PRE-MIDTERM EXAMINATION Instructor: VANNESA R. COMPASIVO I. True/False Instruction: Carefully read each question and write true or false before each number. 1. The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered. T 2. Gross inadequacy of price does not affect a contract of sale, except as it may indicate a defect in the consent, or that the parties really intended a donation or some other act or contract. T 3. The expenses for the execution and registration of the sale shall be borne by the vendor, unless there is a stipulation to the contrary. T 4. If the consideration of the contract consist partly in money and partly in another thing, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount if the money or its equivalent. F 5. The efficacy of the sale of a mere hope or expectancy is deemed subject to the condition that the thing will not come into existence. F 6. A contract of sale may not be absolute or conditional. F 7. Where such third person or persons are prevented from fixing the price or terms by fault of the seller or the buyer, the party not in fault may have such remedies against the party in fault as are allowed the seller or the buyer, as the case may be. T 8. The fixing of the price can never be left to the discretion of one of the contracting parties. T 9. A right to bid may be reserved impliedly by or on behalf of the seller, unless otherwise provided by law or by stipulation. F 10. A promise to buy and sell a determinate thing for a price certain is reciprocally demandable. T 11. The parties may stipulate that ownership in the thing shall not pass to the purchaser until he has fully paid the price. T 12. When the sale is made through a public instrument, the execution thereof shall be equivalent to the delivery of the thing, which is the object of the contract, if from the deed the contrary does not appear or cannot clearly be inferred. T 13. The expenses for registration and execution of the sale shall always be borne by the vendor. F 14. The ownership of the thing sold shall be transferred to the vendee upon actual or constructive delivery thereof. T 15. In construing a contract containing provisions characteristic of both the contract of sale and of the contract of agency to sell, the essential clauses of the whole instrument shall be considered. T II. Multiple Choice Instruction: Carefully read each question and write the letter of your answer before each number. 1. There is a contract of sale: a. When goods are delivered to a distributor on consignment
b. When the manufacturer delivers the goods to an agent where
the former retains the ownership and dictates the terms of the sale. c. When goods are delivered to a person on charge account d. When goods are delivered to an agent to be sold by him 2. S sold to B orally a parcel of land for P200,000. Delivery was made of the land. The payment of the price was to be made three months later. At the end of the three month period, a. B may refuse to pay claiming as his defense the Statute of Frauds b. B may return the parcel of land to S c. S can collect from B because the contract was already executed partially. d. B may refuse to pay on the ground that there is no written contract to support the sale 3. Mr. Renato Tala-od owns a mango tree bearing fruits, ready for harvest. He sells all the fruits of that tree to Mr. Marcelo Abalos