51. A commission agent:

2 points

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

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

2 points

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

53. 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?

2 points

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

54. Agency may be created by:

2 points

A. Appointment

B. Ratification

C. Estoppel

D. Necessity

E. All of the above

55. 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?

2 points

A. Unenforceable

B. Void

C. Voidable

D. Valid

56. 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.

2 points

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

57. In agency, the agent represents:

2 points

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

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

2 points

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

59. 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:

2 points

a. A general agency created

b. A special agency created

c. An agency by estoppel

d. An agency by necessity

e. None of the above

60. 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.

2 points

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE