Books: Law on Sales by De Leon, Notes in Business Law by De Leon

1. 1 st Statement - If an agent contracts in the name of his principal, exceeding

the scope of his authority, the contract is voidable.

2 nd Statement - To waive any obligation gratuitously in behalf of the principal, a

special power of attorney will be necessary.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

2. Agency which authorized only the performance of particular acts

a. Agency couched in specific terms

b. Agency couched in general term

c. Implied agency

d. Express agency

3. 1 st Statement - Acceptance by the agent may also be express, or implied from

his acts which carry out the agency, or from his silence or inaction according

to the circumstances.

2 nd Statement - Agency may be oral, unless the law requires a specific form.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

4. X wrote Y, authorizing B to sell a piece of land of his behalf, the land was

purchased by Z but Y kept the money. What can X do?

a. X may refuse to surrender his land to Z

b. X may require Z to pay the agreed price again

c. X may only recover the proceeds of the sale from Y

d. X may recover his land to Z thru court

5. 1 st Statement - Agent represent incapacitated persons

2 nd Statement - Between person who are absent, the acceptance of the agency

cannot be implied from the silence of the agent, unless, the principal entrust to

him by letter or telegram a power of attorney with respect to the business in which

he is habitually engaged as an agent and he did not reply to the letter or telegram

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

6. 1 ST Statement - The contract of agency is extinguished by the insanity of the

agent but not of the principal

2 nd Statement - An agent cannot purchase the property of his principal, unless

consent of the principal is given.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

7. An agent authorized to sell acts within the scope of his authority in the

following situations except?

a. To execute the necessary transfer documents

b. To receive the price, unless he was authorized to solicit orders only

c. To fix the place, time and manner of delivery

d. To sell on credit

8. 1 st Statement - If an agent contracts in the name of the principal exceeding his

authority, the contract entered into is void or inexistent.

2 nd Statement - If the authority if to mortgage a land, the contract of agency must

be in writing otherwise the contract will be void.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE. TRUE

d. FALSE, FALSE

9. The following acts will require a special power of attorney, except:

a. To waive any obligation gratuitously

b. To accept of repudiate an inheritance

c. To bind the principal to render some service without compensation

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

10. 1 st Statement - The agent is expected to carry out an agency unless its

execution would manifestly result in loss or damage to the principal.

2 nd Statement - The authority to sell a property in behalf of the principal

necessarily includes the authority to mortgage

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

11. Which of the following is not a fundamental obligation of an agent:

a. To subordinate his interest in favor of his principal if there is a conflict of

interest

b. To borrow if he is authorized to lend

c. To render an accounting of transactions

d. Not to carry out the agency, even if that is the instruction of he knew it would

result in a loss or damage to his principal

12. X appointed A, B and C as his agents to administer his building which were

rented by various tenants. In the course of management, A caused through his

fault damage to the building which was assessed at P150,000.00. X can claim:

a. P50,000 each from A, B and C

b. P75,000from B and C

c. P150,000 from A

d. P150,000 from either A, B or C

13. 1 st Statement - Two persons authorizing an agent to sell a property on their

behalf are liable jointly and severally to the agent.

2 nd Statement - The agency is revoked, if the principal directly manages the

business entrusted to the agent

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

14. Which of the following is not a mode of extinguishing a contract of agency?

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

b. Death of the agent

c. Civil interdiction of the principal

d. Appointment of a substitute agent

15. 1 st Statement - The principal is not liable for the expenses incurred by the

agent when the expenses were due to the fault of the agent.

2 nd Statement - An agency couched in general terms comprises only acts of

administration, even if the principal should state the he withholds no power.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

16. X appointed Y to be his agent to administer his building while X was in a

world tour, but y died leaving his son of legal age to take care of the building

until X arrived. This is an example of agency created by:

a. Ratification

b. Estoppel

c. Operation of law

d. Consent of the principal

17. 1 st Statement - A stipulation exempting the agent from the obligation to render

an account of his transactions to the principal is valid.

2 nd Statement - A special power to compromise does not authorize the agent to

submit the issue into arbitration.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

18. This is mandate given by the principal to the agent.

a. Power

b. Authority

c. Option

d. Discretion

19. 1 st Statement - A general power of attorney is revoked by a special one

granted to another agent, as regards the special matter involved in the latter.

2 nd Statement - An agency cannot be revoked if a bilateral contract depends upon

it, or if it is the means of fulfilling an obligation already contracted.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

20. It is a contract wherein a person bind himself to render special service or to do

something in behalf of another with consent of the latter.

a. Contract of agency

b. Contract of negotiorum gestio

c. Contract or a piece of work

d. Contract of employee

21. 1 st Statement - If the authority is to lease a land for one year, a special power

of attorney is necessary.

2 nd Statement - There is a fiduciary relationship between an agent and the

principal because it is based on utmost trust and confidence.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

22. 1 st Statement - Agency is presumed to be for a compensation, unless there is

proof to the contrary.

2 nd Statement - Agency is a preparatory contract.

a. TRUE, TRUE

b. TRUE, FALSE

c. FALSE, TRUE

d. FALSE, FALSE

23. The power to sell carries with it:

a. The power to mortgage

b. The power to execute necessary transfer documents

c. The power to sell on credit

d. The power to hire another agent to act in behalf of the agent

24. X appointed Y as his agent to sell his car for P100,000 with a promise to give

him 15% commission. Y using persuasive skills was able to sell it for

P150,000 on credit. After the sale but before payment of the buyer.

a. Y must give P100,000 only

b. Y must give P100,000 minus the commission

c. Y must give P150,000 minus the commission

d. Y must give P 150,000 and in turn X is to give Y 15% as commission