Regulatory Framework

The following are the requisites for the enforcement of vendorâ s liability against hidden defects, except a. Defect must exist after the date of sale b. Defect must be hidden c. Defect must be serious d. Action to enforce must be made within the period provided by law

a. Defect must exist after the date of sale

In case of double sale of personal property, who among the buyers will be preferred? a. First possessor in good faith b. Oldest title c. Latest title d. First registrant in good faith

a. First possessor in good faith

Originator, maker, obligor or creator of security. a. Issuer b. Dealer c. Broker d. Promoter

a. Issuer

In sale on approval, the ownership is transferred to the buyer under the following instances, except a. When the goods are delivered to the buyer b. When the buyer signifies his approval c. When the buyer signifies his acceptance d. When the buyer does an act adopting the transaction.

a. When the goods are delivered to the buyer

Under Maceda Law, if the buyer paid less than 2 years of instalments, the grace period is at least a. 30 days b. 60 days c. 90 days d. 1 yea

b. 60 days

Statement 1 In traditio brevi manu the seller remains to be in possession. Statement 2 In traditio constitutum possessorium the buyer is already in possession. a. Both true b. Both false c. True; false d. False; true

b. Both false

Statement 1. Pledge or mortgage is divisible. Statement 2. Third persons who are not parties to the principal obligation cannot secure the latter by pledging or mortgaging their own property. a. Both true b. Both false c. True; false d. False; true

b. Both false

S and B entered into a contract whereby S will deliver a laptop worth P20, 000 and B will deliver a mobile phone worth P10, 000 and a cash of P10, 000. What is the name of the contract? a. Contract of barter b. Contact of sale c. Contract of pledge d. Agency to sell

b. Contact of sale

Any person who buys and sells securities for his own account in the ordinary course of business. a. Issuer b. Dealer c. Broker d. Promote

b. Dealer

When the seller is not paid of the whole of the price, he will be considered as a. Unsatisfied seller b. Unpaid seller c. Injured seller d. Damaged seller

b. Unpaid seller

In sale or return, the ownership of the goods is transferred to buyer a. Upon payment of the price b. Upon delivery of the goods c. Upon approval by the buyer d. Upon return of the goods to the seller.

b. Upon delivery of the goods

An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at the time of the sale. What is the standing of the sale? a. Voidable. b. Valid. c. Void. d. Unenforceable.

b. Valid

X, who was abroad, phoned his brother, Y, authorizing him to sell X's parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale? a. Valid b. Void c. Voidable d. Unenforceable

b. Void

The following are the essential elements of contract of sale, except a. Consent of the contracting parties b. Warranty against hidden defects c. Price certain d. Subject matter

b. Warranty against hidden defects

Part of the chattel mortgage contract wherein it is stated that the chattel mortgage has been constituted to secure a principal obligation and not meant for fraud or any ill purpose. a. Affidavit of loss b. Affidavit of desistance c. Affidavit of good faith d. Affidavit of bad faith

c. Affidavit of good faith

The following securities are required to be registered before it may be sold or offered for sale or distribution within the Philippines, except a. Shares of stocks b. Bonds c. Any security issued by the Government of the Philippines d. Investment contract

c. Any security issued by the Government of the Philippines

A person engaged in the business of buying and selling securities for the account of others. a. Issuer b. Dealer c. Broker d. Promoter

c. Broker

Contract by virtue of which personal property is recorded in the Chattel Mortgage Register as security for the performance of an obligation a. Pledge b. Real estate mortgage c. Chattel mortgage d. Antichresis

c. Chattel mortgage

In real estate mortgage, the mortgagor can sell the mortgaged property With oral or written consent of the mortgagee. a. With written consent of the mortgagee. b. With court order. c. Even without the consent of the mortgagee.

c. Even without the consent of the mortgagee.

When may the court fix the price? a. If third person is unable to fix the price. b. If the third person is willing to fix the price. c. If the third person acted in bad faith. d. If the third person is prevented by one of the parties.

c. If the third person acted in bad faith.

To bind third persons, a pledge a. Must be recorded in the Chattel Mortgage Registry b. Must be registered in the Register of Deeds c. Must be in a public instrument showing a description of the thing pledged and the date of the pledge d. Must be accompanied by an affidavit of good faith

c. Must be in a public instrument showing a description of the thing pledged and the date of the pledge

The following are effects of resale made by unpaid seller, except a. Seller is not liable to the original buyer for the delivery of the goods b. Seller may recover damages from the original buyer for any loss occasion by the breach of contract of sale c. Original buyer is entitled to any profit made by such resale d. New buyer acquires a good title

c. Original buyer is entitled to any profit made by such resale

It is the automatic appropriation by the creditor of the thing pledged or mortgaged upon the failure of the debtor to pay the principal obligation. a. Pacta sunt servanda b. Pacto de retro c. Pactum commissorium d. Constitutum possessorium

c. Pactum commissorium

Securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the a. Office of the President b. Regional Trial Court c. Securities and Exchange Commission d. Securities Regulation Commission

c. Securities and Exchange Commission

B rented a specific car to S. after the end of the contract, S sold the car to B. As a result of the sale, B remains to be in possession of the car. The delivery is a. Symbolic b. Traditio longa manu c. Traditio brevi manu d. By legal formalities

c. Traditio brevi manu

Which of the following is not required to be registered with the SEC under Securities Regulation Code? a. Option b. Warrants c. Voting trust certificates d. Contract of real estate mortgage

d. Contract of real estate mortgage

Failure of the mortgagee in real estate mortgage to register a. Makes the mortgage void b. Makes the principal obligation and the mortgage void c. Does not affect the validity of the mortgage as regards third person d. Does not affect the validity of the mortgage between the parties

d. Does not affect the validity of the mortgage between the parties

Statement 1. Contract of sale is consensual thus it is perfected by delivery of the thing sold. Statement 2. Contract of sale is a principal contract. a. Both true b. Both false c. True; false d. False; true

d. False; true

In case of double sale of registered or title immovable property, who among the buyers shall be preferred? a. First possessor in good faith b. Oldest title c. Latest title d. First registrant in good faith

d. First registrant in good faith

Which of the following is required to be registered with the SEC under Securities Regulation Code? a. Treasury bills b. Bonds of the Government of China c. Bonds issued by banks d. Membership certificates in non-stock corporation

d. Membership certificates in non-stock corporation

Rights of the unpaid seller, except a. Possessory lien b. Rescind the sale c. Resale d. Nullify the sale

d. Nullify the sale

A document made by or on behalf of an issuer, underwriter or dealer to sell or offer securities for sale to the public through registration statement filed with the Commission. a. Registration statement b. Brochure c. Pamphlet d. Prospectus

d. Prospectus

. If the thing pledged is alienated by the pledgor to a third person, what is the effect of the consent of the pledgee to the alienation made by the pledgor of the thing pledged to third person? a. The contract of pledge is already terminated. b. The thing pledged remains to be owned by the pledgor. c. The pledgee losses possession of the thing pledged. d. The ownership of the thing pledged is transmitted to the third person.

d. The ownership of the thing pledged is transmitted to the third person.

Which of the following is not a requisite of the object of a contract of sale? a. It must be within the commerce of men. b. It must be licit. c. It must be determinate. d. Vendor must have the right to transfer the ownership at the time of the perfection of the contract.

d. Vendor must have the right to transfer the ownership at the time of the perfection of the contract.

T/F. Chattel mortgage is a principal contract.

False

T/F. Contract of pledge is a consensual contract.

False

T/F. Contract of real estate mortgage is a formal contract.

False

T/F. Contract of real estate mortgage is a real contract.

False

T/F. Brokerâ s transaction, executed upon customerâ s orders, on any registered Exchange or other trading market is an exempt transaction under SRC.

True

T/F. Chattel mortgage is an accessory contract.

True

T/F. Chattel mortgage is valid between the parties whether it is oral or in writing

True

T/F. Contract of pledge is a real contract.

True

T/F. In case the proceeds in foreclosure sale in chattel mortgage is higher than the principal obligation, the mortgagor is entitled to the excess in the absence of stipulation to the contrary.

True

T/F. Real Estate Mortgage is a consensual contract.

True

Manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute an agreement. a. Consent b. Determinate Object c. Price d. Policitation

a. Consent

A contract whereby personal property is delivered to the creditor or a third person as a security for the performance of an obligation. a. Contract of pledge b. Contract of real estate mortgage c. Contract of chattel mortgage d. Credit transaction

a. Contract of pledge

The creditor may appropriate the thing on which the security was constituted if it is not sold in the first and second public auctions. a. Pledge b. Real estate mortgage c. Chattel mortgage d. Antichresis

a. Pledge

An application for the registration of securities required to be filed with the Commission. a. Registration Statement b. Articles of Incorporation c. Registration of Securities d. Prospectus

a. Registration Statement

. Under Recto Law, if the seller chooses foreclosure of the chattel mortgage on the thing sold, then a. Seller cannot recover deficiency b. Seller cannot recover deficiency unless stipulated c. Seller can cancel the sale d. Seller can rescind the sale

a. Seller cannot recover deficiency