Identification

Question 1

What is the term for a contract where a buyer pays for goods in installments over time?

Answer 1

Sales on Credit

Question 2

It refers to the item being sold in a sales transaction

Answer 2

Subject Matter

Question 3

What is the right of a co-owner to redeem a sold share from a third party?

Answer 3

Legal Redemption by Co-owners

Question 4

This characteristic of a sale means that both parties have reciprocal obligations

Answer 4

Bilateral Contract

Question 5

This transaction involves the exchange of goods or services without using money.

Answer 5

Barter

Question 6

In a pacto de retro sale, what do you call the seller who has the right to repurchase?

Answer 6

Vendor a Retro

Question 7

What is the term for a sale where the vendor reserves the right to buy back the property sold?

Answer 7

Conventional Redemption

Question 8

This is the most formal method of forming a contract of sale, ensuring clarity and reducing disputes.

Answer 8

In Writing

Question 9

In this transaction, a debtor assigns all assets to creditors so they may sell them and satisfy outstanding obligations.

Answer 9

Payment by Cession

Question 10

This contract is independent and does not rely on another agreement for its validity.

Answer 10

Principal Contract

Question 11

A remedy for an unpaid seller where the seller can sue the buyer to recover the agreed-upon price of the goods that were sold but not yet paid for.

Answer 11

Action for Price Exercised

Question 12

A remedy for an unpaid seller where it is a legal right that allows a seller to retain possession of the goods sold until the buyer makes payment for the goods

Answer 12

Possessory Lien

Question 13

It assures the buyer that the goods or service is free from defects, and it is a legally binding commitment.

Answer 13

Warranty

Question 14

Type of warranty that is not explicitly stated by the seller but is automatically applied by law to protect consumers

Answer 14

Warranty of Merchandibility

Question 15

Type of warranty that assures the buyer that the product will perform as expected for the specific use intended, even if it is not explicitly stated in the sales agreement.

Answer 15

Warranty of Fitness for a particular purpose

Question 16

A legal remedy where the consumer can demand a new unit that is free from the defects plaguing the initial purchase.

Answer 16

Replacement

Question 17

A legal remedy where the consumer may also opt for a complete _____ of the purchase price.

Answer 17

Refund

Question 18

It is defined as a transaction involving the transfer of goods, services, funds, property or rights, thereby creating an obligation on the part of those who receive them, that must be complied with in the future.

Answer 18

Credit

Question 19

Characteristics of Sale where it stands independently and does not rely on another agreement for its validity.

Answer 19

Principal Contract

Question 20

The conditions under which the sale on credit occurs.

Answer 20

Credit Term

Question 21

The law that regulates the sale of subdivision lots and condominium units and imposes penalties for violations.

Answer 21

PD 957

Question 22

The law that governs the sale and ownership of condominium units, ensuring that developers meet their obligations and protecting buyers from exploitation.

Answer 22

RA 4726/Condominium Act

Question 23

It provides a grace period for buyers to settle their arrears and avoid losing their property.

Answer 23

Maceda Law

Question 24

Presidential Decree No. 957 was issued by _____

Answer 24

President Ferdinand Marcos

Question 25

The legal document that a developer must secure before selling subdivision lots and condominium units.

Answer 25

License to Sell

Question 26

The obligation of developers to transfer to buyers after full payment, with no extra fees except registration costs.

Answer 26

Delivery of Title

Question 27

What law governs the installment sales of personal property in the Philippines?

Answer 27

Recto Law

Question 28

Who was the senator responsible for enacting the Installment Sales Law in 1933?

Answer 28

Senator Claro M. Recto

Question 29

Which article in the Civil Code contains the Recto Law?

Answer 29

Article 1484

Question 30

What is the legal term for the seller's right to take back the property if the buyer fails to pay two or more installments?

Answer 30

Cancellation of sale

Question 31

What remedy prohibits the seller from pursuing the buyer for any deficiency after repossessing and selling the property?

Answer 31

Foreclosure of chattel mortgage

Question 32

Which article in the Civil Code extends the application of Article 1484 to lease contracts with an option to buy?

Answer 32

Article 1485

Question 33

What principle prevents a seller from choosing multiple remedies under the Recto Law?

Answer 33

Seller's obligation to elect a remedy

Question 34

The law that protects real estate buyers in installment sales.

Answer 34

Maceda Law

Question 35

The full name of the Maceda Law.

Answer 35

Realty Installment Buyer Protection Act

Question 36

The minimum refund percentage under Maceda Law.

Answer 36

50%

Question 37

The required notice period before cancellation.

Answer 37

30 days

Question 38

The maximum refundable percentage under Maceda Law.

Answer 38

90%

Question 39

The minimum grace period per year of payment under Maceda Law.

Answer 39

1 month per year of payments

Question 40

The senator who authored the Maceda Law

Answer 40

Senator Ernesto Maceda

Question 41

It is a form of agency that arises when the principal’s actions, silence, or failure to repudiate indicate consent to the agency relationship.

Answer 41

Implied Agency

Question 42

Under the Nature of Agency, it is based on trust and confidence.

Answer 42

Personal Nature

Question 43

A person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.

Answer 43

Agency

Question 44

Under the ways of informing Third Persons, if a person states by public advertisement that he has given a power of attorney to a third person, the latter thereby becomes a duly authorized agent with regard to any person.

Answer 44

Public Advertisement

Question 45

It is a contract where a debtor delivers a movable property to a creditor as security for a debt.

Answer 45

Pledge

Question 46

It is a legal term that refers to a contractual clause in a pledge or mortgage agreement where the creditor automatically acquires ownership of the collateral in case the debtor defaults.

Answer 46

Pactum Commissorium

Question 47

It refers to a loan where real property (such as land or buildings) is used as collateral.

Answer 47

Real Mortgage

Question 48

It involves personal property (often movable items) being used as collateral for a loan. This type of mortgage is often used for items like cars, machinery, or other equipment.

Answer 48

Chattel Mortgage

Question 49

It is a type of agent or entity that acts on behalf of another (the principal) to perform specific tasks or transactions, and receives compensation in the form of a commission for their services.

Answer 49

Commission Agent

Question 50

It is also known as the “Del Credere Agency.”

Answer 50

Guarantor Agency

Question 51

This provision incentivizes the agent to be careful in selecting buyers and managing credit terms. Since they are taking on the risk, they have a strong interest in ensuring the buyer is creditworthy.

Answer 51

Due Diligence

Question 52

This specific article says that when two or more principals have granted a power of attorney for a common transaction, any one of them may revoke the same without the consent of the others.

Answer 52

Art. 1925

Question 53

This specific article says that the appointment of a new agent for the same business or transaction revokes the previous agency from the day on which notice was given to the former agency, without prejudice to the provisions of the two preceding articles.

Answer 53

Art. 1923

Question 54

This specific article says that the principal may revoke the agency at will, and compel the agent to return the document evidencing the agency. Such revocation may be express or implied.

Answer 54

Art. 1920

Question 55

This specific article says that if agency has been entrusted for the purpose of contracting with specified persons, its revocation shall not prejudice the latter if they were not given notice thereof.

Answer 55

Art. 1921

Question 56

Under the ways of informing Third Persons, if a person specially informs another that he has given a power of attorney to a third person, the latter thereby becomes a duly authorized agent with respect to the person who received the special information.

Answer 56

Special Information

Question 57

The power of attorney shall continue to be in full force until the notice is rescinded in the same manner in which it was given.

Answer 57

Manner of Rescission

Question 58

Under the Nature of Agency, the agent acts on behalf of the principal, and their decisions and actions, are legally considered as the principal’s actions.

Answer 58

Representative Nature

Question 59

Under the Nature of Agency, the agent’s authority comes directly from the principal and is limited to the powers granted. Actions beyond this authority may not be legally binding.

Answer 59

Derivative Nature

Question 60

It is the person who grants authority to another to act on their behalf

Answer 60

Principal