Sales 2 Flashcards
The vendee has the right to the fruits of the thing sold from the time of the perfection of the contract.
TRUE
The right of rescission only becomes available to the vendee in case the lack in area in a real property is more than 1/10 than that stated or stipulated.
FALSE
If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have taken possession thereof in good faith, if the thing is a movable property.
TRUE
If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have taken possession thereof in good faith, if the thing is an immovable property.
FALSE
An implied warranty is any affirmation of fact or any promise by the seller relating to the thing, the natural tendency of which is to induce the buyer to purchase the thing.
FALSE
An express warranty is any affirmation of fact or any promise by the seller relating to the thing, the natural tendency of which is to induce the buyer to purchase the thing.
TRUE
Eviction shall take place whenever by a final judgement based on a right prior to the sale or an act imputable to the vendor, the vendee is deprived of the whole or a part of the thing purchased.
TRUE
When prescription has commenced to run against the vendor and was already completed before the sale, the vendee can enforce the warranty against eviction.
TRUE
If prescription has started before the sale but has reached the limit prescribed by law after the sale, the vendor is liable for eviction.
FALSE
The judgement debtor is not liable for eviction in judicial sales, unless it is otherwise decreed in the judgment.
FALSE
In case of partial eviction, the vendee has the option either to enforce the vendor’s liability for eviction or to demand the rescission of the contract.
TRUE
If the thing sold has been encumbered with any non-apparent burden or servitude not mentioned in the agreement, of such a nature that the vendee would not have acquired it had he been aware thereof, the vendee can ask for the rescission of the contract.
TRUE
A warranty of fitness is a warranty that goods are reasonably fit for the general purpose for which they are sold.
FALSE
Should the vendee have reasonable grounds to fear the loss of the immovable property sold and its price, he may immediately sue for the rescission of the contract.
FALSE
Where the seller has broken a contract to deliver generic goods, a court may, on the application of the buyer, direct that the contract shall be performed specifically, without giving the seller the option of retaining the gods on payment of damages.
FALSE
An equitable mortgage is one which, although it lacks the proper formalities of a mortgage, shows the intention of the parties to make the property subject of the contract as a security for the fulfilment of an obligation.
TRUE
In a sale with a right to repurchase, in the absence of an express agreement as to the time of the repurchase of the object, the same should be repurchased as such within a period of four years from the date of the contract.
TRUE
In case of a real property, the consolidation of ownership in the vendee by virtue of the failure of the vendor to comply with the provisions of the law shall not be recorded in the Registry of Property without a judicial order.
TRUE
If several persons, jointly and in the same contract, should sell an undivided immovable with a right to repurchase, one of them may exercise the right for more or all of their respective shares.
FALSE
Necessary expenses are those which increase the value of the thing or create improvements thereon.
FALSE
A negotiable document of title can be negotiated.
TRUE
A negotiable document of title is a negotiable instrument.
FALSE
The Bulk Sales law is designed to prevent the defrauding of the buyers by such secret sale in bulk of all or substantially all of a merchant’s stock of goods.
FALSE
If the sale or transfer is in the ordinary course of trade, as long as it involves all or substantially all of a merchant’s stocks, such sale is covered under the Bulk Sales Law.
FALSE
If a creditor delivers to another a non-consumable thing for a fee or consideration, with a stipulation that the exact same thing shall be returned to the creditor, the contract is not a commodatum but a contract of lease.
TRUE
Demi sold to Selena a computer worth P50,000 payable in five equal monthly instalments. Selena defaulted in one of the payments. Which is true?
A. seller can foreclose the chattel mortgage if one has been constituted
B. seller can ask for the rescission of the contract
C. seller can exact fulfilment of the obligation
D. seller can avoid the contract of sale
C. seller can exact fulfilment of the obligation
Monica misplaced her cellular phone while she was playing tennis. It was found by a spectator and sold to Mighty Cellular Shop. Steffi saw the phone and bought it from Mighty Cellular Shop. Who is the owner of the phone?
A. Steffi, since she bought the phone from a merchant’s store
B. Monica, since she is the original owner of the phone
C. Mighty Cellular Shop, since it cannot be determined who between Steffi and Monica is the owner of the phone
D. no one, since the phone is a lost and found article
A. Steffi, since she bought the phone from a merchant’s store
Shaggy sold to Scooby a cellular phone of January 1, 2022. On January 10, 2022, Shaggy then sold the same phone to Velma who took actual possession thereof. Which is true?
A. Velma is the owner of the phone since she was the first in possession thereof
B. Scooby is the owner of the phone since such phone was first sold to him
C. Scooby is the owner of the phone since he is the one who can present the older title
D. Shaggy remains the owner of the phone since it cannot be determined who between Scooby and Velma is the owner thereof
A. Velma is the owner of the phone since she was the first in possession thereof
Shaggy sold to Scooby a piece of land worth P1,000,000 on January 1, 2022. Scooby then registered the sale. On January 10, 2022, Shaggy then sold the exact same land to Velma then occupied such piece of land. Who is the owner of the land?
A. Scooby, since he was the one who first registered the sale
B. Velma, since she was the one in possession thereof
C. Scooby, since he can present the oldest title
D. none of the above
A. Scooby, since he was the one who first registered the sale
In which of the following is warranty applicable?
A. sale of animals at fairs
B. sale of animals at a public auction
C. sale of animals as a team
D. sale of livestock sold as condemned
C. sale of animals as a team
Fred, a farmer, with an intention of planting watermelon, bought from Daphne one hectare of agricultural land. Fred told Daphne of his intention. Upon delivery, only ½ of the land is hilly, the other half cannot be planted with watermelon because it is a low land. Can farmer Fred rescind the contract of sale?
A. yes, since no portion of land is suitable for watermelons
B. no, since only ½ is not suitable for watermelons
C. yes, since farmer Fred would not have bought the land had he known that ½ cannot be planted with watermelons
D. no, since the action should only be for a proportion reduction of the price and not rescission
C. yes, since farmer Fred would not have bought the land had he known that ½ cannot be planted with watermelons
Three of the following are characteristics of a contract of sale. Which one is the exception?
A. onerous contract
B. commutative contract
C. accessory contract
D. none of the above
C. accessory contract
Consider the following statements:
(i)The Statute of Frauds is applicable only to executory contracts.
(ii) Partial performance, like writing, furnishes reliable evidence of the intention of the contracting parties.
Which is correct?
A. (i) and (ii) are true
B. (i) is true while (ii) is false
C. (i) is false while (ii) is true
D. (i) and (ii) are false
A. (i) and (ii) are true
Jackson sold to Oliver a cherry red Ferrari for P5,000,000, payable in 10 equal monthly instalments. Oliver failed to pay the first and second instalments. What can Jackson do?
A. exact fulfilment of the obligation
B. cancel the sale
C. foreclose the chattel mortgage if one has been constituted
D. all of the above
D. all of the above
Kurt sold to Rachelle a grand piano for P1,000,000 by simply pointing at it. Which is true?
A. there was no sale
B. there was a sale but no delivery
C. there was perfection of the contract but no transfer of ownership
D. none of the above
D. none of the above
Kurt, a sugar miller, and Artie, a manufacturer and dealer in whiskey, entered into an agreement whereby Kurt was to deliver sugar worth P10,000 to Artie, who is to give Kurt 100 bottles of whiskey, worth P10,000. What contract was entered into by Kurt and Artie?
A. an agency to sell
B. a contract of sale
C. a contract of barter or exchange
D. a contract for services
C. a contract of barter or exchange
Kurt, a sugar miller, sold to Artie, a manufacturer and dealer in whiskey, sugar worth P10,000, whereby Artie will in turn give to Kurt the sum of P2,000 and 80 bottles of whiskey worth P8,000. Which of the following is correct?
A. the contract is a contract of sale
B. the contract is a contract of an agency to sell
C. the contract is a contract of barter or exchange
D. the contract is a contract of loan
A. the contract is a contract of sale
three of the following are implied warranties in a contract of sale. Which is the exception?
A. reasonably fit for the purpose they are acquired
B. right to sell the thing at the time of the perfection of the contract
C. merchantable in quality
D. free from charges or encumbrances no declared or known to the buyer
B. right to sell the thing at the time of the perfection of the contract
Consider the following: The vendor of personal property payable in instalments may
(i) elect fulfilment upon the vendee’s failure to pay. He may also (ii) cancel the sale, if the vendee shall have failed to pay three or more instalments. Which is correct?
A. (i) is true and (ii) is true
B. (i) is true and (ii) is false
C. (i) is false and (ii) is true
D. (i) is false and (ii) is false
B. (i) is true and (ii) is false
If the price is not certain:
A. the transaction is void
B. the price is to be fixed as such by the court
C. the sale is unenforceable
D. none of the above
A. the transaction is void
Mercedes verbally sold to Kurt a parcel of land at a price of P1,000.000. Which of the following is true?
A. the sale is unenforceable
B. the sale is void
C. the sale is inexistent
D. none of the above
A. the sale is unenforceable
Mercedes sold to Kurt a parcel of land at a price of P1,000,000. The parties then put their contract in a private instrument.
A. the contract is valid as well as binding as between Mercedes and Kurt
B. the contract is valid as well as binding as against the whole world
C. the contract is valid between Mercedes as against the whole world
D. none of the above
A. the contract is valid as well as binding as between Mercedes and Kurt
Three of the following are conditional sale. Which is the exception?
A. sale of expectancy
B. sale with a right to repurchase
C. sale of a vain hope
D. sale subject to a contingency
C. sale of a vain hope
Emma sold to Bonnie a parcel of land for a lump sum of P500,000. 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. Emma is bound to deliver 500 square meters and Bonnie to pay P500,000
B. Emma is bound to deliver 500 square meters and Bonnie to pay P550,000
C. Emma or Bonnie may rescind the sale because there was no meeting of the minds
D. none of the above
D. none of the above
Emma sold to Bonnie a parcel of land for a lump sum of P500,000. The contract states that the area is 500 square meters. Subsequently, it was ascertained that the area included within the boundaries is only 445 square meters.
A. Emma is bound to deliver 500 square meters and Bonnie to Pay P500,000
B. Emma is bound to deliver 445 square meters and Bonnie to pay P445,000
C. Emma or Bonnie may rescind the sale because the lack in area is more than 1/10 of the total area
D. none of the above
D. none of the above
Consider the following statements:
(i) To constitute a sale by sample, it must appear that the parties contracted solely with reference to the sample, with the understanding that the bulk was like it.
(ii) When a sale is made both by sample and description, it is enough that the goods correspond to the warranties of either one of them.
A. (i) and (ii) are true
B. (i) is false and (ii) is true
C. (i) is true and (ii) is false
D. (i) is false and (ii) is false
C. (i) is true and (ii) is false
Candace owns a mango tree bearing fruits, ready for harvest. She sells all the fruits of that tree to Jeremy who pays her the sum of P5,000. Candace tells Jeremy that he can just harvest the fruits anytime he likes pointing to that particular tree. For legal purposes, Candace has fulfilled her obligation to deliver the mango fruits to Jeremy through
A. traditio brevi manu
B. traditio simbolica
C. traditio longa manu
D. quasi-traditio
C. traditio longa manu
Phineas chanced upon fountain pen which he knows belongs to Ferb. He then sold the pen to Perry Bazaar who pays for it in good faith. Perry Bazaar then sold it to Stassi, an accountancy student of the University of San Carlos.
A. Perry Bazaar having bought the pen in good faith becomes the legal owner, and as such, it can transfer ownership to Stassi
B. ownership passed to Stassi since she bought the pen from a merchant store
C. Ferb may recover the pen from Stassi without reimbursement because he is the legal owner
D. Stassi cannot become the owner since Perry Bazaar, the seller, is not the owner thereof.
B. ownership passed to Stassi since she bought the pen from a merchant store
Are those things which are needed for sustenance, dwelling, clothing, and medical attendance
A. future goods
B. necessaries
C. subject matter of a contract
D. some other answer
B. necessaries
Is a derivative mode of acquiring ownership by virtue of which one who has the right and intention to alienate a corporeal thing, transmits it by virtue of a just title to one who accepts the same
A. tradition
B. quasi-traditio
C. sale
D. contract of agency to sell
A. tradition
