Law on Sales - Law on Pledge

Question 1

1. RECTO LAW is applicable if:
   a. The contract involves a sale of real property paid prior delivery, and the buyer refused to accept the object
   b. The contract involves a sale of personal property, payable in installments, and the buyer failed to pay two or more installments
   c. The contract involves a sale of personal property, paid prior to the delivery, and the buyer refused to accept the object
   d. The contract involves a sale of real property, payable in installments, and the buyer failed to pay two or more installments

Answer 1

b. The contract involves a sale of personal property, payable in installments, and the buyer failed to pay two or more installments

Question 2

2. 1st statement: The remedies of unpaid seller as provided for in RECTO LAW are alternative
   2nd statement: The remedies of unpaid seller as provided for in RECTO LAW are cumulative
   a. 1st statement is FALSE, 2nd statement is FALSE
   b. 1st statement is TRUE, 2nd statement is FALSE
   c. 1st statement is FALSE, 2nd statement is TRUE
   d. 1st statement is TRUE, 2nd statement is TRUE

Answer 2

b. 1st statement is TRUE, 2nd statement is FALSE

Question 3

3. One of the objectives of the RECTO LAW is to:
   a. Prevent mortgagors from appropriating automatically the mortgaged proper
   b. Prevent mortgagors from seizing the mortgaged property, buying it at foreclosure sale for a low price and then bringing suit against deficiency judgment.
   c. Prevent mortgagees from seizing the mortgaged property, buying it at foreclosure sale for a low price and then bringing suit against deficiency judgment
   d. Prevent mortgagees from appropriating automatically the mortgaged property

Answer 3

c. Prevent mortgagees from seizing the mortgaged property, buying it at foreclosure sale for a low price and then bringing suit against deficiency judgment

Question 4

4. All of the following are remedies unpaid seller under Recto Law, except:
   a. If the vendee shall have failed to pay two or more installments, the vendor may foreclose the mortgage, if one has been given on the property.
   b. He may elect to exact the fulfillment of the obligation
   c. If the vendee shall have failed to pay two or more installments, the vendor may cancel the sale.
   d. None of the above.

Answer 4

d. None of the above.

Question 5

6. 1st statement: The exercise of one of the remedies bars the exercise of the others.
   2nd statement: Recto Law is an installment sale on real property
   a. 1st statement is TRUE, 2nd statement is FALSE
   b. 1st statement is TRUE, 2nd statement is TRUE
   c. 1st statement is FALSE, 2nd statement is TRUE
   d. 1st statement is FALSE, 2nd statement is FALSE

Answer 5

a. 1st statement is TRUE, 2nd statement is FALSE

Question 6

7. 1st statement: The remedies provided for in Article 1484 of the Civil Code are cumulative, not alternative.
   2nd statement: Art. 1484 prevents mortgagees from seizing the mortgaged property, buying it at foreclosure sale for a low price and then bringing suit against the mortgagor for a deficiency judgment.
   a. 1st statement is TRUE, 2nd statement is FALSE
   b. 1st statement is FALSE, 2nd statement is TRUE
   c. 1st statement is TRUE, 2nd statement is TRUE
   d. 1st statement is FALSE, 2nd statement is FALSE

Answer 6

b. 1st statement is FALSE, 2nd statement is TRUE

Question 7

8. 1st statement: The objective of Recto Law is to protect buyers of real estate on installment payments against onerous and oppressive conditions
   2nd statement: The objective of Maceda Law is to protect those who acquire personal property on installment rather than real property.
   a. 1st statement is TRUE, 2nd statement is FALSE
   b. 1st statement is FALSE, 2nd statement is TRUE
   c. 1st statement is TRUE, 2nd statement is TRUE
   d. 1st statement is FALSE, 2nd statement is FALSE

Answer 7

d. 1st statement is FALSE, 2nd statement is FALSE

Question 8

9. To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of:
   a. one month grace period for every one year of installments made
   b. not less than sixty days from the date the installment became due
   c. less than two years of installments were paid
   d. fifty percent of the total payments made, and, after five years of installments

Answer 8

a. one month grace period for every one year of installments made

Question 9

10. This right shall be exercised by the buyer only once in every five years of the life of the contract
    and its extensions.
    a. refund to the buyer the cash surrender value of the payments on the property
    b. to pay without additional interest
    c. actual cancellation of the contract shall take place
    d. the notice of cancellation by notarial act and the full payment of the cash

Answer 9

b. to pay without additional interest

Question 10

11. 1st statement: The seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.
    2nd statement: The seller shall give the buyer a grace period of not more than sixty days from the date the installment became due.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 10

a. 1st statement is TRUE, 2nd statement is FALSE

Question 11

12. 1st statement: Maceda Law requires that for an actual cancellation to take place, the notice of
    cancellation by notarial act and the full payment of the cash surrender value must be first received by the buyer.
    2nd statement: Cancellation of sale is automatic.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 11

a. 1st statement is TRUE, 2nd statement is FALSE

Question 12

13. 1st statement: If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made.
    2nd statement: Where the buyer has paid at least one year of the installments, the buyer is entitled to the rights in case he defaults in the payment of succeeding installments.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 12

a. 1st statement is TRUE, 2nd statement is FALSE

Question 13

14. 1st statement: Acquisition of property under Recto Law is a contract of adhesion.
    2nd statement: Acquisition of property under Maceda Law is a contract of sale.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 13

d. 1st statement is FALSE, 2nd statement is FALSE

Question 14

15. 1st statement: By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent.
    2nd statement: The vendor must have a right to transfer the ownership thereof at the time it is delivered.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 14

c. 1st statement is TRUE, 2nd statement is TRUE

Question 15

16. 1st statement: A contract of sale is an onerous contract.
    2nd statement: A contract of sale is not an accessory contract.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 15

b. 1st statement is FALSE, 2nd statement is TRUE

Question 16

17. It is a preparatory contract that gives one of the parties a right either finalize the contract of sale or not.
    a. Option contract
    b. Quasi-contract
    c. Contract of adhesion
    d. Innominate contract

Answer 16

a. Option contract

Question 17

18. Which of the following can be a valid subject matter of a contract of sale?
    a. Right to vote
    b. Right to collect from a debtor
    c. Public Plaza
    d. Forest land

Answer 17

b. Right to collect from a debtor

Question 18

1st statement: Gross inadequacy of price does not affect a contract of sale, except as it may indicate a defect in the consent.
2nd statement: Contracts where consent is given by mistake or because of violence, intimidation, undue influence or fraud are void.
a. 1st statement is TRUE, 2nd statement is FALSE
b. 1st statement is FALSE, 2nd statement is TRUE
c. 1st statement is TRUE, 2nd statement is TRUE
d. 1st statement is FALSE, 2nd statement is FALSE

Answer 18

a. 1st statement is TRUE, 2nd statement is FALSE

Question 19

20. 1st statement: “Earnest money, under Article 1482 of the Civil Code, is ordinarily given in a perfected contract to sell.
    2nd statement: Whenever earnest money is given in a contract of sale; it shall be considered as part of the price and as proof of the perfection of the contract.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 19

c. 1st statement is TRUE, 2nd statement is TRUE

Question 20

21. 1st statement: The vendor is bound to deliver the thing sold and its accessions and accessories.
    2nd statement: Any stipulation exempting the vendor from the obligation to answer for eviction shall be voidable, if he acted in bad faith.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 20

a. 1st statement is TRUE, 2nd statement is FALSE

Question 21

22. 1st statement: Any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the different item, and if the buyer purchases the thing relying thereon.
    2nd statement: An implied warranty that the thing shall not be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 21

d. 1st statement is FALSE, 2nd statement is FALSE

Question 22

23. 1st statement: The ownership of a movable property shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property.
    2nd statement: Waiver Consciente means that should the vendee have made the waiver with knowledge of the risks of eviction and assumed its consequences.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 22

b. 1st statement is FALSE, 2nd statement is TRUE

Question 23

24. 1st statement: Where goods are delivered to the buyer, which he has not previously examined, he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them.
    2nd statement: When the seller tenders’ delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 23

c. 1st statement is TRUE, 2nd statement is TRUE

Question 24

25. 1st statement: Conventional redemption shall take place when the vendor demands the right to repurchase the thing sold.
    2nd statement: In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage.
    a. 1st statement is TRUE, 2nd statement is FALSE
    b. 1st statement is FALSE, 2nd statement is TRUE
    c. 1st statement is TRUE, 2nd statement is TRUE
    d. 1st statement is FALSE, 2nd statement is FALSE

Answer 24

b. 1st statement is FALSE, 2nd statement is TRUE

Question 25

26. 1st statement: The limitation on period of redemption in the absence of an express agreement, shall last four years from the date of the of contract. 2nd statement: Should there be an agreement, the period cannot exceed to five years. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 25

a. 1st statement is TRUE, 2nd statement is FALSE

Question 26

27. It is the right to be subrogated, upon the same terms and conditions stipulated in the contract. a. Redemption by Co-owner b. Legal Redemption c. Conventional Redemption d. Redemption by Owner of Adjoining Land

Answer 26

b. Legal Redemption

Question 27

28. A purchase in the hope of an uncertain future profit; the purchase of a thing not yet inexistence or not yet in the possession of the seller, as, the cast of a net or a crop to be grown, and the price of which is to depend on the actual gain. a. Emptio Spei b. Emptio Rei Speratae c. Pacto de Retro Sale d. Expropriation

Answer 27

a. Emptio Spei

Question 28

29. The following requisites are essential to the contracts of pledge and mortgage, except: a. That they be constituted to secure the fulfillment of an principal obligation b. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged c. That the persons constituting the pledge or mortgage have the free disposal of their property d. Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property.

Answer 28

d. Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property.

Question 29

30. 1st statement: The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them unless there is a stipulation to the contrary. 2nd statement: When the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 29

d. 1st statement is FALSE, 2nd statement is FALSE

Question 30

31. 1st statement: Real contracts, such as deposit, pledge and commodatum, are not perfected before the delivery of the object of the obligation. 2nd statement: In order to constitute the contract of pledge, that the thing pledged be placed in the possession of the creditor, or of a third person by common agreement. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 30

b. 1st statement is FALSE, 2nd statement is TRUE

Question 31

32. 1st statement: Delivery implies a change in the actual possession of the property pledged and that a mere symbolic delivery is not sufficient. 2nd statement: Movables and immovables which are within commerce may be pledged, provided they are susceptible of possession. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 31

a. 1st statement is TRUE, 2nd statement is FALSE

Question 32

33. The instrument proving the right pledged shall be delivered to the creditor, and if negotiable, must be indorsed. a. Negotiable Instrument b. Public Document c. Incorporeal Rights d. Private Document

Answer 32

c. Incorporeal Rights

Question 33

34. 1st statement: A pledge shall not take effect against third persons if a description of the thing pledged and the date of the pledge appears in a public instrument. 2nd statement: The ownership of the thing pledged is transmitted to the vendee or transferee as soon as the pledgee consents to the alienation, but the latter shall continue in possession. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 33

b. 1st statement is FALSE, 2nd statement is TRUE

Question 34

35. 1st statement: The contract of pledge deprives the creditor the right to retain the thing in his possession or in that of a third person to whom it has been delivered, until the debt is paid. 2nd statement: The creditor shall take care of the thing pledged with the diligence of a good father of a good family. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 34

d. 1st statement is FALSE, 2nd statement is FALSE

Question 35

36. 1st statement: The right to the reimbursement of the expenses made for its preservation, and is liable for its loss or deterioration, in conformity with the provisions of this Code, is upon the buyer’s burden. 2nd statement: The pledgee cannot deposit the thing pledged with a third person, unless there is a stipulation authorizing him to do so. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 35

b. 1st statement is FALSE, 2nd statement is TRUE

Question 36

37. 1st statement: The pledgee is responsible for the acts of his agents or employees with respect to the thing pledged. 2nd statement: If the pledge earns or produces fruits, income, dividends, or interests, the creditor shall compensate what he receives with those which are owing him. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 36

c. 1st statement is TRUE, 2nd statement is TRUE

Question 37

38. It takes place when an attachment or seizure of property in litigation is ordered. a. Extra Judicial Deposit b. Judicial Deposit c. Necessary Extra Judicial Deposit d. Voluntary Extra Judicial Deposit

Answer 37

b. Judicial Deposit

Question 38

39. Which of the following makes a deposit necessary? a. When it is made in compliance with a natural obligation b. When it takes place on the occasion of any calamity c. When the delivery is made by the will of depositor d. When an attachment or seizure of property in litigation is ordered.

Answer 38

b. When it takes place on the occasion of any calamity

Question 39

40. 1st statement: The debtor can ask for the return of the thing pledged against the will of the creditor. 2nd statement: If through the negligence or willful act of the pledgor, the thing pledged is in danger of being lost or impaired, the pledgee may require that it be deposited with a third person. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 39

d. 1st statement is FALSE, 2nd statement is FALSE

Question 40

41. Changing the thing pledged is possible if: a. The thing is of the same kind and inferior quality b. The thing is a different kind but is in superior quality c. The thing is of the same kind but is in inferior quality d. The thing is of the same kind but is in superior quality

Answer 40

d. The thing is of the same kind but is in superior quality

Question 41

42. 1st statement: The right of redemption of co-owners excludes that of adjoining owners. 2nd statement: The right of legal redemption or redemption shall not be exercised except within thirty days from the notice in writing by the prospective vendor a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 41

a. 1st statement is TRUE, 2nd statement is FALSE

Question 42

43. Contract of sale of future things which must be determinate or specific; it won't apply to things that are generic because generic things aren't lost under legal fiction a. Emptio Spei b. Emptio Rei Speratae c. Pacto de Retro Sale d. Expropriation

Answer 42

b. Emptio Rei Speratae

Question 43

44. The MACEDA LAW is NOT applicable on the following, EXCEPT: a. Financing of house and lot on installment payment b. Sales to tenants under R.A. 6389 c. Commercial buildings d. Industrial lots

Answer 43

a. Financing of house and lot on installment payment

Question 44

45. 1st statement: The vendor is bound to deliver the thing he sold and its accession even if it is not mentioned in the contract 2nd statement: The vendor is bound to deliver the accessions of the thing he sold, only if it is expressly mentioned in the contract. a. 1st statement is TRUE, 2nd statement is FALSE b. 1st statement is FALSE, 2nd statement is TRUE c. 1st statement is TRUE, 2nd statement is TRUE d. 1st statement is FALSE, 2nd statement is FALSE

Answer 44

a. 1st statement is TRUE, 2nd statement is FALSE

Question 45

46. The following are the principal obligations of the vendor, EXCEPT a. To warrant against eviction b. To warrant against hidden defects c. To take care of the thing after the delivery d. To transfer the ownership of the thing he sold

Answer 45

c. To take care of the thing after the delivery

Question 46

47. Which of the following objects CANNOT be pledged? a. Parcel of land b. Shares of stock c. Negotiable promissory note d. Warehouse receipt

Answer 46

a. Parcel of land

Question 47

48. Pledge is an example of a. Real contract b. Unenforceable contract c. Principal contract d. Innominate contract

Answer 47

a. Real contract

Question 48

49. Angelo owns a parcel of rural land an area of one (1) hectare Angelo sold the said land to Deanne, a very rich woman on a vast area of sugarcane plantation. Assuming that Mark is the owner of the adjoining land of the said property, which of the following statements is TRUE? a. If Mark would want to redeem the sold property, he must seek consent from Angelo first b. If Mark would want to redeem the sold property, he must seek consent from Deanne first c. Mark has a right to redeem the property sold by Angelo d. Mark has no night to redeem the property sold by Angelo

Answer 48

c. Mark has a right to redeem the property sold by Angelo

Question 49

50. The right of legal pre-emption or redemption shall not be exercised EXCEPT a. Within sixty (60) days from the notice in salting by the prospective vendor b. Within ninety (90) days from the notice in writing by the prospective vender c. Within thirty (30) days from the notice in writing by the prospective vendor d. Within one hundred (100) days from the notice in writing by the prospective vendor

Answer 49

c. Within thirty (30) days from the notice in writing by the prospective vendor