1. Refers to the elements which are deemed to exist in certain contracts even in the absence of some stipulations.

a. Natural elements

b. Accidental elements

c. Absolute

d. Conditional elements

2. Below are some examples of accidental elements except:

a. Conditions

b. Interest

c. Penalty

d. Warranty against eviction

3. Sale of future inheritance is

a. void

b. Valid

c. Voidable

d. Rescissible

4. It shall be considered as part of the price and as proof of the perfection of the contract.

a. Option Money

b. Initial Payment

c. Downpayment

d. Earnest Money

5. In a sale of a fungible goods, if later on it was discovered that the mass of fungible goods contains less than what was sold, the buyer becomes the owner of the whole mass.

A. True

B. False

6. Things subject to a resolutory condition may be the object of the contract of sale.

A. True

B. False

7. It a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.

a. contract of agency

b. Contract of barter/exchange

c contract for a piece of work

d. None of the above

d. None of the above

8. It is a contract whereby the contractor binds himself to execute a piece of work for the employer in consideration of a certain price or compensation.

a contract of agency

b. Contract of barter/exchange

c contract for a piece of work

d. None of the above

9. If the price is inadequate, it does not affect the contract. Thus, the contract us valid.

a. True

b. False

10. It covers the period from the time the prospective contracting parties indicate interest.

A. Negotiation

B. Perfection

C. Consummation

D. Counter offer

11. It is a stage where the parties perform their respective undertakings.

A. Negotiation

B. Perfection

C. Consummation

D. Counter offer

12. Sales in public auction is perfected by:

a. Fall of the hammer

b. any other manner

c. a or b

d. none of the above

13. The seller has the right to bid in the auction provided:

a. Such right is reserved

b. Notice was given that the sale is subject to a right to bid on behalf of the seller

c. His right is not prohibited by law

d. All of the above

14. Principle which states that the thing perishes with the owner.

a. Res perit domino

b. Genus nunquam perit

c. Negotiorum gestio

d. Solution indebti

15. Who is liable if the thing is lost at the time of the perfection?

a. Seller

b. Buyer

c. Agent

d. Contract is void

16. He is liable for the loss of the thing after perfection but before its delivery.

a. Seller

b. Buyer

c. agent

d. None of the above

17. In the contract of sale of goods by description or by sample, the contract may be rescinded if the bulk of the goods delivered do not correspond with the description or the sample.

a. True

b. False

18. The remedies in sale of personal property payable in installments can be performed cumulatively or successively.

a. True

b. False

19. As a general rule, minors are incapacitated to enter into contracts except if where ______________are sold to them, as a consequence, they shall pay a reasonable price.

a. Necessaries

b. Luxuries

c. Foods

d. Clothing

20. As a rule, this contract of sale involving a piece of land is void

A. Between a minor and a capacitated person

B. Between two insane persons who did not act during lucid interval

C. Between first degree cousins

D. Between husband and wife

Bert offers to buy Simeon's property under the following terms and conditions: P1 million purchase price, 10% option money, the balance payable in cash upon the clearance of the property of all illegal occupants. The option money is promptly paid and Simeon clears the property of illegal occupants in no time at all. However, when Bert tenders payment of the balance and ask Simeon for the deed for absolute sale, Simeon suddenly has a change of heart, claiming that the deal is disadvantageous to him as he has found out that the property can fetch three time the agreed purchase price. Bert seeks specific performance but Simeon contends that he has merely given Bert an option to buy and nothing more, and offers to return the option money which Bert refuses to accept.

A. Will Bert's action for specific performance prosper? Explain.

B. May Simeon justify his refusal to proceed with the sale by the fact that the deal is financially disadvantageous to him? Explain.