1. A foreign manufacturer of computers and a Philippine distributor entered into a contract whereby the distributor agreed to order 1,000 units of the manufacturer's computers every month and to resell them in the Philippines at the manufacturer's suggested prices plus 10%. All unsold units at the end of the year shall be bought back by the manufacturer at the same price they were ordered. The manufacturer shall hold the distributor free and harmless from any claim for defects in the units. Is the agreement one for sale or agency? Explain.

5 points

Your answer

2. J as principal appointed K as his agent granting him general and unlimited management over J's properties, stating that J withholds no power from K and that the agent may execute such acts as he may consider appropriate. Accordingly, K leased J's parcel of land in Manila to L for four (4) years at P60,000.00 per year, payable annually in advance. K leased another parcel of land of J in Legazpi City to M without a fixed term at P2,000.00 per month payable monthly. K sold to N a third parcel of land belonging to J located in Naga City for three (3) times the price that was listed in the inventory by J to K. All those contracts were executed by K while J was confined due to illness in the Albay Doctors Hospital. Rule on the validity and binding effect of each of the above contracts upon J the principal. Explain your answers.

10 points.

Your answer

3. Ming sold a large parcel of land in Daraga to Ling for P50 million payable in annual installments over a period of ten years, but title will remain with Ming until the purchase price is fully paid. To enable Ling to pay the price, Ming gave him a power-of-attorney authorizing him to subdivide the land, sell the individual lots, and deliver the proceeds to Ming, to be applied to the purchase price. Five years later, Ming revoked the power of attorney and took over the sale of the subdivision lots herself. Is the revocation valid or not? Why? Explain.

5 points.

Your answer

4. Pi executed a special power of attorney authorizing Di to secure a loan from any bank and to mortgage his property covered by the owner's certificate of title. In securing a loan from bank, Di did not specify that he was acting for Pi in the transaction with said bank. Is Pi liable for the bank loan? Why or why not? Justify your answer.

5 points.

Your answer

5. X was the owner of an unregistered parcel of land in Makati City. As she was abroad, she advised her sister Y via overseas call to sell the land and sign a contract of sale on her behalf. Y thus sold the land to A on March 31, 2021 and executed a deed of absolute sale on behalf of X. A fully paid the purchase price. B, unaware of the sale of the land to A, signified to Y his interest to buy it but asked Y for her authority from X. Without informing X that she had sold the land to A, Y sought X for a written authority to sell. X e-mailed Y an authority to sell the land. Y thereafter sold the land on May 1, 2021 to B on monthly installment basis for two years, the first installment to be paid at the end of May 2021. Who between A and B has a better right over the land? Explain.

5 points.

Your answer