ACYRFBT: Sales and Credit Transactions

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

d. Between husband and wife

EXPLANATION
A - unenforceable

B - unenforceable

C - no problem

D - unless governed by separation of property, may pre-nuptial agreement, or by subsequent judicial decree

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.

c. If Y is in bad faith, Y becomes the owner of the necklace upon delivery to him but his title is voidable.

The law will protect innocent third persons

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Bad faith here would be Y knowing that Z's title to the necklace was voidable. So stepping into the shoes of the seller (forgot the Latin phrase), Y's title will also become voidable.

If the necklace was acquired in good faith (Y not knowing anything about how Z obtained the necklace), Y would have acquired a valid and enforceable title.

The sale of the hope itself

a. Dacion en pago

b. Payment by cession

c. Emptio spei

d. Emptio rei-speratae

c. Emptio spei

When the owner of the thing sells it to vendee, but continues to have possession or occupation of the thing not as owner but as tenant or lessee

a. Traditio longa manu

b. Traditio brevi manu

c. Traditio constitutum possessorium

d. Traditio symbolica

c. Traditio constitutum possessorium

EXPLANATION: Sale and leaseback

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.

d. Rescind the sale should the vendee fail to pay any installment.

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

d. Upon delivery of the goods

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.

d. Yes, because the principle “res perit domino” or the thing perishes with the owner.

Not an implied warranty in a contract of sale

a. Right to sell the thing at the time of perfection of the contract

b. Reasonably fit for the purpose they are acquired

c. Merchantable in quality

d. Free from charges or encumbrances not declared or known to the buyer

a. Right to sell the thing at the time of perfection of the contract

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

d. A is liable to B for damages and is in default without need of any demand

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

b. 40 days from delivery to the vendee

When is the pledgor or mortgagor required to be the owner of the thing pledged or mortgaged for the validity of contracts of pledge, of real estate mortgage or of chattel mortgage?

a. At the time the principal obligation is constituted.

b. At the time the contract of pledge or mortgage is constituted or perfected.

c. At the time of the failure to pay the principal obligation.

d. At the time the thing to be pledged or mortgaged is to be delivered.

b. At the time the contract of pledge or mortgage is constituted or perfected.

It is a stipulation whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-payment of the debt within the term fixed.

a. Pactum creditarium

b. Pactum commissorium

c. Pactum debitarium

d. Pactum crematorium

b. Pactum commissorium

• This stipulation is void

What is the nature of a contract of pledge, of chattel mortgage, of real estate mortgage or of antichresis?

a. It is divisible if the principal contract is joint.

b. It is indivisible if the principal contract is solidary.

c. It is divisible whether the principal contract is joint or solidary.

d. It is indivisible whether the principal contract is joint or solidary.

d. It is indivisible whether the principal contract is joint or solidary.

It is a contract by virtue of which the debtor delivers to the creditor or to a third person a movable, or instrument evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fruits and accessions.

a. Contract of Pledge

b. Contract of Chattel mortgage

c. Contract of Real estate mortgage

d. Contract of Antichresis

a. Contract of Pledge

What is the legal effect of a promise or contract to constitute a pledge?

a. It is perfected by delivery of the thing pledge.

b. It is perfected through the notarization of the promise.

c. It is perfected by mere consent and gives rise only to a personal action between the contracting parties.

d. It gives rise to a real action over the thing pledged.

c. It is perfected by mere consent and gives rise only to a personal action between the contracting parties.

Which of the following stipulations in a contract of pledge is null and void?

1. A stipulation which provides that the contract of pledge is not extinguished by the return of the thing pledged.

2. A stipulation allowing the appropriation by the pledgee of the thing pledged in case the same is not sold in the first and second auctions.

3. A stipulation for the recovery of deficiency in case the proceeds from the sale of the thing pledged is less than the amount of the obligation.

a. I and III

b. I and II

c. II and III

d. I, II and III

a. I and III

The following are the formalities required for the sale of the thing pledged in case of failure of the debtor to pay the principal obligation, except

a. It must be by public auction.

b. It must be through a notary public.

c. There must be a notice to the debtor and the owner of the thing pledged, stating the amount for which the public sale is to be held.

d. The thing pledged must be sold by the pledgee at the first auction only.

d. The thing pledged must be sold by the pledgee at the first auction only.

WHY?

Pwedeng magka-second or third or kahit ilang auction

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The rule is after the second auction saka lang pwedeng mag-decide kung i-a-appropriate yung thing or tutuloy sa third auction.

It refers to the right of the mortgagor to repurchase the property within a certain period after it was sold in public auction for the payment of the secured debt.

a. Equity of redemption

b. Right of redemption

c. Right of preemption

d. Equity of preemption

b. Right of redemption

In case of judicial foreclosure, if upon the trial in such action the court shall find the facts set forth in the complaint to be true, it shall ascertain the amount due to the plaintiff upon the mortgage debt or obligation, including interest and other charges as approved by the court, and costs, and shall render judgment for the sum so found due and order that the same be paid to the court or to the judgment obligee. This is known as equity of redemption of judgment debtor and the amount shall be paid by the judgment debtor. What is the period for exercise of equity of redemption in case of judicial foreclosure?

a. Within a period of not less than 90 days nor more than 120 days from the entry of judgment.

b. Within a period of not less than 1 year nor more than 2 years from the entry of judgment.

c. Within a period of not less than 90 days nor more than 1 year from the entry of judgment.

d. Within a period of not less than 120 days nor more than 1 year days from the entry of judgment.

a. Within a period of not less than 90 days nor more than 120 days from the entry of judgment.

Equity of redemption of judgment debtor - Right of the owner to stop the sale

Which of the following statements concerning formalities of real estate mortgage is incorrect?

a. The real mortgage may be in any form to be valid since it is a consensual contract.

b. The real mortgage must be in a public instrument for the convenience of the parties but not for validity.

c. The real mortgage must be registered in the Registry of Property to bind third persons.

d. The real mortgage must be in writing to be valid since it is a formal contract.

d. The real mortgage must be in writing to be valid since it is a formal contract.

Consensual, not formal