Law on Sales

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BUSINESS BUSINESS LAWLAW Contract

Contract of Saof Salesles

I.

I. IdenIdentifitificatication: Basion: Basic Concepc Concept and princit and principlesples __________________ 1. Pr

__________________ 1. Principle that tinciple that the owner ears the he owner ears the loss.loss. __________________ !. Pr

__________________ !. Principle that tinciple that the "#er ears the he "#er ears the loss.loss. __________________ $. Pr

__________________ $. Principle that tinciple that the seller earhe seller ears the loss.s the loss. __________________ %.

__________________ %. A A "nilateral pro&"nilateral pro&ise to "# or tise to "# or to sell which o sell which is not accepteis not accepted.d. __________________ '. (

__________________ '. (he "npaid sellehe "npaid seller)s le*al powr)s le*al power to retain er to retain control of possesscontrol of possession of *oods.ion of *oods. __________________ +. Se

__________________ +. Sellers responsillers responsiilit# for the ilit# for the title of the title of the thin* the# sold thin* the# sold and for an# hidden dand for an# hidden defects.efects. __________________ ,. W

__________________ ,. Where the owner -ohere the owner -oins the id wins the id witho"t reserinitho"t reserin* s"ch ri*ht.* s"ch ri*ht. __________________ /. (

__________________ /. (he sale of a the sale of a thin* not #et in hin* not #et in e0istence "t &ae0istence "t &a# e0ist in the # e0ist in the f"t"re.f"t"re. __________________

__________________ . It is also . It is also 2nown as sale o2nown as sale of hope.f hope. __________________13.

__________________13. An An a*ree&ent a*ree&ent where# where# one one part# part# concedes concedes to to another another for for a a deter&inate deter&inate period period the the power power 4option5 to decide whe

4option5 to decide whether ther a principal contraca principal contract will e celeratet will e celerated.d. __________________11

__________________11. A. Also called lso called A66ASA66AS7 proof of per7 proof of perfection of contrafection of contract of sale.ct of sale. __________________1!. Unpa

__________________1!. Unpaid seller)s id seller)s power to res"power to res"&e possession of &e possession of the *oods.the *oods. __________________1$. A doc"&e

__________________1$. A doc"&ent of nt of title in which title in which it is it is stated that the stated that the *oods referred to *oods referred to therein will e therein will e deliered todeliered to the "#er7 or to the order of

the "#er7 or to the order of an# person na&ed in s"ch an# person na&ed in s"ch doc"&ent.doc"&ent. __________________1%. 8oods to e

__________________1%. 8oods to e &an"fact"red7 raised or ac9"ired # &an"fact"red7 raised or ac9"ired # the seller often the the seller often the perfection of the contractperfection of the contract of sale.

of sale. __________________1'. 8oods

__________________1'. 8oods that cannot e that cannot e "sed witho"t ei"sed witho"t ein* cons"&ed.n* cons"&ed. __________________1+. W

__________________1+. When *oods are in shen *oods are in s"ch a state t"ch a state that the "#er wo"lhat the "#er wo"ld e o"nd to accd e o"nd to accept the delier#ept the delier#.. __________________1,.

__________________1,. A A real estate &real estate &ort*a*e in the fort*a*e in the for& of conentioor& of conentional rede&ption or nal rede&ption or asol"te sale.asol"te sale. __________________1/. (he ri*ht

__________________1/. (he ri*ht to e to e s"ro*ated "pon s"ro*ated "pon the sa&e the sa&e ter& and ter& and condition stip"lated in condition stip"lated in the contract the contract in thein the place of one w

place of one who ac9"ired the tho ac9"ired the thin* # onero"s tihin* # onero"s tide.de. __________________1. (

__________________1. (he preferentiahe preferential ri*ht of an ad-oinil ri*ht of an ad-oinin* owner of an "ran* owner of an "ran land to p"rchase the n land to p"rchase the ad-oinin* propert#ad-oinin* propert# efore it is

efore it is sold to a strsold to a stran*er.an*er. __________________!3. A

__________________!3. A contract # which one tracontract # which one transfer to another his ri*hnsfer to another his ri*ht a*ainst a third person in considt a*ainst a third person in consideration of aeration of a price certai

price certain in &one# or its n in &one# or its e9"ialent.e9"ialent. (6UE 6 ;ALSE

(6UE 6 ;ALSE

!1. Contract of sale &a# e

!1. Contract of sale &a# e asol"te "t not conditional.___________ asol"te "t not conditional.___________ !!. (he delier# of &oale propert# &a# li2ewise e &ade

!!. (he delier# of &oale propert# &a# li2ewise e &ade # the &ere consent or # the &ere consent or a*ree&ent of thea*ree&ent of the

contractin* parties7 if the thin* sold cannot e transferred to the possession of the endee at the ti&e of the sale7 or if contractin* parties7 if the thin* sold cannot e transferred to the possession of the endee at the ti&e of the sale7 or if the latter alread# had it in

the latter alread# had it in his possession for an# other reason.__________ his possession for an# other reason.__________ !$. A con

!$. A contract to sell7 een if tract to sell7 een if accepted # the "#er is accepted # the "#er is not an asol"te sale.__________ not an asol"te sale.__________ !%.

!%. In sale # sa&In sale # sa&ple7 e it "ndeple7 e it "nderstood that the rstood that the "l2 is li2e t"l2 is li2e the sa&ple._________he sa&ple.__________ _ !'.

!'. (here is no a(here is no a"to&atic resc"to&atic rescission in sale of ission in sale of &oale and i&&&oale and i&&oale propert#oale propert#.__________ .__________ !+.

!+. (he e0penses for the e0ec"t(he e0penses for the e0ec"tion and re*istration of the sion and re*istration of the sale shall e orne # the endorale shall e orne # the endor7 een if there is a stip"l7 een if there is a stip"lationation to the contrar#.__________

to the contrar#.__________ !,.

!,. 8ross inade9"ac# of price doe8ross inade9"ac# of price does not affect a contract of sales not affect a contract of sale7 e0cept as it &a# indicate a defe7 e0cept as it &a# indicate a defect in the consent or thatct in the consent or that the parties reall# intended it donation or so&e other

the parties reall# intended it donation or so&e other act or contract._________ act or contract._________ !/.

!/. (he endee (he endee a retro7 a retro7 is s"ro*atis s"ro*ated to the ed to the endor)s rendor)s ri*hts and aci*hts and actions.__________ tions.__________ !.

!. (he sole (he sole owner of owner of a thin* &aa thin* &a# sell a# sell an "ndiided in "ndiided interest thenterest therein.__________ rein.__________ $3.

$3. (he fi0in* of the pr(he fi0in* of the price can neer e left to tice can neer e left to the discretion of one of the discretion of one of the contractin* parthe contractin* parties. <oweeries. <oweer7 if the price fi7 if the price fi0ed0ed # one of the pa

# one of the parties is accrties is accepted # the otherepted # the other7 the sale 7 the sale is perfected.is perfected.________ ________ $1.

$1. Unless otherwUnless otherwise a*reed7 wherise a*reed7 where *oods are delieree *oods are deliered to the "#er and he rd to the "#er and he ref"ses to accept tef"ses to accept the&7 hain* the rihe&7 hain* the ri*ht to do*ht to do so7 he is not o"nd to ret"rn the& to the seller7 "t it is s"fficient if he notifies the seller that he ref"ses to accept so7 he is not o"nd to ret"rn the& to the seller7 "t it is s"fficient if he notifies the seller that he ref"ses to accept the&. If he ol"ntaril# constit"tes hi&self a depositor# thereof7 he shall e liale as

the&. If he ol"ntaril# constit"tes hi&self a depositor# thereof7 he shall e liale as s"ch._________ s"ch._________ $!.

$!. If two If two or or &or&ore e ad-ad-oinoinin* ownein* owners rs desdesire to ire to e0ee0ercrcise the ise the ri*ri*ht of ht of redrede&pe&ptiotion n at the at the sa&sa&e e titi&e7 the owner of &e7 the owner of thethe ad-oinin* land of s&aller area shall e preferred= and sho"ld oth lands hae the sa&e ar& the one who first ad-oinin* land of s&aller area shall e preferred= and sho"ld oth lands hae the sa&e ar& the one who first re9"ested the

re9"ested the rede&ption._____rede&ption.__________ _____ $$.

$$. (he ownershi(he ownership in the thin* sp in the thin* shall not pass thall not pass to the p"rchaser "no the p"rchaser "ntil he has f"ltil he has f"ll# paid the pril# paid the price.________ ce.________ $%.

$%. (he end(he endor need not e the owner at the ti&e the salor need not e the owner at the ti&e the sale is perfecte is perfected. It is s"ffied. It is s"fficiencient that he is the owner at the ti&et that he is the owner at the ti&e thin* sold is

thin* sold is deliered.__________ deliered.__________ $'.

$'. If the conIf the considesideratiration of on of the conthe contractract t consiconsists parsts partl# in &otl# in &one# and parne# and partl# in anotl# in another thther thin* it shain* it shall e consll e consideridered aed a arter

arter if if the the al"e al"e of of the the thin* thin* *ien *ien as as a a part part of of the the consideration consideration e0ceeds e0ceeds the the a&o"nt a&o"nt of of the the &one# &one# or or itsits e9"ialent.__________

e9"ialent.__________ $+.

$+. (her(here &a# e e &a# e a contraa contract of sale of *oods7 whose ac9"ct of sale of *oods7 whose ac9"isitisition # the seller depeion # the seller depends "pon continds "pon contin*encn*enc# which &a# or # which &a# or &a# not happen.__________

&a# not happen.__________ $,.

$,. WherWhere the seller of *oods has aoidale the seller of *oods has aoidale title theree title thereto7 "t his title has not een aoideto7 "t his title has not een aoided at d at the ti&e of the sale7 thethe ti&e of the sale7 the "#er ac9"ires a

"#er ac9"ires a title to the title to the *oods een if he *oods een if he ac9"ired it in ac9"ired it in ad faith.ad faith. $/.

$/. WaWarrant# a*ainst eicrrant# a*ainst eiction is ordinaril# wation is ordinaril# waiale an#ti&e een i&piale an#ti&e een i&pliedl#liedl#.__________ .__________ $.

$. (he part(he parties &a# stip"ies &a# stip"late that owlate that ownersnership in the thin* shall not pass to the p"rchahip in the thin* shall not pass to the p"rchaser "ntil he has f"ll# paid theser "ntil he has f"ll# paid the price.__________

(2)

%3. (he endor shall not e o"nd to delier the thin* sold7 if the endee has not paid hi& the price7 or if no period for the pa#&ent has een fi0ed in the contract._________

%1. In the sale of real estate for a l"&p s"& price 4LSP57 the seller cannot as2 for an increase in the price een if the land is &ore than that stated within the o"ndaries.__________

%!. A66AS is a proof of perfection of the contract of option.__________

%$. In sale7 the oli*ation of the endor is e0tin*"ished= while in dation in pa#&ent7 oli*ation is created. __________ %%. If the sa&e thin* sho"ld hae een sold to different endees7 the ownership shall e transferred to the person who

&a# hae first ta2en possession thereof in *ood faith7 if it sho"ld e &oale propert#. __________

%'. IN C> 4cash on delier#57 the carrier is the a*ent of the seller to delier the *oods to the "#er at the point of destination. In transit "#er will ear the loss__________

%+. An assi*n&ent of a credit7 ri*ht or action shall7 prod"ce no effect as a*ainst third persons7 "nless it appears in a p"lic instr"&ent7 or the instr"&ent is recorded in the 6e*istr# of Propert# in case the assi*n&ent inoles real propert#. __________

%,. (he endor is o"nd to delier the thin* sold and its accessories and accession in the condition in which the# were "pon the perfection of the contract. All the fr"its shall pertain to the endee fro& the ti&e the oli*ation to delier the thin* arises. __________

%/. Sale of a ain hope or e0pectanc# is *oerned # conditional sale. __________ %. Contract of sale is so&eti&es a real contract. __________

'3. E&ptio rei speratae is the sale of thin* which is e0pected to co&e into e0istence7 the 9"alit# and 9"antit# of which are "n2nown. __________

'1.

State&ent 1: Sale is a consens"al contract= therefore delier# or pa#&ent is not essential for perfection.

State&ent !: (he endor is responsile to the endee for an# hidden fa"lts or defects in the thin* sold onl# if he was aware thereof

a. Both are tr"e c. No.1 is tr"e= No.! is false . Both are false d. No.1 is false= No.! is tr"e

'!.

State&ent 1: (he sale of a &ere hope or e0pectanc# is conditioned that the thin* will co&e into e0istence and the price is alwa#s fi0ed.

State&ent !: (he sole owner of a thin* can sell an "ndiided interest therein. a. Both are tr"e c. No.1 is tr"e= No.! is false . Both are false d. No.1 is false= No.! is tr"e

'$.

State&ent No. 1: (hin*s s"-ect to a resol"tor# condition cannot e the o-ect of the contract of sale. State&ent No. !: If the price is sti&"lated7 the contract of sale is oidale.

a. Both are tr"e c. No. 1 is tr"e= No. ! is false

. Both are false d. No. 1 is false= No. ! is tr"e

'%. State&ent No. 1: (he ownership in the thin* shall not pass to the p"rchaser "ntil he has f"ll# paid the price in contract to sell.

State&ent No. !: If at the ti&e the contract of the sale is perfected7 the thin* which is the o-ect of the contract has een partiall# lost7 the contract shall e witho"t effect

''. State&ent No. 1: Where the seller of *oods has aoidale title thereto7 "t his tide has not een aoided at the ti&e of the sale7 the "#er ac9"ire a tide to the *oods whether or not the ac9"isition is in *ood faith.

State&ent No. !: If seeral persons7 -ointl# and in the saw contract sho"ld sell an "ndiided i&&oale with a ti*ht of rep"rchase7 none of the& &a# e0ercise this ri*ht for &ore than his respectie share.

'+. State&ent No. 1: Le*al rede&ption is the ri*ht to e s"ro*ated7 "pon the sa&e ter&s and conditions stip"lated in the contract7 in the place of one who ac9"ires a thin* # p"rchase or dation in pa#&ent or # an# other transaction where# ownership is trans&itted # onero"s title.

State&ent No. !: (he endor shall not e o"nd to delier the thin* sold7 if the endee has not paid hi& the price7 or if no period for the pa#&ent has een fi0ed in the contract.

',. State&ent No. 1: Where an "npaid seller has &ade part delier# of the *oods7 he &a# e0ercise his ri*ht of lien on the re&ainder7 "nless s"ch part delier# has een &ade "nder s"ch circ"&stances as to show an intent to waie the lien or ri*ht of retention.

State&ent No. !: Where the price cannot e deter&ined in a contract of sale7 the contract is inefficacio"s "t &a# e ratified.

'/. S sold to B a specific car for P!37333 pa#ale in fo"r e9"al instal&ents. S deliered the car to B "t re9"ired to &ort*a*e it ac2 to S to answer for the "npaid install&ents. B paid the 1st_{instal&ent7 "t the last three he failed to}

pa#. S foreclosed the &ort*a*ed propert# and sold it at p"lic a"ction for P1$7333. a. S can recoer fro& B the alance of P!7333.

. S can recoer fro& B ? alance of P!7333 if there is stip"lation to that effect. c. S cannot recoer the deficienc# an# &ore een if there is stip"lation to that effect. d. None of the aoe.

'. (he endor

a. is liale to the endee for hidden fa"lt or defect of the thin* sold een if he is not aware thereof

(3)

. is not liale to the endee for hidden fa"lt or defect of the thin* sold if he is not aware thereof

c. is liale to the endee for hidden fa"lt or defect of the thin* sold if he is not aware thereof if stip"lated

d. Answer not *ien.

+3. When it is stip"lated that the rep"rchase of the propert# sold co"ld e &ade at an# ti&e7 the rep"rchase shall e e0ercised

a. Within fo"r #ears fro& the date of the contract . Within ten #ears fro& the date of the contract

c. After ten #ears fro& the date of the contract d. None of the&.

+1. B i&ports electric fans fro& China and specificall# as2s for !!3 olts fans. (he fans arried d"l# laelled !!3 olts and sell the& to the p"lic as s"ch. Later7 it t"rned o"t that the fan has een &islaelled # the &an"fact"rer and were onl# *ood for 113 olts.

a. B is liale to the endee for an# hidden defects in the thin* sold een tho"*h he was not ware thereof.

. B is not liale eca"se he was in *ood faith7 and this is shown # specificall# as2in* for !!3 olts. c. B is not liale "nder the principle of @lot the "#er eware

d. B is liale eca"se the endee did not en-o# le*al and peacef"l possession of the o-ect of sale. +!. S sold to B a parcel of land for a l"&p s"& of P'37333 the contract states that the area is '33

s9"are &eters. S"se9"entl#7 it was ascertained that the area incl"ded within the o"ndaries is reall# ''3 s9"are &eters.

a. S is o"nd to delier '33 s9"are &eters and B to pa# P'37333. . S is o"nd to delier '33 s9"are &eters and B to pa# P''7333.

c. S or B can rescind the We eca"se there is no &eetin* of &inds. d. None of the aoe.

+$. In the s"cceedin* 9"estion7 if the land contains %%' s9"are &eters7 which of the followin* is correct a. S is o"nd to delier '33 s9"are &eters and B to pa# P'37333.

. S is o"nd to delier %%' s9"are &eters and B to pa# P%%7'33.

c. B &a# rescind the sale eca"se the lac2 in area is &ore than 113 of the total area. d. None of the aoe.

+%. S enter into a contract with B where# S sold his land orall# to B. (he land has een deliered and the &one# has een paid. Is the oral sale of the land alid

a. (he contract is not alid eca"se it is not in writin* as re9"ired # the Stat"e of ;ra"ds. . (he contract is not alid eca"se the contract is not &ade in p"lic instr"&ent.

c. (he contract is "nenforceale.

d. (he contract is alid eca"se the contract is alread# perfected and e0ec"ted. +'. 87 *"ardian of W7 sold W)s ho"se and lot worth P%/37333 for P!%37333.

a. (he contract can e rescinded eca"se of inade9"ac# of price. . (he contract cannot e rescind eca"se of inade9"ac# of price.

c. (he contract cannot e rescind eca"se all essential ele&ents of the contracts are present.

d. (he contract cannot e rescinded "t can e ann"lled on the *ro"nd of &inorit# of the word. 4W5 ++. D Shoe Store7 Inc. entered into a separate contracts with two &oie stars7 B1 and B!. With B17 the a*ree&ent was

that the Shoe Store shall delier at a specified date or a price of P17333 a pair of shoes of a specified rand which the store had een &an"fact"rin* for the *eneral p"lic "t which at the ti&e of the contract had alread# een sold o"t7 and with B!7 the a*ree&ent was that the shoe store shall delier at a specified date for a price of P!7333 a pair of shoes to e &ade speciall# for hi& in accordance with a desi*n s"&itted # hi&. What is the nat"re of these two contracts

a. Contract for piece of wor2 c. A*enc# to sell

. Sale d. Co&ination of A and B

+,. A7 B and C are coowners of an "ndiided parcel of land. B sold his 1$ interest to C asol"tel#. Which is correct a. A &a# e0ercise his ri*ht of rede&ption on the interest sold # B to C.

. A cannot e0ercise the ri*ht of rede&ption eca"se the sale was &ade in faor of a coowner. c. (he sale &ade # B to C is oid eca"se it was not &ade in faor of a stran*er.

d. A &a# redee& onl# F of the interest sold # B to C.

+/. In No. %, s"ppose7 instead of sellin* his interest to C7 B sold it to D. Who can e0ercise the ri*ht of rede&ption a. Both A and C. c. C "t not A

. A "t not C d. A7 B7 and C

+. Which of the state&ents is not tr"e

a. In sale or ret"rn ownership is transferred to the "#er "pon delier#

. Warrant# a*ainst hidden defects is an accidental ele&ent of a contract of sale c. In sale the oli*ation of the "#er is not onl# the pa#&ent of the price

d. In dacion en pa*o7 an oli*ation is e0tin*"ished while in contract of sale7 oli*ation arise.

(4)

,3. A orrowed fro& B P!337333. (o sec"re pa#&ent of the loan7 A &ort*a*ed his ho"se and lot to B. (he &ort*a*e is d"l# recorded. (hen7 witho"t the consent of B7 A sold and deliered the ho"se and lot to C and C too2 possession of the ho"se and lot.

a. (he sale to C is oid.

. A cannot transfer ownership to C eca"se B did not *ie his consent to the sale c. A is liale to B for da&a*es

d. wnership is transferred to C s"-ect to the ri*ht of &ort*a*ee B.

,1. >elier# of &oale &a# e &ade # the delier# of the 2e#s of the place or depositor# where the &oales are dept or stored. (his 2ind of delier# is called:

a. (raditio lon*a &an" c. (raditio clai"&

. (raditio rei &an" d. (raditio constit"t"rn possessori"&

,!. If i&&oale propert# sho"ld hae een sold to different endees7 the ownership shall e transferred to the person a. Who hae first ta2en possession in *ood faith.

. Who presents the oldest title in *ood faith.

c. Who in *ood faith recorded it in the 6e*istr# of Propert# d. Who hae paid in *ood faith the p"rchase price in f"ll ,$. In the precedin* 9"estion7 if &oale propert#7 it shall elon* to the person

a. Who hae paid in *ood faith the p"rchase price in f"ll

. Who in *ood faith first recorded it in the 6e*istr# of Propert# c. Who presents the oldest title in *ood faith.

d. Who hae first ta2en possession in *ood faith

,%. State&ent No. 1: If the propert# is sold for nonpa#&ent of ta0es d"e and not &ade 2nown to the endee efore the sale7 the endor is still liale for warrant# a*ainst eiction.

State&ent No. !: (he e0propriation of propert# for p"lic "se is also *oerned # contract of sale. a. Both are tr"e c. No. 1 is tr"e= No. ! is false

,'. State&ent No. 1: Sale of f"t"re inheritance is oid= while the sale of hereditar# ri*ht is alid the seller is liale for his character as an heir.

State&ent No. !: An "npaid seller has no ri*ht of rescission.

,+. In three of the followin* there is no warrant# a*ainst hidden fGdefects of ani&als. Which is the e0ception

a. Ani&als sold at fairs

. Liestoc2 sold as conde&ned7 declared 2nown to the "#er c. Ani&als sold at p"lic a"ction

d. None of the aoe

,,. In three of the followin* the sale is oid. Which is the e0ception a. Sale of ani&als s"fferin* fro& conta*io"s diseases

. Sale of ani&als if the "sed or serice for which the# are ac9"ired has een stated in the contract and the# are fo"nd to e "nfit therefore

c. Sale of a ain hope or e0pectanc# d. Sale of hereditar# ri*ht

,/. S7 1+ #ears old7 sold to B7 of le*al a*e7 a specific dia&ond rin* for P137333. Later7 B sold it to D7 which of the followin* state&ents is incorrect

a. S has a oidale title eca"se at the ti&e of sale he is a &inor . D7 if in *ood faith7 shall eco&e the owner "pon the delier# to hi&

c. D7 if in ad faith7 shall also e the owner7 e0cept that his title is oidale

d. B has *ot a alid title een if he ac9"ired the rin* fro& a person who is incapacitated ,. In sale with a ri*ht to rep"rchase7 if rede&ption is to e &ade7 which of the followin* will not e

paid # the seller to the "#er

a. Price paid # the "#er

. E0penses in the e0ec"tion of the sales contract paid # the "#er c. All necessar# e0penses on the thin* sold and to e redee&ed d. Interest of the price paid # the "#er

/3. S offers to B 133 radio sets for P'37333 pa#ale in $3da#s with 13H interest per ann"&. B cales

S to adise that he accepts proided the interest is red"ced to 'H. If S and B are oth &erchants and there is no f"rther ' co&&"nication etween the& relatin* to the ter&s7 the&

a. B has &ade a co"nter offer

. (he contract is for&ed incorporatin* onl# the ter&s of S

c. (he contract is perfected with B)s red"ced interest rate eco&in* part of the a*ree&ent d. None of the aoe

/1. S offered for sale to B 13 caans of wi*wa* rice. B as2s S price per caan. S told B that the price per sac2s is P'.33 oer the price in the >iisoria &ar2et. (he price is

a. Certain7 eca"se it has *ot reference to another thin* which is certain . Not certain7 parties will *o to co"rt

(5)

c. Not certain eca"se the price at >iisoria ar2et is not stated d. None of the aoe

/!. S sell to B his 1// Co"*er car7 and leaes to B to deter&ine the price. B ref"ses to fi0 the price "ts oo2 the car for his "se. Which of the followin* state&ents is correct

a. No sale7 eca"se the price is not fi0ed # the parties . (here is sale7 B &"st pa# a reasonale price

c. No sale "ntil a third person fi0es the price d. S &a# *o to co"rt and as2 for da&a*es

/$. B i&ports electric fans fro& china and specificall# as2s for !!3 olts fans. (he fans arried d"ll#

laelled !!3 olts and sells the& to the p"lic as s"ch. Later7 it t"rned o"t that the fans hae een &islaelled # the &an"fact"rer and were onl# *ood for 113 olts.

a. B is liale to the endee for an# hidden defects in the sold een tho"*h he was not aware thereof . B is not liale eca"se he in *ood faith7 and this shown # specificall# as2in* for !!3 olts

c. B is liale eca"se "nder the principle of @let the "#er eware

d. B is liale eca"se the endee did not en-o# le*al and peacef"l possession of the o-ect of sale. /%. (hree of the followin* are conditional sale. Which is the e0ception

a.. Sale e0pectanc#

. Sale with a ri*ht to rep"rchase c. Sale of a ain hope

d. Sale s"-ect to a contin*enc#

/'. S sold a piece of past"re land to B. n the sa&e da# S sold it a*ain to D. Both sales were &ade in priate doc"&ents7 earin* the sa&e date. Neither of the p"rchasers s"cceeded in ta2in* ph#sical possession of the land eca"se if was alread# in the possession of another person "nder a contract of lease for one #ear7 e0ec"ted # S a &onth efore7 also in a priate doc"&ent. Who is the ri*ht owner of the land7 on the s"pposition that oth p"rchasers acted in *ood faith Wh#

/+. A o"*ht a tr"c2 fro& B pa#ale in install&ent sec"red a chattel &ort*a*e e0ec"ted # A on the tr"c27 As additional sec"rit#7 A)s rother7 C7 e0ec"ted a real estate &ort*a*e in faor of B

A defa"lted in the pa#&ent of seeral install&ent7 conse9"entl#7 B filed an action for replein 7 repossessed the tr"c27 and foreclosed the chattel &ort*a*e.

Can B proceed a*ainst the other properties of A and the real estate &ort*a*e e0ec"ted # C to recoer the deficienc# if an#7 after the chattel &ort*a*e foreclos"re E0plain

/,. S sold to B a @JUB(A water p"&p # description. Altho"*h the description was co&pletel# correct as descried # S7 the &achine wo"ld not wor2 properl# for which it has een o"*ht. Can B ref"se to pa# the price of the sale

Wh#

//. S sold car for P$337333 to B. >espite his 2nowled*e of this defect7 S otained a waier fro& B of the latter)s ri*ht "nder the warrant# a*ainst hidden defects. S"se9"entl#7 the car was wrec2ed d"e to the rec2lessness of B who onl# the discoered the defects when the ;K of the car was P!'37 333. Choose the est answer.

a. S is still liale to rei&"rse B '37333 pl"s da&a*es and he &"st pa# da&a*es . (he waier is oid eca"se S 2new of the defect

c. S is not liale an#&ore eca"se the car *ot loss d"e to the rec2lessness of B

d. (he liailit# of S re&ains to e P$337333 eca"se of reach of warrant# a*ainst hidden defect.

/. Which is not a characteristic of contract of sale

a. nero"s c. Consens"al

. 8rat"ito"s d. Co&&"tatie

3. <ere7 ph#sical delier# is not necessar# eca"se "#er is alread# in possession of the thin* sold: a. (raditio lon*e &an" c. (raditio s#&olica

. (raditio rei &an" d. (raditio constit"t"& posessori"&

“Few things are impossible to diligence and skill. Great works are performed not by strength but by perseverance” Sa&"el ohnson