 1 year from the execution of deed of sale 63. In which sale of animal will there be warranty for hidden defect? a) Sale of animals at fairs b) Sale of animals at public auctions c) Sale of live stocks as condemned d) None of the above 64. What is the status of sale of broiler chicken suffering from bird flu? a) Rescissible contract b) Voidable contract c) Unenforceable contract d) Void contract 65. Which of the following is not a requisite for enforcement of vendor’s liability for death of an animal? a) The disease exists at the time of sale. b) The disease is the cause of death of the animal. c) The animal dies within 3 days from time of purchase. d) The disease must be redhibitory. 66. On January 1, 2020, S sold and delivered a specific house and lot to B with a stipulation that the price of P1,500,000 will be paid on July 1, 2020. The contract provides that in case of non-compliance by B on the payment of the price, the contract of sale of house and lot will be automatically cancelled on the date of default. On July 1, 2020, B defaulted in the payment of the price. Which of the following statements is correct? a) The contract of sale of house and lot is automatically cancelled on July 1,2020 based on autonomy of contract. b) B may still pay the price of P1,500,000 after his default on July 1,2020 provided notarial or judicial demand for rescission has not yet been made by the seller to him. c) S may forcibly evict B from the possession of the said house and lot based on the provision of contract. d) B can never be evicted from the possession and ownership of the said house and lot because he is already the owner upon its delivery. 67. In pacto de retro sale or sale with a right to repurchase of an immovable property, what is the default period of redemption by the pacto de retro seller if the redemption period is not stated in the contract of pacto de retro sale? a) 30 days b) 4 years c) 10 years d) 5 years 68. S sold his specific land to B under pacto de retro sale or sale with a right to repurchase whereby it was stipulated that the period of redemption is 25 years. What is the period for redemption of the said land? a) 25 years b) 4 years c) 10 years d) 20 years 69. F sold a specific land to B under pacto de retro sale or sale with a right to repurchase. Immediately after the sale, F died of heart attack. F left 3 children named C, D and E. Which of the following statements is correct? a) C may legally compel B for the redemption or repurchase of his 1/3 share in the said land of his father. b) D and E may legally compel B for the redemption or repurchase of their 2/3 share in the said land of their father. c) B may legally demand D, E and F to come to an agreement upon the repurchase of the whole land, and if they fail to do so, B cannot be compelled to consent to a partial redemption of the said land. d) E may legally redeem or repurchase the whole property from B despite the absence of consent or authority from C and D. 70. A, B and C are co-owners of a specific land. On October 1,2020, A sold his 1/3 share in the said land to D under a deed of pacto de retro sale. On October 2,2020, B also sold his 1/3 share in the said land to D a deed of under pacto de retro sale. On October 3,2020, C also sold his 1/3 share in the said land to D under a deed of pacto de retro sale. Which of the following statements is correct? a) C may legally compel D for the redemption or repurchase of his 1/3 share in the said land. b) A cannot legally compel D for the redemption or repurchase of his 1/3 share in the said land. c) D may legally demand A, B and C to come to an agreement upon the repurchase of the whole land, and if they fail to do so, D cannot be compelled to consent to a partial redemption of the said land. d) None of the above 71. A, B and C are co-owners of a specific land. On October 1,2020, C absolutely sold his 1/3 share in the said land to D under a deed of absolute sale. Which of the following statements is correct? a) A and B may legally repurchase the 1/3 share of the land sold by C to D proportionately despite the absence of the agreement in the deed of sale for repurchase. b) C may legally repurchase the 1/3 share of the land he sold to D by virtue of legal redemption. c) No one from A, B or C can repurchase the 1/3 share of the land sold by C to D because the deed states it is an absolute sale. d) None of the above 72. F1 owns a farm lot with an area of 1 hectare (10,000 SQM). The said rural lot is bounded by a farm lot of F3 with area of 1,000 SQM and by a farm lot of F2 with an area of 4,000 SQM. F1 sold his farm lot to F4, a landlord, via deed of absolute sale. Who between F2 and F3 shall be preferred for the exercise of right of legal redemption? a) F2 because his farm lot has small area. b) F3 because his farm lot has larger area. c) F2 and F3 proportionately in the ratio of 1:4 or 20% and 80%, respectively d) Neither F2 nor F3 can repurchase the farm lot sold by F1 because the deed states it is an absolute sale. 73. D borrowed P1,000,000 from C. G, a third person, mortgaged his land to secure the fulfillment of D’s loan. Is the contract of mortgage valid? a. No because D must be the owner of the mortgaged land. b. Yes provided G will deliver the land to C. c. Yes because third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property. d. No because G is no privy to the contract of loan. 74. D borrowed P20,000 from C. To secure the fulfillment of the loan, D mortgaged a land owned by his ailing father. Which of the following statements is correct? a. The contract of mortgage is valid because future property may be pledged or mortgaged. b. The contract of loan is null and void because the contract of mortgage is null and void. c. The contract of mortgage will become valid upon the death of D’s father. d. The contract of mortgage is null and void because the mortgagor must be the owner of the property mortgaged at the time it is constituted but the contract of loan remains to be valid. 75. D borrowed P10,000 from C. To secure the fulfillment of the loan, D pledged his laptop. On the date of maturity of the loan, D failed to pay the loan. As a result, D and C agreed that the pledged laptop shall be owned by C in full satisfaction of the secured contract of loan. Which of the following statements is correct? a. C becomes the owner of the laptop by reason of dacion en pago which is governed by Law on Sales. b. The laptop cannot be alienated for the payment of the loan. c. C does not become the automatic owner of the laptop upon D’s failure to pay the loan because their subsequent agreement is considered pactum commissorium which is contrary to law and public policy. d. Their subsequent agreement for the payment of the loan shall be governed by law on obligation because that is a novation. 76. Grace obtained a loan from Jojo in the amount of P1M with Mar serving as guarantor. Rody pledged his cellphone to secure the debt of Grace. If Rody pays the P1M loan of Grace, which is correct? a. There will be no legal subrogation if Grace does not consent to the payment of Rody. b. Rody cannot collect the P1M from Grace if the latter does not consent to the payment of Rody. c. Rody can collect the P1M from Mar if Grace will not be able to pay Rody. d. Mar is not liable to Rody. 77. DLSU pledged its notes receivable from a parent to a factor on January 1, 2016 with remaining term of 30 days or maturity date of January 31, 2016. The face value of the notes receivable is P1,000,000 with maturity value of P1,200,000. The notes receivable is pledged for a note payable of P1,100,000 inclusive of interest. If the factor-pledgee collects the P1,200,000 from the parent on January 31, 2016, who shall be entitled for the excess of P100,000? a. DLSU, the pledgor-debtor b. Parent c. Factor, the pledgee-creditor d. None of the above 78. D borrowed P5,000 cash from C. In order to secure the loan, D pledged delivered a specific watch P3,000 and a specific ring worth P2,000 to C. D and C agreed that the said watch will only secure P3,000 of the loan while the said ring will secure the balance of the loan. On the maturity date of the secured loan, D only paid P3,000 of the loan which C accepted. Which pledged property may D legally ask from C after such payment? a) Specific watch b) Specific ring c) Both a and b d) Neither a nor b 79. A and B jointly borrowed P10,000 cash from C. In order to secure the loan, A pledged and delivered a specific laptop and a specific cellphone. On the maturity date of the secured loan, A paid his share in the loan of P5,000. Which of the following statements is correct after such payment by A? a) A may legally ask from C the return of his laptop. b) B may legally ask from C the return of his cellphone. c) Both A and B may legally ask from C the return of the laptop and cellphone. d) Neither A nor B may legally ask from C the return of the laptop and cellphone. 80. D borrowed P4,000 cash from C. In order to secure the his loan, D pledged and delivered his specific watch to C. The contract of pledge provides that D has the option to dacion en pago the said watch to C in full satisfaction of the loan in case the former defaulted in the payment of the loan. At the maturity date of the loan, D suffered financial difficulty and defaulted in the payment of his loan to C. This prompted D dacion en pago his pledged watch to C in full satisfaction of the loan. C accepted the offer made by D. Which of the following statements is correct? a) The advanced agreement of option to dacion en pago the pledged watch is void because it is intended to circumvent the prohibition against pactum commissorium. b) The contract of pledge is void because of the pactum commissorium but the contract of loan remains to be valid. c) C becomes the owner of the said watch by virtue of dacion en pago. d) C must still foreclose and sale the pledged watch in public auction before he can appropriate it in case it is not sold in at least two public auctions. 81. What is the status of contract of real estate mortgage if the property covered as collateral is a personal property instead of real property? a) The contract of real estate mortgage is not binding because the subject matter of real estate mortgage should be an immovable property. b) The contract of real estate mortgage is binding as to the contracting parties on the basis of doctrine of estoppel but the third person directly affected by said void contract may ask for its declaration of nullity. c) The contract of real estate mortgage will be valid to both contracting parties and even third persons. d) Third persons who are not directly affected by the real estate mortgage may ask for the declaration of nullity of the real estate mortgage contract. 82. What is the status of contract of chattel mortgage if the property covered as collateral is a real property instead of personal property? a) The contract of chattel mortgage is not binding because the subject matter of chattel mortgage should be a movable property. b) The contract of chattel is binding as to the contracting parties on the basis of doctrine of estoppel but the foreclosure shall be done under the procedures of real estate mortgage law. c) The contract of chattel mortgage will be valid to both contracting parties and even to third persons. d) Third persons who are not directly affected by the chattel mortgage may ask for the declaration of nullity of the chattel mortgage contract. 83. D borrowed P200,000 cash from C evidenced by a promissory note. In order to secure the said loan, M mortgaged his car to C. At the maturity of the loan, D defaulted. This prompted C to sell the mortgaged car in public auction at net proceeds of P3,000. Who shall be entitled to the excess of P100,000? a) Generally D unless granted to C. b) Generally M unless granted to C. c) Generally C unless granted to M. d) Always C. 84. Using the same data in preceding number but assuming the net proceeds is P150,000, which is correct? a) C may recover the deficiency of P50,000 from M. b) C can never recover the deficiency of P50,000 from D. c) C may only recover the deficiency from D is stipulated. d) C may recover the deficiency from D unless there is an agreement to the contrary. 85. D borrowed P400,000 cash from C evidenced by a promissory note. In order to secure the said loan, M mortgaged his land to pago [Show Less]