COVERAGE: Contract of sales

COVERAGE: Contract of sales Direction: Read and select the best answer for the following questions. 1. It is a contract whereby one of the contracting parties, known as the seller or vendor, obligates himself to transfer the ownership of and to deliver a determinate thing, and the other party, known as the buyer or vendee, obligates himself to pay therefore a price certain in money or its equivalent. a. Contract of Sales b. Contract of Agency c. Contract of Partnership d. Contract of Pledge 2. The following are the essential elements or the requisites of the contract of sale, except a. Consent of the contracting parties as to determinate thing and price certain in money or its equivalent b. Subject matter which should be a determinate thing c. Price certain in money or its equivalent d. Delivery of the subject matter 3. The following are the natural elements of the contract of sale, except a. Warranty against eviction b. Warranty against hidden defects c. Warranty against non-apparent and unregistered servitude or encumbrance d. Warranty for merchantability e. Warranty against sale's talk 4. The following are only considered accidental elements in the contract of sale, except a. Place of delivery and payment b. Time of delivery and payment c. Terms or conditions of payment d. Price certain in money or its equivalent 5. Which of the following is necessary for the perfection and validity of contract of sale? a. Essential elements b. Natural elements c. Accidental elements d. All of the above 6. The following are the characteristics of a contract of sale, except a. Principal — It can exist by itself without being dependent upon another contract. b. Bilateral — Both the contracting parties have obligations to perform. c. Reciprocal — The cause of the other party is the object of the other party and vice versa. d. Onerous — Valuable considerations are given by both parties to acquire rights. e. Commutative — The parties exchange almost equivalent values. f. Nominate — It has special name given to it by law. g. Real — It is perfected by delivery of the subject matter. 7. The following are distinctions between sale and dacion en pago, except a. In sale, there is no pre-existing credit, while in dacion en pago, there is pre-existing credit. b. A sale creates obligations while dacion en pago extinguishes obligations. c. In sale, there is greater freedom in fixing the price, while in dacion en pago, there is less freedom in fixing the price because of the amount of the pre-existing credit which the parties seek to extinguish. d. In sale, the cause or consideration is the price from the seller's point of view, and the delivery of the object from the buyer's view point, in dacion en pago, the cause or consideration is the extinguishment of the obligation, from the debtor's point of view and the delivery of the object given in place of the credit, from the creditor's point of view. e. A contract of sale is an onerous transfer while dation en pago is considered a gratuitous transfer. 8. What is the similarity between contract of sale and dacion en pago? a. The law that governs them b. The cause of obligation c. The object of obligation d. All of the above. 9. The following are the distinctions between sale and payment by cession, except a. In sale, there is no pre-existing credit while in payment by cession, there are pre-existing credits. b. A sale creates obligations while payment by cession extinguishes obligations. c. In sale, the cause or consideration is the price from the seller's point of view, and the delivery of the object, from the buyer's point of view while in payment by cession, the cause or consideration is the extinguishment of the obligation from the debtor's point of view and the assignment of the things to be sold from the creditor's point of view. contact: d. In sale, there is greater freedom in fixing the price while in payment by cession there is less freedom in fixing the price because of the fixed amount of the pre-existing credits which the parties seek to extinguish. e. In sale, the buyer becomes the owner of the property sold to them while in payment by cession, the creditors do not become the owners of the property assigned to them but are merely given the right to sell such property and apply the proceeds to their claims. f. Contract of sale is governed by FRIA of 2010 while cession is governed by Law on Sales. 10. What is the name of the contract if it is for the delivery at a certain price of an article which the vendor in the ordinary course of business, manufactures or procures for the general market, whether the same is on hand or not? a. Contract for a piece of work b. Contract of pledge c. Contract of sale d. Contract of deposit 11. What is the name of the contract if the goods are to be manufactured especially for the customer upon his special order and not for the general market? a. Contract for a piece of work b. Contract of pledge c. Contract of sale d. Contract of deposit 12. LA Lakers entered into a contract with Nike Inc to provide two pairs of basketball shoes for Kobe Bryant and Andrew Bynum. No pair was. however, available at the time of perfection of the contracts. Kobe wears 10" basketball shoes which Nike normally manufactures for the general market while Andrew wears 20" basketball shows which Will be manufactured specially for Andrew. What contracts are entered into by the parties? a. Both contracts of sale b. Both contracts for a piece of work c. Contract of sale for Kobe's shoes and contract for a piece of work for Andrew's shoes d. Contract of sale for Andrew's shoes and contract for a piece of work for Kobe's shoes 13. In sale, the cause or consideration is in money while in barter, the cause or consideration is another thing. However, where the consideration is partly in money and partly in another thing, the following are the rules to be observed, except a. The contract shall be one of sale or barter depending upon the manifest intention of the parties. b. If the intention of the parties does not clearly appear, the contract is one of barter if the value of the other thing given as part of the consideration exceeds the monetary consideration. c. If the intention of the parties does not clearly appear, the contract is one of sale if the monetary consideration is more than the value of the other thing given as part of the consideration. d. If the intention of the parties does not clearly appear, the contract is one of barter if the monetary consideration is equal to the value of the other thing given as part of the consideration. 14. A and B entered into a contract whereby A will deliver his laptop to B while the latter will deliver P10,000 and a cellphone with a value of P10,000 to A. What is the name of the contract if the intention of the parties does not clearly appear? a. Contract of Barter b. Contract of Agency c. Contract of Sale d. Contract of Pledge 15. The following are the distinctions between contract of sale and contract to sell, except a. 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. b. In contract of sale, the risk of loss or damage to the goods upon delivery is on the buyer, under the rule "res perit domino", or the thing perished with the owner; while in contract to sell, the risk is borne by the seller based on the same principle that the thing perishes with the owner. c. In contract of sale, the non-payment of the price is a resolutory condition while in contract to sell, the payment in full of the price is a suspensive condition. d. The rule on double sale applies to contract to sell while contracts of sale are not covered by rule on double sale. 16. The following are the distinctions between contract of sale and agency to sell, except a. In sale, ownership passes to the buyer, while in agency to sell, ownership is retained by the principal. b. In sale, the buyer pays the seller, while in agency to sell, the buyer pays the agent and the latter transmits the money to the principal. c. In sale, the goods are delivered by the seller to the buyer while in agency to sell, it is the agent who delivers the goods to the final consumer. d. Contract of sale is governed by law on sale while agency to sell is governed by law on agency. e. Contract of sale is never covered by statute of fraud while agency to sell is always covered by statute of fraud. 17. The following are the requisites of the object of a contract of sale, except a. It must be within the commerce of men. b. It must be not contrary to law, morals, good customs, public order or public policy. c. It must be determinate. d. It must be owned by the vendor at the time of perfection of contract of sale. 18. The object of a contract of sale must be determinate or specific otherwise there is no sale. When is the thing considered determinate? a. When it is particularly designated or physically segregated from all others of the same class at the time the contract is entered into without the necessity of a new or further agreement between the parties. b. When it is particularly designated or physically segregated from all others of the same class at the time the contract is entered into with the necessity of a new or further agreement between the parties. c. When it is particularly designated or physically segregated from all others of the same class at the time the goods are to be delivered into without the necessity of a new or further agreement between the parties. d. When it is particularly designated or physically segregated from all others of the same class at the time the contract is entered into with the necessity of a new or further agreement between the parties. 19. On January 1.2012, S sold to B a specific car owned by X for P50,000. S promised to deliver the car to B on January 11,2012. S bought the car from X on January 10,2012 and delivered it to B on January 11,2012. Is the contract of sale between S and B valid? a. No because there is no delivery of the car on January 1,2012 which is an essential requisite of a contract of sale. b. No because the seller or vendor shall be the owner of the thing sold at the time of perfection of contract. c. Yes even if X is not the owner of the thing sold on January 11,2012 because future thing can be the object of a contract of sale. d. Yes because the vendor need not possess the title to the thing sold at the perfection of the contract but he must have the right to transfer the ownership of the thing at the time that the thing is to be delivered. 20. On January 1,2012, D borrowed from C P100,000 and as a security D mortgaged his land to C. On January 2,2012, D sold the same land to X for P50,000 to be delivered on January 5,2012. D failed to pay the loan. Is the contract of sale between D and X valid? a. No because D is no longer the owner of the land on January 2,2012. b. No because D is no longer the owner of the land on January 5,2012. c. Yes because D is still the owner of the land although it was mortgaged to C. d. Yes provided D will pay the amount due to C. 21. Future things or things having a potential existence may be the object of a contract of sale. However, the thing must come into existence; otherwise, the sale will not be effective for not having a subject matter. The following future things can be the object of a contract of sale, except a. Wine that a determinate vineyard is expected to produce b. Milk that a specific female cow may yield during the coming year c. Next catch of a specific fisherman's net d. Future inheritance of an heir 22. The following are the distinctions between emptio rei speratae and emptio spei, except a. Emptio rei speratae is a sale of hope or expectancy while emptio spei is the sale of future thing. b. Sale of future harvest is emptio rei speratae while sale of lottery ticket No. 1 13 is emptio spei. c. In emptio rei speratae the thing expected will definitely come into existence, but its quality or quantity unknown; while in emptio spei it is not certain that the thing will exist much less its quantity or quality. d. Emptio rei speratae is subject to the condition that the thing should exist, so that if it does not, there will be no contract of sale by reason of the absence of an essential element — subject matter while in emptio spei produces effects even though the thing does not come into existence because the subject matter is the hope itself. 23. In case of doubt whether the contract of sale is one of emptio rei speratae or one of emptio spei, how shall the court generally interpret the type of the contract of sale? a. Emptio rei speratae b. Emptio spei c. Both A and B d. Neither A nor B 24. In emptio rei speratae or sale of future things or things having potential existence, what is the effect to the contract of sale if the said subject matter does not come into existence? a. The contract becomes ineffective or void for want of subject matter. b. The seller will never be liable for damages. c. The contract becomes unenforceable d. The contract remains to be perfectly valid. 25. S sold a lottery ticket No. 143 to B on January 2,2012. The draw was already made on January 1,2012 and ticket No. 143 did not win. B purchased the ticket with intent to win the jackpot price. Is the contract of sale between S and B valid? a. Yes because it involves emptio spei or sale of mere hope. b. No because the sale of vain hope or expectancy is void. c. No even if the ticket is considered collector's item. d. Yes because the essential elements of contract of sale are present. 26. The following goods may become the subject of a contract of sale, except a. Existing goods owned or possessed by the seller. b. Goods to be manufactured, raised or acquired by the seller after the perfection of the contract of sale or "future goods". c. Goods whose acquisition by the seller depends upon the contingency which may or may not happen. d. Vain hope /expectancy or future inheritance. e. Things subject to resolutory condition or resolutory period. 27. S is the sole owner of a condominium unit. S sells h undivided interest therein to B. Is the contract of sale valid? a. No because the object of a contract of sale must be determinate. b. No because the object of a contract of sale must be whole interest. c. Yes the sole owner of a thing may sell an undivided interest therein and such sale shall produce the effect of making the seller and the buyer co-owners of the thing sold. d. Yes provided that the condominium unit shall be physically divided. 28. There may be a sale of an undivided share of a specific mass of fungible goods though the seller purports to sell and the buyer purports 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 is undetermined. Which of the following rules is correct? I. If the quantity, number, weight or measure, of the mass is more than the quantity sold, the parties shall become co-owners of the mass. II. If the quantity of the mass is less than the quantity sold, the buyer becomes the owner of the whole mass, with the seller being bound to make good the deficiency from goods of the same kind and quality, unless a contrary intent appears. a. I only b. II only c. Neither I nor II d. Both I and II 29. S sells to B 200 sacks of rice from a mass stored in the warehouse of S. The mass, however, actually consist of 300 sacks of rice. Which of the following statements is correct? a. The sale is null and void because the object is not determinate. b. The sale is valid provided B will pay for the excess 100 sacks of corn. c. The sale is valid, thus, S and B will become co-owners of the whole mass to the extent of 2/3 for B and 1/3 for S. d. The sale is null and void because there is no consent. 30. S sells to B 300 sacks of yellow corn from a mass stored in the warehouse of S. The mass, however, actually consists of 280 sacks of yellow corn. Which of the following statements is correct? a. The sale is null and void because there is no consent. b. The sale is null and void because there is no determinate object. c. B becomes the owner of all the 280 sacks and S is bound to deliver additional 20 sacks in the absence of contrary agreement. d. B becomes the owner of all the 280 sacks and S is not bound to deliver the additional 20 sacks. 31. It is the sum stipulated as the equivalent of the thing sold, and also every incident taken into consideration for the fixing of the same, put to the debit of the vendee, and agreed to by him. It is the cause of contract of sale on the part of the seller. a. Loan b. Price c. Debt d. Money 32. The following are the requisites of the price in a contract of sale, except a. It must be certain. b. It must be real. c. It must have possible equivalent in money. d. It must be fictitious. 33. The price of the thing sold must be certain, otherwise, the sale is void by reason of the absence of meeting of minds between the parties. The following are the instances when the price is certain, except a. If the parties have agreed upon a definite amount for the sale. b. If it be certain with reference to another thing certain. c. If the determination of the price is left to the judgment of a specified person or persons. d. If the price is fixed by the court. e. If 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 market, provided said amount is certain. f. If the price is fixed by one of the contracting parties but not accepted by the other contracting party. 34. The following contracts of sale have prices which are certain and therefore valid, except a. S sold to B a specific watch for P2,500 which both parties agreed upon. b. S sold to B a certain ring of which the price is the salary of the faculty member of La Salle School. c. S sold to B a specific car the price of which is subject to determination of X, third person. d. S sold to B 500 shares of ordinary stocks of BPI at the price equivalent to the closing price of the ALI's ordinary shares on April 30,2020 at the Philippine Stock Exchange. 35. When may the court fix the price of the contract of sale if the determination of the price is left to the judgement of a third person? a. If the third person is unable or unwilling to fix the price. b. If the third person acted in bad faith or by mistake. c. If the third person or persons are prevented from fixing the price or terms by the fault of the buyer or seller. 36. What is the effect to the contract of sale if the determination of the price is left to the judgment of a third pet-son and such person is unable or unwilling to fix the price? a. The contract of sale is voidable. b. The contract of sale is valid and binding. c. The contract of sale is inefficacious unless the parties subsequently agree upon the price. d. The contract of sale is rescissible. 37. What is the effect to the contract of sale if the determination of the price is left to the judgment of a third person, where such third person or persons are prevented from fixing the price or terms by fault of the seller or the buyer? a. The contract is voidable. b. The contract is unenforceable. c. 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 such as filing an action for damages. d. The contract is rescissible, 38. S sold to B a specific good. The price of the good cannot be determined. The good has been delivered to and appropriated by B. What is the obligation of B? a. B has no obligation because the contract of sale is null and void having no price. b. B has no obligation because the contract of sale is inefficacious because the price of the good cannot be determined. c. B has the obligation to rescind the contract. d. B has the obligation to pay a reasonable price which depends on the circumstances of each particular case. 39. What is the effect of gross inadequacy of price in a contract of sale? a. It renders the contract of sale null and void. b. In renders the contract of sale unenforceable. c. It does not affect a contract of sale, except as it may indicate a defect in the consent which makes the contract voidable or except as it may indicate that the intention of the parties is another contract such as donation or loan with equitable mortgage. d. It does not affect a contract of sale even if the parties really intended a donation or some other act or contract. 40. What is the effect of simulated price in a contract of sale? a. It renders the contract of sale null and void. b. It renders the contract of sale voidable. c. It renders the contract of sale rescissible. d. It renders the contract of sale unenforceable. e. It renders the contract of sale as a valid donation even if the formal or solemn requirements of donation or other agreement for validity of contract are not complied with. 41. When is a contract of sale perfected? a. Upon delivery of the object of a contract of sale. b. At the moment there is a meeting of minds upon the determinate thing which is the object of the contract and upon the price certain money or its equivalent. c. Upon payment of the purchase price. d. Upon the transfer of ownership or title. 42. X and Y are good friends. X sold and delivered his car to Y. It was agreed and understood that on next Sunday X will name and fix the price of the car. Sunday came, X called Y by telephone and stated and fixed the price at P150,000. Is the contract of sale perfected? a. No because the purchase price is not yet paid. b. No because the title is not registered to the buyer. c. Yes because the car has already been delivered to Y. d. No because the price of the sale was left to the discretion of one of the parties, that is, the seller, and it was not consented by the buyer. 43. Which of the following contracts of sale is null and void? a. Executory oral sale of real property or any interest therein regardless of the price. b. Executory oral sale of goods, chattels or things in action the price of which is P500 or more. c. Sale of a piece of land by the agent in the name of principal wherein his authority is not in writing. d. Sale of a piece of land by a third person in the name of owner but who has not been given any authority 44. When is a contract of sale by auction perfected? a. When the highest bidder gives his bid. b. When the auction things has been delivered to the buyer. c. When the auctioneer announces its perfection by the fall of the hammer or in any other manner. d. When the bid price has been paid. 45. The following are the rights of the parties in an auction sale, except a. Before perfection, any bidder may retract his bid. b. Before perfection. the auctioneer may generally withdraw the goods from the sale unless the auction has been announced without reservation by auctioneer. c. After perfection, the wining bidder can retract his bid. d. After perfection, the auctioneer cannot withdraw the goods. 46. The seller may bid at the auction provided the following requisites are present, except a. The right to bid must have been reserved expressly by or on behalf of the seller. b. The right to bid must not be prohibited by law or stipulation. c. Notice must be given that the sale is subject to a right to bid by or on behalf of the seller. d. The bid of the seller must be the lowest. 47. By bidders or puffers refer to persons employed by the seller to bid in his behalf, the purpose of which is to raise the price, but the said persons are not in themselves bound by their bids. What is the effect of employment by the seller of by-bidders or puffers without notice to the other bidders in a perfected contract of sale by auction? a. The sale may be considered voidable. b. The sale is considered null and void. c. The sale is unenforceable. d. The sale is rescissible. 48. Which of the following statements concerning bilateral and unilateral promise to buy and/or sell is incorrect? a. Bilateral promise takes place when one party promises to buy and the other party promises to sell a determinate thing at an agreed price. b. Bilateral promise is reciprocally demandable since this is as good as a perfected contract of sale. c. Unilateral promise not accepted by the promissee (policitacion) does not produce any effect. d. Unilateral promise accepted by the promissee is binding upon the promissor even if it is not supported by a consideration distinct from the price. 49. It refers to the money given as part of the purchase price and as a proof of perfection of the contract of sale. a. Option money b. Earnest money or Arras c. Perfect money d. Component money 50. It refers to the consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time, which consideration is separate and distinct from the purchase price. It is a proof of perfection of contract of option. a. Option money b. Earnest money or Arras c. Perfect money d. Component money 51. S promised to sell his car to B for P100,000 giving B one week to decide whether to buy or not. B accepts the promise and gives a consideration of P1,000 for the one week period. If B decides to buy the car, how much should B pay to S? a. P100,000 because the P1,000 is an earnest money. b. P99,000 because the P1,000 is an option money. c. P100,000 because the P1,000 is an option money. d. P99,000 because the P1,000 is an earnest money. 52. B purchased the car of S for P100,000 payable within 30 days from the date of sale. As a down-payment, B gives S P1,000 upon the execution of their agreement. How much should B pay to S on the 30th day? a. P 100,000 because the P1,000 is an earnest money. b. P99,000 because the P1,000 is an option money. c. P100,000 because the P1,000 is an option money. d. P99,000 because the P1,000 is an earnest money. 53. When shall the buyer or vendee acquire personal rights over the fruits of the object of a contract of sale? a. From the time the object should be delivered. b. From the time of the perfection of the contract of sale. c. From the time of the payment of purchase price. d. From the time of the delivery of the object of the contract of sale. 54. On January 1, 2012, Seller and Buyer entered into a contract of sale of a specific cow. The purchase price shall be paid on January 5,2012 and the cow shall be delivered on January 10,2012. The cow gives birth on January 4,2012. The cow and its young have been delivered on January 1,2012. Which of the following statements is correct? a. The buyer has real right over the cow and its young on January 1 ,2012. b. The buyer has personal right over the young on January 10,2012. c. The buyer has personal right over the young on January 5,2012. d. The buyer has personal right over the young on January 1,2012 and real right over the cow and its young on January 11,2012. 55. The seller has the duty to preserve the thing after the perfection of contract of sale but before its delivery. What standard of care should be observed by the seller to preserve the object of contract of sale? a. Diligence of a good father of a family or ordinary diligence unless the law or the stipulation of the parties requires another standard of care. b. Diligence of a father of a good family unless the law or the stipulation of the parties requires another standard of care. c. Extraordinary diligence of a good father of a family unless the law or the stipulation of the parties requires another standard of care. d. Extraordinary diligence of a father of a good family unless the law or the stipulation of the parties requires another standard of care. 56. What is the effect of the complete loss of the object of the contract of sale before the perfection of the contract of sale or complete loss of the object of contract of sale at the exact moment of perfection of contract of sale? a. The seller shall always bear the risks of the loss. b. The buyer shall pay the purchase price. c. The buyer shall be liable for the damages. d. The sale is void or inexistent because of the absence of the object. 57. What shall be the remedy of the buyer in case of the partial loss of the object of the contract of sale at the time of the perfection of the contract of sale? I. Withdrawal from the contract or rescission. II. Demanding the remaining part and paying its proportionate price. a. I only b. II only c. Either I or II d. Neither I nor II 58. After the perfection of the contract of sale but before the delivery of the goods to the buyer, who shall bear the risk of loss of the object of the contract of sale? a. Buyer because any benefit therefrom during the same period inures to him. b. Seller because any benefit therefrom during the same period inures to him. c. Buyer because the ownership of the goods is transferred to the buyer after the perfection of the contract of sale. d. Seller because goods remain at the seller's risk until the ownership of the goods is transferred to the buyer by actual or constructive delivery. 59. After the perfection of the contract of sale and after delivery of the goods to the buyer, who shall bear the risk of loss of the object of the contract of sale before the full payment of the price? a. Buyer because the ownership of the goods is transferred to the buyer after the delivery. b. Seller because any benefit therefrom during the same period inures to him. c. Buyer because the ownership of the goods is transferred to the buyer after the perfection of the contract of sale. d. Seller because goods remain at the seller's risk until the ownership of the goods is transferred to the buyer by full payment of the price. 60. The following are the exceptional instances wherein the goods are at the buyer's risk notwithstanding that the ownership is retained by the seller, except a. If there is an agreement that the buyer shall suffer the risk of loss despite the retention by seller of ownership. b. If ownership (naked title) of the goods is retained by the seller merely to secure the performance by the buyer of his obligation under the contract but the beneficial ownership has already been transferred to the buyer. c. When actual delivery has been delayed through the fault of the buyer. d. When there is actual or constructive delivery to the buyer. 61. What is the remedy of the buyer if the goods delivered do not correspond with the sample, description or sale and description in a sale by sample, sale by description or sale by sample and description? a. Ask for annulment of contract. b. Ask for rescission of the contract of sale. c. Ask for collection of a sum of money. d. Ask for declaration of nullity of the contract of sale. 62. What contracts are covered by Recto Law? a. Installment sales of personal property b. Contract purporting to be leases of personal property with option to buy c. Either A or B d. Neither A nor B 63. Under Recto Law, the following are the alternative remedies (selection of one remedy excludes the other remedies) of vendor (1) in case of installment sales of personal property; or of lessor in case of (2) contracts purporting to be leases of personal property with option to buy, when the lessor has deprived the lessee of the possession or enjoyment of the thing, except a. Exact fulfillment of the obligation with recovery of deficiency, should the vendee or lessee fail to pay any installment. b. Cancel the sale or lease should the vendee or lessee fails to pay two or more installments. c. Foreclose the chattel mortgage on the thing sold, if one has been constituted without right to recover any deficiency should the vendee or lessee fails to pay two or more installments. d. Action for quanti minoris. 64. S sold his only car to B for P100,000 payable in 10 equal monthly installments of P10,000 each. As security, B executed a chattel mortgage on the car. What is the remedy of S if B fails to pay one installment? a. Exact fulfillment of the obligation with recovery for deficiency. b. Cancel the sale. c. Foreclose the chattel mortgage on the thing sold, if one has been constituted without right to recover any deficiency. d. Any of the above. 65. Using the same data in number 64, if buyer B defaulted in at least two installments after payment of several installments, may the seller cancel the contract of sale? a. Yes and the buyer is still required to pay the price. b. Yes and the seller may still recover the unpaid price. c. Yes and the buyer must return the thing to the seller and the seller must generally return the installments already received minus reasonable rent. d. Yes and the buyer and seller cannot agree to the forfeiture of installment already received even if such agreement is not unconscionable. 66. Using the same data in number 64 and assuming B fails to pay two or more installments, can S foreclose the chattel mortgage on the car and recover any deficiency from the foreclosure? a. Yes S can foreclose the chattel mortgage but cannot recover any deficiency even if there is stipulation for the recovery. b. No S cannot foreclose the chattel mortgage and cannot recover any deficiency. c. Yes S can foreclose the chattel mortgage and can recover any deficiency even without stipulation for the recovery. d. Yes S can foreclose the chattel mortgage and can recover any deficiency only if there stipulation for the recovery. 67. Using the same data in number 64 and assuming the foreclosure of the chattel mortgage results to excess, who shall be entitled to the excess? a. Buyer in the absence of contrary stipulation b. Seller in the absence of contrary stipulation c. Government d. Neither Buyer or Seller 68. Using the same data in number 64 and assuming B fails to pay two or more installments; can S ask for the exact fulfillment of the obligation and recover any deficiency from the sale by execution? a. No S cannot ask for the fulfillment of the contract of sale because it is available only when one installment is not paid. b. Yes S can ask for the fulfillment of the contract of sale but cannot recover any deficiency from the sale by execution under any circumstances. c. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from the sale by execution even without stipulation. d. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from the sale only if there is stipulation. 69. Using the same data in number 64 and assuming B fails to pay two or more installments; can S ask for the exact fulfillment of the obligation and recover any deficiency from the sale by execution through the foreclosure of chattel mortgage on the car? a. No S cannot ask for the fulfillment of the contract of sale because it is available only when one installment is not paid. b. Yes S can ask for the fulfillment of the contract of sale but cannot recover any deficiency from the sale by execution under any circumstances. c. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from the sale by execution only but not further through foreclose of chattel mortgage because they are alternative remedies. d. Yes S can ask for the fulfillment of the contract of sale and can recover any deficiency from the sale only if there is stipulation. 70. Using the same data in number 64 except from the fact that the chattel mortgage was executed over the piano of B and not over his car. S foreclosed the mortgage over the piano and there is deficiency. Can S recover the deficiency? a. Yes provided there is stipulation to that effect. b. Yes even without stipulation to that effect. c. No because that will be contrary to law. d. No even without stipulation to that effect. 71. S sold his ring to B for P50,000 under the following terms: down payment of P30,000 and the balance payable at month end. As security, B executed a chattel mortgage on the ring. B defaulted in the payment of the balance. By reason thereof, S foreclosed the chattel mortgage on the ring. However, only P15,000 was realized in the foreclosure sale. Can S still proceed against B to collect the deficiency of P5,000? a. No because Recto Law prohibits recovery of deficiency. b. Yes if deficiency has been agreed upon contrary to Recto Law. c. Yes because Recto Law does not apply to sale on straight term and the general rule is that if the foreclosure sale in chattel mortgage results in deficiency, the same may be recovered by the creditor. d. No because recovery of deficiency is only available in execution sale. 72. Sale of real property in installments governed by RA 6552 or Maceda Law covers the following, except a. Sale of residential property b. Sale of residential condominium c. Sale of residential apartments d. Sale of industrial lots, commercial buildings and sales to tenants of agricultural land under RA 3844 73. Under Maceda Law, the following are the rights of a buyer of residential real property in installments when he has paid installments of less than 2 years but defaulted in the succeeding installments, except a. Right to a grace period of not less than 60 days from the date the installment became due with no interest. b. Right to additional 30 days but with interest, after the expiration of the 60-day grace period, before the seller can cancel the contract by notarial act. c. Right to sell or assign his rights provided under letter A and B. d. Right to reinstate the contract by updating the account during the grace period and before actual cancellation of the contract. e. Right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property. f. Right to receive the cash surrender value of the payments on the property equivalent to 50% of the payments made in case the contract is properly cancelled by the seller. 74. Under Maceda Law, which of the following statements concerning the rights of a buyer of residential real property in installments who has paid at least 2 years installments but defaulted in succeeding installments is incorrect? a. He has the right 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. He can exercise the right to pay within the grace period allowed by law only once in every 5 years of the life of the contract and its extensions, if any. c. If the contract is canceled, the buyer shall have the right to the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made, and, aner five years of installments, an additional five percent every year but not to exceed ninety percent of the total payments made. d. 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. e. The buyer has the right to suspend payment of any installment at any time. 75. A sold a residential house and lot at a price of P 10,000,000 payable at P4,00,000 downpayment and the balance of P6,000,000 payable in 50 years at P10,000 per month to B. After total payments of P4,180,000 B defaulted on the next installment. What is the grace period earned by B to pay the defaulted installments without additional interest? a. 60 days b. 30 days c. 90 days d. 45 days 76. A sold a residential house and lot at a price of P10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P 10,000 per month to B. After total payments of P4,180,000, B defaulted on the next installment. After total payment of P4,480,000, B defaulted on the next installment. What is the grace period earned by B to pay the defaulted installments without additional interest? a. 60 days b. 4 months c. 3 months d. 5 months 77. A sold a residential house and lot at a price of P 10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P 10,000 per month to B. After total payments of P4, 180,000, B defaulted on the next installment. After total payment of P4,840,000, B defaulted on the next installment. What is the grace period earned by B to pay the defaulted installments without additional interest? a. 60 days b. 7 months c. 6 months d. 5 months 78. A sold a residential house and lot at a price of P 10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P 10,000 per month to B. After total payments of P4,180,000, B defaulted on the next installment. After payment total payments of P4, 120,000, B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is properly cancelled. How much cash surrender value is B entitled from A? a. P4,060,000 b. P2,160,000 c. P4,000,000 d. P0 79. A sold a residential house and lot at a price of P10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P10,000 per month to B. After total payments of P4,180,000 B defaulted on the next installment. After total payments of P4,360,000 B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is properly cancelled. How much cash surrender value is B entitled from A? a. P2,000,000 b. P2,240,000 c. P180,000 d. P2,180,000 80. A sold a residential house and lot at a price of P10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P 10,000 per month to B. After total payments of P4,180,000 B defaulted on the next installment. After total payments of P4,480,000 B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is properly cancelled. How much cash surrender value is B entitled from A? a. P2,000,000 b. P2,240,000 c. P180,000 d. P2,180,000 81. A sold a residential house and lot at a price of P 10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P10,000 per month to B. After total payments of P4,180,000, B defaulted on the next installment. After total payments of P5,200,000 B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is properly cancelled. How much cash surrender value is B entitled from A? a. P4,400,000 b. P3,600,000 c. P4,200,000 d. P3,900,000 82. A sold a residential house and lot at a price of P10,000,000 payable at P4,000,000 downpayment and the balance of P6,000,000 payable in 50 years at P10,000 per month to B. After total payments of P4,180,000 B defaulted on the next installment. After total payment of P7,000,000, B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is cancelled. How much cash surrender value is B entitled from A? a. P6,300,000 b. P6,500,000 c. P7,000,000 d. P5,600,000 83. PD 957 also known as Subdivision and Condominium buyer's Protective Decree provides for the following protection of the buyers, except a. No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project. b. The owner or developer cannot deny any person free access to any government office or public establishment located within the subdivision or which may be reached only by passing through the subdivision. c. The owner or developer of a subdivision without access to any existing public road or street must secure a right of way to a public road or street and such right of way must be developed and maintained according to the requirement of the government and authorities concerned. d. The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development. e. The owner or developer has the obligation to pay the real property taxes on the subdivision and condominium sold even after the transfer of ownership to the buyers. 84. Under PD 957, what is the right of the buyer when the developer failed to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same? a. The installment already paid by the buyer shall be forfeited in favor of the owner or developer. b. The buyer may, after due notice to the owner or developer, desists from further payment and he may ask for the reimbursement of the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate. c. The buyer has no right to ask for the reimbursement already paid. d. The seller can automatically cancel the contract of sale because of the non-payment. 85. Under PD 957, the owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. What fee can be collected by the owner/developer from the buyer? a. Only those expenses required for the registration of the deed of sale in the Registry of Deeds. b. All expenses of the contract of sale. c. Expenses of the contract of sale and real property taxes during the pendency of payment. 86. Under PD 957 also known as Subdivision and Condominium buyer's Protective Decree, who shall pay the Real estate tax and assessment on a lot or unit being developed before the passage of title to buyer? a. Developer or owner of the project but with right of recourse for reimbursement from the buyer. b. Owner or developer without recourse for reimbursement from the buyer. c. Buyer of the unit. d. Developer and buyer equally. 87. As a general rule, all those who may oblige themselves may enter into a contract of sale. What is the status of a contract of sale entered into by persons having absolute incapacity such as minors, insane or demented persons and deaf mutes who do not know how to write with a capacitated person? a. Voidable b. Rescissible c. Unenforceable d. Null and void 88. What is the status of a contract of sale entered into by persons having absolute incapacity such as minors, insane or demented persons and deaf mutes who do not know how to write with another incapacitated person? a. Voidable b. Rescissible c. Unenforceable d. Null and void 89. S, a capacitated person, sold to B, a minor, a chicken joy. May S demand from B the payment of the purchase price? a. No because the contract of sale is voidable since B is an incapacitated person. b. Yes because even the contract of sale is voidable ideally, the subject matter, food is a necessary. c. Yes even the price is unreasonable. d. No because the contract of sale is void. 90. As a general rule, what is the status of the contract of sale between a husband and wife? a. Voidable because they are suffering from absolute incapacity. b. Void because they are suffering from relative incapacity. c. Rescissible if there is lesion. d. Unenforceable if it is not in writing. 91. As an exception to the general rule, when may the husband and wife validly sell property to each other? a. When an absolute separation of property was agreed upon in the marriage settlements. b. When there has been a judicial separation of property under by virtue of decree of legal separation under Family Code. c. Either A or B. d. Neither A nor B. 92. A and B are legally married starting January 1, 2010. A sold in writing his specific car at a price of P 10,000 to B aner the latter pointed a gun to A. What is the status of contract of sale? a. Voidable b. Void c. Unenforceable d. Rescissible 93. A and B are legally married and governed by property regime of complete separation. A sold in writing his specific car at a price of P10,000 to B after the latter pointed a gun to A. What is the status of contract of sale? a. Voidable b. Void c. Unenforceable d. Rescissible 94. Without the consent of the husband, the wife sold their car, a conjugal/community property to a third person. What is the status of the contract of sale? a. It is unenforceable subject to ratification. b. It is voidable because of vitiation of consent. c. It is rescissible because of lesion to the husband. d. It is null and void because of lack of consent of husband but the contract constitutes a continuing offer to the husband. 95. The following persons are prohibited from acquiring by purchase, even at public or judicial auction, sales in legal redemption, compromises or renunciation, except a. The guardian, the property of the person or persons under his guardianship. b. Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given. c. Executors and administrators, the property of the estate under their administration. d. Public officers and employees, the property of the State or GOCC under their administration. e. Justices, judges, prosecuting attorneys, clerks of court and other officers and employees connected with the administration of justice, the property and rights in litigation. f. Wife, the exclusive or capital property of his husband if there is judicial separation of property. 96. The following are the obligations of the vendor in a contract of sale, except a. To deliver the determinate thing sold including the accessions and accessories in the condition in which they were upon the perfection of the contract. b. To warrant the thing sold against eviction and hidden defects and unregistered encumbrances. c. To take care of the thing sold before delivery to the buyer with the diligence of a good father of a family or ordinary diligence unless the law or the stipulation of the parties requires another standard of care. d. To transfer the ownership of the thing sold at the time of the perfection of the contract of sale. 97. In a contract of sale, when is the ownership or title of the thing sold transferred from the seller to the buyer? a. Upon the perfection of contract of sale. b. Upon payment of the purchase price. c. Upon actual or constructive delivery of the thing sold. d. Upon execution of private instrument or private deed of sale. 98. In a contract of sale, may the parties agree that full payment of the price will be the act that transfers ownership from the seller to the buyer? a. No because it is contrary to Law on Sales. b. Yes by reason of autonomy of contract. c. No because it will be unfair to the buyer. d. Yes but only if there is approval by the court. 99. It is a mode of acquiring ownership whereby the object of the contract is placed in the control and possession of the vendee, either actually or constructively. It is the operative act that transfers ownership of the determinate thing from the seller to the buyer in a contract of sale. a. Delivery either actual or constructive b. Payment of purchase price c. Perfection of contract d. Execution of document 100. The following are the examples of constructive deliveries in a contract of sale, except a. Traditio by legal formalities — When the same is made through a public document, the execution thereof shall be equivalent to the delivery of the thing sold. It applies to both movable and immovable property. b. Symbolic delivery (Traditio simbolica or Traditio clavium) — This is delivery that takes place by delivering the keys of the place or depository where the movable is stored or kept. c. Traditio longa manu — It is the delivery of a movable by mere consent or agreement of the parties if the thing cannot be transferred to the possession of the vendee at the time of sale. d. Traditio brevi manu — It is a delivery that takes place when the vendee is already in the possession of the thing sold even before the sale and thereafter continues in possession thereof in the concept of an owner. It applies to movables only. e. Traditio constitutum possessorium — It is a delivery that takes place when the vendor continues in possession of the thing sold after the sale but in another capacity such as that of a lessee or depositary. It applies to both movable and immovable property. f. Tradition solvendi — It is a delivery that takes place by delay. 101. S and B entered into a contract of sale of a specific coconut. S and B pointed over that particular coconut. What type of constructive delivery is present? a. Traditio simbolica or clavium b. Traditio longa manu c. Traditio brevi manu d. Traditio constitutum possessorium 102. S and B entered into a contract of sale of a specific watch. They executed a public instrument over the sale. What type of constructive delivery is present? a. Traditio simbolica or clavium b. Traditio longa manu c. Traditio brevi manu d. Traditio by legal formalities 103. S and B entered into a contract of sale of a specific car. S delivered the key of the car to B. What type of constructive delivery is present? a. Traditio simbolica or clavium b. Traditio longa manu c. Traditio brevi manu d. Traditio by legal formalities 104. B rented the specific truck of S. After the end of the contract, S sold the property to B. As a result of sale, B continues to have possession of the property. What type of constructive delivery is present? a. Traditio simbolica or clavium b. Traditio longa manu c. Traditio brevi manu d. Traditio constitutum possessorium 105. S sold his house and lot to B. After the sale, B leaseback the property to S. What type of constructive delivery is present? a. Traditio simbolica or clavium b. Traditio longa manu c. Traditio brevi manu d. Traditio constitutum possessorium 106. Intangible assets or incorporeal property cannot be the subject of actual or physical delivery. The following are the different modes of constructive delivery of incorporeal property or intangible assets, except a. By constructive tradition such as execution of public document. b. By placing the certificate or tangible evidence of ownership in the possession of the vendee such as delivering certificate evidencing the incorporeal property from the seller to the buyer. c. Through the use by the buyer of the rights pertaining to incorporeal property with the consent of the seller. d. Through pledging of the intellectual property by the pledgor to the pledgee. 107. In sale or return, when is the ownership of the goods transferred from seller to the buyer? a. Upon payment of purchase price. b. Upon delivery of the goods. c. Upon approval by the buyer. d. Upon return of the goods to the seller 108. In sale on trial/approval, the ownership of the goods is transferred from seller to the buyer under any of the following instances, except a. When the buyer signifies his approval or acceptance of the goods. b. When the buyer does an act adopting the transaction. c. When the buyer does not signify his approval or acceptance of the goods but retains the goods without giving notice of rejection within the time fixed in the contract or within reasonable time, and such time has expired. d. When the goods are delivered to the buyer. 109. On January 1, S delivered an electronic calculator to B under a sale or return arrangement. S gave B up to May 7 to return the electronic calculator. Before May 7, the calculator was destroyed by fire. Should B pay for the purchase price? a. No because B is not yet the owner of the calculator. b. No because the calculator is destroyed through fortuitous event. c. Yes because B becomes the owner of the calculator upon delivery. d. Yes if the fire is due to the fault of B. 110. Using the same data in preceding number except the fact that the arrangement is a sale on trial or approval, should B pay the purchase price? a. No even if the fire is due to the fault of B. b. Yes even if B signifies his approval before the fire. c. No if B does not signify his approval before the fire because B is not yet the owner. d. Yes because B becomes the owner of the calculator upon delivery. 111. When the goods are already delivered to the carrier or other bailee for purpose of transmission to the buyer, who owns the goods after the receipt by the carrier or other bailee as a general rule? a. Buyer b. Seller c. Carrier d. Other bailee 112. When the goods are sold and delivered by a person who is not the owner thereof, what title is acquired by the buyer as a general rule? a. He acquires no better title that the seller had. b. He acquires a perfectly valid title. c. He acquires a voidable title. d. He acquires a rescissible title. 113. As a general rule, a non-owner seller cannot transfer ownership of the determine thing sold to the buyer in a contract of sale. However, the following are the exceptional instances when a non-owner seller may transfer title of the determinate thing to the buyer, except a. When the sale is made with authority or consent of the owner. b. When the owner is precluded by his conduct from denying the seller's authority to sell. c. When the sale is made under the provisions of any factor's acts, recording laws or any other provisions of law enabling the apparent owner to dispose of the goods as if he were the true owner thereof. d. When the sale is made under a statutory power of sale or under the order of court of competent jurisdiction. e. When the purchase is made in a merchant's store, or in fairs, or markets. f. When the sale of personal property is made by a thief or robber to a purchaser in good faith and for value. 114. S stole the ring of O and sold the same ring to B for P500 who does not have any knowledge that the ring was stolen. Which of the following statements is correct? a. B acquires title to the ring if he is a purchaser in good faith. b. O cannot recover the ring from B if he will not reimburse B for P500. c. O can recover the ring from B even if he will not reimburse B for P500. d. B will acquire title to the ring if he will not be prosecuted 115. Using the same data in preceding number but assuming B was able to purchase the stolen ring at a public sale in good faith for P1,000. Which statements is correct? a. O cannot recover the ring from B even he is willing to reimburse B for P1,000. b. O can recover the ring from B but he must reimburse B for P1,000. c. B cannot obtain good title from the goods even if he is in good faith. d. B will have better right than O in any instances. 116. Using the same data in preceding number and suppose the ring found its way in a jewelry store and it was from that jewelry store that B bought the ring in good faith. Which of the following statements is true? a. O can recover the ring from B upon payment of purchase price. b. B does not acquire title over the ring because it was stolen. c. B acquires title to the ring because the purchase is made from a merchant's store, fair or market. d. O has better title over the ring as against B. 117. Lebron is the registered owner of a vacant lot. Kevin stole the certificate of title of the registered lot of Lebron and through connivance with a notary public, he was able to execute a notarized deed of sale through forging the signature of Lebron. With connivance with a Registry of Deeds, Kevin was able to transfer the title of the lot to his name. Afterwards. Kevin sold the said lot to Carmelo who acquired the said lot after inspecting the title and the vacant lot. Carmelo is a purchaser in good faith and for value. Which of the following statements is correct? a. The contract of sale between Kevin and Carmelo is void because it is the product of a previous void contract. b. Lebron can recover the land from Carmelo because the title acquired by Carmelo is that of a thief even without reimbursing Carmelo. c. Lebron can recover the land from Carmelo provided he will reimburse him for the price Camelo paid. d. Lebron cannot recover the land from Carmelo because a forged document or deed of sale, in case of registered lot, can be a root of a valid title if the title is already in the hand of a purchaser for value and in good faith. 118. Manny. a Filipino, sold his private land to Ippo, a Japanese national. The contract of sale has already been executed. Which of the following statements is correct? a. The contract of sale is void because it is violative of Constitutional provision against ownership of private land by foreigners. Therefore, Manny cannot ask for declaration of nullity because of principle of pari delicto. b. The contract of sale is unenforceable because it is violative of Constitutional provision against ownership of private land by foreigners. c. Ownership of the land will transfer to Ippon and the contracts can no longer be avoided since the contract is already executed. d. Manny can still recover the land by filing an action for declaration of nullity because the principle of pari delicto is not applicable in the case since it will frustrate the state policy to reserve the land to Filipinos. 119. Naruto, a Filipino. sold his private land to Hinata, a Japanese national. Afterwards, Hinata sold the said private land to Kakashi, a Filipino. Which of the following statements is correct? a. Both contracts of sale are subject to declaration of nullity because they are violative of Constitutional provision against ownership of private land by foreigners. b. Both contracts of sale are unenforceable because they are violative of Constitutional provision against ownership of private land by foreigners. c. Ownership of the land will transfer to Kakashi and the contracts cannot be avoided since the land is finally with a Filipino. d. The second contract of sale is void because it is the product of the first contract of sale. 120. S, a minor of 17 years, sold his watch for P1,500.00 to B, 30 years old. The guardian of S was not aware of the sale; hence, no action for annulment has yet been filed. Subsequently, B sold the watch to T, who acquired it in good faith. Which of the following statements is correct? a. T acquires no title to the watch because the seller's title is voidable. b. T acquires good title to the watch even if he buys it in bad faith. c. T acquires good title to the watch even if the voidable title of the seller has been avoided before the time of sale as long as T acquires the watch in good faith, for value and without notice of seller's defect of title. d. T acquires good title to the watch even if the seller's title is voidable provided the same has not been avoided at the time of sale and T acquires the watch in good faith, for value and without notice of seller's defect of title. 121. The following are the rules on the place of delivery of the goods in a contract of sale, except a. Place stipulated in the contract. b. In case there is no stipulation as to the place of delivery, place fixed by usage or trade. c. In the absence of a and b, the seller's place of business if he has one; if none, the seller's place of residence. d. In the case of specific goods, the place where the goods are located at the time of perfection of contract of sale. e. In the absence of a and b, the buyer's place of business if he has one; if none, the buyer's place of residence. 122. In case the time for the delivery of goods is not stipulated, what is the time for its delivery? a. At the end of the month. b. At the end of the year. c. At the end of the day. d. Within reasonable time from the execution of the contract. 123. In the absence of stipulation to the contrary, who shall bear the expenses of delivery and incidental expenses to putting the goods into a deliverable state? a. Buyer and Seller equally b. Seller c. Buyer d. Government 124. As a general rule, the seller shall deliver the thing sold upon perfection of contract of sale. The following are the instances when a vendor is not bound to deliver the thing sold even after the perfection of contract of sale, except a. If the vendee/buyer has not paid him the price. b. If no period for payment of the price has been fixed in the contract. c. If the vendee/buyer loses the right to make use of the period such as becoming insolvent. d. If a period has been fixed for the payment of the price. 125. What are the rights of the buyer when the quantity or quality of goods delivered is different from that which the seller contracted to sell? I. Reject the goods. II. Accept the goods and pay the contract rate of the delivered goods. a. I only b. II only c. Either I or II d. Neither I nor II 126. When the quantity delivered is more than that which the parties agreed upon, the following are the rights of the buyer, except a. Accept the goods agreed upon and reject the rest. b. Accept the whole of the goods delivered and pay for them at the contract rate. c. Reject the whole of the goods if the