Colegio de Dagupan
Preliminary Period
QUIZ- Business Law and Taxation
1. 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
2. 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.
3. This serves as a proof of the perfection of the contract of sale
A. Dacion en pago
B. Option money
C. Delivery
D. Arras
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
7. 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
, C. Emptiospei
D. Emptio rei-speratae
9. The sale of the hope itself
A. Dacion en pago
B. Payment by cession
C. Emptio spei
D. Emptio rei-speratae
10. 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
11. 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
12. 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 P15,000,000
C. V and DD should shoulder the P3,000,000 difference
D. DD cannot compel V to accept the P12,000,000 first offered
13. 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
14. 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
,15. If the material used in the manufacturer of the article is more valuable, it is a contract of
sale, and if the labor or skill is more valuable than the material used in the manufacture of
the article, it is a contract for a piece of work. This is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule
16. The rule observed in the Philippines is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule
17. The Realty Installment Buyer Protection Act applies to all transactions involving the sale
or financing of real estate on installment but it excludes the following except:
A. Sale or financing of industrial lots
B. Sale or financing of commercial building
C. Sale to tenants under the Land Reform Code
D. Sale of residential condominiums
18. Delivery by merely pointing to the object of sale if it cannot be delivered to the vendee at
the time of the sale is
A. Traditio longa manu
B. Traditio brevi manu
C. Traditio constitutum possessorium
D. Traditio symbolica
19. Effected when the object of sale is already in the possession of the vendee at the time of
sale so that delivery need no longer be made is
A. Traditio longa manu
B. Traditio brevi manu
C. Traditio constitutum possessorium
D. Traditio symbolica
20. 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
21. Goods are deemed in transit
A. When the buyer accepts delivery of the goods upon arrival at destination
B. When the buyer intercepts and lawfully takes possession of the goods at any point before
destination.
C. From the time they are delivered by the seller to a common carrier or other
, 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.
22. 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.
23. 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.
24. 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
25. 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
26. 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
27. 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
Preliminary Period
QUIZ- Business Law and Taxation
1. 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
2. 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.
3. This serves as a proof of the perfection of the contract of sale
A. Dacion en pago
B. Option money
C. Delivery
D. Arras
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
7. 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
, C. Emptiospei
D. Emptio rei-speratae
9. The sale of the hope itself
A. Dacion en pago
B. Payment by cession
C. Emptio spei
D. Emptio rei-speratae
10. 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
11. 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
12. 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 P15,000,000
C. V and DD should shoulder the P3,000,000 difference
D. DD cannot compel V to accept the P12,000,000 first offered
13. 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
14. 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
,15. If the material used in the manufacturer of the article is more valuable, it is a contract of
sale, and if the labor or skill is more valuable than the material used in the manufacture of
the article, it is a contract for a piece of work. This is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule
16. The rule observed in the Philippines is
A. English rule
B. Massachusetts rule
C. New York rule
D. Chicago rule
17. The Realty Installment Buyer Protection Act applies to all transactions involving the sale
or financing of real estate on installment but it excludes the following except:
A. Sale or financing of industrial lots
B. Sale or financing of commercial building
C. Sale to tenants under the Land Reform Code
D. Sale of residential condominiums
18. Delivery by merely pointing to the object of sale if it cannot be delivered to the vendee at
the time of the sale is
A. Traditio longa manu
B. Traditio brevi manu
C. Traditio constitutum possessorium
D. Traditio symbolica
19. Effected when the object of sale is already in the possession of the vendee at the time of
sale so that delivery need no longer be made is
A. Traditio longa manu
B. Traditio brevi manu
C. Traditio constitutum possessorium
D. Traditio symbolica
20. 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
21. Goods are deemed in transit
A. When the buyer accepts delivery of the goods upon arrival at destination
B. When the buyer intercepts and lawfully takes possession of the goods at any point before
destination.
C. From the time they are delivered by the seller to a common carrier or other
, 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.
22. 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.
23. 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.
24. 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
25. 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
26. 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
27. 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
