Northeastern CollegeCOLLEGE OF LAW

Santiago CitySALES FINAL EXAMINATIONAtty. 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 A’s 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 B’s objection tenable? (5 points)

b. B objected on the ground that A made the resell to C his (A’s) bestfriend, a dummy. Is B’s 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 Jacob’s 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?