SANGCO, KLAIRE CIARRA G.

SALES (4:00 PM – 6:00 PM)

ART. 1534 – 1538

I. Modified True or False

ART. 1534

An unpaid seller who has the right of lien or has stopped the goods in transitu, may rescind the
transfer of title and resume the ownership in goods, where he expressly reserved the right and
manifested by notice to the buyer his intention to do so in case the buyer should make default
in payment of the price for an unreasonable time.

ART. 1535

If a negotiable document of title has been issued for goods, the seller’s lien or right of
stoppage in transitu may defeat the right of any purchaser for value in good faith to whom
such document has been negotiated.

ART. 1536

The vendor is bound to deliver the thing sold whether or not the vendee loses the right to
make use of the term as provided in Article 1198.

ART. 1537

As a rule, the vendor is bound to deliver the thing sold and its accessions and accessories in the
condition in which they were upon the perfection of the contract.

ART. 1538

In case of loss, deterioration or improvement of the thing before its delivery, the rules in Article
1189 shall be observed, the vendee being considered the debtor.
 II. Multiple Choice

ART. 1534

The following are the remedies of the unpaid seller, where he expressly reserved the right to do
so, in case the buyer has been in default in the payment of the price for an unreasonable time,
except one:

(a) He may rescind the transfer of title

(b) He may resume the ownership in the goods

(c) He may recover damages from the buyer for any loss

(d) He may be liable to the buyer upon the contract of sale for any loss

ART. 1535

Statement I: The unpaid seller’s right of lien or stoppage in transitu is not affected by any sale,
or other disposition of the goods which the buyer may have made, unless the buyer has
assented thereto.

Statement II: If a negotiable document of title has been issued for goods, the seller’s lien or
right of stoppage in transitu may defeat the right of any purchaser for value in good faith to
whom such document has been negotiated.

Which of the following is correct?

(a) Statements I and II are both true.

(b) Statements I and II are both false.

(c) Statement I is true; statement II is false.

(d) Statement I is false; statement II is true.

ART. 1536

Which statement is correct?

(a) The vendor is bound to deliver a thing sold whether or not the vendee loses the right to
make use of the term as provided in Article 1198.

(b) The vendor is bound to deliver a thing sold in case the vendee should lose the right to make
use of the term as provided in Article 1198.

(c) The vendor is not bound to deliver a thing sold whether or not the vendee loses the right to
make use of the term as provided in Article 1198.

(d) The vendor is not bound to deliver a thing sold in case the vendee should lose the right to
make use of the term as provided in Article 1198.

ART. 1537

The vendor is bound to deliver the thing sold and its accessions and accessories in the condition
in which they were upon what stage of the contract:

(a) the negotiation of the contract

(b) the perfection of the contract

(c) the negotiation of the contract

(d) the implementation of the contract

ART. 1538

In case of loss, deterioration or improvement before the delivery of the thing, who will be
considered the debtor:

(a) bailee

(b) carrier

(c) vendee

(d) vendor