NATURE AND FORMS OF CONTRACTS TRUE OR FALSE

A contract of sale is a consensual contract, thus, is perfected by delivery

FALSE

The perfection of a contract of sale should not, however, be confused with its consummation. In relation to the acquisition and transfer of ownership, it should be noted that sale is not a mode, but merely a title.

TRUE

A Contract to Sell may not be considered as a Contract of Sale because the second essential element is lacking. 

FALSE

In contract to sell, what the seller agrees or obliges himself to do is to fulfill his promise to sell the subject property when the entire amount of the purchase price is delivered to him. 

TRUE

A contract of sale is perfected by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. 

TRUE

Sale by itself does not transfer or affect ownership; the most that sale does is to create the obligation to transfer ownership. 

TRUE

In a contract to sell, the title to the property passes to the vendee upon the delivery of the thing sold.

FALSE

In a contract of sale, ownership is, by agreement, reserved in the vendor and is not to pass to the vendee until full payment of the purchase price.

FALSE

For the cause to be valid, it must be lawful such that it is not contrary to law, morals, good customs, public order, or public policy. 

TRUE

The object of every contract must be determinate as to its kind.

TRUE

The fact that the quantity in contract of sale is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties.

TRUE

The thing is understood as delivered when it is placed in the control and possession of the vendee.

TRUE

If there is no full satisfaction of the stipulated purchase price, the actual turn-over of the possession of the property renders the contract consummated, albeit partially.

FALSE

In a contract to sell, the vendor loses ownership over the property and cannot recover it until and unless the contract is resolved or rescinded.

FALSE

In general, the object is the why of the contract or the essential reason which moves the contracting parties to enter into the contract.

FALSE

The fixing of the price can never be left to the decision of one of the contracting parties. But a price fixed by one of the contracting parties, if accepted by the other, gives rise to a perfected sale.

TRUE

A contract of sale is normally commutative but not onerous.

FALSE

A contract for a piece of work, labor and materials may be distinguished from a contract of sale by the inquiry as to whether the thing transferred is one not in existence and which would never have existed but for the order of the person desiring it. In such case, the contract is one for a piece of work, not a sale.

TRUE

If the thing subject of the contract would have existed and been the subject of a sale to some other person even if the order had not been given, then the contract is one of sale.

TRUE

The payment of the purchase price is not essential to the transfer of ownership as long as the property sold has been delivered and such delivery operated to divest the vendor of title to the property which may not be regained or recovered until and unless the contract is resolved or rescinded in accordance with law

TRUE

Non-payment of the purchase price of the subject property nullify the contract of sale between the parties.

FALSE

In a contract of sale, title is retained by the vendor until full payment of the price.

FALSE

Things having a potential existence may be the object of the contract of sale.

TRUE

The sale of a vain hope or expectancy is voidable.

FALSE

In dation in payment, the undertaking really partakes in one sense of the nature of barter.

FALSE

The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time of perfection.

FALSE

The parties need not agree on the manner of payment of the price of the property to give rise to a binding and enforceable contract of sale or contract to sell.

FALSE

A contract of sale is classified as a consensual contract, which means that the sale is perfected by mere consent. A private instrument is required for its validity.

FALSE

In the contract to sell, the buyer's non-payment of the price is a negative resolutory condition.

TRUE

In the contract of sale, the buyer's full payment of the price is a positive suspensive condition to the coming into effect of the agreement.

FALSE