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    1. Marcelo claims he has a binding agreement to purchase Sergio's land based on their oral agreement and Marcelo's provision of consideration in the form of alcohol and money. 2. Sergio argues any agreement for the sale of real property must be in writing to be enforceable. 3. In a separate case, A sold the same parcel of land to both B and C. B registered an adverse claim after learning of the second sale, while C registered the deed of sale in their favor. It must be determined which party, B or C, has superior rights to the property. 4. Simo sold his car to Ariel, who provided an earnest payment but was in an accident

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    Law on Sales sample exam

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    Midterm-Sales

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    1. Marcelo claims he has a binding agreement to purchase Sergio's land based on their oral agreement and Marcelo's provision of consideration in the form of alcohol and money. 2. Sergio argues any agreement for the sale of real property must be in writing to be enforceable. 3. In a separate case, A sold the same parcel of land to both B and C. B registered an adverse claim after learning of the second sale, while C registered the deed of sale in their favor. It must be determined which party, B or C, has superior rights to the property. 4. Simo sold his car to Ariel, who provided an earnest payment but was in an accident

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    599 views3 pages

    Midterm Sales

    Uploaded by

    Arzaga Dessa BC
    1. Marcelo claims he has a binding agreement to purchase Sergio's land based on their oral agreement and Marcelo's provision of consideration in the form of alcohol and money. 2. Sergio argues any agreement for the sale of real property must be in writing to be enforceable. 3. In a separate case, A sold the same parcel of land to both B and C. B registered an adverse claim after learning of the second sale, while C registered the deed of sale in their favor. It must be determined which party, B or C, has superior rights to the property. 4. Simo sold his car to Ariel, who provided an earnest payment but was in an accident

    Copyright:

    © All Rights Reserved
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    of 3

    Republic of the Philippines

    PALAWAN STATE UNIVERSITY


    College of Business and Accountancy

    MIDTERM EXAM

    SALES, AGENCY AND CREDIT TRANSACTIONS

    I. MULTIPLE CHOICE. Write the letter of your answer in your examination paper/ booklet. No erasures.
    1. As a rule, this contract of sale involving a piece of land is void,
    a. Between a minor and a capacitated person.
    b. Between two insane persons who did not act during lucid interval
    c. Between first degree cousins
    d. Between husband and wife
    2. A contract of sale is not a(an)
    a. Onerous contract
    b. Accessory contract
    c. Commutative contract
    d. Bilateral contract
    3. V offered to sell for P12,000,000 her house and lot to DD who was interested in buying the same. In her
    letter to DD, V stated that she is giving DD a period of one month within which to raise the amount and that as
    soon as DD is ready, they will sign the deed of sale. Five days before the expiration of the one month period. V
    went to DD and told her that she is no longer willing to sell the property unless the price in increased to
    P15,000,000. Which is correct?
    A. DD may compel V to accept the P12,000,000 first offered.
    B. V may compel DD to pay P15,000,000
    C. V and DD should shoulder the P3,000,000 difference
    D. DD cannot compel V to accept the P12,000,000 first offered
    4. In a contract of sale, of personal property, the price of which is payable in installments, the vendor may
    exercise any of the following remedies, except
    A. Exact fulfillment of the obligation, should the vendee fail to pay any installment
    B. Cancel the sale, should the vendee’s failure to pay cover two or more installment
    C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s
    failure to pay cover two or more installments
    D. Rescind the sale should the vendee fail to pay any installment.
    5. A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the
    same car to C and immediately affected delivery. On the day agreed upon, A did not deliver the car to B.
    Which is correct?
    A. B can cancel the contract between A and C, because the contract between A and B was perfected
    ahead of the contract between A and c
    B. B should make the demand to make A in default
    C. A is liable to B for the value of the car plus damages after B makes a demand
    D. A is liable to B for damages and is in default without need of any demand
    6. When goods are delivered to the buyer on “sale or return” for period of seven days,
    ownership of the goods passes to the buyer

    A.Upon perfection of the contract


    B.Upon acceptance by the buyer of the offer of the seller
    C.Upon expiration of seven days
    D.Upon delivery of the goods
    7. 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
    C. Certain because there is a price ceiling for price of land
    D. Not certain so court may fix the price

    8. I. There may be a contract of sale of goods, whose acquisition by the seller depends upon a
    contingency which may or may not happen.

    II. If the consideration of the contract consists partly in money and partly in another thing, it
    shall be considered a barter if the value of the thing given as a part of the consideration
    exceeds the amount of the money or its equivalent.

    A. First statement is true, second statement is false.


    B. First statement is false, second statement is true.
    C. Both statements are true.
    D. Both statements are false
    9. I. The ownership of the thing sold shall be transferred to the vendee upon perfection of the
    contract.

    II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain
    is binding upon the promissory.

    A. First statement is true, second statement is false.


    B. First statement is false, second statement is true.
    C. Both statements are true.
    D. Both statements are false

    10. I. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by
    installment.

    II. In case of doubt, a contract purporting to be an equitable mortgage shall be construed as a


    sale with a right to repurchase.

    A. First statement is true, second statement is false.


    B. First statement is false, second statement is true.
    C. Both statements are true.
    D. Both statements are false

    II. TRUE or FALSE. Write Yes if the statement is true and No if the statement is false.
    11. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment. -T
    12. 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. - T
    13. Warranty against eviction is inherent in a contract of sale; hence it is an essential element thereof – F
    14. A sales contract requires the delivery of the thing sold for its perfection. F
    15. It is not necessary that the vendor of a thing must be the owner thereof at the time of sale as long as he
    can transfer its ownership to the buyer upon delivery.
    16. Warranty against eviction is inherent in a contract of sale; hence it is an essential element thereof – F
    17. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold only if he was
    aware thereof. - F
    18. Sale is a real contract because delivery is necessary to transfer ownership to the buyer. – F
    19. Future inheritance may not be a subject of a contract of sale. – F
    20. The seller must be in possession of the goods before he could enter into a contract of sale – F

    III. ENUMERATION. Give what is being asked.


    21-25. Give 5 obligation of a seller.
    26-30. Characteristics of a contract of sale.
    31-33. Essential requisites of a contract of sale.
    34-35. Define contract of sale.
    36-40. Give the three (3) remedies of a seller in case of sale of personal property.
    41-45. The different kinds of constructive delivery.

    IV. ESSAY. Answer the questions and support it with legal basis. A mere yes or no will not earn a
    point.

    (46-55) .Sergio is the registered owner of a 500-square meter land. His friend, Marcelo, who has long been
    interested in the property, succeeded in persuading Sergio to sell it to him. On June 2, 2012, they agreed on
    the purchase price of P600,000 and that Sergio would give Marcelo up to June30, 2012 within which to raise
    the amount. Marcelo, in a light tone usual between them, said that they should seal their agreement through a
    case of Jack Daniels Black and P5,000 "pulutan" money which he immediately handed to Sergio and which the
    latter accepted. The friends then sat down and drank the first bottle from the case of bourbon.
    On June 15, 2013, Sergio learned of another buyer, Roberto, who was offering P800,000 in ready cash for the
    land. When Roberto confirmed that he could pay in cash as soon as Sergio could get the documentation ready,
    Sergio decided to withdraw his offer to Marcelo, hoping to just explain matters to his friend. Marcelo, however,
    objected when the withdrawal was communicated to him, taking the position that they have a firm and binding
    agreement that Sergio cannot simply walk away from because he has an option to buy that is duly supported
    by a duly accepted valuable consideration.

    (A) Does Marcelo have a cause of action against Sergio? (5)


    (B) Can Sergio claim that whatever they might have agreed upon cannot be enforced because any
    agreement relating to the sale of real property must be supported by evidence in writing and they never
    reduced their agreement to writing? (5)
    (56-60). A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of agreement of sale
    written in the Bicolano dialect. One week later, A sold the same parcel of land to C for P4M. This is evidenced
    by a formal deed of sale. Upon buying the property, C, who was aware of the first sale immediately took
    possession of the lot. When informed of the second sale, B subsequently registered an adverse claim to the
    property. Later, C registered the deed of sale in her favor. Who has the better right as between the parties? (5
    points)

    (61-70). Simo is selling his car worth 1.5M to Ariel. Ariel gave an earnest money amounting to P500,000 to
    Simo so the latter delivered the car. The balance of 1M is payable within six month from August 15, 2017. On
    September 5, 2017, Ariel met an accident but miraculously survived it but left the car totally damaged.
    (a) Who bears the loss of the car? (5)
    (b) Does Simo has the right to recover the balance of 1M from Ariel even if the car was totally destroyed by
    the accident? (5)

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