Question 1

If there is a subdivision lot buyer and there is no development and he does not pay, to what extent can he ask for reimbursement of his payments?

Accepted Answer

A) Total amount paid. 
B) 25%. 
C) 50%. 
D) Total amount paid including interest but excluding delinquency interest at the legal rate. 
A) Total amount paid. 
B) 25%. 
C) 50%. 
D) Total amount paid including interest but excluding delinquency interest at the legal rate. D

Question 2

A obtained a loan from B. To secure the payment of the obligation, A delivered the warehouse quedans to B and authorized him to sell the sugar in case of default. The warehouse and the sugar were burned. Who bears the loss?

Accepted Answer

A) B bears the loss because he became the owner of the sugar when the quedans were delivered to him. 
B) B because of the principle of res perit domino. 
C) By reason of the principle of res perit domino A bears the risk of loss. 
D) B because of the constructive delivery of the sugar. 
A) B bears the loss because he became the owner of the sugar when the quedans were delivered to him. 
B) B because of the principle of res perit domino. 
C) By reason of the principle of res perit domino A bears the risk of loss. 
D) B because of the constructive delivery of the sugar. C

Question 3

A and B entered into a contract of sale over A's house but did not reflect the actual purchase price. What is the nature of the contract?

Accepted Answer

A) Valid and relatively simulated contract but can be reformed. 
B) Void as there is total lack of consideration. 
C) Voidable due to lack of consideration. 
D) Unenforceable. 
A) Valid and relatively simulated contract but can be reformed. 
B) Void as there is total lack of consideration. 
C) Voidable due to lack of consideration. 
D) Unenforceable. A

Question 4

X and Y entered into a contract of sale over a parcel of land with an area of 4,000 square meters more or less. When the title was issued, it was 14,475 sq. meters. The buyer contended that he owned the whole lot of 14,475 sq. meters as it was sold in lump sum, hence, the seller should deliver the whole lot. Is the buyer correct?

Accepted Answer

A) The buyer is correct because in sale in lump sum, the whole property is sold regardless of the area. 
B) The seller can be compelled to deliver the 14,475 sq. meters because it is covered by the phrase "more or less". 
C) The seller cannot be compelled to deliver the 14,475 sq. meters because the phrase "more or less" covers only a reasonable excess deficiency. 
D) The seller can be required to deliver the 14,475 sq. meters because the numerical data are not the sole gauge of unreasonableness of the excess or deficiency in area. 
A) The buyer is correct because in sale in lump sum, the whole property is sold regardless of the area. 
B) The seller can be compelled to deliver the 14,475 sq. meters because it is covered by the phrase "more or less". 
C) The seller cannot be compelled to deliver the 14,475 sq. meters because the phrase "more or less" covers only a reasonable excess deficiency. 
D) The seller can be required to deliver the 14,475 sq. meters because the numerical data are not the sole gauge of unreasonableness of the excess or deficiency in area.

Question 5

Which of the following statements is correct?

Accepted Answer

A) A verbal trust on immovable is void. 
B) Verbal trust on immovable may be proven as the requirement that it be in writing is not for its validity but for purposes of enforceability. 
C) Verbal trust on immovable cannot be waive since the law requires it to be in writing which is mandatory. 
D) Verbal trust on immovable cannot be proven in court as it is covered by the Statute of Frauds. 
A) A verbal trust on immovable is void. 
B) Verbal trust on immovable may be proven as the requirement that it be in writing is not for its validity but for purposes of enforceability. 
C) Verbal trust on immovable cannot be waive since the law requires it to be in writing which is mandatory. 
D) Verbal trust on immovable cannot be proven in court as it is covered by the Statute of Frauds.

Question 6

In the following, there is no need for the issuance of a license to sell, except:

Accepted Answer

A) Sale of subdivision lot resulting in the partition by co-owners. 
B) Sale of the original purchaser of a subdivision lot or his heirs. 
C) Sale by a subdivision developer. 
D) Sale of a subdivision lot for the account of the mortgagee. 
A) Sale of subdivision lot resulting in the partition by co-owners. 
B) Sale of the original purchaser of a subdivision lot or his heirs. 
C) Sale by a subdivision developer. 
D) Sale of a subdivision lot for the account of the mortgagee.

Question 7

If the buyer of a subdivision lot in a contract to sell under the Maceda Lawfails to pay after payment of at least two (2) years of installments, can he still pay the balance?

Accepted Answer

A) Yes, with additional interest he can pay the unpaid installments due with a grace period of one (1) month for every year of installment payments. 
B) Yes, without additional interest he can pay the unpaid installments with a grace period of one (1) month for every year of installment payments. 
C) Yes, provided that he pays additional amount of penalty. 
D) Yes, provided that he pays the full amount of the price. 
A) Yes, with additional interest he can pay the unpaid installments due with a grace period of one (1) month for every year of installment payments. 
B) Yes, without additional interest he can pay the unpaid installments with a grace period of one (1) month for every year of installment payments. 
C) Yes, provided that he pays additional amount of penalty. 
D) Yes, provided that he pays the full amount of the price.

Question 8

With abuse of confidence, A was able to register a real property belonging B in 1990. B discovered it in 2011. Can B file an action to recover his property?

Accepted Answer

A) Yes, because the title of A is void. 
B) Yes, provided that he files an action within four (4) years from the discovery of the act of A. 
C) No, because the action has prescribed as 10 years have already passed since the registration of the property. 
D) Yes, because there was no act of repudiation of the trust. 
A) Yes, because the title of A is void. 
B) Yes, provided that he files an action within four (4) years from the discovery of the act of A. 
C) No, because the action has prescribed as 10 years have already passed since the registration of the property. 
D) Yes, because there was no act of repudiation of the trust.

Question 9

If the seller cancels the contract to sell under the Maceda Law, when will it take effect after receipt of notice of cancellation or demand for rescission by notarial act?

Accepted Answer

A) 10 days 
B) 30 days 
C) 20 days 
D) One (1) year 
A) 10 days 
B) 30 days 
C) 20 days 
D) One (1) year

Question 10

A, B, C, D are the co-owners of a parcel of land. A sold his undivided share to X with the knowledge of his co-owners. One (1) year after the sale, they wanted to exercise the right of legal redemption, but A and X refused. Whose contention is correct?

Accepted Answer

A) They are not entitled to exercise the right of legal redemption because the 30-day period has already lapsed as they knew of the sale. 
B) They can exercise the right of legal redemption within 20-days from receipt of written notice of the sale. 
C) They cannot exercise the right of legal redemption because knowledge of the sale is not equivalent to registration hence, the 30-day period has already lapsed. 
D) They cannot exercise the right of legal redemption due to estoppel. 
A) They are not entitled to exercise the right of legal redemption because the 30-day period has already lapsed as they knew of the sale. 
B) They can exercise the right of legal redemption within 20-days from receipt of written notice of the sale. 
C) They cannot exercise the right of legal redemption because knowledge of the sale is not equivalent to registration hence, the 30-day period has already lapsed. 
D) They cannot exercise the right of legal redemption due to estoppel.

Question 11

A sold his house and lot to B worth ₱1M for ₱100,000.00. Is the sale valid?

Accepted Answer

A) Yes, even if there is gross inadequacy. 
B) Voidable. 
C) No, because the price is simulate 
A) Yes, even if there is gross inadequacy. 
B) Voidable. 
C) No, because the price is simulate

Question 12

What is the nature of a contract which states that in case the buyer complies with the terms and conditions of the same, the seller shall execute and deliver to the buyer a deed of sale?

Accepted Answer

A) Contract of sale . 
B) Contract to sell. 
C) Conditional sale. 
D) Installment sale. 
A) Contract of sale . 
B) Contract to sell. 
C) Conditional sale. 
D) Installment sale.

Question 13

A, a practicing lawyer represented B in the intestate proceedings of his father. The agreement is on a contingency basis as B did not have money to pay the services of A. To secure the payment of B's obligation, they executed a mortgage over ¼ of what B will receive from the estate of his father. Is the mortgage valid?

Accepted Answer

A) Yes, because what is prohibited by law is sale between the client and the lawyer. 
B) Yes, because it merely serves as security for the payment of an obligation. 
C) No, because even if what is prohibited by law is sale, it is a circumvention of the law. 
D) Yes, because of the liberty of contracts. 
A) Yes, because what is prohibited by law is sale between the client and the lawyer. 
B) Yes, because it merely serves as security for the payment of an obligation. 
C) No, because even if what is prohibited by law is sale, it is a circumvention of the law. 
D) Yes, because of the liberty of contracts.

Question 14

A sold his house to B for an agreed price. Before it could be delivered it was hit by lightning and it was totally lost. State the effect of the loss.

Accepted Answer

A) A bears the risk of loss as he has not yet vested ownership to B. 
B) A has to bear the risk of loss because he was in possession of the house at the time of loss. 
C) B bears the risk of loss as an exception to the principle of res perit domino. 
D) A has to bear the risk of loss since he was negligent. 
A) A bears the risk of loss as he has not yet vested ownership to B. 
B) A has to bear the risk of loss because he was in possession of the house at the time of loss. 
C) B bears the risk of loss as an exception to the principle of res perit domino. 
D) A has to bear the risk of loss since he was negligent.

Question 15

A entered into a contract of sale with pacto de retro over B's house & lot. The house is valued at ₱10M. B failed to exercise the right to repurchase. State the effect of B's failure to exercise the right to repurchase.

Accepted Answer

A) B can consolidate his ownership to become the owner. 
B) B need not consolidate his ownership because by the mere lapse of the period to repurchase, he became the owner. 
C) B cannot consolidate his ownership because that would amount to pactum commissorium. 
D) B cannot sell the property as he is the owner. 
A) B can consolidate his ownership to become the owner. 
B) B need not consolidate his ownership because by the mere lapse of the period to repurchase, he became the owner. 
C) B cannot consolidate his ownership because that would amount to pactum commissorium. 
D) B cannot sell the property as he is the owner.

Question 16

A sold a parcel of land covered by TCT No. 9 to B. At the time of the sale, B knew that C has been in possession of the parcel of land as early as 10 years before the sale. B however checked with the Registry of Deeds and found the title to be clean. Is B a buyer in good faith?

Accepted Answer

A) B is a buyer in good faith because at the time of the sale, the title was clean. 
B) B is a buyer in good faith because he merely relied upon the face of the title. 
C) B is not a buyer in good faith because he had actual knowledge of facts and circumstances that would impel him to make inquiry into the status of the land due to the presence of C. 
D) B is a buyer in good faith because there was no annotation of C's right if there be any. 
A) B is a buyer in good faith because at the time of the sale, the title was clean. 
B) B is a buyer in good faith because he merely relied upon the face of the title. 
C) B is not a buyer in good faith because he had actual knowledge of facts and circumstances that would impel him to make inquiry into the status of the land due to the presence of C. 
D) B is a buyer in good faith because there was no annotation of C's right if there be any.

Question 17

The following rules are correct in case the buyer of a subdivision lot fails to pay the installments, except:

Accepted Answer

A) He is given a grace period of 20 days for every year of payment. 
B) He is entitled to 50% reimbursement of payment. 
C) There may be cancellation of the contract 30 days after receipt of notice of cancellation. 
D) All payments are forfeited. 
A) He is given a grace period of 20 days for every year of payment. 
B) He is entitled to 50% reimbursement of payment. 
C) There may be cancellation of the contract 30 days after receipt of notice of cancellation. 
D) All payments are forfeited.

Question 18

A & B entered into a contract of sale, A, obligating himself to deliver his house and lot to B who obligated himself to pay ₱2M upon delivery. B has already paid, but A has not delivered the house and lot despite demand. State the remedy of B.

Accepted Answer

A) B can sue A for rescission of the contract because of breach of contract. 
B) B can sue A for rescission because of a material breach. 
C) B can sue A for rescission because of lesion. 
D) B can sue A for declaration of nullity of the contract. 
A) B can sue A for rescission of the contract because of breach of contract. 
B) B can sue A for rescission because of a material breach. 
C) B can sue A for rescission because of lesion. 
D) B can sue A for declaration of nullity of the contract.

Question 19

How often can the buyer under the Maceda Law make use of the grace period of one (1) month for every year of installment payments?

Accepted Answer

A) Every 10 years of the life of the contract and its extensions if any. 
B) Every five (5) years of the life of the contract. 
C) Every two (2) years of the life of the contracts. 
D) There is no limit. 
A) Every 10 years of the life of the contract and its extensions if any. 
B) Every five (5) years of the life of the contract. 
C) Every two (2) years of the life of the contracts. 
D) There is no limit.

Question 20

A entered into a contract to sell over a residential lot. He has already paid more than 2 years installments. Thereafter, he failed to pay. What right does A have if the contract is cancelled?

Accepted Answer

A) He has the right of reimbursement of all his payments regardless of the number of years of payment. 
B) He has the right to seek for a grace period of 1 month for every year of installment payments. 
C) He has the right of refund of the cash surrender value of the payments on the property equivalent to 50% of the total payments made. 
D) He has the right of reimbursement of 100% of his installments after payment for five (5) years. 
A) He has the right of reimbursement of all his payments regardless of the number of years of payment. 
B) He has the right to seek for a grace period of 1 month for every year of installment payments. 
C) He has the right of refund of the cash surrender value of the payments on the property equivalent to 50% of the total payments made. 
D) He has the right of reimbursement of 100% of his installments after payment for five (5) years.

Exam 20: Contracts of Sale and Property Ownership

If there is a subdivision lot buyer and there is no development and he does not pay, to what extent can he ask for reimbursement of his payments?

A obtained a loan from B. To secure the payment of the obligation, A delivered the warehouse quedans to B and authorized him to sell the sugar in case of default. The warehouse and the sugar were burned. Who bears the loss?

A and B entered into a contract of sale over A's house but did not reflect the actual purchase price. What is the nature of the contract?

Which of the following statements is correct?

In the following, there is no need for the issuance of a license to sell, except:

If the buyer of a subdivision lot in a contract to sell under the Maceda Lawfails to pay after payment of at least two (2) years of installments, can he still pay the balance?

With abuse of confidence, A was able to register a real property belonging B in 1990. B discovered it in 2011. Can B file an action to recover his property?

If the seller cancels the contract to sell under the Maceda Law, when will it take effect after receipt of notice of cancellation or demand for rescission by notarial act?

A, B, C, D are the co-owners of a parcel of land. A sold his undivided share to X with the knowledge of his co-owners. One (1) year after the sale, they wanted to exercise the right of legal redemption, but A and X refused. Whose contention is correct?

A sold his house and lot to B worth ₱1M for ₱100,000.00. Is the sale valid?

What is the nature of a contract which states that in case the buyer complies with the terms and conditions of the same, the seller shall execute and deliver to the buyer a deed of sale?

A sold his house to B for an agreed price. Before it could be delivered it was hit by lightning and it was totally lost. State the effect of the loss.

A entered into a contract of sale with pacto de retro over B's house & lot. The house is valued at ₱10M. B failed to exercise the right to repurchase. State the effect of B's failure to exercise the right to repurchase.

A sold a parcel of land covered by TCT No. 9 to B. At the time of the sale, B knew that C has been in possession of the parcel of land as early as 10 years before the sale. B however checked with the Registry of Deeds and found the title to be clean. Is B a buyer in good faith?

The following rules are correct in case the buyer of a subdivision lot fails to pay the installments, except:

A & B entered into a contract of sale, A, obligating himself to deliver his house and lot to B who obligated himself to pay ₱2M upon delivery. B has already paid, but A has not delivered the house and lot despite demand. State the remedy of B.

How often can the buyer under the Maceda Law make use of the grace period of one (1) month for every year of installment payments?

A entered into a contract to sell over a residential lot. He has already paid more than 2 years installments. Thereafter, he failed to pay. What right does A have if the contract is cancelled?

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