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CPAR
QUIZ- Business Law and Taxation
- 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
- X, 17 years old, sold to Z, of legal age, her necklace worth P20,000 for P15,000. Later, Z sold the necklace to Y for P20,000. Which of the following statements is correct?
A. X has got a voidable title because at the time of sale, she is a minor B. X can ask for rescission of the sale to Y because she suffered a lesion of more than ¼ of the value of the property. C. If Y is in bad faith, Y becomes the owner of the necklace upon delivery to him but his title is voidable. D. X can ask for the annulment of the sale to Y because at the time of sale she is a minor.
- This serves as a proof of the perfection of the contract of sale
A. Dacion en pago B. Option money C. Delivery D. Arras
4.A contract of sale is not a(an)
A. Onerous contract B. Accessory contract C. Commutative contract D. Bilateral contract
5.Warranty against hidden defects is
A. An essential element B. A natural element C. An accidental element D. An artificial element
- When a sale of a piece of land or any interest therein is through an agent, the authority of the agent shall be in writing, otherwise the sale is
A. Valid B. Voidable C. Unenforceable D. Void
- The sale of an expected thing
A. Dacion en pago B. Payment by cession C. Emptiospei
D. Emptio rei-speratae
- The sale of the hope itself
A. Dacion en pago B. Payment by cession C. Emptio spei D. Emptio rei-speratae
- One of the following is not correct
A. Things subject to a resolutory condition may be the object of the contract of sale. B. A thing is generic when it is particularly designated or physically segregated from all others of the same class. C. Things having a potential existence may be the object of the contract of sale. D. The sole owner of a thing may sell an undivided interest therein
- X needs a size of 10 of model 101 of Leather Shoes regularly available to the public for her boyfriend Z, but the same is out of stock so she placed an order for one. On the other hand, Z placed an order for size No. 8, colored violet, (something not ordinarily made by the company) to be given to X. Which is correct?
A. Both are contracts of sale B. Both are contracts for a piece of work C. First is a contract of sale second is a contract for a piece of work D. First is a contract for a piece of work, second is a contract of sale
- 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, C. V and DD should shoulder the P3,000,000 difference D. DD cannot compel V to accept the P12,000,000 first offered
- If the object of the contract is specially made or manufactured at the specific order of another, it is a contract for a piece of work. This is
A. English rule B. Massachusetts rule C. New York rule D. Chicago rule
- If the article already exists and subsequently acquired by another, it is a contract of sale, and if the article is still to be manufactured at the instance of another, it is a contract for a piece of work. This is
A. English rule B. Massachusetts rule C. New York rule D. Chicago rule
- If the material used in the manufacturer of the article is more valuable, it is a contract of
D. When the carrier or bailee, upon arrival of the goods at destination acknowledges to the buyer or his agent that he is holding the goods as bailee for the latter.
- Goods are deemed no longer in transit
A. If the goods are rejected by the buyer for a valid reason and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back. B. From the time they are delivered to a carrier by land, water or air for the purpose of transmission to the buyer. C. From the time they are delivered to a bailee for the purpose of transmission to the buyer until the buyer or his agent in that behalf, takes delivery of them from such bailee. D. If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf.
- X sold to V orally a parcel of land for P200,000. X effected the delivery of the land. The payment of the price was to be made three month later. At the end of three month period
A. V may refuse to pay claiming in his defense the Statute of Frauds B. V may return the parcel of land to X C. X can collect from V because the contract has already been executed D. V may refuse to pay on the ground that there is no written contract to support the sale.
- On January 15, 2010, X sold for P2M her house and lot to V. It was agreed that delivery of the house and lot, and the payment therefore, would be made on March 10, 2010. Unfortunately, Z a stranger negligently set the house on fire on February 25, 2010, and the house was completely destroyed. Which is correct?
A. V is not required to pay the P2M since the contract had no subject matter. B. X must still deliver the lot but is excused from delivering the house, while V must still pay the P2M C. X must deliver the lot while V should pay only the amount equivalent to the value of the lot. D. X need not deliver the lot while V need not pay the P2M
- If immovable property should have been sold to different vendees, the ownership shall be transferred to the person
A. Who have first taken possession in good faith B. Who presents the oldest title in good faith C. Who in good faith first recorded it in the Registry of Property D. Who have paid in good faith the purchase price in full
- Using the preceding number, if movable property, it shall belong to the person
A. Who have paid in good the purchase price in full B. Who in good faith first recorded it in the Registry of Property C. Who presents the oldest title in good faith D. Who have first taken possession in good faith
- Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object of sale unfit for the use intended or knowledge of which the vendee should not have bought the thing
A. Accion quanti minoris B. Accion reinvidicatoria C. Accion pauliana D. Redhibilitory action
- Action to seek a corresponding reduction in price by reason of some vices or defects in the thing purchased
A. Accion quanti minoris B. Accion reinvidicatoria C. Accion pauliana D. Redhibilitory action
- The redhibitory action based on the faults or defects of animals must be brought within
A. 30 days from delivery to the vendee B. 40 days from delivery to the vendee C. 45 days from delivery to the vendee D. 6 months from delivery to the vendee
- In contract of sale, if the price is absolutely simulated, the sale is
A. Unenforceable B. Voidable C. Void D. Rescissible
- 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.
- The right of the seller to stop goods in transit, upon discovering that the buyer does not have the funds to pay for the goods
A. Pre-emptive right B. Appraisal right C. Voting right D. Right of stoppage in transit
- 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. The parcel of land shall belong to
A. B because he has got an older title B. C because he is the first to register C. C because he is the first to take possession D. No one as both sales are void
- Voluntary renunciation made by the buyer of his right to warranty against eviction where in case the buyer is evicted, the seller is liable to the value of the thing at the time of eviction.
A. Waiver intentionada
A. C cannot be considered as the owner because the original seller (X) is not the real owner. B. P may recover the fountain pen from C without reimbursement because he is the legal owner. C. C became the owner because he purchased the pen from a merchant store D. C became the owner regardless of whether the seller is a store for pens or not because C bought it in good faith.
- 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
- Quasi-traditio is equivalent to
A. Traditio longa manu B. Traditio brevi manu C. Traditio constitutum possessorium D. Execution of a public instrument
- Vi imported radios from Taiwan and asked for 220 volts radios. The radios arrived clearly labeled 220 volts and Vi sold them to the public as such. Later the customer complained that the radios have been mislabeled by the manufacturer and that they were good only for 110 volts. As a consequence
A. Vi is liable to the vendees for any hidden defects even though he is not aware. B. Vi is not liable because he is in good faith C. Vi is not liable under the principle of “caveat emptor” or let the buyer beware D. The vendees may hold the manufacturer liable but not Vi because Vi specifically asked for 220 volts
- If the redemption is to be made by the seller, one of the following need not be given to the Buyer
A. Expenses of the contract B. Interest on the price of the sale C. Necessary expenses on the thing sold D. Price of the sale
- Not an element of the sellers right of stoppage in transit
A. The goods must be in transit B. The buyer must be insolvent C. The seller must be in possession of the goods D. The seller must be unpaid
- A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B and the balance at P10,000 per month until full payment of the purchase price. Later the car gets burned in the possession of B through fortuitous event and without B’s fault, before full payment of the balance. Is B obliged to pay the balance?
A. No, because the car was lost through fortuitous event and without B’s fault, hence B’s obligation is extinguished. B. No, because the loss should be borne by the seller as this an installment sale so until the buyer pays the full amount of the price of the sale, A remains to be the owner.
C. Yes, but A must give another car to B because of the principle “genus nunquam perit” or generic thing never perishes D. Yes, because the principle “res perit domino” or the thing perishes with the owner.
- A, B and C are co-owners of an undivided parcel of land, A sold his 1/ 3 interest to B absolutely. Which is correct?
A. C may exercise his right of redemption of the interest sold by A to B B. C cannot exercise the right of redemption because the sale was made in favor of a co-owner C. The sale made by A to B is void because it was not made in favor of a stranger D. C may redeem only 1 /2 of the interest sold by A to B
- Using the preceding number, suppose, instead of selling his interest to B, A sold it to D, who can exercise the right of redemption?
A. Both B and C B. B but not C C. C but not B D. A, B and C
- Which of the following cannot be the object of a contract of sale?
A. Sale of credit B. Young animal not yet conceived at the time of perfection C. Land which the seller expects to buy D. Future inheritance
- 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
- X sold his motor vehicle to V who bought it for P200,000. It turned out however, that X has 2 motor vehicles: Toyota valued at P230,000 and Lancer valued at P220,000. Which is correct?
A. There is no contract of sale between X and V B. The parties may ask for interpretation or reformation C. The parties can ask for annulment of the contract D. V may choose between the Toyota or Lancer
- X offers to V 100 electric fans for P80,000 payable in 60 days with 12% interest per annum. V accepted the offer by telegram provided that interest is reduced to 6%. If there is no further communication between X and V relating to the terms
A. The contract is perfected because of the acceptance by V B. There is no contract yet between X and V because V made a counter offer C. The contract is perfected under the terms of X D. There is no contract yet unless v gives earnest money
- X owns 50 mango trees bearing fruits, ready for harvest. She told all the fruits of all the trees to V who paid P100,000. X told V that he can harvest her fruits anytime he likes and
- X leased to V a 5 Freezer for two years at a lease rental fee of P1,000 per month and signed an option in favor of V to buy the freezers at the end of the term of the lease at P50,000. All rental fee paid are to be considered as partial payment of the sale. After 12 months V was able to pay the rental fee for 9 months and was in arrears for three months. X terminated the lease contract and repossessed the freezers. The consequence of the transaction is
A. X can collect the rental fees for three months which are in arrears. B. X can collect the rental fees for the unexpired 12 months of the lease contract. C. When X took possession of the freezer, he has no further action against V D. X in terminating the lease and repossessing the freezer is obliged to refund the 9 months rental fee, paid by V even if there is a stipulation to the contrary.
- X sold his car to Z for P60,000. No date was fixed for the performance of the obligation of the seller and the buyer. The obligation of X is
A. To deliver the car immediately because the sale is a perfected contract B. To deliver the car only after Z writes to X demanding the delivery of the car. C. To deliver the car only after Z pays the P60, D. To rescind the contract because there is no time fixed for the delivery
- I. The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the owner at the time the thing sold is delivered.
II. The sale of a vain hope or expectancy is voidable.
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.
- 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
- I. If the price is grossly inadequate, the sale is void.
II. Whenever option money is given in a contract of sale, it shall be considered as part of the price and a proof of the perfection of the contract.
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
- I. Earnest money and option money both apply to perfected sale.
II. In a contract of sale of personal property the price of which is payable in installment, the vendor may cancel the sale should the vendee fail to pay.
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
- I. Should the vendee’s failure to pay, cover two or more installments, the vendor may foreclose the chattel mortgage on the thing sold but he shall have no further action against the purchaser to recover any unpaid balance of the price, except if there is an agreement to the contrary.
II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection.
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
- 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
- I. The husband and the wife cannot sell property to each other, as a rule.
II. The sale of a piece of land or interest therein when made thru an agent is void unless the agent’s authority is in writing even if the sale itself is in s public instrument and has been registered.
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
- I. The expenses for the execution and registration of the sale shall be borne by the vendee, unless there is a stipulation to the contrary.
II. 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.
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
- I. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void.
II. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold only if he was aware thereof.
A. First statement is true, second statement is false.
D. Both statements are false
- 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
- I. The creditors of the vendor cannot make use of the right of redemption against the vendee, until they have exhausted the property of the vendor.
II. Sale is a real contract because delivery is necessary to transfer ownership to the buyer.
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
-end of quiz-
