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Midterm Sales
Midterm Sales
MIDTERM EXAM
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
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.
II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain
is binding upon the promissory.
10. I. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by
installment.
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
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.
(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)