2-4
(3) LB/R- LEGAL BASIS/ Rosencor
Development Corporation vs. Court of
Appeals
LS-LEGAL SOURCE
page 589. Domingo, A. D. (2016)
Obligations & contracts laws,
principles, and jurisprudence. 2016
ed. Coaching For Results Publishing.
(1) Which contracts of sale are
required to be under the Statute
of Frauds?
(1) LA-LEGAL ANSWER/S:
Sale of real property or of an interest
Sale of movables
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
1. Sale of real property or of an
interest therein must be in writing,
otherwise the sale is unenforceable.
2. Sale of movables - price is 500 or
more; it must be in writing otherwise,
the sale is unenforceable.
(3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE
page 41. Suarez, C. B. (2000) The law
on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
LESSON 5-7 GQs
CONTRACT OF SALE VS CONTRACT TO
SELL
(2) Define contract to sell?
(1) LA-LEGAL ANSWER/S:
In contract to sell, the title to the
goods does not pass to the buyer
until some future time and
oftentimes upon payment of the
price.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Payment in full of the price – positive
suspensive condition (obligation to
deliver and transfer ownership
arises); if not paid in full, obligation
to deliver/transfer ownership
suspended/ not yet binding and
effective.
(3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE
page 5. Suarez, C. B. (2000) The law
on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
0|Page
(3) Who are the parties in a contract
to sell?
(1) LA-LEGAL ANSWER/S:
SELLER/VENDOR/DEBTOR/OBLIGOR
BUYER/VENDEE/CREDITOR/OBLIGEE
(3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE Article 1458 R.A. 386
(4) Can contract to sell result to
contract of sale?
(1) LA-LEGAL ANSWER/S:
No.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
In contract of sale, ownership passes
to the buyer upon delivery; while in
contract to sell, the title to the goods
does not pass to the buyer until some
future time and oftentimes upon
payment of the price.
(3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE
page 5. Suarez, C. B. (2000) The law
on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
(5) Distinguish contract of sale from
contract to sell
(1) LA-LEGAL ANSWER/S:
In contract of sale, ownership passes
to the buyer upon delivery; while in
contract to sell, the title to the goods
does not pass to the buyer until some
future time and oftentimes upon
payment of the price.
(3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE
page 5. Suarez, C. B. (2000) The law
on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
(6) What is Policitacion?
(1) LA-LEGAL ANSWER/S:
Not accepted by the offeree: A
unilateral promise to sell or to buy if
not accepted by the offeree does not
is produce any legal effect, this is
known as policitacion.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
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.
(3) LB/R- LEGAL BASIS/ Article 1479 CONTRACT OF SALE VS AGENCY TO
(2nd par.) R.A. 386 SELL
LS-LEGAL SOURCE (9) Legally define a contract of
page 31. Suarez, C. B. (2000) The law agency
on sales, agency, pledge and (1) LA-LEGAL ANSWER/S:
mortgages for business students. By the contract of agency a person
2000 ed. Manila : GIC Enterprises. binds himself to render some service
(7) What are the effects of or to do something in representation
Policitacion? or on behalf of another, with the
(1) LA-LEGAL ANSWER/S: consent or authority of the latter.
Policitacion produces no juridical (1709a)
effect, and creates no legal bond. (2) LD/E- LEGAL
(2) LD/E- LEGAL DISCUSSIONS/EXPLANATIONS
DISCUSSIONS/EXPLANATIONS Agency is the relationship which
Not accepted by the offeree: A results from the manifestation of
unilateral promise to sell or to buy if consent by one person to another
not accepted by the offeree does not that the other shall act on his behalf
produce any legal effect, this is and subject to his control, and
known as policitacion. consented by the other so to act.
(3) LB/R- LEGAL BASIS/LS-LEGAL (3) LB/R- LEGAL BASIS/ Article 1868
SOURCE R.A. 386
page 31. Suarez, C. B. (2000) The law LS-LEGAL SOURCE
on sales, agency, pledge and page 246. Suarez, C. B. (2000) The
mortgages for business students. law on sales, agency, pledge and
2000 ed. Manila : GIC Enterprises. mortgages for business students.
(8) Distinguish between earnest 2000 ed. Manila : GIC Enterprises.
money and option money (10) Who are the parties in a
(1) LA-LEGAL ANSWER/S: contact of agency?
Whenever earnest money (1) LA-LEGAL ANSWER/S:
(arras/downpayment) is given in a Principal/employer and
contract of sale, it shall be agent/attorney-in-fact/proxy.
considered as part of the price and as (2) LD/E- LEGAL
proof of the perfection of the DISCUSSIONS/EXPLANATIONS
contract while option money Principal is the person whom the
(reservation fee-non refundable) is agent represents and from whom he
given to bind the offer in a unilateral derives his authority; the person
promise to sell or buy, separate and represented. Agent is the person who
distinct from the purchase price. acts for and represents another; he is
(2) LD/E- LEGAL the person acting in a representative
DISCUSSIONS/EXPLANATIONS capacity.
Earnest money when given by buyer, (3) LB/R- LEGAL BASIS/ Article 1868
the latter is bound to buy and pay R.A. 386
balance and the option money when LS-LEGAL SOURCE
given by the would-be buyer, the page 248. Suarez, C. B. (2000) The
latter is not required to buy. OPTION law on sales, agency, pledge and
MONEY MAY BECOME EARNEST mortgages for business students.
MONEY IF PARTIES AGREE. 2000 ed. Manila : GIC Enterprises.
(3) LB/R- LEGAL BASIS/ Article 1479 (11) Legally define Agency to
(2nd par.) and Article 1483 R.A. 386 Sell
LS-LEGAL SOURCE (1) LA-LEGAL ANSWER/S:
page 41. Suarez, C. B. (2000) The law In agency to sell, the ownership of
on sales, agency, pledge and the goods is not transferred to the
mortgages for business students. agent. Ownership is retained by the
2000 ed. Manila : GIC Enterprises. owner even if the goods are delivered
LESSON 6-5 GQs to the agent.

1|Page
 (3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
pp. 14 and 251. Suarez, C. B. (2000)
The law on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
(12) Distinguish Sale from an
Agency to Sell
(1) LA-LEGAL ANSWER/S:
In sale, the buyer becomes the owner
upon delivery, pays the price directly
to the owner; while in agency to sell,
ownership is retained by the owner
even if the goods are delivered to the
agent and the buyer pays the agent
who transmits the money to his
principal. In sale, the seller warrants
rhe object of the sale, while in agency
to sell, the agent is not personally
liable as long as he acts within the
scope of his authority and in the
name of principal.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
page 14. Suarez, C. B. (2000) The law
on sales, agency, pledge and
mortgages for business students.
2000 ed. Manila : GIC Enterprises.
(13) If a contract contains
provisions characteristic of
both the contract of sale and of
the contract of agency to sell,
how shall the contract be
construed?
(1) LA-LEGAL ANSWER/S:
In construing a contract containing
provisions characteristic of both the
contract of sale and the contract of
agency to sell, the essential clauses
of the whole instrument shall be
considered.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1466 R.A. 386
LESSON 7-3 GQs
CONTRACT OF SALE VS CONTRACT
FOR A PIECE OF WORK
(14) Legally define contract for a
piece of work
(1) LA-LEGAL ANSWER/S:
A contract for the delivery at a
certain price of an article which the
vendor in the ordinary course of his
business manufactures or procures
for the general market, whether the
2|Page
same is on hand at the time or not, is
a contract of sale, but if the goods
are to be manufactured specially for
the customer and upon his special
order, and not for the general market,
it is a contract for a piece of work.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
If the goods are to be manufactured
especially for the customer and upon
his special order, and not for the
general market, it is a contract for a
peice of work.
(3) LB/R- LEGAL BASIS/ Article 1467
R.A. 386
LS-LEGAL SOURCE page 15. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(15) Who are the parties in a contract
for a piece of work?
(1) LA-LEGAL ANSWER/S:
SELLER/VENDOR/DEBTOR/OBLIGOR
BUYER/VENDEE/CREDITOR/OBLIGEE
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1467 R.A. 386
(16) Distinguish a contract of sale
from a contract for piece of work
(1) LA-LEGAL ANSWER/S:
In contract of sale:
• Thing transferred is
existing/has potential
existence and subject of sale to
other persons;
• Specific order to produce or
manufacture the thing subject
of sale may not have been
given;
• Risk of loss is borne by buyer
(Arts. 1480,1538,1189 CCP);
Within the Statute of Frauds – subject
to the Law on Form (Art. 1403-2 CCP.
In a contract for a piece of work:
• Thing transferred is one not
yet in existence and not
subject of sale to other
persons;
• Specific order to produce or
manufacture must be given for
thing to exist;
• Risk of loss is borne by the
worker/contractor (Arts.
1717,1718 CCP);
 • Not within the Statute of
Frauds
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1467, 1480,1538,1189, 1403-
2, 1717,1718 R.A. 386
LESSON 8-6 GQs
CONTRACT OF SALE VS BARTER OR
EXCHANGE
(17) Legally define barter
exchange
(1) LA-LEGAL ANSWER/S:
If the consideration of the contract
consists partly in money, and partly
in another thing, the transaction shall
be characterized by the manifest
intention of the parties. If such
intention does not clearly appear, it
shall be considered a barter if the
value of the thing given as a part of
the consideration exceeds
amount of the money or
equivalent; otherwise, it is a sale.
(1446a)
(3) LB/R- LEGAL BASIS/ Article 1468
R.A. 386
LS-LEGAL SOURCE page 16. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(18) Who are the parties in a contract
of barter or exchange?
(1) LA-LEGAL ANSWER/S:
SELLER/VENDOR/DEBTOR/OBLIGOR
BUYER/VENDEE/CREDITOR/OBLIGEE
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1468 R.A. 386
(19) What is the object in a
contract of barter or exchange?
(1) LA-LEGAL ANSWER/S:
Determinate thing.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
A thing is determinate when it is
particularly designated or physical
segregated from all others of the
same class.
(3) LB/R- LEGAL BASIS/ Article 1460
R.A. 386
LS-LEGAL SOURCE page 7. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
3|Page
students. 2000 ed. Manila : GIC
Enterprises.
(20) What are the rules anent sale
vis-à-vis barter?
(1) LA-LEGAL ANSWER/S:
If the consideration of the contract
consists partly in money, and partly
in another thing, the transaction shall
be characterized by the manifest
or intention of the parties. If such
intention does not clearly appear, it
shall be considered a barter if the
value of the thing given as a part of
the consideration exceeds the
amount of the money or its
equivalent;
otherwise, it is a sale. (1446a)
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
1. The intention of the parties will
the control the situation.
its 2. If the intention does not appear
a. It is barter, if the value of
the thing is more than the monetary
consideration.
b. It is a sale, if the monetary
consideration is more than the value
of the thing.
c. If the monetary
consideration and the value of the
thing are the same, the majority view
maintained that the contract is a
contract of sale.
(3) LB/R- LEGAL BASIS/ Article 1468
R.A. 386
LS-LEGAL SOURCE pp. 18 and 17.
Suarez, C. B. (2000) The law on sales,
agency, pledge and mortgages for
business students. 2000 ed. Manila :
GIC Enterprises.
(21) What do you mean by manifest
intention of the parties?
(1) LA-LEGAL ANSWER/S:
Meeting of minds of the parties.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
The intention of the parties will
control the situation. Thus, the
contract is a sale if the parties
intended it to be a sale even if the
value of the thing is more than the
monetary consideration. Conversely,
it is a barter if the parties intended it
to be a barter even if the monetary
consideration is more than the value 1. Essential Elements
of the thing. a. Consent
(3) LB/R- LEGAL BASIS/ Article 1305 b. Object
R.A. 386 c. Price
LS-LEGAL SOURCE page 16. Suarez, C. 2. Natural Elements
B. (2000) The law on sales, agency, 3. Accidental Elements
pledge and mortgages for business (3) LB/R- LEGAL BASIS/ LS-LEGAL
students. 2000 ed. Manila : GIC SOURCE page 2. Suarez, C. B. (2000)
Enterprises. The law on sales, agency, pledge and
(22) How do you characterize the mortgages for business
contract where the consideration (24) What are the essential
consists partly in money and elements of a contract of sale?
partly in another thing? (1) LA-LEGAL ANSWER/S:
(1) LA-LEGAL ANSWER/S: 1. Consent
If the consideration of the contract 2. Object
consists partly in money, and partly 3. Price
in another thing, the transaction shall (2) LD/E- LEGAL
be characterized by the manifest DISCUSSIONS/EXPLANATIONS
intention of the parties. If such 1. Consent of the contracting party
intention does not clearly appear, it with respect to the transfer of
shall be considered a barter if the ownership and payment of price.
value of the thing given as a part of 2. Object of the contract which should
the consideration exceeds the be determinate
amount of the money or its 3. Price which should be certain in
equivalent; money or its equivalent. Be it noted
otherwise, it is a sale. (1446a) that the price need not to be in
(2) LD/E- LEGAL money.
DISCUSSIONS/EXPLANATIONS (3) LB/R- LEGAL BASIS/
1. The intention of the parties will Article1475/1319/1320-26,1459-1464,
control the situation. 1469-1474 R.A. 386
2. If the intention does not appear LS-LEGAL SOURCE
a. It is barter, if the value of page 2. Suarez, C. B. (2000) The law
the thing is more than the monetary on sales, agency, pledge and
consideration. mortgages for business students.
b. It is a sale, if the monetary 2000 ed. Manila : GIC Enterprises.
consideration is more than the value (25) What is the meaning of
of the thing. essential elements?
c. If the monetary (1) LA-LEGAL ANSWER/S:
consideration and the value of the Essential elements are those without
thing are the same, the majority view which there can be no contract.
maintained that the contract is a (3) LB/R- LEGAL BASIS/ LS-LEGAL
contract of sale. SOURCE page 447. Domingo, A. D.
(3) LB/R- LEGAL BASIS/ Article 1468 (2016) Obligations & contracts laws,
R.A. 386 principles, and jurisprudence. 2016
LS-LEGAL SOURCE pp. 18 and 17. ed. Coaching For Results Publishing.
Suarez, C. B. (2000) The law on sales, (26) What is consent vis-à-vis a
agency, pledge and mortgages for contract of sale?
business students. 2000 ed. Manila : (1) LA-LEGAL ANSWER/S:
GIC Enterprises. Consent is manifested by the
Lesson 9-8 GQs meeting of the offer and the
ELEMENTS/REQUISITES acceptance upon the thing and the
(23) What are the cause which are to constitute the
elements/requisites of a valid contract. The offer must be certain
contract of sale? and the acceptance absolute. A
(1) LA-LEGAL ANSWER/S:

4|Page
qualified acceptance constitutes a (2) LD/E- LEGAL
counter-offer. DISCUSSIONS/EXPLANATIONS
Acceptance made by letter or In Spouses Paderes v. Court of
telegram does not bind the offerer Appeals, the Court held that, "There
except from the time it came to his is an 'offer' in the context of Article
knowledge. The contract, in such a 1319 only if the contract can come
case, is presumed to have been into existence by the mere
entered into in the place where the acceptance of the offeree, without
offer was made. (1262a) any further act o the part of the
(2) LD/E- LEGAL offeror. Hence, the 'offeree' must be
DISCUSSIONS/EXPLANATIONS definite, complete and intentional".
Consent of the contracting party with (3) LB/R- LEGAL BASIS/ Spouses
respect to the transfer of ownership Paderes v. Court of Appeals / Article
and the payment of the price. 1319 R.A. 386
(3) LB/R- LEGAL BASIS/ Article 1319 LS-LEGAL SOURCE page 452.
R.A. 386 Domingo, A. D. (2016) Obligations &
LS-LEGAL SOURCE page 2. Suarez, C. contracts laws, principles, and
B. (2000) The law on sales, agency, jurisprudence. 2016 ed. Coaching For
pledge and mortgages for business Results Publishing.
students. 2000 ed. Manila : GIC (29) When is acceptance
Enterprises. absolute?
(27) What is meant by meeting (1) LA-LEGAL ANSWER/S:
of the offer and acceptance? Not subject to any condition
(1) LA-LEGAL ANSWER/S: whatsoever.
The offer must be certain and the (3) LB/R- LEGAL BASIS/ Article 1319
acceptance absolute. A qualified R.A. 386
acceptance constitutes a counter- LS-LEGAL SOURCE page 452.
offer. Domingo, A. D. (2016) Obligations &
(2) LD/E- LEGAL contracts laws, principles, and
DISCUSSIONS/EXPLANATIONS jurisprudence. 2016 ed. Coaching For
Consent is manifested by the Results Publishing.
meeting of the offer and the (30) What is meant by counter-
acceptance upon the thing and the offer?
cause which are to constitute the (1) LA-LEGAL ANSWER/S:
contract. The offer must be certain This refers to qualified acceptance.
and the acceptance absolute. A (2) LD/E- LEGAL
qualified acceptance constitutes a DISCUSSIONS/EXPLANATIONS
counter-offer. Consent is manifested by the meeting
Acceptance made by letter or of the offer and the acceptance upon
telegram does not bind the offerer the thing and the cause which are to
except from the time it came to his constitute the contract. The offer
knowledge. The contract, in such a must be certain and the acceptance
case, is presumed to have been absolute. A qualified acceptance
entered into in the place where the constitutes a counter-offer.
offer was made. (1262a) (3) LB/R- LEGAL BASIS/ Article 1319
(3) LB/R- LEGAL BASIS/ LS-LEGAL (1st par) R.A. 386
SOURCE Article 1319 R.A. 386 LS-LEGAL SOURCE page 453.
(28) When is offer certain? Domingo, A. D. (2016) Obligations &
(1) LA-LEGAL ANSWER/S: contracts laws, principles, and
For an offer to be certain, a contract jurisprudence. 2016 ed. Coaching For
must come into existence by the Results Publishing.
mere acceptance of the offeree Lesson 9A-16 GQs
without any further act on the DETERMINATE THING/OBJECT OF SALE
offeror's part. The offer must be (31) What is object vis-à-vis a
definite, complete and intentional. contract of sale?

5|Page
(1) LA-LEGAL ANSWER/S:
Licit, Determinate, Future goods,
Things having potential existence
/Emptio rei sperati, Hope (sale
of)/Emptio spei, Mass (sale of)
Existing goods, Resolutory Condition
(subject to)
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Arts. 1459/1347/1409, Arts.
1460 1st par/1460 2nd par, Art. 1462
2nd part, Art. 1461 1st par, Art. 1461
2nd par, Arts. 1464/1480 2nd & 3rd pars,
Art. 1462 1st part
Art. 1465
(32) What may be the object of
a contract of sale?
(1) LA-LEGAL ANSWER/S:
1. Things
2. Rights
3. Services
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
All things which are not outside
the commerce of men, including
future things, may be the object of a
contract. All rights which are not
intransmissible may also be the
object of contracts.
No contract may be entered
into upon future inheritance except in
cases expressly authorized by law.
All services which are not
contrary to law, morals, good
customs, public order or public policy
may likewise be the object of a
contract. (1271a)
(3) LB/R- LEGAL BASIS/ Article 1347
R.A. 386
LS-LEGAL SOURCE page 486.
Domingo, A. D. (2016) Obligations &
contracts laws, principles, and
jurisprudence. 2016 ed. Coaching For
Results Publishing.
(33) Which things can be valid
objects of a contract of sale?
(1) LA-LEGAL ANSWER/S:
1. All things which are not outside
the commerce of men, including
future things, may be the object of a
contract. 2. All rights which are not
intransmissible may also be the
object of contracts.
3. All services which are not contrary
to law, morals, good customs, public
order or public policy may likewise be
the object of a contract.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1347 R.A. 386
(34) Which rights cannot be
objects of contract of sale?
(1) LA-LEGAL ANSWER/S:
All rights which are intransmissible.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1347 R.A. 386
(35) Can service be a valid
object of contract of sale?
(1) LA-LEGAL ANSWER/S:
Yes.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
All services which are not contrary to
law, morals, good customs, public
order or public policy may likewise be
the object of a contract.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1347 (3rd par.) R.A.
386
(36) When is a thing considered
determinate?
(1) LA-LEGAL ANSWER/S:
A thing is determinate when it is
particularly designated and/or
physically segregated from all others
of the same class.
(3) LB/R- LEGAL BASIS/ Article 1460
(1st par) R.A. 386
LS-LEGAL SOURCE page 489.
Domingo, A. D. (2016) Obligations &
contracts laws, principles, and
jurisprudence. 2016 ed. Coaching For
Results Publishing.
(37) Is it essential that the thing
object of a contract of sale be
always determinate?
(1) LA-LEGAL ANSWER/S:
The requisite that a thing be
determinate is satisfied if at the time
the contract is entered into, the thing
is capable of being made determinate
without the necessity of a new or
further agreement between the
parties.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
The object must be determinate or
specific otherwise there is no sale.
This requirement is met if t the time
of perfection the object of sale is
capable of being made determinate

6|Page
ot it can be ascertained without the
need of entering into new agreement.
(3) LB/R- LEGAL BASIS/ Article 1460
(2nd par) R.A. 386
LS-LEGAL SOURCE page 7. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(38) Can future things be
valid object of a contract of sale?
(1) LA-LEGAL ANSWER/S:
Things having a potential existence
may be the object of the contract of
sale.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Things having potential existence
/Emptio rei sperati, the validity of
which shall depend upon the
intention of the parties that if the
thing does not come into existence
the contract is without effect and as
such there is no obligation to pay the
price.
(3) LB/R- LEGAL BASIS/ Article 1461
(1st par) R.A. 386
LS-LEGAL SOURCE page 9. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(39) What is the Latin term for
such object?
(1) LA-LEGAL ANSWER/S:
Emptio rei sperati
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Things having potential existence
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1461 (1st par) R.A. 386
(40) When is a thing said to have
potential existence?
(1) LA-LEGAL ANSWER/S:
The efficacy of the sale of a mere
hope or expectancy is deemed
subject to the condition that the
thing will come into existence.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
This is a sale of a thing which is
expected to come into existence, the
quality and quantity of which are
7|Page
unknown but not the thing itself will
definitely come into existence.
(3) LB/R- LEGAL BASIS/ Article 1461
(2nd par) R.A. 386
LS-LEGAL SOURCE page 9. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(64) Distinguish between a sale of a
mere hope or expectancy and
sale of a vain hope or
expectancy?
(1) LA-LEGAL ANSWER/S:
The efficacy of the sale of a mere
hope or expectancy is deemed
subject to the condition that the
thing will come into existence. The
sale of a vain hope or expectancy is
void.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
Article 1461 (2nd and 3rd par) R.A.
386
(41) What is the Latin term for
such object?
(1) LA-LEGAL ANSWER/S:
Emptio spei.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Sale of hope or expectancy.
(3) LB/R- LEGAL BASIS/ Article 1461
(2nd par) R.A. 386
LS-LEGAL SOURCE page 9. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(42) What kind of goods may
be objects of a contract of sale?
(1) LA-LEGAL ANSWER/S:
The goods which form the subject of
a contract of sale may be either
existing goods, owned or possessed
by the seller, or goods to be
manufactured, raised, or acquired by
the seller after the perfection of the
contract of sale, in this Title called
"future goods."
There may be a contract of sale of
goods, whose acquisition by the
seller depends upon a contingency
which may or may not happen.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
1. Present goods - goods owned or
possessed by the seller at the time of
the perfection of sale.
2. Future goods - goods to be
manufactured, raised. or acquired by
the seller after the perfection of sale,
or whose acquisition depends upon a
contingency which may or may not
happen.
(3) LB/R- LEGAL BASIS/ Article 1462
R.A. 386
LS-LEGAL SOURCE page 11. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(43) If one is the sole owner of a
thing, in how many ways may he
sell the thing?
(1) LA-LEGAL ANSWER/S:
The sole owner of a thing may sell an
undivided interest therein.
(3) LB/R- LEGAL BASIS/ Article 1463
R.A. 386
LS-LEGAL SOURCE page 12. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(44) In case of fungible goods,
can the seller make a valid sale of
an undivided share of a specific
mass of goods, although the seller
purports to sell and the buyer to
buy a definite number, weight or
measure of the goods in the mass,
though the number, weight or
measure of the goods in the mass
in undetermined?
(1) LA-LEGAL ANSWER/S:
In the case of fungible goods, there
may be a sale of an undivided share
of a specific mass, though the seller
purports to sell and the buyer to buy
a definite number, weight or measure
of the goods in the mass, and though
the number, weight or measure of the
goods in the mass, and though the
number, weight or measure of the
goods in the mass is undetermined.
By such a sale the buyer becomes
owner in common of such a share of
the mass as the number, weight or
measure bought bears to the number,
weight or measure of the mass. If the
8|Page
mass contains less than the number,
weight or measure bought, the buyer
becomes the owner of the whole
mass and the seller is bound to make
good the deficiency from goods of the
same kind and quality, unless a
contrary intent appears.
(3) LB/R- LEGAL BASIS/ Article 1464
R.A. 386
LS-LEGAL SOURCE page 12. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(45) What is the meaning of
fungible goods?
(1) LA-LEGAL ANSWER/S:
Fungible goods are those that can
readily be estimated and replaced
according to weight, measure, and
amount.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1464 R.A. 386
(46) Can there be a valid sale of
a thing subject to resolutory
condition?
(1) LA-LEGAL ANSWER/S:
Things subject to a resolutory
condition may be the object of the
contract of sale.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1465 R.A. 386
Lesson 9B-15 GQs
PRICE
(47) What is price vis-à-vis a
contract of sale?
(1) LA-LEGAL ANSWER/S:
Price is the sum stipulated as the
equivalent of the thing sold and also
every incident taken into
consideration for the fixing of te price
of the sale.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
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 parties is
accepted by the other, the sale is
perfected.
(3) LB/R- LEGAL BASIS/ Article 1469
R.A. 386
LS-LEGAL SOURCE page 18. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(48) When is price considered
certain?
(1) LA-LEGAL ANSWER/S:
In order that the price may be
considered certain, it shall be
sufficient that it be so with reference
to another thing certain, or that the
determination thereof be left to the
judgment of a special person or
persons.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Instances when the price is certain:
1. When it is stipulated
2. with reference to another thing
(certain)
3. fixed by third persons
4. fixed by the court
5. on definite day/particular exchange
or market/fixed above or below price.
(3) LB/R- LEGAL BASIS/ Article 1469
(1st par) R.A. 386
LS-LEGAL SOURCE page 18. Suarez, C.
B. (2000) The law on sales, agency,
pledge and mortgages for business
students. 2000 ed. Manila : GIC
Enterprises.
(49) If the price is fixed by a
third person, when will such price
be binding upon the contracting
parties?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
(50) What is the effect if such
third person is unable or
unwilling to fix the price?
(1) LA-LEGAL ANSWER/S:
The contract shall be inefficacious if
the third person is unable or
unwilling to fix the price unless the
parties subsequently agree upon the
price.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
If the third person designated by the
parties to fix the price refuses or
cannot fix it (without fault of the
seller and the buyer), the contract
shall become ineffective, as if no
price had been agreed upon unless of
9|Page
course, the parties subsequently
agree upon the price.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
(51) What is the effect if the
third person in fixing the price
acted in bad faith or by
mistake?
(1) LA-LEGAL ANSWER/S:
The effect if the third person in fixing
the price acted in bad faith or by
mistake is that the courts may fix the
price.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
When the third person acts in bad
faith or by mistake as when the third
person fixed the price having in mind
not the thing which is the object of
the sale, but another analogous or
similar thing, in which case the court
may fix the price. But mere error in
judgement cannot serve as a basis for
disregarding the price fixed.
(3) LB/R- LEGAL BASIS/ Article 1469
R.A. 386
LS-LEGAL SOURCE
pg. 19-20, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
(52) What are the remedies if
the third person who is to fix
the price is prevented from
fixing the price by fault of the
seller or the buyer?
(1) LA-LEGAL ANSWER/S:
If such third person is prevented from
fixing the price by the fault of the
seller or the buyer, the party not in
fault may obtain redress against the
party in fault (par. 4) which consists
of a choice between rescission or
fulfillment, with damages in either
case. (Art. 1191, par. 2.) If the
innocent party chooses fulfillment,
the court shall fix the price.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
(53) What is the effect of gross
inadequacy of price?
(1) LA-LEGAL ANSWER/S:
Gross inadeaquacy of price does not
affect a conttact of sale, except as it
may indicate a defect in the consent,
or that the parties really intend a
donationor some other act or
contract.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1470 R.A. 386
(54) Will the contract of sale be
valid, if the price is simulated or
false?
(1) LA-LEGAL ANSWER/S:
If the price is simulated, the sale is
void, but the act may be shown to
have been in reality a donation, or
some other act or contract.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1471 R.A. 386
(55) Under what circumstances
shall the price of securities,
grain, liquids, and other things
be considered certain?
(1) LA-LEGAL ANSWER/S:
The price of securities, grains,
liquids, and other things shall also be
comsidered certain, when the price
fixed is that which the thing sold
would have on a definite day, or in a
particular exchange or market, or
when an amount is fixed above or
below the price on such day, or in
such exchange or in market, provided
said amount be certain.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1472 R.A. 386
(56) Can the fixing of the price
be left to the discretion of one of
the contracting parties?
(1) LA-LEGAL ANSWER/S:
The fixing of the price can never be
left to the discretionnof one of the
contracting parties. However, if the
price fixed by one of the parties is
accepted by the other, the sale is
perfected.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1473 R.A. 386
(57) What is the effect if price
cannot be determined either by
the parties or the third person
designated to fix it?
(1) LA-LEGAL ANSWER/S:
Where the price cannot be
determined in accordance with the
preceding articles, or in any other
manner, the contract is inefficacious.
However, if the thing or any part
thereof has been delivered to and
appropriated by the buyer, he must
10 | P a g e
pay a reasonable price therefor. What
is a reasonable price is a question of
fact dependent on the circumstances
of each particular case.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
If the price cannot be determined in
accordance with Articles 1469 and
1472, or in any other manner, the
contract is without effect.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1474 R.A. 386
(58) In the event price cannot
be determined, but the thing or
any part thereof has already
been delivered and
appropriated by the buyer,
what is the obligation of the
buyer?
(1) LA-LEGAL ANSWER/S:
If the thing or any part thereof has
already been delivered and
appropriated by the buyer, the latter
must pay a reasonable price thereof.
The reasonable price or value of
goods is generally the market price at
the time and place fixed by the
contract or by law for the delivery of
the goods.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1474 R.A. 386
LS-LEGAL SOURCE
pg. 24, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
(59) What is considered a
reasonable price
(1) LA-LEGAL ANSWER/S:
What is a reasonable price is a
question of fact dependent on the
circumstances of each particular
case.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1474 R.A. 386
(60) Distinguish between
earnest money and option
money
(1) LA-LEGAL ANSWER/S:
(1) Earnest money is part of the
purchase price, while option money
(see Art. 1479, par 2.) is the money
given as distinct consideration for the
option contract; (2) Earnest money is
given only where there is already a
sale, while option money applies to a
sale not yet perfected; and (3) When
earnest money is given, the buyer is
bound to pay the balance, while when
the would-be buyer gives option
money, he is not required to buy.
(3) LB/R- LEGAL BASIS/ Article 1482
R.A. 386
LS-LEGAL SOURCE
pg. 24, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
(61) What are the natural
elements of a contract of sale?
(1) LA-LEGAL ANSWER/S:
Natural elements are those which are
deemed to exist in certain contracts,
in the absence of any contrary
stipulations like warranty against
eviction or hidden defects.
(3) LS-LEGAL SOURCE
pg. 3, The Law on Sales, Agency and
Credit Transactions, Hector S. De
Leon, 2010 Edition
(62) What is the meaning of
natural elements?
(1) LA-LEGAL ANSWER/S:
Natural elements are those which are
deemed to exist in certain contracts,
in the absence of any contrary
stipulations like warranty against
eviction or hidden defects.
(3) LS-LEGAL SOURCE
pg. 3, The Law on Sales, Agency and
Credit Transactions, Hector S. De
Leon, 2010 Edition
Lesson 9C-41 GQs
WARRANTIES
(63) Legally define warranty
(1) LA-LEGAL ANSWER/S:
Warranty is any representation made
by the seller of thing with respect to
its character, quality, or ownership,
by which he induces the buyer to
purchase the same relying on said
representation.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1546 R.A. 386
(64) What is warranty vis-a-vis
contract of sale?
(1) LA-LEGAL ANSWER/S:
Any affirmation of fact or any promise
by the seller relating to the thing is
an express warranty if the natural
tendency of such affirmation or
11 | P a g e
promise is to induce the buyer to
purchase the same, and if the buyer
purchases the thing relying thereon.
No affirmation of the value of the
thing, nor any statement purporting
to be a statement of the seller's
opinion only, shall be construed as a
warranty, unless the seller made such
affirmation or statement as an expert
and it was relied upon the buyer.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1546 R.A. 386
(65) What are the kinds of
warranties under the law?
(1) LA-LEGAL ANSWER/S: The seller is
liable for his express warranties
(Article 1456) and for the implied
warranties of title (Article 1457),
absence of hidden effects, fitness or
merchantability (Article 1562) ,
description (Articles 1481, 1562) and
sample. (Article 1481, 1565)
(3) LS-LEGAL SOURCE
pg. 125, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
(66) Define express warranty
(1) LA-LEGAL ANSWER/S:
An express warranty is any
affirmation of fact or any promise by
the seller relating to the thing, the
natural tendency of which is to
induce the buyer to purchase the
thing, and the buyer thus induced,
does purchase the same time.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
A warranty is a part of the contract of
sale. It is, therefore , immaterial
whether the seller did not know that
it was false or true. No intent is
necessary to make the selker liable
for his warranty.
(3) LS-LEGAL SOURCE
pg. 126, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
(67) Is an affirmation of the
value of the thing or the
seller’s expression of opinion
considered express warranty?
(1) LA-LEGAL ANSWER/S:
A mere expression of opinion, no
matter how positively asserted, does
not import a warranty unless the
seller is an expert and the opinion
was relied upon the buyer.
(3) LS-LEGAL SOURCE
pg. 126, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
93. What are the implied warranties in
a contract of sale?
(1) LA-LEGAL ANSWER/S:
In a contract of sale, unless a
contrary intention appears, there is:
(1) An implied warranty on the part of
the seller that he has a right to sell
the thing at the time when the
ownership is to pass, and that the
buyer shall from that time have and
enjoy the legal and peaceful
possession of the thing;
(2) An implied warranty that the
thing shall be free from any hidden
faults or defects, or any charge or
encumbrance not
declared or known to the buyer.
This article shall not, however, be
held to render liable a sheriff,
auctioneer, mortgagee, pledgee, or
other person professing to sell by
virtue of authority in fact or law, for
the sale of a thing in which a third
person has a legal or equitable
interest. (n)
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
An implied warranty is that which the
law derives by implication or
inference from the nature of the
transaction or the relative situation
or circumstances of the parties
irrespective of any intention of the
seller to create it.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1547 R.A. 386
94. Does the rule on implied warranty
apply to all persons who make a sale?
(1) LA-LEGAL ANSWER/S: The term
"implied warranty" is reserved for
cases where the law attaches an
obligation to the seller which is not
expressed in any words.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Implied warranties under Articles
1547 and 1562 are:
(1) Implied warranty as to seller's
title
12 | P a g e
(2) Implied warranty against hidden
effects or unknown encumberances
(3) Implied warranty as to fitness or
merchatability
(3) LS-LEGAL SOURCE
pg. 128, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
95. What is eviction?
(1) LA-LEGAL ANSWER/S:
Eviction shall take place whenever by
a final judgment based on a right
prior to the sale or an act imputable
to the vendor, the vendee is deprived
of the whole or of a part of the thing
purchased.
The vendor shall answer for the
eviction even though nothing has
been said in the contract on the
subject.
The contracting parties, however,
may increase, diminish, or suppress
this legal obligation of the vendor.
(1475a) 12
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Eviction may be defined as the
juridical process whereby the vendee
is deprived of the whole or part of the
thing purchased by virtue of final
judgement based on a right prior to
the sale or an act imputable to the
vendor.
(3) LB/R- LEGAL BASIS/Article 1548
R.A. 386
LS-LEGAL SOURCE
pg. 130, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
96. What are the essential requisites of
the warranty against eviction?
(1) LA-LEGAL ANSWER/S:
The essential elements of eviction
are:
(1) The vendee is deprived in whole
or in part of the thing purchased;
(2) He is so deprived by virtue of a
final judgement (Article 1557) ;
(3) The judgement is based on a right
prior to the sale or an act to the
imputable vendor;
(4) The vendor was summoned in the
suit for eviction at the instance of the
vendee (Article 1558); and
(5) There is no waiver on the part of
the vendee.
(3) LS-LEGAL SOURCE
pg. 128, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
97. In the event the vendee is evicted
by final judgment of the thing he
bought, can he hold the vendor
liable for eviction even though
nothing was agreed upon in the
contract regarding the warranty
against eviction?
(1) LA-LEGAL ANSWER/S:
The vendee need not appeal from the
decision in order that the vendor may
become liable for eviction. (n)
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1549 R.A. 386
98. Are there cases where the
vendor shall not be liable for
eviction?
(1) LA-LEGAL ANSWER/S:
When adverse possession had been
commenced before the sale but the
prescriptive period is completed after
the
transfer, the vendor shall not be
liable for eviction. (n)
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1550 R.A. 386
99. Does this warranty against
eviction apply to judicial sales?
(1) LA-LEGAL ANSWER/S:
The judgment debtor is also
responsible for eviction in judicial
sales, unless it is otherwise decreed
in the judgment. (n)
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1552 R.A. 386
100. What is the effect of the
stipulation exempting the
vendor from the obligation to
answer for eviction?
(1) LA-LEGAL ANSWER/S:
Any stipulation exempting the vendor
from the obligation to answer for
eviction shall be void, if he acted in
bad faith. (1476)13
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1553 R.A. 386
101. What are the kinds of waiver of
eviction?
(1) LA-LEGAL ANSWER/S:
The kinds of waiver are:
13 | P a g e
(1) Consciente
(2) Intencionada
(3) LS-LEGAL SOURCE
pg. 134, The Law on Sales, Agency
and Credit Transactions, Hector S. De
Leon, 2010 Edition
Lesson 10-7 GQs
PARTIES
125. Are all persons authorized to buy
and sell?
(1) LA-LEGAL ANSWER/S:
No.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
As a rule, only persons who may
oblige themselves may enter into a
contract of sale.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE
pg. 357, Pointers in Business Law for
CPA Reviewees, Suarez, C. (2011)
126. What is the meaning of capacity
to buy and sell?
(1) LA-LEGAL ANSWER/S:
All persons who are authorized in this
Code to obligate themselves, may
enter into a contract of sale, saving
the modifications contained in the
following articles.
Where necessaries are those sold and
delivered to a minor or other person
without capacity to act, he must pay
a reasonable price therefor.
Necessaries are those referred to in
article 290. (1457a) 13
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1489 R.A. 386
127. What is the meaning of incapacity
to buy and sell?
(1) LA-LEGAL ANSWER/S:
Incapacity to buy and sell are those
who can not oblige themselves to
enter into a contract of sale. Hence,
incapacitated persons, like minors,
demented persons, imbeciles,
prodigals, deaf and dumb, insan and
those subject to Civil interdiction
caanot enter to contract because
their personality is restricted.
However, when necessaries are sold
and delivered to a minor or
incapacitated person, the latter is
obliged to oay a reasonable price.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE pg. 357, Pointers in Business
Law for CPA Reviewees, Suarez, C. (6) Any others specially disqualified
(2011) by law. (1459a)
128. What are the kinds of incapacity (3) LB/R- LEGAL BASIS/ LS-LEGAL
to buy and sell? SOURCE Article 1491 R.A. 386
(1) LA-LEGAL ANSWER/S: 130. To what other transactions does
If the third person or persons acted in this prohibition extend?
good faith. (1) LA-LEGAL ANSWER/S:
(3) LB/R- LEGAL BASIS/ LS-LEGAL If the third person or persons acted in
SOURCE Article 1469 R.A. 386 good faith.
129. Give some examples of persons (3) LB/R- LEGAL BASIS/ LS-LEGAL
especially disqualified by law. SOURCE Article 1469 R.A. 386
(1) LA-LEGAL ANSWER/S: Lesson 11-2 GQs
The following persons cannot acquire SELLER/VENDOR
by purchase, even at a public or 131. Who is a seller/vendor is
judicial auction, either in person or contemplation of the law?
through the mediation of another: (1) LA-LEGAL ANSWER/S:
(1) The guardian, the property of the The seller is the one who is obliged to
person or persons who may be under transfer ownership and to deliver a
his guardianship; determinate thing to the buyer. The
(2) Agents, the property whose seller is also responsible in providing
administration or sale may have been a warranty to the object of the
intrusted to them, unless the consent contract of sale.
of the (3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE pg. 360, Pointers in Business
principal has been given; Law for CPA Reviewees, Suarez, C.
(3) Executors and administrators, the (2011)
property of the estate under 132. Enumerate the obligations of the
administration; seller/vendor
(4) Public officers and employees, the (1) LA-LEGAL ANSWER/S:
property of the State or of any The vendor is bound to transfer the
subdivision thereof, or of any ownership of and deliver, as well as
government-owned or controlled warrant the thing which is the object
corporation, or institution, the of the sale. (1461a)
administration of which has been (3) LB/R- LEGAL BASIS/ LS-LEGAL
intrusted to them; this provision shall SOURCE Article 1495 R.A. 386
apply to judges and government Lesson 11A-11 GQs
experts who, in any manner DELIVERY/TRADITION
whatsoever, take part in the sale; 133. What is meant by delivery?
(5) Justices, judges, prosecuting (1) LA-LEGAL ANSWER/S:
attorneys, clerks of superior and If the third person or persons acted in
inferior courts, and other officers and good faith.
employees connected with the (3) LB/R- LEGAL BASIS/ LS-LEGAL
administration of justice, the SOURCE Article 1469 R.A. 386
property and rights in litigation or 134. What are the kinds of delivery?
levied upon an execution before the (1) LA-LEGAL ANSWER/S:
court within whose jurisdiction or The kinds of delivery are the
territory they exercise their following:
respective functions; this prohibition a. Actual delivery
includes the act of acquiring by b. Constructive delivery
assignment and shall apply to c. Any agreement that possession is
lawyers, with respect to the property transferred from the vendor to the
and rights which may be the object of vendee
any litigation in which they may take (3) LB/R- LEGAL BASIS/ LS-LEGAL
part by virtue of their profession; SOURCE pg. 360, Pointers in Business

14 | P a g e
Law for CPA Reviewees, Suarez, C.
(2011)
135. Does actual or real delivery
always pass ownership to the
vendee?
(1) LA-LEGAL ANSWER/S:
Yes.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
Because actual delivery happens
when the goods are placed in the
control and possession of the vendee.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE pg. 360, Pointers in Business
Law for CPA Reviewees, Suarez, C.
(2011)
136. What are the exceptions to the
rule that delivery to the carrier is
delivery to the buyer?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
137. When shall delivery of goods by
the seller to the carrier be
considered delivery to the
buyer?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
143. What are the exceptions to the
above rule?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
144. What do the following trade terms
mean?
a. F.O.B.
b. C.I.F
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
145. Under the obligation of the seller to
deliver, who shall bear the
expenses in order to place the
thing in a deliverable state?
(1) LA-LEGAL ANSWER/S:
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If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
146. Who shall pay for the expenses
for the execution and
registration of the sale?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
147. What is the meaning of care vis-à-
vis a contract of sale?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
148. What are the rules anent care of
the object of sale from perfection
to delivery?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
Lesson 11B-12 GQs
OWNERSHIP
149. What is meant by transfer vis-à-
vis a contract of sale?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
150. What is ownership vis-à-vis a
contract of sale?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
151. When is ownership transferred
to the buyer?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
152. Must the seller have ownership of
the thing at the time of
perfection of the contract of sale?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
153. When shall ownership of the
thing sold be transferred to the
vendee or buyer?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
154. Is there a case where though the
thing has been delivered to the
buyer, yet the buyer does not
acquire ownership?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
155. How is ownership of the thing
transferred to the vendee?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
156. So that ownership is transferred
must the vendor have
ownership at the time of
perfection of the contract?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386
157. In a sale of specific goods when
does ownership pass to the
buyer?
(1) LA-LEGAL ANSWER/S:
If the third person or persons acted in
good faith.
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1469 R.A. 386

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