LAW ON SALES MEMORISATION CARDS
(PRELIMS) Exam Questions and Answers
1. ARTICLE 1458 Correct Answer: "By the contract of sale, one of the contracting parties
obligates himself to TRANSFER THE OWNERSHIP of and to DELIVER a determinate thing, and the
other TO PAY therefore a price certain in money or its equivalent."
2. CONTRACT FOR A PIECE OF WORK (ARTICLE 1467) Correct Answer: It is a
contract to manufacture goods
SPECIALLY for the customer and upon his SPECIAL ORDER, and not for general market.
3. ARTICLE 1469 Correct Answer: "In order that the price may be considered certain, it shall be
suflcient that it be so WITH REFERENCE to another thing certain, or that the determination be left to
the judgement of a SPECIFIED person or persons."
Ettects of fixing the price by third persons***
4. EFFECTS OF FIXING OF THE PRICE BY THIRD PERSON (ARTICLE 1469)
Correct Answer: 1. When
unable or unwilling to fix > CONTRACT IS INEFFECTIVE
2. When acted in bad faith > COURTS MAY FIX THE PRICE
3. When prevented from fixing by fault of either contracting parties > INNOCENT PARTY HAS AN ACTION
AGAINST GUILTY PARTY
5. ARTICLE 1473 Correct Answer: "The fixing of the price CAN NEVER be left to the discretion of one
of the contracting parties.
***However, if the price fixed by one of the contracting parties is ACCEPTED by the other, the sale is
perfected."
6. ARTICLE 1475 Correct Answer: "The contract of sale is perfected at the moment there is a
MEETING OF MINDS upon the thing which is the object of the contract and upon the price."
7. ARTICLE 1477 Correct Answer: "The ownership of the things sold shall be transferred
to the vendee UPON ACTUAL or CONSTRUCTIVE DELIVERY thereof."
8. ARTICLE 1478 Correct Answer: "The parties may stipulate that ownership in the thing SHALL NOT
PASS to the purchaser UNTIL he has FULLY paid the price."
9. ARTICLE 1479 Correct Answer: "A promise to buy and sell a determinate thing is
RECIPROCALLY DEMANDABLE."
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,LAW ON SALES MEMORISATION CARDS
(PRELIMS) Exam Questions and Answers
"An ACCEPTED UNILATERAL PROMISE TO BUY OR TO SELL a determinate thing for a price certain is
BINDING upon the promisor if the promise is supported by a consideration distinct from the price."
10. RULES REGARDING LOSS OR DETERIORATION OF THING (ARTICLE
1480) Correct Answer: 1. If
it happens before perfection > SELLER
2. If it happens at perfection > SELLER (CONTRACT IS VOID-ARTICLE 1493)
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,LAW ON SALES MEMORISATION CARDS
(PRELIMS) Exam Questions and Answers
3. If it happens after perfection but before delivery > BUYER
4. If it happens after delivery > BUYER
11. REMEDIES AVAILABLE TO THE VENDOR IN A SALE OF PERSONAL
PROPERTY BY INSTALMENTS (ARTICLE 1484/1485) Correct Answer: 1.
SPECIFIC PERFORMANCE
2. RESCISSION/ CANCELLATION*
3. FORECLOSURE OF CHATTEL MORTGAGE*
*only for failure to pay two or more instalments
12. ARTICLE 1489 Correct Answer: "All persons who are AUTHORISED in this Code to obligate,
may enter into a contract of sale."
"Where NECESSARIES are sold and delivered to a MINOR or other person without capacity to act, he must
pay a REASONABLE PRICE therefor."
13. ARTICLE 1490 Correct Answer: "The husbands and the wife cannot sell property to each
other."
***EXCEPT Correct Answer:
1. When separation of property was agreed upon in the marriage settlements
2. When there has been a judicial separation of property under Art. 191
14. PERSONS WHO CANNOT ACQUIRE BY PURCHASE EVEN AT A
PUBLIC OR JUDICIAL AUCTION EITHER IN PERSON OR THROUGH
MEDIATION OF ANOTHER CERTAIN PROPERTY (ARTICLE 1491) Correct Answer:
1. Guardians > PROPERTY OF MINORS/WARDS
2. Agents > PROPERTY OF PRINCIPAL (unless with consent of latter)
3. Executors and administrators > PROPERTY OF TH ESTATE
4. Public oflcers and employees > PROPERTY OF STATE, SUBDIVISIONS THEREOF, GOCC or UNDER
THEIR TRUST
5. Justices, judges, prosecutors, clerks, et. al. > PROPERTY OR RIGHTS IN LITIGATION OR LEVIED UPON AN
EXECUTION
6. Others
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(PRELIMS) Exam Questions and Answers
1. ARTICLE 1458 Correct Answer: "By the contract of sale, one of the contracting parties
obligates himself to TRANSFER THE OWNERSHIP of and to DELIVER a determinate thing, and the
other TO PAY therefore a price certain in money or its equivalent."
2. CONTRACT FOR A PIECE OF WORK (ARTICLE 1467) Correct Answer: It is a
contract to manufacture goods
SPECIALLY for the customer and upon his SPECIAL ORDER, and not for general market.
3. ARTICLE 1469 Correct Answer: "In order that the price may be considered certain, it shall be
suflcient that it be so WITH REFERENCE to another thing certain, or that the determination be left to
the judgement of a SPECIFIED person or persons."
Ettects of fixing the price by third persons***
4. EFFECTS OF FIXING OF THE PRICE BY THIRD PERSON (ARTICLE 1469)
Correct Answer: 1. When
unable or unwilling to fix > CONTRACT IS INEFFECTIVE
2. When acted in bad faith > COURTS MAY FIX THE PRICE
3. When prevented from fixing by fault of either contracting parties > INNOCENT PARTY HAS AN ACTION
AGAINST GUILTY PARTY
5. ARTICLE 1473 Correct Answer: "The fixing of the price CAN NEVER be left to the discretion of one
of the contracting parties.
***However, if the price fixed by one of the contracting parties is ACCEPTED by the other, the sale is
perfected."
6. ARTICLE 1475 Correct Answer: "The contract of sale is perfected at the moment there is a
MEETING OF MINDS upon the thing which is the object of the contract and upon the price."
7. ARTICLE 1477 Correct Answer: "The ownership of the things sold shall be transferred
to the vendee UPON ACTUAL or CONSTRUCTIVE DELIVERY thereof."
8. ARTICLE 1478 Correct Answer: "The parties may stipulate that ownership in the thing SHALL NOT
PASS to the purchaser UNTIL he has FULLY paid the price."
9. ARTICLE 1479 Correct Answer: "A promise to buy and sell a determinate thing is
RECIPROCALLY DEMANDABLE."
1/
17
,LAW ON SALES MEMORISATION CARDS
(PRELIMS) Exam Questions and Answers
"An ACCEPTED UNILATERAL PROMISE TO BUY OR TO SELL a determinate thing for a price certain is
BINDING upon the promisor if the promise is supported by a consideration distinct from the price."
10. RULES REGARDING LOSS OR DETERIORATION OF THING (ARTICLE
1480) Correct Answer: 1. If
it happens before perfection > SELLER
2. If it happens at perfection > SELLER (CONTRACT IS VOID-ARTICLE 1493)
2/
17
,LAW ON SALES MEMORISATION CARDS
(PRELIMS) Exam Questions and Answers
3. If it happens after perfection but before delivery > BUYER
4. If it happens after delivery > BUYER
11. REMEDIES AVAILABLE TO THE VENDOR IN A SALE OF PERSONAL
PROPERTY BY INSTALMENTS (ARTICLE 1484/1485) Correct Answer: 1.
SPECIFIC PERFORMANCE
2. RESCISSION/ CANCELLATION*
3. FORECLOSURE OF CHATTEL MORTGAGE*
*only for failure to pay two or more instalments
12. ARTICLE 1489 Correct Answer: "All persons who are AUTHORISED in this Code to obligate,
may enter into a contract of sale."
"Where NECESSARIES are sold and delivered to a MINOR or other person without capacity to act, he must
pay a REASONABLE PRICE therefor."
13. ARTICLE 1490 Correct Answer: "The husbands and the wife cannot sell property to each
other."
***EXCEPT Correct Answer:
1. When separation of property was agreed upon in the marriage settlements
2. When there has been a judicial separation of property under Art. 191
14. PERSONS WHO CANNOT ACQUIRE BY PURCHASE EVEN AT A
PUBLIC OR JUDICIAL AUCTION EITHER IN PERSON OR THROUGH
MEDIATION OF ANOTHER CERTAIN PROPERTY (ARTICLE 1491) Correct Answer:
1. Guardians > PROPERTY OF MINORS/WARDS
2. Agents > PROPERTY OF PRINCIPAL (unless with consent of latter)
3. Executors and administrators > PROPERTY OF TH ESTATE
4. Public oflcers and employees > PROPERTY OF STATE, SUBDIVISIONS THEREOF, GOCC or UNDER
THEIR TRUST
5. Justices, judges, prosecutors, clerks, et. al. > PROPERTY OR RIGHTS IN LITIGATION OR LEVIED UPON AN
EXECUTION
6. Others
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