1. Three of the following are remedies of the buyer in case of the breach of warranty by the seller. Which is not included?

a. Rescind the contract of sale and refuse to accept the thing or if already delivered refuse to return the same

b. Accept the goods and set up the breach of warranty by way of recoupment or extinction of the price

c. Accept the goods and claim damages for the breach of warranty

d. Refuse to accept the goods and claim damages for the breach of warranty

2. A offers to B 100 electric fans for P80,000 payable in 60 days with 12% interest per annum. B accepted the offer ny telegram provided that the interest is reduced to 6%. If there is no further communication between A and B relating to the terms

a. The contract is perfected because of the acceptance by B

b. There is no contract yet between A and B because B made a counter offer

c. The contract is perfected under the terms of A

d. There is no contract yet unless B gives earnest money

3. A sold to X his share of parcel of land he co-owns with B. C owns the parcel of land adjoining that of A and B. Both B and C want to redeem the share of A which the latter sold to X.

a. C shall be preferred to B in the redemption from X.

b. B's right as co-owner excludes that of C, the latter being only an adjoining owner

c. C has a better right to the redemption as an adjoining owner

d. B and C shall equally redeem the share of A

4. Which of the following is not a requisite of the object of a contract of sale?

a. It must be within the commerce of men

b. it must be licit

c. It must be determinate

d. Vendor must have the right to transfer the ownership of the thing at the time of sale

5.S sells to B 500 sacks of rice at P1,000.00 per sack from the stock then stored in the warehouse of S. Unknown to the parties, the warehouse contains only 480 sacks of rice. What is the status of the contract?

a. The sale is void since the quantity available is less than the quantity sold

b. The sale is valid up to 480 sacks of rice but void as to the deficiency of 20 sacks of rice

c. The entire sale is valid up to 500 sacks of rice. B becomes the owner of the whole stock available and S must deliver the deficiency of 20 sacks of rice

d. the sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sacks of rice by reason of damage suffered by B

6. Three of the following are fundamental obligations of the agent. Which is the exception?

a. Can be the borrower if he is authorized to lend.

b. Sacrifice his interest and give it to the principal if there is a conflict.

c. To render an accounting of the transaction

d. Shall not carry out the agency even if that is the instruction, if he knew it would result in a loss or damage to the principal.

7. Three of the following are modes of extinguishing agency. Which is the exception?

a. Insanity of the principal.

b. Death of the principal, but the agency is for the benefit of a third person.

c. Accomplishment of the purpose of the agency.

d. Dissolution of the firm or corporation which entrusted or accepted the agency.

8. Bears the risk of collecting from the buyer the price of the sale.

a. Commission agent

b. Delegacion

c. Quasi-tradition

d. Agente del credere

9. P appointed A as his agent with general powers on January 1. The next day, X transacted business with A. On January 5, P revoked the agency by publishing it in a newspaper of general circulation. On January 10, or five (5) days after the revocation was published, X consummated another transaction with A. Is the act of A in entering into another contract with X on January still binding against P?

a. Yes, because X is in good faith.

b. No, because the agency was already revoked and its publication is a sufficient warning.

c. No, because the power is just general and the act performed by A is an act of ownership which needs special power

d. Yes, because there was no special notice sent to X.

10. P appointed A as his special agent to sell a specific land for P10,000.00. P sends A his papers of appointment including a letter addressed to X notifying the latter of the appointment of A as his agent. Ten days after, P revoked the agency and published it in a newspaper of general circulation. X did not read the newspaper publication, but has got actual knowledge of the revocation. Later, A and X transacted business. Is the act of A binding against P?

a. Yes, because A and X are in good faith.

b. No, X having knowledge of the revocation is considered in bad faith.

c. Yes, because X was not given a general power hence the revocation through publication is sufficient.

d. Yes, since the appointment of A is by special information, the revocation must also be by special information in order that the same is effective.

11. P verbally appointed A as his agent to sell his parcel of land for P10,000.00. Five days after, A sold to B the parcel of land for P8,000.00 by means of public instrument executed between A and B. What are the effects and the status of the sale between A and B?

a. The sale is valid because it was executed in a public instrument.

b. The sale is unenforceable because the agent acted beyond the scope of his authority for selling the land for less than the price instructed.

c. The sale is void because the authority to sell is not in writing.

d. The sale is voidable because the contract of sale was not notarized.

12. Gloria appointed Sally to sell the former's car for P500,000.00. Sally sold the car to Pam for P500,000.00 but acted in her own name. After

delivery, Pam inspected the car and she found hidden defects in the car. Can Pam file an action against Gloria even when Sally acted in her own name?

a. No, under "caveat emptor" let the buyer beware.

b. Yes, because this is a contract involving property belonging to the principal.

c. No, because Sally acted in her own name, not of the principal.

d. No, because the contract of sale is already perfected.

13. The principal is liable for the expenses incurred by the agent, except:

a. If the agent acted in contravention of the principal's instruction.

b. Expenses were due to the fault of the agent.

c. Agent incurred them knowing that an unfavorable result would ensure, and the principal was not aware thereof.

d. All of the above.

14. A guarantee commission agent shall

a. Bear the risk of collection on the same terms agreed upon with the purchaser.

b. Be liable to the principal even if the buyer is really insolvent.

c. Be liable for damages if he will not collect the credit on time.

d. Be entitled to another commission aside from ordinary commission.

e. All of the above.

15. P delivered to A 10,000 pieces of Cebu fabricated shell craft jewelry for the purpose of selling them at P1.00 each. Out of the proceeds of the expected sale, A is to receive a 10% commission. After 3 days, however, A sold all the items at P1.50 each to B, but on 30-day credit. What is the status of the sale?

a. The sale is valid since A performed his function in a manner more advantageous on the part of his principal.

b. The sale is void because the agent exceeded the instruction of the principal

c. The sale is unenforceable because the agent exceeded the limits of his authority.

d. The sale is unenforceable because sale of personal property P500 or more must be written in conformity with Statute of Fraud

e. The sale does not bind the principal as the agent exceeded the limits of his authority

16. An agent with general powers of administration given to him by the principal in writing, desirous of improving the financial condition of his principal, sold two parcels of rice field, one for less than the price appearing in the inventory prepared by the principal and the other double the price that appeared in the said inventory.

a. The sale for double the price appearing in the inventory is binding upon the principal.

b. The two contracts cannot be enforced against the principal.

c. The sale for less than the price appearing in the inventory is binding upon the principal.

d. Both contracts are binding upon the principal.

e. None of the above.

17. An agent without any express authority from the principal appointed a sub-agent to help him carry out the agency. What is the effect of the substitution?

a. The substitution is void.

b. The substitution is valid but the agent is the only one liable for the acts of the sub-agent.

c. Both the agent and the sub-agent are liable to the principal for the acts of the sub-agent under the valid substitution.

d. The substitution is valid but the substitute is the only one liable for his own acts.

e. None of the above

18. P called A expressly authorizing him to sell his parcel of land situated in Bulacan. The land was later on purchased by X, but A and X did not reduce the sale in writing. The sale of A to X is:

a, Void because the authority of A is not in writing.

b. Unenforceable because the authority of A is not in a public instrument.

c. Unenforceable because the contract of sale violated the rule on Statute of Fraud

d. Valid and binding on the part of P because the property sold belongs to him.

e. None of the above

19. In three of the following, a special power of attorney is required. Which one is considered the exception?

a. To obligate the principal as guarantor.

b. To effect novation which put an end to obligation already contracted before the agency was created

c. To borrow money not necessary for the preservation of the property under administration.

d. To lease real property to another person for one year.

e. None of the above

20. P owns a parcel of land valued at P100,000.00 and appoints A as his agent in writing. The agency to sell the property on cash basis for the same amount. A succeeded in selling it for P120,000.00 in two installment payments payable within 20 days. What is the rule as regards the act of A?

a. A exceeded his authority because the power to sell on cash does not include the power to sell on credit.

b. A did not exceed his authority because the act done is more advantageous than that of his instruction.

c. The act cannot be ratified because it is void from the beginning.

d. A's act is valid and enforceable.

21. Without P's authority, A (agent), sold P's car to X in P's behalf. The contract is:

a. Unauthorized

b. Unenforceable

c. Subject to ratification

d. All of the above

22. A commission agent:

a. Is liable to pay damages if he does not collect the credit on the due date

b. Generally, cannot sell on credit

c. Receives a guaranty commission

d. All of the above

23. If the agent is authorized by his principal to collect or receive cash payment in full, his authority includes:

a. To accept partial payment

b. To accept check covering full payment

c. To accept property equivalent to the monetary claim being collected

d. None of the above

24. Today, P appointed A1 as his agent covered by general power to lease his car to X for 6 months. The next day, P appointed A2 with special power of attorney to lease the same car to X for 5 months. On the third day, P directly transacted business with X leasing the car for 2 months. What is the effect of agency between the parties?

a. The appointment of A1 is valid because it has got a prior date

b. The appointment of A2 is the one that is valid because it is covered by a special power

c. The agency of A1 and A2 are considered revoked because the principal directly transacted with X.

d. None of the above

25. Agency may be created by:

a. Appointment

b. Ratification

c. Estoppel

d. Necessity

e. All of the above

26. If an agent contracts in the name of his principal, exceeding the scope of his authority, what would be the status and effect of the contract?

a, Unenforceable

b. Void

c. Voidable

d. Valid

27. P appointed A as his agent to sell a specific car for P10,000 with 10% commission. A, using his persuasive skills was able to sell if for P12,000.

a. A must give to P P10,000.00

b. A must give to P P12,000.00

c. A must give to P P10,000.00 minus the commission

d. A must give to P P12,000.00 minus the commission

28. In agency, the agent represents:

a. A person who is capacitated

b. A person who is incapacitated

c. Heirs and creditors of the debtor

d. Judicial Court

e. All of the above

29. The kind of agency according to the manner of creation may be implied from the following:

a. Acts of the principal

b. Principal's silence

c. Principal's lack of action

d. Principal's failure to repudiate the agency

e. All of the above

30. If P (principal) leads X (a third person) to believe that A is his agent, when in fact such is not true, P is liable because there is:

a. A general agency created

b. A special agency created

c. An agency by estoppel

d. An agency by necessity

31. P authorized A, 16 years old, to sell his car to B. A sold the car to B for P100,000.00. One week after, because of the floating rate of the peso, prices of car went up. P now wanted to disavow the sale, claiming that A, his agent was a minor and therefore the contract is voidable and no liability is attached in the contract.

a. P and A are jointly liable to B

b. Only A is liable because he executed the agency knowing for himself that he is a minor

c. P and A are solidarily liable to B

d. None of the above.

32. A contract executed by two (2) parties where one (1) of the parties is incapable of giving consent, the contract is:

a. Voidable

b. Rescissible

c. Void

d. Unenforceable

33. Three of the following may be valid objects of a contract, except:

a. All that are within the commerce of man

b. All services which are not contrary to law

c. Impossible things or services

d. All rights that are transmissible

34. Contracts entered into during lucid interval are:

a. Unenforceable

b. Voidable

c. Void

d. None of the above

35. When the agent is a minor and the principal is cable of giving consent and by virtue of such authority , the agent entered into a Contract of Sale with X who is capacitated to give valid consent, what is the status of the Contract of Agency?

a. Valid

b. Rescissible

c. Voidable

d. Unenforceable

e. Void

36. Statement 1. Agency to sell real property or real rights may be oral or in writing. Statement 2. Agent must always get the consent and authority of the Principal to name a substitute.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

37. Statement 1. Authority of an agent is not considered exceeded if it is advantageous to the principal. Statement 2. Agent is obliged to carry out the agency strictly in accordance with the instructions of the Principal even if it will be disadvantageous to the principal.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

38. Statement 1. Two agents appointed by a principal for a common agency are as a rule solidarily liable to the principal for consequences of the agency. Statement 2. Two principals appointing one agent for a common agency will be solidarily liable to the agent for consequences of the agency.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

39. Statement 1. A juridical person may validly enter into a contract of agency either as the principal or the agent. Statement 2. Appointment of a new agent for the sale transactions revokes the prior agency even without due notice to the first agent

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

40. Statement 1. Act of a sub-agent or substitute appointed by the agent against the prohibition of the Principal, will be valid if performed in accordance with the instructions of the Principal and the Agent. Statement 2. A principal may personally appoint a substitute or sub-agent for his agent.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

41. Statement 1. Death of any of the parties in a Contract of Agency extinguishes the contract. Statement 2. Ordinary commission is the additional commission given by the Principal to the Agent so that the latter may assume the risks of collection.

a. Only Statement 1 is true

b. Only Statement 2 is true

c, Both Statements are true

d. Both Statements are false

e. Answer not given

42. Statement 1. A Special Power of Attorney is necessary for the agent to perform an act of administration. Statement 2. Contract of Agency is always presumed to be for compensation.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

43. Statement 1. A commission agent who handles goods of the same kind and mark which belong to different owners is required to distinguish them by countermarks. Statement 2. If the commission agent is authorized to sell on credit, he must inform the principal of his credit sales and the names of buyers and their addresses.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

44. Statement 1. A stipulation to exempt the agent from rendering an account is valid and binding between the principal since it is the "law" between the contracting parties. Statement 2. If the principal is insolvent, the agent can be required to advance the necessary expenses if there is an agreement between the principal and the agent to that effect.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given

45. Statement 1. The agent is required to be in possession of a special power of attorney in order to ratify an obligation contracted after the agency was constituted. Statement 2. The principal is also known as "mandante".

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

e. Answer not given