Multiple Choice - write the letter of your choice on the line provided for each question. 12. If a person comes to know that another is acting in his behalf without authority but he does not repudiate, there is A.expressagencyB.compensatedagency13.wheretheagentreceivesnoremunerationB.partnershipB.onerousB.expressC.generalagencyD.impliedagencyC.gratuitousD.commissionC.ostensibleD.representative 15.(A)CommissionorsimpleagencyA.agenthasbeenactuallyauthorizedC.agenterizedactivityoftheagent B. when the principals does not repudiate the u D. when the agent is not being paid at all 16 Agency formed as to authority given or conferred A. agent is to do all the business activity of the principal B. agent is authorized to do acts of administration only C. agency formed orally D. agent acts for the principal in his own name B. agent is authorized to do acts of administration only C. agency formed orally D. agent acts for the principal in his own name 17 (D) P authorized A to sell P 's land, the purchase price payable to P in 12 monthly installments. A sold the land to X. In this case, P knowingly permits A to collect from X, what is the authority of the agent ? A. express C. estoppel B. Specific D. apparent 18. Going back to item No.17, assuming A collects from X without informing P but under such circumstances as to charge P with knowledge of such collection, as that several months have already passed, what is the authority of the agent ? A. express C. estoppel B. Specific D. apparent 19. Authority of the agent founded on the negligence of the principal. A. express C. estoppel B. Specific D. apparent 20. Authority of the agent though not actually authorized and yet the principal permits the agent to continue do perform the same. A. express C. estoppel The third party knows that A. Partially disclosed B. Disclosed The third party knows th principal A. Partially disclosed B. Disclosed D. apparent 21. The third party A. Partially d B. Disclosed 22. The third party principal A. Partially d B. Disclosed C. Undisclosed 23. The third party does not know that the agent is acting for the principal. B. Disclosed D. Implied 24 (B) Which one is not a requisites in order that the principal may be bound by the act of the agent ? A. the agent must act within the scope of his authority B. the agent must act in behalf of the principal C. the agent may act beyond the scope of his authority D. the agent acted within the scope of his authority and in behalf of the principal 25. Which one does not included in the obligations of the agent? A. To answer for the fraud made by the principal or his C. To pay interest on funds he has applied to his own use. D. To do purely personal activity in behalf of the principal, like the right suffrage. 26. Is a person to whom the agent delegates the performance of an act for the principal. A. principal D. sub-agent 27. One whom the agent represents and from whom he derives his authority, being the person represented. A. principal C. agent B. sub-principal D. sub-agent 28. One who acts acting in a representative capacity. B. sub-principal C. agent D. sub-agent B. sub-principal D. sub-agent 29. Is one whose business is to receive and sell goods for a consideration and who is entrusted by the principal with the possession of goods to be sold. A. principal C. agent B. commission agent D. sub-agent 30. What is the purpose of "del credere commission"? A. to compensate the principal for the risks that he will have to bear. B. to compensate the agent for the risks that he will have to bear. C. to make additional consideration for the agent. D. to reduce the payment of income to be given by the principal to the agent. D. to reduce the payment of income to be given by the principal to the agent. 31. Rights that are given to the principal where a sale on credit by the agent is made without the authority of the former. A. Require the reimbursement from the agent B. Require the reimbursement from the agent, including income derived from the sale. C. Cancel the sale on credit. D. None of the above 32. It is the direction which the principal may give the agent to follow in the performance of his work. A. authority C. implied authority B. express authority D. instructions 33. It is the extent of the agent's duty to represent the principal. A.authorityC.impliedauthority B. express authority D. instructions 34. The scope of an agent's authority as far as third persons are concerned A. to protect the interests of the third persons and the principal B. to protect the interests of the third persons and the agent C. to protect the interests of the third persons D. to protect the interests of the third persons, including that of the principal and agent. 35. Which one does not belong among the obligations of the principal ? A. to pay the agent the compensation required B. to indemnify the agent for damages he incur without fault or negligence on his part C. to comply with his obligations when the agent performed within the scope of his authority D. to reimburse the agent on losses he incur with his fault or laxness 36. The principal is solidarily liable with the agent even when the latter exceeded his authority A. when there is express authority given to the agent B. When there is specific instruction to the agent C. when there is implied authority given to the agent D. When the principal allowed the agent to act as though he had full powers. 37. Going back to item number 36 , what principle is involved based on such rule? A. principle of fairness D. principle of joint responsibility 38. Which one does not belong to the group? A. revocation by the principal B. expiration of the agreed upon period C. accomplishment of the object or purpose of the agency D. laxness and negligence of the agent 39. A. I only B. I and II only C. any other means available D. none of the above 40. Is the agency immediately terminated by the death of the principal ? A. yes, under the principle of representation B. yes, under the trust and confidence between the principal and agent C. no, since the third party may not know about the death of the principal D. no, if the agency is necessary to finish the business already began, where delay should entail any danger. Part II - Discuss the following : 1. Define Agency. 2. What is the basis of agency? 3. Discuss the nature of the relation between the principal and agent. Part II - Discuss the following : 1. Define Agency. 2. What is the basis of agency? 3. Discuss the nature of the relation between the principal and agent. 4. Pedro (principal) authorized Alberto (agent) his sales agent, to sell a house and lot for P3,000,000 cash. Alberto sold the house and lot to Bariring on installment for P3,500,000. What is the right or course of action available to Pedro against Alberto who did not follow the authority given to him? 5. Pepe (principal) writes ABC Supplier Co. that Aurora (agent) is authorized to buy merchandise in behalf of Pepe. Pepe secretly instructs Aurora not to buy from ABC Supplier Co, but merely to obtain the supplier's price list. In violation of said instruction, Aurora bought merchandise from the supplier. Was the action made by Aurora binding between her and Pepe? Please discuss. Part II - Discuss the following : 1. Define Agency. 2. What is the basis of agency? 3. Discuss the nature of the relation between the principal and agent. 4. Define contract of sale. 5. Discuss the distinctions between earnest money and option money