1. The commission agent cannot, without the express or implied consent of the principal, ______.

a. sell

b. sell on cash

c. sell on credit

d. sell property

2. As a rule, if the agent exceeds his powers, the contract is ______ because it is unenforceable against the principal.

a. effective

b. operative

c. perfect

d. defective

3. The principal may revoke a contract of agency at will and such revocation may be

a. express

b. implied

c. special

d. A or B

4. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall______; otherwise, the sale shall be void.

a. be in writing

b. be oral

c. be both oral and in writing

d. only be in oral or in writing

5. A bar that prevents one from asserting a claim or right that contradicts what one has said or done before, or what has been legally established as true.

a. estoppel

b. agency by estoppel

c. partnership by estoppel

d. authority

6. It comprises one or more specific transactions

a. General agency

b. Special agency

c. Multiple agency

d. Specific agency

7. The principal must advance to the agent, should the latter so request, the sums necessary for the _______ of the agency.

a. execution

b. extinguishment

c. completion

d. consummation

8. An agent who guarantees the solvency of the third party with whom the agent makes a contract for the principal.

a. commission agent

b. broker

c. middleman

d. Del Credere Agent

9. The responsibility of two or more agents is

a. solidary

b. joint and several

c. joint

d. several

10. A power of attorney that limits the agent's authority to only a specified matter

a. General power of attorney

b. Special power of attorney

c. either a or b

d. neither a nor b

11. A ______ of attorney is revoked by a special one granted to another agent, as regards the special matter involved in the latter.

a. power

b. general power

c. special power

d. super power

12. The agent is responsible not only for fraud, but also for ______, which shall be judged with more or less rigor by the courts.

a. default

b. carelessness

c. negligence

d. delay

13. Every stipulation exempting the agent from the obligation to render an account shall be_______.

a. void

b. invalid

c. voidable

d. unenforceable

14. The adoption or confirmation by one person of an act performed on his behalf by another without authority.

a. ratification

b. gratification

c. ratification in agency

d. gratification in agency

15. The power of attorney shall continue to be in full force until the notice is rescinded in the same manner which it was given

a. Manner of rescission

b. Manner of cancellation

c. Manner of authorization

d. Manner of notice rescission

16. A contract of agency is perfected by mere consent.

a. Principal

b. Consensual

c. Nominate

d. Bilateral

17. Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so except when the principal is

a. solvent

b. insolvent

c. bankrupt

d. corrupted

18. If two or more persons have appointed an agent for a common transaction or undertaking, they shall be ______ to the agent for all the consequences of the agency.

a. solidary liable

b. jointly liable

c. separately liable

d. liable

19. Clear selection

An agent shall not carry out an agency if its execution would manifestly result in _____ to the principal.

a. loss

b. damage

c. protection

d. A or B

20. A person to whom an agent has delegated the performance of an act for the principal.

a. substitute

b. sub-agent

c. replacement

d. A or B

21. If the agent had _____, revocation of the agency does not prejudice third persons who acted in good faith.

a. powers

b. general powers

c. special powers

d. super powers

22. The one who is liable if the principal appointed an ignorant agent

a. the principal only

b. the agent only

c. both the principal and the agent

d. the agency

23. The agent may withdraw from the agency by giving _____ to the principal

a. food

b. letter

c. permission

d. due notice

24. A power of attorney that authorizes an agent to transact business for the principal

a. General power of attorney

b. Special power of attorney

c. either a or b

d. neither a nor b

25. A go-between, an intermediary between the seller and the buyer

a. commission agent

b. broker

c. middleman

d. negotiator

26. Even when the agent has exceeded his authority, the ____ is solidarily liable with the agent if the former allowed the latter to act as though he had full powers.

a. principal

b. agent

c. partner

d. seller

27. The following are the requisites of solidary liability, except:

a. There are two or more principals

b. The principals have all concurred in the appointment of the same agent

c. The agent is appointed for a common transaction or undertaking

d. Each principal is liable only for a proportionate part of the transaction.

28. Also called as the mandatorio

a. partner

b. agent

c. principal

d. seller

30. If the agent has been empowered to borrow money, he may himself be the lender at the ______ of interest.

a. current rate

b. future rate

c. historical rate

d. precious rate

31. In case a person declines an agency, he is bound to observe _____ in the custody and preservation of the goods forwarded to him by the owner until the latter should appoint an agent or take charge of the goods.

a. due care

b. ultimate care

c. the diligence of a good father of a family

d. diligence

32. Agency is presumed to be for a/an _____ unless there is proof to the contrary.

a. compensation

b. assignment

c. business

d. authority

33. An acceptance by which the agent has accepted the agency orally or in writing

a. express

b. implied

c. absolute

d. A or B

34. As to the manner of its creation, an agency may be

a. express

b. implied

c. absolute

d. A or B

35. When two or more principals have granted a power of attorney for a common transaction, ______ of them may revoke the same without the consent of the others.

a. some

b. all

c. any one

d. none

36. One kind of revocation that is done orally or in writing

a. express

b. implied

c. special

d. general

37. The relationship existing between principal and agent is a______ one, demanding conditions of trust and confidence.

a. fiduciary

b. mutual

c. special

d. legal

38. If the agent has acted in good faith, the ___ shall be liable in damages to the third person whose contract must be rejected.

a. principal

b. partner

c. buyer

d. seller

39. An instrument granting someone the authority to act as agent or attorney-in-fact for the grantor

a. Power of attorney

b. Power of agency

c. Authorization

d. Signature

40. The principal must also indemnify the agent for all the damages which the execution of the agency may have caused the latter, without _____ on his part.

a. fault

b. negligence

c. fraud

d. A or B