RFBT Quizzer No.

1. Plaintiff granted defendant the right to sell as an “agent” Quiroga beds in the Visayas.
The defendant was obliged under the contract to pay for the beds, at a discount of
25% as commission on the sales. The payment had to be made whether or not the
defendant was able to sell the beds. Is this a contract of sale, or an agency to sell?

A. Contract of Agency to Sell because “agent” sells the beds upon the instruction of the
Principal.
B. Contract of Sale because there was an obligation to supply the beds, and the reciprocal
obligation to pay the price.
C. Contract of Agency to Sell because Plaintiff was constituted as the “agent” who only
receives commission.
D. Contract of Sale because the price is fixed.

2. These are those which are inherent in the contract, and which in the absence of any
contrary provision, are deemed to exist in the contract.

A. Warranties
B. Natural Elements
C. Essential Elements
D. Accidental Elements

3. One Contract where ownership is retained by the seller, regardless of delivery and is
not to pass until full payment of the price.

A. Absolute Contract of Sale

B. Conditional Contract of Sale
C. Contract to Sell
D. Contract of Agency to Sell

4. If I give my car worth P900,000 to Jose in consideration of Jose’s giving to me P300,000

cash, and a diamond ring worth P600,000, is the transaction a sale or a barter?

A. Barter because the value of the ring is bigger that the cash given.
B. Sale because the elements of a Contract of sale are all present
C. Either barter or sale depending on the intent of the parties
D. Barter because a non-cash item is part of the consideration.

5. Furniture and tobacco were sold, the furniture at 90% of the price shown in a
subsequent inventory, and the tobacco at the invoice price. Is the price here already
considered certain?

A. Yes, in view of the reference to certain amounts.

B. No, value of the subsequent inventory is not given
C. Yes, in view of the percentage given
D. No, because it can not be made in reference to certain amounts.

6. Mr. X is an Igorot. He owns a mining claim and sold it sells a ridiculously low sum of
money. When asked about the sale, he admitted the fact of sale, did nothing about it
for a number of years. Now, he claims that the contract was simulated thus invalid.
Can he be allowed to annul the contract?

A. Yes, the contract is invalid because it absolutely simulated

B. No, he is already estopped when he admitted the fact of the sale.
C. Yes, otherwise the buyer would be unjustly enriched.
D. No, the action has prescribed.

1
RFBT Quizzer No. 2

7. S sold to B his piano. It was agreed that B would fix the price a week later. At the
appointed time B named the price — P900,000. S agreed. Is the sale perfected?

A. No, the fixing of the price cannot be left to the discretion of one of the parties.
B. Yes, because the price fixed by B is accepted by S, hence, there is meeting of the
minds.
C. No, there was no meeting of the minds
D. Yes, the subject matter is determinate.

8. On Sept. 13, A offered to the respondent 1,000 cartons of sardines, subject to reply by
Sept. 23. The respondent accepted the offer unconditionally, and delivered his letter
of acceptance on Sept. 21. However, in view of a shortage in the catch of sardines ,
petitioner failed to deliver the commodities it had offered for sale. Respondent now
sues for damages. Among the defenses alleged was that there was a mere offer to sell,
and that therefore the contract of sale had not yet been perfected. Is he correct?

A. Yes, the sale was not perfected because there was mere offer to sale.
B. No, the sale was perfected in view of the acceptance of the offer.
C. Yes, because the offer was not supported by a consideration separate and distinct of
the price.
D. No, the offer was not certain.

9. Which of the following sale is covered by the Statute of Fraud?

A. Sale of Real Property if the amount is P500 or more.

B. Sale of Real Property if the amount is more than P500.
C. Sale of Personal Property if the amount is P500 or more.
D. Sale of Real Property if the amount is more than P500.

10. A sold to B orally a particular parcel of land for P5,000. Delivery was made of the land.
The payment of the price was to be made three months later. At the end of the
period, B refused to pay, and claimed in his defense the Statute of Frauds. Is B correct?

A. Yes, oral sale of a parcel of land is not enforceable being in violation of the Statute of
Frauds.
B. No, the contract has already been executed, thus not covered by the Statute of
Frauds.
C. Yes, any sale of real property must be in writing, regardless of amount.
D. No, the amount is too small hence not covered by the Statute of Fraud.

11. It is granting a person the privilege to buy or not to buy certain objects at any time
within the agreed period at a fixed price. It is a separate and distinct contract from the
contract which the parties may enter into upon the consummation of the contract.

A. Option Contract
B. Option Money
C. Option to Buy
D. Earnest Money

12. A offered to sell for P10 million his house and lot to B who was interested in buying
the same. In his letter to B, A stated that he was giving B a period of one month within
which to raise the amount and that as soon as B is ready, they will sign the deed of
sale. One week before the expiration of the one-month period, A went to B and told
him that he is no longer willing to sell the property unless the price is increased to P15
million. May B compel A to accept the P10 million first offered, and execute the sale?

2
RFBT Quizzer No. 2

A. No, for B never signified his acceptance of A’s offer. The option was not supported
by a distinct consideration.
B. Yes, the one-month period has not expired.
C. Yes, the offer still stands because B has shown interest in buying the property.
D. No, the contract of sale is not perfected because the subject matter is generic.

13. A sold to B his car. After the perfection of the contract but before delivery, the car was
destroyed by a fortuitous event. Who bears the loss ?

A. The buyer bears the loss, as exception to the rule of res perit domino.
B. The buyer bears the loss because he is already the owner upon the perfection of the
contract
C. The seller bears the loss because it is lost prior to delivery
D. The seller bears the loss because it is lost in his possession.

14. I sold to Maria my house in Zamboanga which, unknown to both of us, had been
completely destroyed last night. What is the status of the sale?
A. Void
B. Voidable
C. Rescissible
D. Unenforceable

15. Delivery of the key of the place where the movable sold is being kept is an example
of?

A. Delivery by tradition
B. Traditio Symbolica
C. Traditio Longa Manu
D. Tradition Brevi Manu

16. Where the possession as an owner was changed to possession as a lessee is an

example of a constructive delivery called:

A. Traditio Constitutum Possessorium

B. Traditio Brevi Manu
C. Traditio Longa Manu
D. Traditio Symbolica

17. Generally, the unpaid seller’s right of LIEN or STOPPAGE IN TRANSITU remains even if
the buyer has sold or otherwise disposed of the goods, except:

A. When the seller has not given his consent thereto.

B. When the purchaser or the buyer is a purchaser for value in good faith of a
negotiable document of title.
C. When the articles are perishable goods.
D. Either A or B

18. A sold land to B. Subsequently, A sold the same land to C who in good faith registered
it in his name. Who should be considered the owner?

A. B, because the land was first sold to him. The sale to C was invalid because A was no
longer the owner of the land at the moment of sale.
B. C, because he was the one who registered the sale in good faith.
C. B, because he has the oldest title in good faith.
D. C, because he was the first to possess in good faith.

3
RFBT Quizzer No. 2

19. It is any affirmation of fact, or any promise by the seller relating to the thing if the
natural tendency of such affirmation or promise is to induce the buyer to purchase the
same, and if the buyer purchases the thing relying thereon.

A. Warranties and Conditions

B. Express Warranty
C. Implied Warranty
D. Exaggeration in Trade

20. The following are the essential elements of Eviction , except:

A. The purchaser has been deprived in whole of the thing sold

B. The purchaser has been deprived in part of the thing sold
C. The vendor has been previously notified of the complaint for eviction
D. The case must have been filed before a competent court.

21. One which although lacking in some formality, form or words, or other requisites
demanded by a statute nevertheless reveals the intention of the parties to charge a
real property as security for a debt, and contains nothing impossible or contrary to
law

A. Conventional Mortgage
B. Equitable Mortgage
C. Real Estate Mortgage
D. Contract of Mutuum.

22. The contract shall be presumed to be an equitable mortgage, in any of the following
cases, except:

A. When the price of a sale with right to repurchase is usually inadequate;

B. When the vendee remains in possession as lessee or otherwise;
C. When upon or after the expiration of the right to repurchase another instrument
extending the period of redemption or granting a new period is executed;
D. When the purchaser retains for himself a part of the purchase price;

23. It is the right to be subrogated, upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by purchase or dation in payment,
or by any other transaction whereby ownership is transmitted by onerous title.

A. Legal Redemption
B. Legal Subrogation
C. Conventional Redemption
D. Equitable Redemption

24. In a contract of sale of personal property the price of which is payable in installments,
the vendor may exercise any of the following remedies, except:

A. Exact fulfillment of the obligation, should the vendee fails to pay at least one
installment;
B. Exact fulfillment of the obligation, should the vendee fails to pay two or more
installments;
C. Cancel the sale, should the vendee’s failure to pay cover two or more installments;
D. Foreclose the chattel mortgage on the thing sold if one has been constituted, should
the vendee’s failure to pay cover two or more installments.

25. B bought a car on the installment plan, and as security, executed a chattel mortgage
on it. B failed to pay two installments. The seller foreclosed the mortgage, but the sum

4
RFBT Quizzer No. 2

he obtained was less than what B still owed him. It had been previously agreed in the
deed of sale that B would be liable for any deficiency in this matter. May the seller still
sue for the deficiency?

A. Yes, the contract stipulation is the law between the parties;

B. No, after foreclosure, the seller-mortgagee shall have no further recourse;
C. No, Recto law does not apply to sale of personal property on installment.
D. Yes, the mortgagor is estopped from denying the provisions in the contract.

26. Under the Maceda Law, where the buyer has paid at least two years of installments,
the following are his rights in case of defaults in the payment of succeeding
installments, except:

A. To pay, without additional interest, the unpaid installments due within the total
grace period earned by him, which is hereby fixed at the rate of one-month grace
period for every one year of installment payments made;

B. The right to avail of the grace period shall be exercised by the buyer only once in
every two years of the life of the contract and its extensions;

C. If the contract is cancelled, the seller shall refund to the buyer the cash surrender
value of the payments on the property equivalent to fifty percent of the total
payments made and, after five years of installments, an additional five percent every
year but not to exceed ninety per cent of the total payments made;

D. That the actual cancellation of the contract shall take place after thirty days from
receipt by the buyer of the notice of cancellation or the demand for rescission of the
contract by a notarial act and upon full payment of the cash surrender value to the
buyer.

27. It is a stipulation whereby the thing pledged or mortgaged or subject of antichresis

shall automatically become the property of the creditor in the event of non‐payment
of the debt within the term fixed. Such stipulation is null and void.

A. Pactum Leonina
B. Pactum Commissorium
C. Authority for Extra-judicial Foreclosure
D. Dacion En Pago

28. A contract where debtor delivers to creditor or 3rd person a movable or document
evidencing incorporeal right for the purpose of securing fulfillment of a principal
obligation with the understanding that when the obligation is fulfilled, the thing
delivered shall be returned w/ all its fruits and accessions.

A. Contract of Chattel Mortgage

B. Contract of Loan
C. Contract of Pledge
D. Contract of Commodatum

29. The following are the essential requisites of a Contract of Pledge , except:

A. Constituted to secure the fulfillment of a principal obligation;

B. Pledgor is the absolute owner of the thing pledged;
C. Persons constituting the pledge have the free disposal of their property, and in the
absence thereof, that they be legally authorized for the purpose;
D. Subject Matter may be personal property or right involving immovable property.

5
RFBT Quizzer No. 2

30. Pablo owns a tractor which he left with his son Mike for safekeeping. Mike then
offered the said tractor to Caliba Ngon as security for the payment of his debt. When
Pablo came back and learned that the tractor was in the custody of Caliba, he
demanded its return. Caliba, however, refused. Caliba alleged that the tractor was
pledged to him, and in the alternative, the tractor was left with him in the concept of
deposit and he may validly hold on to it until Mike pays his obligation. Is Caliba
correct?

A. No, because Mike is not the absolute owner of the property pledged;
B. Yes, because a contract of pledge is perfected upon delivery;
C. Yes, because the tractor was used to secure a principal obligation
D. No, because in the contract of pledge, the borrower must be the owner of the thing
pledged.

31. The following are the obligations of a pledgee, except:

A. Take care of the thing pledged with the diligence of a good father of a family;
B. Pledgee cannot deposit the thing pledged to a 3rd person;
C. Apply the fruits, income, dividends, or interests produced or earned by the property,
to interests or expenses first, then to the principal;
D. Cannot use the thing pledged without authority even when authorized.

32. Can the pledgee cause the sale of the thing pledged in public auction where the
obligation is not yet due?

A. Yes, if without the fault of the pledge, there is danger of destruction, impairment or
diminution in value of the thing pledged;

B. Yes, provided the proceeds of the auction shall be turned-over to the principal
obligation in the same manner as the thing originally pledged;

C. No, obligation must be due and demandable.

D. No, there must be proper notice.

33. The following are the requisites of public sale, except:

A. The obligation must be due and unpaid;

B. The sale of the thing must be at a public auction;
C. There must be notice to the pledgor and owner stating the amount for which the
sale is to be held; and
D. The sale must be conducted by a lawyer.

34. Four carabaos were pledged by Toledo to Ernie. Toledo is the registered owner of the
carabaos. The carabaos were actually in the possession of Jack . Ernie never took
possession of the carabaos. There is nothing in the contract which stated that Jack was
by common consent made the depositary of the carabaos in Ernie’s behalf. Is there a
lawfully constituted pledge?

A. No, the delivery of possession of the property pledged requires actual possession ;
B. Yes, in a contract of pledge, the delivery of the thing pledged may be done to the
third person;
C. Yes, symbolic delivery is sufficient;
D. No, there was no valid principal obligation.

35. The following are the requisites to bind third persons in a contract of pledge, except:

6
RFBT Quizzer No. 2

A. The pledge must be embodied in a public instrument ;

B. A description of the thing pledged must be stated;
C. The Statement of date when the pledge was executed must be specified;
D. The contract must be registered in the Registry of Deeds.

36. Petitioner obtained a loan of P20,000 from defendant Rural Bank of Malita. The loan
was secured by a Real Estate Mortgage over a parcel of land. The mortgage contract
states that the mortgage will cover the payment of the loan of P20,000 and such other
loans or other advances already obtained or to be obtained by the mortgagors from
the bank. The loan of P20,000 was fully paid. Thereafter they again obtained a loan of
P18,000, secured by the same mortgage. The spouses defaulted. The bank extra
judicially foreclosed the mortgage. Was the foreclosure sale valid?
A. Yes. It has long been settled that mortgages given to secure future advancements are
valid and legal contracts;
B. Yes, in order to promote justice and equity;
C. No, mortgages cannot answer for future obligations;
D. No, there was no valid authority for extra-judicial foreclosure.

37. X borrowed money from a bank, secured by a mortgage on the land of Y, his close
friend. When the loan matured, Y offered to pay the bank but it refused since Y was
not the borrower. Is the bank’s action correct?

A. Yes, since X, the true borrower, did not give his consent to Y’s offer to pay.
B . No, since anybody can discharge X’s obligation to his benefit.
C . No, since Y, the owner of the collateral, has an interest in the payment of the
obligation.
D . Yes, since it was X who has an obligation to the bank.

38. Upon the proposal of a third person, a new debtor substituted the original debtor
without the latter’s consent. The creditor accepted the substitution. Later, however,
the new debtor became insolvent and defaulted in his obligation. What is the effect of
the new debtor’s default upon the original debtor?

A. The original debtor is freed of liability since novation took place and this relieved him
of his obligation.
B. The original debtor shall pay or perform the obligation with recourse to the new
debtor.
C . The original debtor remains liable since he gave no consent to the substitution.
D . The original debtor shall pay or perform 50% of the obligation to avoid unjust
enrichment on his part.

39. A buyer ordered 5,000 oranges from the seller at P20 each. The seller delivered
6,000 oranges. What are the rights and obligations of the buyer?

A. He can accept all 6,000 oranges and pay the seller at P20 each.
B. He can accept all 6,000 oranges and pay a lesser price for the 1,000 excess oranges
C. He can keep the 6,000 oranges without paying for the 1,000 excess since the seller
delivered them anyway.
D. He can cancel the whole transaction since the seller violated the terms of their
agreement.

40. Eddie , Beth , and Melissa inherited a 10-hectare land from their father. Before the
land could be partitioned, however, Eddie sold his hereditary right to Ronald, a
stranger to the family, for P5 million. Do Beth and Melissa have a remedy for keeping
the land within their family?

7
RFBT Quizzer No. 2

(A) Yes, they may be subrogated to Ronald’s right by reimbursing to him within the
required time what he paid Eddie.
(B) Yes, they may be subrogated to Ronald’s right provided they buy him out before he
registers the sale.
(C) No, they can be subrogated to Ronald’s right only with his conformity.
(D) No, since there was no impediment to Eddie selling his inheritance to a stranger.