Northeastern College

COLLEGE OF LAW
Santiago City
SALES FINAL EXAMINATION
Atty. Christina A. Parubrub-Yere
November 10, 2015

INSTRUCTIONS: Read each question carefully. Understand what is

asked for. Answer concisely and write legibly. A mere yes or
no answer will not suffice. Write your answer for every question
in a new page of your notebook. The examination is for two hours
only. GOODLUCK!
I
a. Art. 1600 states, among others, that sales are extinguished
by the same causes as all other obligations. What are these
causes of extinguishment referred to? (5 points)
II
a. A sold to B on credit 50 sacks of sugar. A consigned the
goods to XYZ trucking for delivery from Negros to Isabela. At
the time of the perfection of the contract A knew very well
that B is insolvent. While the goods are on transit, A
exercised his right of stoppage in transit. Is As action valid?
(5 points)
b. Will your answer will still be the same if the fact of
insolvency is not known to the seller at the time of the
perfection of the contract? (5 points)
III
A sold to B ten crates of banana. B defaulted on the agreed terms
of payment. Under Art. 1533 of the NCC, A exercised his rights to
resell the bananas in a private sale to his best friend C. B raised
two grounds for objection as follows:
a. B objected on the ground that the sale was not made in
public. Is Bs objection tenable? (5 points)
b. B objected on the ground that A made the resell to C his
(As) bestfriend, a dummy. Is Bs objection valid? (5 points)
IV

a. What are the rules of preference in case of double sale of

personal property and real property? (5 points)
b. Tito sold to Vic and Joey with the right to repurchase. The
sale was in a public instrument which was not yet registered.
Vic and Joey never took physical or material possession of
said land. The period for repurchased elapsed without Tito
repurchasing the property. Later, Tito sold the same land to
Ryan in a private instrument. Ryan was in good faith and he
immediately entered into the material possession of the
land. Who should be preferred, Vic and Joey on the one hand
or Ryan on the other hand? (7 points)
c. Claudia sold his land to Amor who began to possess it. Later,
Benita, a stranger, sold the same land to Lourdes who in
good faith registered the sale. Who should be considered as
the owner? (5 points)
d. Januario orally appointed April as his agent to sell a parcel of
land. On February 28, 2015, April sold the land to May who
forthwith took possession thereof. It turned out, however,
that on February 14, 2015, Januario without informing April,
had already sold the same land to June who up to now has
not yet taken possession thereof. Neither May nor June has
registered his/her purchase. Whose contract should prevail?
Reason. (5 points)
e. Pauline offered to sell to Alden and Maine a house and lot.
The property was already registered under the Torrens
system that time and they made appropriate inquiries with
the Register of Deeds; they found out that it was mortgaged
for Php.800,000.00. They paid Pauline to settle the mortgage
and the release of the mortgaged was annotated in the title.
Thereafter, they executed an Absolute Deed of Sale over the
subject property and registered the same. However, it turns
out that it was already previously sold to EB Bank through
extrajudicial foreclosure; unfortunately, it was not registered.
Who has a better title, Alden and Maine or EB Bank? (5
points)
f. Reed sold land to Jacob. Then, Reed became Jacobs tenant.
Subsequently, Reed sold the same property to Phampi.
Neither sale was registered. Who should be the owner, Jacob
or Phampi? (5 points)
V

a. Give the essential elements for eviction which gives rise to a

breach of the warranty against eviction under Art. 1548. (5
points)
b. Differentiate the following:
a. conventional redemption and legal redemption (4
points)
b. pre-emption and redemption (4 points)
c. rural land and urban land (4 points)
c. Enumerate what should be reimbursed by the seller if
redemption is to be made. (5 points)
V
a. Noel, Zaldy and Roger are brothers who own an undivided
parcel of land at Rizal, Santiago City. They jointly sold the
property with a right to repurchase to Julius. Can any of the
sellers (brothers) prior to the expiration of the redemption
period repurchase the whole property? Why or why not? (5
points)
b. If, however, the brothers sold their respective shares in the
property separately, may Julius, the buyer, compel Noel to
redeem the whole property? Why or why not? (5 points)
VI
a. Enumerate the instances when a contract of sale shall be
presumed to be an equitable mortgage? (8 points)
b. Define equitable mortgage. (3 points)
Bonus Question
Choose only one. (5 points)
1. Define purchaser in good faith and value.
2. What are the rules as to the time within which to redeem?