Monday, February 1, 2016

Midterm Examination in Sales September 6, 2014




1.       When goods are delivered to the buyer “on sale or return” or “on approval” or “ on trial” or “ on satisfaction”, when does the ownership thereof vest in the buyer?
2.       D sold a second-hand car to E for 150k. The agreement between D and E  was that half of the  purchase price shall be paid upon delivery of the car to E and the balance shall be paid in five equal monthly installments. The car was delivered to E and  E paid 75k. Less than one month thereafter, the car was stolen from E’s garage with no fault on E’s part. The car was never recovered.  Is E legally bound to pay the unpaid balance? Can E demand from D that the car be replaced? Explain.
3.       A sold a piece of pasture land to B. On the same date, A sold it again to C. Both sales were made in a private document, bearing the same date. Neither of the purchasers succeeded in taking physical possession of the land because it was already leased for one year by A to D. In your opinion, (1)who is the rightful owner of the land, on the presumption that both buyers were in good faith; (2) Can the owner oust the lease before the expiration of the lease? Why?
4.       What is meant by warranty against eviction? What are its requisites before it can be invoked?
5.       Define accion redhibitoria and action quanti minoris.
6.       What is conventional redemption? When is it presumed to be an equitable mortgage?
7.       A sold a parcel of land to B for 50k, with right of repurchase. It was expressly stipulated  in the contract of sale that A shall have the right to redeem he property “at any time when he has money”. What is the period of redemption in such a case?  Suppose, it was expressly stipulated  that the right of repurchase could not be exercised within 3 years from the date of sale, what would be the redemption period? Would your answer be the same if it was expressly stipulated that the vendor a retro can redeem the property “as soon as he has established  a certain business”?
8.       Angie and Grace were co-owners of a parcel of land. On January 31, 2001, Grace discovered that Angie had already sold her share to Emily on a deed of sale dated November 10, 2000. The following day, Angie offered to redeem her share from Emily, but the latter refused saying that the period to redeem has already expired. Is Emily correct? Explain.
9.       A, B and C are co-owners of a small urban land which they inherited from a rich uncle. D owns the adjoining land. C donated his portion to E, and B  sold his portion to F. Has D the right of redemption with respect to the portion of B? In case both A and B want to redeem the portion of C, who is preferred first, the co-owner or the owner of the adjoining lot? Explain.
10.   (a) Is a promise to buy and/or to sell demandable? (B) A offered to sell his house and lot to B who was interested in buying the same for 200k. In his letter to B, A stated that he was giving B, a period of one month within which to raise the amount and that as soon as B is ready, they will sign the deed of sale. One week before the expiration of the one-month period, A went B and told him that he is no longer willing to sell the property unless the price is increased to 250k. May B compel A to accept the 200k first offered and execute the deed of sale? Reasons.
END OF EXAMINATION

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