47.

This refers to the right of an adjoining owner of an urban land to be given preference to the
purchase of a small piece of urban land which is held for speculation before it is offered for sale
to others.

a. Right of subrogation.
b. Right of redemption.
c. Right of pre-emption.
d. Right of repurchase.

ARTICLE 1622. Whenever a piece of urban land which is so small and so situated that a
major portion thereof cannot be used for any practical purpose within a reasonable time,
having been bought merely for speculation, is about to be re-sold, the owner of any
adjoining land has a right of pre-emption at a reasonable price.

48. A, B, and C, are co-owners of an undivided parcel of land. On May 1, A sold his share to X:
on June 1, B sold his share also to X: and on July 1, C sold his share also to X. Each sale was
with a right to repurchase.

A. X may compel A, B and C to come to an agreement to repurchase the whole land.

b. Each co-owner may exercise his right redemption on the whole property including the share of
the other two co-owners.
c. Each co-owner may exercise his right of redemption only with respect to his share.
d. Any two of the three co-owners may redeem the property proportionately.

Article 1620. A co-owner of a thing may exercise the right of redemption in case the shares
of all the other co-owners or of any of them, are sold to a third person. If the price of the
alienation is grossly excessive, the redemptioner shall pay only a reasonable one.

Should two or more co-owners desire to exercise the right of redemption, they may only do
so in proportion to the share they may respectively have in the thing owned in common.

49. R, S and T are co-owners of an undivided parcel of land. R sold his 1/3 interest to T in a deed
of absolute sale. Which is correct?

a. S may exercise the right of redemption on the interest sold by R to T.

b. S cannot exercise the right of redemption.
c. The sale made by R to T is voidable.
d. S may redeem only V2 of the interest sold by R to T.

Article 1620. A co-owner of a thing may exercise the right of redemption in case the shares
of all the other co-owners or of any of them, are sold to a third person. (T is not a third
person so S cannot exercise the right of redemption.)
50. T steals the goods of O and deposits them in the warehouse of W. W issues to T a warehouse
receipt which by its terms indicates that goods are to be delivered to the order of T. T, thereafter,
negotiates the receipt to H who purchases the document in good faith and for value.

a. H may obtain delivery of the goods from W because H was an innocent purchaser for value.
b. H can obtain delivery of the goods from W because the issuance of the warehouse receipt to T
conferred a valid title to him over the goods.
c. H can obtain delivery of the goods from W because the acquisition by H of the warehouse
receipt in good faith cured the defect in T's title.
d. H cannot obtain delivery of the goods because he acquired whatever title T had, over
such goods, which is the title of a thief.

Article 1513. A person to whom a negotiable document of title has been duly negotiated
acquires thereby:

(1) Such title to the goods as the person negotiating the document to him had or had ability
to convey to a purchaser in good faith for value and also such title to the goods as the
person to whose order the goods were to be delivered by the terms of the document had or
had ability to convey to a purchaser in good faith for value

51. O delivered certain goods to C, a common carrier, which issued to O bill of lading stating
that the goods are to be delivered to bearer. Without O's fault, the bill of lading was stolen by T
who thereafter negotiated the document by mere delivery to H, a purchaser for value and without
notice of the defect in the title of T.
a. The negotiation of the bill of lading by T to H is not valid because of T’s defective title.
b. The negotiation of the bill of lading by T to H is valid. T's defective title does not have
any effect on the validity of the negotiation.
c. H may not obtain delivery of the goods from C because
d. H acquired whatever title T had over the document. H acquired title to the document but not to
the goods.

Article 1518. The validity of the negotiation a negotiable document of title is not impaired
by the fact that the negotiation was a breach of duty on the part of the person making the
negotiation, or by the fact that the owner of the document was deprived of the possession of
the same by theft.

52. D obtained from C a loan amounting to P50,000.00, the same being secured by a mortgage
on D's lot. Thereafter, C assigned his credit right to T with notice to D. Based on the foregoing
facts, which of the following statements is incorrect?

a. T cannot collect from D if D does not give his consent to the assignment.
b. T can collect from D. D's consent to the assignment is not required.
c. T can collect from D and if D cannot pay, T can foreclose the mortgage on the lot.
d. The notice to D of the assignment is sufficient. D must make his payment to T and no longer
to C.

Based on Soriano notes: An assignment does not require the consent of the debtor.

53. A kind of mortgage which, although lacking some formality, form of words, or requisites
prescribed by law, shows the intention of the parties to charge real property as security for debt
and contains nothing impossible or contrary to law is known as:

a. legal mortgage.
b. equitable mortgage.
c. conventional mortgage
d. voluntary mortgage

54. If a movable property is sold separately to two different vendees, ownership shall belong to
the person:

a. who in good faith first paid the purchase full price

b. who in good faith first recorded the sale Registry of Property.
c. In tilt who in good faith presents the oldest title.
d. who in good faith first took possession of property.

Article 1544. If the same thing should have been sold to different vendees, the ownership
shall be transferred to the person who may have first taken possession thereof in good
faith, if it should be movable property.

55. A contract of sale is perfected upon:

a. compliance with the requirements a law la form. as to

b. delivery of the object of the contract.

c. the meeting of the minds on the thing Which is the object of the contract and upon the
price.
d. demand.

Article 1475. 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.

56. It is a contract by virtue of the terms of which the parties thereto promise and obligate
themselves to enter into another contract at a future time, upon the happening of certain events,
or the fulfillment of certain conditions.

a. Contract of adhesion
b. Contract of option
c. Contract of sale
d. Auto-contract

57. A contract of sale is not a:

a. principal contract.
b. nominate contract.
c. consensual contract.
d. real contract.

58. The following may not be valid objects of a contract of safe, except:

a. objects outside the commerce of men.

b. Illicit things.
c. future goods.
d. impossible service.

Article 1462. 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.

59. This is a kind of constructive delivery where the vendor remains in possession of the
property sold, such as by virtue of a lease agreement with the vendee.

a. traditio longa menu.

b. traditio breui menu.
c. tradition constitute possessorium
d. delivery to common carrier.

60. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in.:

a. sale on approval.
b. sale or return.
c. sale on trial.
d. contract to sell.

Article 1502. When goods are delivered to the buyer "on sale or return" to give the buyer
an option to return the goods instead of paying the price, the ownership passes to the buyer
on delivery, but he may revest the ownership in the seller by returning or tendering the
goods within the time fixed in the contract, or, if no time has been fixed, within a
reasonable time. (n)

61. S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B accepted the
promise of S and informed S that he (B) would make known his decision before the lapse of 30
days. He also gave S P2,000.00 as consideration so that S would hold on to his promise. The
contract entered into between S and B and the consideration given by B to S are known as:

a. Option contract and option money, respectively.

b. Contract of sale and earnest money, respectively.
c. Contract of sale and down payment, respectively.
d. Contract to sell and reservation money, respectively.

Article 1324. When the offerer has allowed the offeree a certain period to accept, the offer
may be withdrawn at any time before acceptance by communicating such withdrawal,
except when the option is founded upon a consideration, as something paid or promised.

62. Refer to No. 61.

a. S may withdraw his offer to sell before the lapse of 30 days by informing
b. S may not withdraw his offer before the lapse of 30 days.
c. S may withdraw the offer by returning the amount of P2,000.00 that was paid to him by B.
d. S may withdraw his offer even before the lapse of 30 days.if a favorable price, i.e., more than
P200,000.00, is offered to him by another prospective buyer.

Article 1324. When the offerer has allowed the offeree a certain period to accept, the offer
may be withdrawn at any time before acceptance by communicating such withdrawal,
except when the option is founded upon a consideration, as something paid or promised.

63. The Recto Law applies to which of the following examples of sale?

a. Sale of a car on straight term.

b. Sale of house and lot on installment.
c. Sale of car on installment where the buyer constituted a mortgage on his truck.
d. Sale of a piano on installments where the buyer constituted a chattel mortgage on the
piano.

RECTO LAW- governs contract of sale of personal property the price of which is payable
in installments.

Article 1484. 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:
(1) Exact fulfillment of the obligation, should the vendee fail to pay;

(2) Cancel the sale, should the vendee's failure to pay cover two or more installments;

(3) 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. In this case, he shall have no further
action against the purchaser to recover any unpaid balance of the price. Any agreement to
the contrary shall be void.

64. S sold to B a lot through a deed of absolute sale duly acknowledged before a notary public.
Three days later, S sold the same lot to X, also through a deed of sale, duly acknowledged before
a notary public. X had the Sale registered with the Register of Deeds. Neither B nor X was aware
of .the sale made by S to the other and neither took physical possession of the lot. Who is the
present owner of the lot?

a. B, because he was the first purchaser in good faith.

b. X, because he registered the sale in good faith.
c. Neither B nor X.
d. S, as long as he does not surrender physical possession of the lot.

Article 1544. If the same thing should have been sold to different vendees, the ownership
shall be transferred to the person who may have first taken possession thereof in good
faith, if it should be movable property.

Should it be immovable property, the ownership shall belong to the person acquiring it
who in good faith first recorded it in the Registry of Property.

65. B purchased from S a laptop coin P100,000.00. The terms of sale provide for a
downpayment of P20,000.00 with the balance payable in 8 equal monthly installments. To secure
the balance, S required B to execute a chattel mortgage c computer and a real mortgage on B's
lot. B complied with all the requirements but defaulted in the payment of the third and fourth
installments. These remedies are available to S except one. Which is it?

a. Cancel the sale.

b. Exact fulfillment of the obligation.
c. Foreclose the real mortgage and then any deficiency from B.
d. Foreclose the chattel mortgage and thereafter foreclose the real mortgage in case of
deficiency.

Article 1484. 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:

(1) Exact fulfillment of the obligation, should the vendee fail to pay;

(2) Cancel the sale, should the vendee's failure to pay cover two or more installments;
(3) 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. In this case, he shall have no further
action against the purchaser to recover any unpaid balance of the price. Any agreement to
the contrary shall be void.

66. S and B entered into a contract whereby S transferred to B a specific piano for the price of
P80,000.00, while B gave to S cash of P30,000.00 and a diamond ring worth. p50,000.00. What
kind of contract was entered into between S and B?

a. A contract of barter.
b. A contract of sale.
c. The contract is partly a contract of barter and partly a contract of sale.
d. The contract is an innominate contract because the intention of the parties cannot be
determined.

Article 1468. 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 the amount of the money or its
equivalent; otherwise, it is a sale.

67. one of the distinctions between option money and earnest money is that earnest money is:

a. the consideration paid for the purpose of holding one to his promise to buy or sell a
determinate thing fol. a certain period of time.
b. not part of the purchase price.
c. proof of the perfection of the contract of sale.
d. paid before the perfection of the contract of sale.

Article 1482. Whenever earnest money is given in a contract of sale, it shall be considered
as part of the price and as proof of the perfection of the contract.

68. This refers to the warranty of the seller that he has the right to sell the thing at the time when
ownership is to pass, and which can be enforced if the buyer is deprived of the property sold by a
final judgment in court.

a. Warranty against hidden defects.

b. Warranty of merchantable quality.
c. Warranty against eviction.
d. Warranty of possession.
Article 1547. 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

69. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P's lot in Quezon
City immediately as P needed cash. Accordingly, A sold the lot to B. The deed of sale was in a
public document. The sale of P's lot is

a. valid.
b. rescissible.
c. unenforceable.
d. void.

Article 1874. When a sale of a piece of land or any interest therein is through an agent, the
authority of the latter shall be in writing; otherwise, the sale shall be void.