lOMoAR cPSD| 61157369
, lOMoAR cPSD| 61157369
Business law testbank - Business law reviewer. mp mp mp mp mp mp
Questions provided with correct answers related to Bu
mp mp mp mp mp mp mp
siness
BUSINESS LAW TESTBANK
mp mp mp
1. A contract whereby one of the contracting parties obligates himself to transfer the own
mp mp mp mp mp mp mp mp mp mp mp mp mp
ership of and to deliver a determinate thing and the other to pay thereof a price certai
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n in money or its equivalent is a contract of:
mp mp mp mp mp mp mp mp mp mpmp
a. Barter mpmp
b. Sale mpmp
c. Dacion En Pago mp mp mpmp
d. Mortgage mpmp
mpmp
2. The following are the essential elements of a contract of sale except:
mp mp mp mp mp mp mp mp mp mp mp mpmp
a. Consent of the contracting parties mp mp mp mp mpmp
b. Subject matter which should be determine mp mp mp mp mp mpmp
c. Price which should be determine mp mp mp mp mpmp
d. Warranty against eviction and against hidden defects. mp mp mp mp mp mp mpmpmp
mpmp
3. The following are the characteristics of a contract of sale except:
mp mp mp mp mp mp mp mp mp mp mpmp
a. Principal, which means that a contract of sale can stand by itself.
mp mp mp mp mp mp mp mp mp mp mp mpmpmp
b. Real, which requires the delivery of the object of the contract of sale for its perfec
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
tion. mpmp
c. Onerous, where the rights are acquired in exchange of a valuable consideration.
mp mp mp mp mp mp mp mp mp mp mp mpmp
d. Bilateral, which means that both parties are bound reciprocally to each other.
mp mp mp mp mp mp mp mp mp mp mp mpmp
mpmpmp
4. One of the following characteristics of dacion en pago is also a characteristics of a contr
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
act of sale. Which is it?
mp mp mp mp mp mpmp
a. There is a pre-existing credit mp mp mp mp mpmp
b. Obligations are extinguished mp mp mpmp
c. There is less freedom in fixing the price
mp mp mp mp mp mp mp mpmp
d. Ownership of the object is transferred to the other party mp mp mp mp mp mp mp mp mp mpmp
mpmp
5. The following are characteristics of a contract of sale except for one which refers to pay
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
ment be cession. Which characteristics refers to payment by cession?
mp mp mp mp mp mp mp mp mp mpmp
a. There is no pre-existing credit mp mp mp mp mpmp
b. The cause or consideration is the price
mp mp mp mp mp mp mpmp
c. There is more freedom in fixing the price
mp mp mp mp mp mp mp mpmp
mp
, lOMoAR cPSD| 61157369
d. Assignee of the property acquires the right to sell the thing but not the ownership
mp mp mp mp mp mp mp mp mp mp mp mp mp mp
thereof. mp mpmpmp
mpmp
6. The following items pertains to either a contract of sale or a contract to sell. I.
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
Ownership of the thing sold is transferred upon delivery. mp mp mp mp mp mp mp mp mpmpmp
II. mpmp
Ownership of the thing is transferred to the buyer at some future time
mp mp mp mp mp mp mp mp mp mp mp mp
. III.
mp mpmp The risk of loss is on the buyer IV.
mp mp mp mp mp mp mp mpmp mpmp
The rish of loss is on the seller.
mp mp mp mp mp mp mp mpmp
Ans. I AND III
mpmpmpmpmpmpmpmpmpmpmpmpmp mp mp mp mpmp
mpmp
7. One of the following is not a requisite of the object of a contract of sale. Which is it?
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
a. It must be in the commerce of men
mp mp mp mp mp mp mp mpmp
b. It must be licit mp mp mp mpmp
c. It must be determinate or determinable
mp mp mp mp mp mpmp
d. Vendor must have the right to transfer the ownership of the thin at the time of sa
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
le. mpmpmp
mpmp
8. The following items pertain to either emptio rei speratae or emptio spei
mp mp mp mp mp mp mp mp mp mp mp mpmp
a. The sale of a future thing mp mp mp mp mp mpmpmp
b. The sale of hope or expectancy mp mp mp mp mp mpmp
c. The sale of a present thing mp mp mp mp mp mpmp
d. The thing sold must come into existence
mp mp mp mp mp mp mpmp
ANS. II AND III mp mp mp mpmp
mpmp
9. Santiago sells to Bermejo 500 sacks of rice at P1M per sack from the stock then stored i
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n the warehouse of Santiago. Unknown to the parties, the warehouse contains only 48
mp mp mp mp mp mp mp mp mp mp mp mp mp
0 sacks of rice.
mp mp mp mpmp
What is the status of the contract between Santiago and Bermejo?
mp mp mp mp mp mp mp mp mp mp mpmp
a. The sale is void since the quantity available is less than the quantity sold.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
b. The sale is valid up to 480 sacks of rice but void as the deficiency of 20 sacks of rice.
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
pmp
c. The entire sale is valid up to 500 sacks of rice. Bermejo becomes the owner of the
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
of the whole stock available and Santiago must deliver the deficiency of 20 sacks
p mp mp mp mp mp mp mp mp mp mp mp mp mp mp
of rice. mp mpmp
d. The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sack
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
s of rice be reason of damage suffered by Bermejo.
mp mp mp mp mp mp mp mp mp mpmp
mpmp
10. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his truck’s
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
tank which, unknown to the parties, contains 500 gallons gasoline. What is the status o
mp mp mp mp mp mp mp mp mp mp mp mp mp mp
f the contract of sale between Somera and Bermejo?
mp mp mp mp mp mp mp mp mpmp
a. The sale is void because the quantity available is more than the quantity sold.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmpmp
b. The sale is valid up to 500 gallons of gasoline. Bueviaje must pay for the additional
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
200 gallons of gasoline mp mp mp mpmp
mp
, lOMoAR cPSD| 61157369
c. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of 3/
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
5 of the whole stock, while Somera becomes the owner of 2/5 thereof.
mp mp mp mp mp mp mp mp mp mp mp mp mpmp
d. The sale is rescissible because Somera will suffer lesion of more than ¼ of the value
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
of the whole stock. mp mp mp mpmp
mpmp
mpmp
mpmp
mpmp
mpmp
11. San Manuel Corporation, which maintains a professional basketball team, entered into
mp mp mp mp mp mp mp mp mp mp mp
a contract with Armstrong Rubber Company for the latter to provide a pair of rubber sh
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
oes to the former's two imported basketball players, Charles Jordan and Michael Barkle
mp mp mp mp mp mp mp mp mp mp mp mp
y. Armstrong Rubber Company was instructed to make a pair for either or both players i
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n case the company did not manufacture shoes of their size. No pair was, however, im
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
mediately available for both the players. Charles Jordan, who is 6'5' tall and wears size
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
12 rubber shoes, was given a pair the following day from the 300 pairs that Armstrong
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
was in the process of manufacturing for its customers at the time the orders were recei
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
ved. Michael Barkley, who is 7' tall and wears size 18 shoes, was provided three days lat
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
er, with a pair that was specially made for him since Armstrong does not make shoes of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
his size. What kind of contracts were entered into for the shoes provided to the two ba
p mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
sketball players? mp mpmp
a. The contract for the pair of shoes provided to Charles Jordan is a contract for a piece of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
work, while that for Michael Barkley is a contract of sale.
mp mp mp mp mp mp mp mp mp mp mpmpmp
b. The contract for the pair of shoes provided to Charles Jordan is a contract of sale, whil
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
e that for Michael Barkley is a contract of sale.
mp mp mp mp mp mp mp mp mp mpmpmp
c. Both are contracts of sale. mp mp mp mp mpmp
d. Both are contracts for a piece of work.
mp mp mp mp mp mp mp mpmp
mpmp
12. S and B entered into a contract whereby S transferred to B a specific car for the price of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
P200,000.00, while B gave to S P90,000.00 in cash and a diamond ring worth
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
P110,000.00. The heading of the written contract signed by the parties reads "Contractmp mp mp mp mp mp mp mp mp mp mp mp mp
of Sale". mp mpmpmp
a. The contract is void because the intention of the parties is void since the value of the di
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
amond ring is more than the monetary consideration given.
mp mp mp mp mp mp mp mp mpmpmp
b. The contract is a contract of sale as intended by the parties regardless of whether the
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
monetary consideration is more or less than the value of the property consideration.
mp mp mp mp mp mp mp mp mp mp mp mp mpmp
c. The contract is a valid contract of barter since the value of the property given is more th
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
an the monetary consideration. The intention of the parties is immaterial.
mp mp mp mp mp mp mp mp mp mp mpmpmp
d. The contract is partly a contract of barter and partly a contract of sale.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmpmp
mpmp
13. The price in a contract of sale is certain, except:
mp mp mp mp mp mp mp mp mp mpmpmp
a. When the parties have fixed or agreed upon a definite amount.
mp mp mp mp mp mp mp mp mp mp mpmp
b. If the price is certain with reference to another b. thing certain.
mp mp mp mp mp mp mp mp mp mp mp mpmpmp
mp
, lOMoAR cPSD| 61157369
Business law testbank - Business law reviewer. mp mp mp mp mp mp
Questions provided with correct answers related to Bu
mp mp mp mp mp mp mp
siness
BUSINESS LAW TESTBANK
mp mp mp
1. A contract whereby one of the contracting parties obligates himself to transfer the own
mp mp mp mp mp mp mp mp mp mp mp mp mp
ership of and to deliver a determinate thing and the other to pay thereof a price certai
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n in money or its equivalent is a contract of:
mp mp mp mp mp mp mp mp mp mpmp
a. Barter mpmp
b. Sale mpmp
c. Dacion En Pago mp mp mpmp
d. Mortgage mpmp
mpmp
2. The following are the essential elements of a contract of sale except:
mp mp mp mp mp mp mp mp mp mp mp mpmp
a. Consent of the contracting parties mp mp mp mp mpmp
b. Subject matter which should be determine mp mp mp mp mp mpmp
c. Price which should be determine mp mp mp mp mpmp
d. Warranty against eviction and against hidden defects. mp mp mp mp mp mp mpmpmp
mpmp
3. The following are the characteristics of a contract of sale except:
mp mp mp mp mp mp mp mp mp mp mpmp
a. Principal, which means that a contract of sale can stand by itself.
mp mp mp mp mp mp mp mp mp mp mp mpmpmp
b. Real, which requires the delivery of the object of the contract of sale for its perfec
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
tion. mpmp
c. Onerous, where the rights are acquired in exchange of a valuable consideration.
mp mp mp mp mp mp mp mp mp mp mp mpmp
d. Bilateral, which means that both parties are bound reciprocally to each other.
mp mp mp mp mp mp mp mp mp mp mp mpmp
mpmpmp
4. One of the following characteristics of dacion en pago is also a characteristics of a contr
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
act of sale. Which is it?
mp mp mp mp mp mpmp
a. There is a pre-existing credit mp mp mp mp mpmp
b. Obligations are extinguished mp mp mpmp
c. There is less freedom in fixing the price
mp mp mp mp mp mp mp mpmp
d. Ownership of the object is transferred to the other party mp mp mp mp mp mp mp mp mp mpmp
mpmp
5. The following are characteristics of a contract of sale except for one which refers to pay
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
ment be cession. Which characteristics refers to payment by cession?
mp mp mp mp mp mp mp mp mp mpmp
a. There is no pre-existing credit mp mp mp mp mpmp
b. The cause or consideration is the price
mp mp mp mp mp mp mpmp
c. There is more freedom in fixing the price
mp mp mp mp mp mp mp mpmp
mp
, lOMoAR cPSD| 61157369
d. Assignee of the property acquires the right to sell the thing but not the ownership
mp mp mp mp mp mp mp mp mp mp mp mp mp mp
thereof. mp mpmpmp
mpmp
6. The following items pertains to either a contract of sale or a contract to sell. I.
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
Ownership of the thing sold is transferred upon delivery. mp mp mp mp mp mp mp mp mpmpmp
II. mpmp
Ownership of the thing is transferred to the buyer at some future time
mp mp mp mp mp mp mp mp mp mp mp mp
. III.
mp mpmp The risk of loss is on the buyer IV.
mp mp mp mp mp mp mp mpmp mpmp
The rish of loss is on the seller.
mp mp mp mp mp mp mp mpmp
Ans. I AND III
mpmpmpmpmpmpmpmpmpmpmpmpmp mp mp mp mpmp
mpmp
7. One of the following is not a requisite of the object of a contract of sale. Which is it?
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
a. It must be in the commerce of men
mp mp mp mp mp mp mp mpmp
b. It must be licit mp mp mp mpmp
c. It must be determinate or determinable
mp mp mp mp mp mpmp
d. Vendor must have the right to transfer the ownership of the thin at the time of sa
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
le. mpmpmp
mpmp
8. The following items pertain to either emptio rei speratae or emptio spei
mp mp mp mp mp mp mp mp mp mp mp mpmp
a. The sale of a future thing mp mp mp mp mp mpmpmp
b. The sale of hope or expectancy mp mp mp mp mp mpmp
c. The sale of a present thing mp mp mp mp mp mpmp
d. The thing sold must come into existence
mp mp mp mp mp mp mpmp
ANS. II AND III mp mp mp mpmp
mpmp
9. Santiago sells to Bermejo 500 sacks of rice at P1M per sack from the stock then stored i
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n the warehouse of Santiago. Unknown to the parties, the warehouse contains only 48
mp mp mp mp mp mp mp mp mp mp mp mp mp
0 sacks of rice.
mp mp mp mpmp
What is the status of the contract between Santiago and Bermejo?
mp mp mp mp mp mp mp mp mp mp mpmp
a. The sale is void since the quantity available is less than the quantity sold.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
b. The sale is valid up to 480 sacks of rice but void as the deficiency of 20 sacks of rice.
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
pmp
c. The entire sale is valid up to 500 sacks of rice. Bermejo becomes the owner of the
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
of the whole stock available and Santiago must deliver the deficiency of 20 sacks
p mp mp mp mp mp mp mp mp mp mp mp mp mp mp
of rice. mp mpmp
d. The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sack
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
s of rice be reason of damage suffered by Bermejo.
mp mp mp mp mp mp mp mp mp mpmp
mpmp
10. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his truck’s
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
tank which, unknown to the parties, contains 500 gallons gasoline. What is the status o
mp mp mp mp mp mp mp mp mp mp mp mp mp mp
f the contract of sale between Somera and Bermejo?
mp mp mp mp mp mp mp mp mpmp
a. The sale is void because the quantity available is more than the quantity sold.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmpmp
b. The sale is valid up to 500 gallons of gasoline. Bueviaje must pay for the additional
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mpmp
200 gallons of gasoline mp mp mp mpmp
mp
, lOMoAR cPSD| 61157369
c. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of 3/
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
5 of the whole stock, while Somera becomes the owner of 2/5 thereof.
mp mp mp mp mp mp mp mp mp mp mp mp mpmp
d. The sale is rescissible because Somera will suffer lesion of more than ¼ of the value
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
of the whole stock. mp mp mp mpmp
mpmp
mpmp
mpmp
mpmp
mpmp
11. San Manuel Corporation, which maintains a professional basketball team, entered into
mp mp mp mp mp mp mp mp mp mp mp
a contract with Armstrong Rubber Company for the latter to provide a pair of rubber sh
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
oes to the former's two imported basketball players, Charles Jordan and Michael Barkle
mp mp mp mp mp mp mp mp mp mp mp mp
y. Armstrong Rubber Company was instructed to make a pair for either or both players i
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
n case the company did not manufacture shoes of their size. No pair was, however, im
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
mediately available for both the players. Charles Jordan, who is 6'5' tall and wears size
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
12 rubber shoes, was given a pair the following day from the 300 pairs that Armstrong
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
was in the process of manufacturing for its customers at the time the orders were recei
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
ved. Michael Barkley, who is 7' tall and wears size 18 shoes, was provided three days lat
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
er, with a pair that was specially made for him since Armstrong does not make shoes of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp m
his size. What kind of contracts were entered into for the shoes provided to the two ba
p mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
sketball players? mp mpmp
a. The contract for the pair of shoes provided to Charles Jordan is a contract for a piece of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
work, while that for Michael Barkley is a contract of sale.
mp mp mp mp mp mp mp mp mp mp mpmpmp
b. The contract for the pair of shoes provided to Charles Jordan is a contract of sale, whil
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
e that for Michael Barkley is a contract of sale.
mp mp mp mp mp mp mp mp mp mpmpmp
c. Both are contracts of sale. mp mp mp mp mpmp
d. Both are contracts for a piece of work.
mp mp mp mp mp mp mp mpmp
mpmp
12. S and B entered into a contract whereby S transferred to B a specific car for the price of
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
P200,000.00, while B gave to S P90,000.00 in cash and a diamond ring worth
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
P110,000.00. The heading of the written contract signed by the parties reads "Contractmp mp mp mp mp mp mp mp mp mp mp mp mp
of Sale". mp mpmpmp
a. The contract is void because the intention of the parties is void since the value of the di
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
amond ring is more than the monetary consideration given.
mp mp mp mp mp mp mp mp mpmpmp
b. The contract is a contract of sale as intended by the parties regardless of whether the
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
monetary consideration is more or less than the value of the property consideration.
mp mp mp mp mp mp mp mp mp mp mp mp mpmp
c. The contract is a valid contract of barter since the value of the property given is more th
mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp mp
an the monetary consideration. The intention of the parties is immaterial.
mp mp mp mp mp mp mp mp mp mp mpmpmp
d. The contract is partly a contract of barter and partly a contract of sale.
mp mp mp mp mp mp mp mp mp mp mp mp mp mpmpmp
mpmp
13. The price in a contract of sale is certain, except:
mp mp mp mp mp mp mp mp mp mpmpmp
a. When the parties have fixed or agreed upon a definite amount.
mp mp mp mp mp mp mp mp mp mp mpmp
b. If the price is certain with reference to another b. thing certain.
mp mp mp mp mp mp mp mp mp mp mp mpmpmp
mp
