AGENCY
594
favor.
595
AGENCY
Even if P dies before the payments are
completed, the agency remains.
Phis is a case of
stipulation pour autrui.
AGENCY DIAGNOSTIC EXERCISESs
-
Validity of agent's
acts without
knowledge of the death
oe
the principal or other cause of extinguishment of the
TESTI MULTIPLE CHOICE. Select the best answer by writing
agency
The acts of the agent which are done without
knowledge of the death of the principal or of any othor
cause which extinguishes the agency are valid and shall
be fuly effective with respect to third persons who may
have contracted with him in good faith. (Art. 1931)
choice.
the etter of your
1.
The agent must finish the business already begun
on the death of the principal, should delay entail any
danger. (See Art. 1884.) This presupposes that the agent
had knowledge of the principal's death.
Death ofithe agent
1.
2.
Effect of death of agent on agency
The death of the agent
the agency.
One of the following is not a characteristic of the contract
of agency.
.
Duty of agent's heirs
a.
To notify the principal of the agent's death.
b.
To adopt
measures a s
the
circumstances may demand in the interest of the
principal. (Art. 1932)
contract whereby a pérson binds himself to render
Consensual
extinguishes
in the meantime such
A
some service or to do something in representation or in
behalf of another, with the consent and authority of the
latter.
Contract for lease of services
a.
Contract of agency
Contract for a piece of work
C.
Contract to sell
d.
3.
Accessory
C.
Nominate
d.
Preparatory
old, appointed A, 17 years old, a s his agent to
sell certain goods for P20,000.00. Thereafter, A sold thhe
learned that
goods to B for the said amount. P, however,
so he
to
P22,000.00
the price of the goods had increased
and
to
A
made
B,
brought
by
sought to disaffirm the sale
from B on the ground that
an action to recover the goods
and hence, could
A's act was voidable, A being a minor,
P, 25
years
not be an agent. Decide.
is capable.
The sale is valid because the principal
a.
A is a minor and
because
is
void,
The sale
b.
therefore, cannot be an agent
A is a minor.
The sale is voidable, because
A exceeded his
because
The sale is unenforceable,
d.
authority.
the manager of his coconut
Pantaleon appointed Arturo a s
After managing the
Province.
plantation in Quezon
GENCY
596
plantation for 10 years,
on
account
of failing
Arturo intormed
health, he, Arturo,
the administration of the
experienced
coconut
plantation
Pantalcon that
was
to
nor
appointed a
to manage the
an
Arturo
C.
d.
Bartolome a
manager of his choice
repudiated the designation of Bartolome
agent. Instead, he allowed Bartolome
One of the following acts requires only a general power of
attorney, not a special power of attorney, for the agent.
Which is it?
new
plantation and continued
to receive
the
the plantation from the latter without
any
protest. Was Bartolome an agent of Pantaleon?
reports
on
No, because
Pantaleon himself, did
of
power
attorney'to Bartolome.
general
a.
b.
not
give
a
C.
No, because the designation of Bartolome as
manager by Arturo was without Pantaleon's
d
Yes, Bartolome became
because of
Yes, because Bartolome
administer the plantation.
One of the
to his
a.
p.
C.
d.
One
Pantaleon
highly quaiified
the
to
following
principal is an alien.
Represent the principal
where the
principal is
of the following
attorney granted by
it?
a.
was
of
repudiate
acts may be delegated
by a principal
Which is it?
Vote during the
meeting of stockholders of a
corporation here the principal is a stockholder.
Attend meetings of the board
of directors of a
corporation where the principal is a director.
Purchase land in the Philippines of which the
agent.
contract.
6
to
agency.
d.
.
agent
an
Pantaleon's failure
To
make
acts
the
gifts
in
a
party
requires
principal to
to
marriage ceremony
a
a
his
employees
managed by the agent.
To bind the principal in a contract of partnership.
a.
To loan money of the principal.
To enter into a contract by which the ownership of
immovable is transmitted
or acquired
an
consideration.
valuable
or
a
for
gratuitously
To make such payments a s are usually considered
acts of administration.
b.
authority.
C.
8.
Filipino who was on a business trip in Timbuktu,
in
that
Federico, also a Filipino, w a s interested
learned
take
To
buying his lot located in Fairview, Quezon City.
made an o v e r s e a s call to
advantage of the opportunity, he
who w a s in Manila, to sell
Almario, his business associate
for
his (Pedro's) behalf, to Federico,
Pedro,
agent.
in
the
instrument
contract
The said
Pedro as seller, and Federico as buyer.
of sale is:
in a public instrument and
Valid, because it is
a.
sent Pedro.
to
D.
is
business
a
the lot in
P1,000,000.00 cash. Almario thus sold the lot promptly
The contract of sale w a s in a public
to Federico.
in behalf of
which w a s signed by Almario
to the marriag
special power
Which
principal
the
Bartolome
plantation administrator.
power of attorney or appoint a
To borrow money which is urgently needed to
under the
property of the
preserve
administration of the agent.
To make paynents for purchases in the ordinary
course of the business.
To lease the real property of the principal to
another person for more than one year.
b.
turnino.over
also informed Pantaleon that lhe had given a general power
of attorney io Bartolome and that if such authority were
not sufficient, Pantaleon could send to
new
Pantaleon neither
597
AGENCY
P,
repre
Almario w a s duly authorized
in
authority of Almario w a s not
the
because
Void,
law.
the form required by
the
because Pedro did not sign
Unenforceable,
thereto.
consent
so he had n o
contract of sale and
contract was entered into
the
Rescissible, because
of a n a b s e n t e e .
in representation
the
owner
learned that P
of
a
was
A
to sell the c a r .
certain car, wanted
the
authority
Without
the car.
selling
AGENCY
598
of P.
A sold the car in his (A's) name to B.
status of the sale of the car?
Valid between A and B
a.
What is the
11
but, A
must
be able to
Unenforceable against P becau se he did
not
authorize A to sell the car.
Void because A was not the owner of the car at the
10.
Voidable because the sale
of P.
was without
the consent
a.
Purefine revoked Armando's
notice of revocation to Armando and authority bya
publishing
notice of revocation in the
Philippine Star. Despite the
revocation, Armando still sold 50 bags of "Purofino"
to Barbie's Bakeshop, a single proprietorship ownedflour
by
Barbie Barredo, who did not read the
notice of revocation
of Armando's
authority in the
Star. Barbie
Barredo now wants to have the Philippine
flour she had ordered
delivered to her by Purefine but
Purefine seeks to set
aside the sale of 50
bags of flour to Barbie's Bakeshop.
a.
Purefine is not
obliged to deliver 50 bags of flour
because Barbie Barredo is
deemed to have known
of the
revocation of
authority.
Purefine is obliged Armando's
to
Barbie Barredo because deliver 50 bags of flour
the latter did not read
Purefine is
obliged
because the
Barbie
d.
revocation
newspaper.
sufficient.
is not
it was
obliged
the notice of
to
An agency
was created between
Precision and
not
d.
An agency was created by the ratification of Alberto
when he duly received the letter with a special
power of attorney.
No agency w a s created because of the inaction of
Aiberto.
12.
following statements refer either to authority
instruction given by the principal to his agent.
The
.
I.
II.
to
which.the agent is commissioned to act.
Concerns the principal and the agent.
Refers
in
fiou
anotn
tlou1S
Armanu
the mode of action
13.
by
the agent in
out the agency.
to present it to
Third persons c a n require the agent
with
knowledge
them since they are chargeable
thereof.
whether
deliver 50 bags of
to
to
the
You are to determine
instruction.
pertain to authority or
authority.
to
I and II refer
a.
to
authority.
refer
I and IV
b.
instruction.
to
refer
C.
II and IV
instruction.
Il and IV refer to
d.
binding upo
or
Relates to the kind of business or transaction upon
carrying
IV
of Armando's
published
revocation
No agency was created between Precision and
Alberto because Alberto did not respond to the
u
deliver 50 bags of
revocation was
Barredo since
Purefine
because
to
the
duly
letter
C
a
authority.
dealing
agency.
b.
three years,
C.
agent
Alberto by the implied acceptance of Alberto of the
Corporation (Purefine) published in the Manila
was appointing Armando Arcos
(Armando)
as its duly authorized agent for the sale
of "Purofino" flour,
one of its products.
With the authority, Armando sold
"Purofino" flour to various bakeshops all over Luzon. After
publication of the
an
logbook
Purefine
b
Aguado (Alberto),
received by Alberto Aguado, who signed in
of LBC. Alberto, however, did not respond to the
letter. Based on the foregoing data:
was
Bulletin that it
giving
Alberto
to
The letter, which was sent through LBC Courier Services,
time of sale.
d.
attorney,
with appliances, in the latter's office in Cebu, appointing
Alberto as the agent of Precision to sell its new appliances.
delivery.
C.
Precision Appliances Corporation (Precision), which is
based in Metro Manila, sent a letter with a special power
of
transfer the ownership of the car to B at the time of
b.
599
AGENCY
above
statements
based in Cebu, authorized
professional singer
singer, to go to Manila to iook
Allona, also a professional
could sing. When Allona
Pamela
for a nightclub where
Pamela,
a
ENCY
600
arrived in Manila, she presented herself, not Pamela,
to the Twinkle Night Club which engaged as
her
services to sing nightly for two months at the club. Based
on the foregoing ínformatiO1, which of the followin
g
statements is corTrect
Pamela has a right of action against Twinkle
a.
the singer,
b.
Club.
Twinkle Night Club has
Pamela.
15.
Perez gave Almendras a special power of attorney wherein
it was written that Almendras was being authorized to sell
the two cars of Perez. However, Perez and Almendras had
an understanding that Almendras should seli only one of
Almendras.
right
a
of
action against
a.
Almendras.
b.
Pamela and Twinkle Night Club.
The contract between
Allona and Twinkle Night
Club is void because Pamela was not the
party
Paramount Auto Corporation
(Paramount), an authorized
dealer of Honda cars,
Armando as its agent to
appointed
sell the cars of the
company. The authority of Armando
includes the giving of a discount of
P20,000.00 to
customers who pay in cash.
customer,
went to the
One day,
company's
Armando that she wanted to
of
Corporation.
Armando to
Carmina, a
buy
Armando
Armando
agreed
and
P550,000.00 in behalf of the
What is the status of
the sale made by
Carmina?
at
Voidable at the instance
of Paramount because
not
give its consent to the sale at the
did
of P50,000.00.
.
Unenforceable
t
discount
against
Paramount, the princlp
Decause Armando
acted beyond the scope
ol
C.
a.
authority.
Void,
16.
center and told
because the
additional discount of
PB0,000.00
given by Armando was not
authorizu
by Paramount.
Rescissible,
of P30,000.00.because Paramount suffered damag
.
Perez is bound by the sale of the two cars because
that is what is contained in the special power of
attorney as written.
Perez is not bound at ali by the sale of either one or
d.
as
agreed to a discount of P50,000.00.
Sold the car to
Carmina
a.
car
a car with a sales
price
she only had
Armando that she would take the carP550,000.00,
if
P600,000.00. However,
she told
Perez is bound by the sale of only one car in
with
with
his
understanding
accordance
thereto.
14
Almendras sold the two cars to Bernarte who
not aware of the instruction given by Perez to
the cars.
was
Night
The contract between Allona and Twinkle Night
Club is a valid contract between them, not
between
d.
601
AGENCY
both of the two cars because Aimendras violated
the instructions given by Perez.
Perez will be bound by the sale of one or both cars
at his option.
Ponciano gave a power of attorney to Alfonso for the sale of
his 2 cars, a Toyota and a Lancer.
Their agreement
inclnded, among other provisions, the following: (1)
Aifonso shall be entitled to a commission of 10% based on
the actual selling price of the c a r s which Ponciano fixed at
and
minimum of P400,000.00 for the Toyota;
a
P500,000.00 for the Lancer;
and
(2)
Alfonso
need
not
render to Ponciano any accounting of his transactions a s
long as Alfonso turns o v e r the actual selling price of the
net of the commission of 10%. Alfonso was able to
cars
and the
sell the Toyota to Teodolfo for P410,000.00;
Lancer for P500,000.00 to Leoncio who gave Alfonso a tip
After the sale, Ponciano demanded from
of P20,000.00
a
n
Alfonso
accounting of the transactions that he had
that it w a s enough that
made but Alfonso refused claiming
of P810,000.00
he turned over the net selling price
a
s
P900,000.00
commission) to
(P900,000 less 10% of
Decide.
them.
of
two
the
Ponciano a s agreed to by
a n accounting to Pon iano
render
not
Alfonso need
a.
because that
b.
was
their agreement.
and deliver to
Alfonso must account
s u m of P900,000.00.
the
Ponciano only
AGENCY
602
C.
Alfonso must account and deliver to
Ponciano
P910,000.00.
d.
Alfonso
must
account and deliver to
The following statements pertain to either a commission
agent or a broker.
He has a relation not oniy with his principal, and
the buyers or sellers, but also with the property
which is the object of the transaction.
I1.
Maintains no relation with the thing he purchases
or sells.
The goods are placed in his þossession and
III.
IV.
.
first
purchaser
b.
one
who tirst
in good faith.
Ponciano
P930,000.00.
17.
603
AGENCY
C.
II and II pertain to a broker.
d.
I and IV pertain to a brokeer.
20.
An
agency
is impliedly
Which is the
a.
b
although the agent acted in contravention of the
principal's instructions, the principal wishes to
b.
C.
avail himself of the benefits derived from the
contract.
it
that the agent would be allowed
was
only a certain sum.
the agent incurred them with the
that
stipulated
an
was not aware thereof.
.
19.
knowledge
principal
unfavorable result would ensue, if the
the expenses
were
due to the fault of the agent.
When two persons contract with
regard to the same
thing, one of them with the agent, and the
other with the principal, and
the contracts are
immovable
incompatible with each other, ownership shall belong, to
the:
following
persons.
When a special power of attorney is granted to
another agent pertaining to a
special matter
involved in a general power of attorney issued to a
to
the
revoked in three of the
When a new agent is appointed for the samne
business or transaction.
When the principal directly manages the business
entrusted to the agent, dealing directly with third
previous agent.
d.
by
be in
exception?
cases.
21.
The principal is not liable for the
expenses incurred
agent in the following, except when:
the
good faith.
When the desire of the principal is help the agent
manage the business.
Penelope appointed
bakery
18.
faith.
completed the payment of the price
who first registered in
g0od faith
transaction.
one who
presents the oldest title who must
He is merely an intermediary whose function is too
bring the parties to the transaction.
pertain
good
one
disposal.
Determine whether the above statements
commission agent or broker.
a.
I and III pertain to a commission agent.
b.
I and IV pertain to a commission agent.
in
Alicia as her agent to sell
equipment for
P50,000.00
with an
a
set of
ordinary
commission of 10% and a guarantee commission of 15%.
Alicia is authorized 'to sell on credit. Alicia was able to
sell, in behalf of Penelope, the bakery equipment for
P50,000.00 to Nicole who issued a check
teri days
after the sale. On the tenth day, however, the check was
dated
dishonored by the bank because Nicole did not have
sufficient funds for it.
Alicia is liable to Penelope because she must bear
the risk of collecting the price from Nicole.
Alicia is not liable to Penelope because the
b.
dishonor of the check w a s without Alicia's fault.
because she is not
Alicia is not liable to Penelope
C.
the purchaser but Nicole.
because she acted
d.
Alicia is liable to Penelope
her authority.
beyond the scope of
a.
AGENCY
04
The authority of A did not
authorize A to appoint a substitute but it did not also
prohibit him íron appointing one. In this case:
A may appoint a substitute because he is not
a.
Pappointed A as his agent.
22.
AGENCY
25.
b.
express
provision
in
his
appointment
from
A
may
appoint a
house
of 10% of the
a.
selling price.
a
appointed A
price of
not
less
A was able to sell the house
How much commission may A
P150,000.00.
d.
26.
P50,000.00.
R, S and 1, each one owning a separate lot, appointed A in
one instrunent to seli their respective iots.
Under the
agreement, A will receive a commission of 10% of the
selling price of each lot. A was able to sell the lot of R for
P100,000.00: the lot of S for P200,000.00; a1d the lot of T
for P300,000.00. How much commission may A collect
from R?
a.
b.
P60,000.00.
P10,000.00.
was
P20,000.00.
appointed manager in the contract of partnership
the removal of the partner from
the
management is unjustifiable.
P30,000.00.
partner
at
P60,000.00.
The following cases are presented to you for evaluation:
A bilateral contract depends upon the agency.
II.
The agency is a means of fulfilling an obligation
a
house and lot,
lot
P180,000.00.
P
to A.
the
and
collect from X?
substitute oniy when the
previously contracted.
The agency is one where
co-owners of a
the
for P1,800,000.00 cash.
substitute is designated in the authority given by P
23.
sell
P1,500,000.00 cash with A being entitled to a commission
no
allowing him to appoint one.
A may appoint a substitute but he shall be liable
for the acts of the substitute only when the
substitute is notoriously incompetent or insolvent.
d.
X, Y and Z,
to
prohibited from doing so in his authority but he
shall be liable for the acts of the substitute.
A may not appoint a substitute because there is
605
and
27.
This is an agency that comprises one or more specific
transactions of the principal.
in which of the above cases is the principal not allowed to
revoke the agency?
a.
I and l.
b.
I and Il.
C.
I and II.
d.
1, II and Il1.
24.
28.
agency?
b.
C.
d.
Death,
the
civil
interdiction, insanity
principal or agent.
b.
General agency.
C.
Agency
Agency
d.
Which of the follow1ng is not a mode of extinguishing an
a.
Special agency.
a.
or
insolvency of
Accomplishment of the purpose of the agency.
of the period for which the agency was
Constituted.
Continued losses on the part of the principal or
agent.
couched
in.general
specific
couched in
terms.
terms.
for
P, o w n e r of a certain car, authorized A to sell the car
in the name
P100,000.00 cash. A, however, sold the car
the
buyer, knew at
of P for P110,000.00 but on credit. B,
A's
that
authority w a s to sell
the time of the transaction
the
is:
a.
Expiration
b
car
of P
on
cash basis. The contract entered into
by
A
limit of authority.
Void because B was a w a r e of A's
because he did not
liable
not
is
A
In this case,
undertake to get P's ratification.
w a s for
because the transaction, although it
Valid
credit,
was
more
P will be liable.
advantageous to P.
Accordingly,
AGENCY
606
607
AGENCY
C.
Unenforceable against
.
of his authority. Thus, A alone will be liable.
Rescissible, because P will suffer damage if the
sales price is not paid by B.
Pentinio appointed Anzures as
agent to sell
cash. Anzures, however,
Pentinio's goods for
sold the goods on credit for P11,000.00 without Pentinio's
consent.
Based on the foregoing facts, which of the
foilowing options are available to Pentinio?
Pentinio may demand immediate payment in
Pl1,000.00 cash.
I.
Pentinio may demand immediate payment in
29.
The death of the
P because A acted in
excess
P10,000.00
created is:
a.
b.
commission
C.
d.
32.
.
on
credit
amount to
An
a.
b.
Either i or Ili.
D.
C.
Either il or llI.
Either or II.
d.
I only.
reason
why
agernt
C.
the agency
waS
who contracts in the name of the
principal is
of the following cases. Which is it?
not
one
If the
If the
agent expressly bound himself.
agent acted beyond the limits of
without giving the party he
sufficient notice of his powers
his
au
coniracted
thority
with
If the other party knew that the agent exceeded his
authority and the agent undertook to secure the
ratification but the principai did not
principal's
ratify the contract.
for
be
d.
.
a
Reason I only.
Reason II only.
Either Reason I or Reason I.
Neither Reason I nor Reason II.
liable in
P10,000.00. cash. However,
Anzures shall be
entitled to keep the exce[s of P1,000.00 when he
collects the price of P11,000.00.
Pentinio may ratify the sale
P11,000.00 and wait for the
collecied.
principal extinguishes the agency, as
death of the principal, docs not
if the
rule
However, the
extinguish an agency
If the other party knew that the agent acted in
excess of his authority but the agent did not
undertake to secure the principal's ratifñcation
33.
A, a duly authorized agent of P, wrote a letter to X on May
1, 2015 offering to sell P's only Mercedes Benz car for
30.
P2,000,000.00 cash. On May 3, 2015, X wrote a letter to
A stating that he accepted all the teIms of the offer, which
letter was
by A on May 5, 2015. Before A
relay such acceptance to P, P died in a vehicular accident
on May 6, 2015.
The contract was not perfected because P, the real
a.
party to the sale, died before the acceptance came
P leads B to believe that A is his
(P's) agent. However, A is
not really the agent of P.
Later, B transacted with A
believing that A is the agent of P. What kind of agency
received
was created here?
a
.
C.
d.
31.
Agency
Agency
Agency
Agency
by ratification.
by appointment.
by estoppel.
by necessity.
Consider the following statements:
I.
An agency
may be constituted in the common
interest of the principal and the agent.
II.
An agency may be constituted in the interest of a
third person who has accepted the stipulation in
his favor.
b.
C.
d.
34.
couid
to his knowledge.
The contract was perfected on May 1, 2015.
The contract
The contract
was
perfected
on
May 3,
was
perfected
on
May 5, 2015.
2015.
as P's agent in the
P's
agent, dealt with
Manila Bulletin. For 5 years, A,
P revoked A's
June
On
1,
2015,
the public including X.
revocation.
notice
of
The
a
authority by giving the latter
A month
Star.
the
in
Philippine
revocation was published
P published the
appointment
of A
as
608
AGENCY
later, X, who was ignorant of the revocation, sold goods to
A as P's agent.
P is not obliged to pay for the goods because the
a.
publication of the revocation of A's authority is
suflicient notice.
P is obliged to pay for fhe goods since X was not
b.
aware of the revocation of A's authority.
C.
d.
AGENCY
609
37.
goods because
P
a.
the
b
because it was not his fault
C.
d.
When he exceeds the limit of his authority without
C
g1Ving the third person sufficient notice of his
powers.
When the third person knew of the agent's lack of
option
P may demand immediate
payment from A of the
amount of P18,000.00.
(P20,000 less 10%).
P may demand immediate
payment from A the
amount of P17,100.00 (P19,000.00 less
10%)
P may demand payment from A of the amount of
from B after 30 days.
P may choose not to ratify the sale.
P gave a general power of attorney to A to sell P's products
all over the Philippines. After three years, P revoked A's
authority by giving a notice of revocation to A. P also had
the revocation published in the Manila Bulletin. Despite
the revocation, A still sold P's products to X who had been
a regular customer for the past 3 years and who was also
However, X did not read the notice of
known to P.
P must bear the risk of collection because he is the
of the appliances.
A is liable to P because A acted beyond the scope
of his authority.
agent acting in the name of the principal shall not be
liable to the third perscn with whom he contracts:
a.
When he expressly binds himself.
to P
39
that B should
An
goods belonging
Which of the following acts does not require a special
power of attorney for the agent?
To effect novations whích put an end to obligations
a.
already in existence at the time the agency was
constituted.
To make gifts to the employees in the business
b.
managed by the agent.
C
To bind the principal in a contract of partnership.
d.
To lease any real property to another person for
more than a year.
owner
36.
to sell the
38.
disappear.
d.
his agent
P18,000.00 (P20,000.00 less 10%) when A collects
sold several
appliances to B for P20,000.00 the same being payable
after 30 days. When A went to B's place to collect the
price of the appliances, B, together with the appliances
that were sold, was nowhere to be found:
a.
A is liable to P for the price of the appliances
because A must bear the risk of collecting.
b.
A is not liable to P for the price of the appliances
as
a
available to P?
P appointed A as his agent to sell, the appliance products
of P.. The agreement between P.and A provides for the
payment to A of a 5% ordinary commission and a 10%
guarantee (or del credere) commission. A
A
commission of 10%. Thereafter, A sold the
goods of P
to B on 30-days credit term
for P20,000.00 without
authority from P.
The goods have a cash price of
P19,000.00. Which of the following is not an
notice of revocation to A is sufficient.
35.
appointed
for
P is obiiged to pay for the goods because the
revocation should have been published in the same
newspaper.
P is not obliged to pay for the
When the third person knew of
the agent's lack ol
authority but the agent did not undertake to gei
the principal's ratification.
d.
revocation in the Manila Builetin.
authority and the agent undertook to get the
a.
P is bound by the sale.
principal's ratification but failed to get the same.
b
The contract is
C.
A is not liable on the sale.
d.
X must be
unenforceable
specially
agaitnst
P.
informed of the revocation.
AGENCY
610
40.
611
P gave a special power of attorney to A to sell P's house
Lease of
and lot. On May 1, 2014, A sold the house and lot to X
5 years with an
annual rental of
through
a
deed
of
absolute
sale
acknowledged before a notary public.
which
was
II.
duly
On May 5, 2014, P
sold the house and lot to Y not knowing that A had
already sold the same to X. Although the deed of sale in
favor of Y had not yet been acknowledged before a notary
public by P and Y, Y immediately took possession of the
house and lot. X and Y were not aware of the sale made to
the other.
X is the owner of the house and lot.
Y
is the owner of the house and lot.
b.
X and Y will become co-owners of the house and
C.
lot.
P remains the owner of the house and lot.
d.
41.
AGENCY
The principal may deiegate to an agent the performance of
one of the following acts:
The power to attend and vote at the meetings of
a.
directors of a corporation of which the principal is
a director.
D.
The power to represent the principal in a marriage
ceremony where the principal is the groom.
The
power to vote in the elections of officials for
C.
public office while the principal is abroad.
d.
The power to vote in the election of directors of a
corporation of which the principal is a stockholder.
Lease of
lot located in Manila to X for
a
a
month-t0
period
P60,000.00.
a
of
lot located in Quezon
City to Y on a
month basis at a monthly rental of
P5,000.00.
Which of the two leases is valid and binding
upon P?
C.
I only.
II only.
Both I and I.
d.
Neither I nor II.
a.
b.
A4.
Which of the following is not a characteristic of the
contract of agency?
a.
Onerous, which means that an agency is presumed
to be for a compensation.
means that
the principal must deliver
the object to the agent for the perfection of the
contract.
Real, which
C.
Principal, which means that a contract of agency
can stand by itself.
d
Preparatory, which means that the a contract of
agency is a means by which other contracts will be
entered into.
45.
P delivered to A a power of attorney authorizing A to sell
A was able to sell
goods for P10,000.00 on cash basis.
the goods for P10,500.00, also on cash basis, to X, who
42.
Which of the following statements pertaining to a contract
of agency is incorrect?
a.
The death of the principal extinguishes the agency.
b.
An
agent may be a natural person or an
person like a corporation.
artificial
C.
A guarantee commission agent is not liable to the
d.
principal if he cannot collect the price of sale from
the buyers.
A contract of agency is presumed to be for a
compensation.
43.
P gave a
general
A
entered
follows:
into
a
power of attorney to A. During the year,
lease contract involving two lots of P as
upon learning of A's authority as regards the selling price,
sought to annul the sale.
X may successfuly annul the sale because A
a.
exceeded his authority.
X may not successfully annul the sale because A
b.
acted in a manner more advantageous to P.
X may successfully annul the sale because there
C.
was no instruction given by P to A to sell more
than P10,000.00.
X may successfully annul the sale because no
d.
mention was made on A's authority that he could
sell only at the price of P10,000.00.
AGENCY
612
46.
For more than 5 years, A
P appointed A as his agent.
transacted business with the general public including X.
P revoked the authorityof
On the sixth year of the agency,
a notice of revocation to A and
A as his agent by giving
the revocation in the Manila
causing the publication of
Bulletin on the same day that P revoked A's authority,
to which P agreed. A selected S as his
substitute. S sold
generators on a term of 60 days. The accounts, resulting
from these sales later proved to be uncollectible. Based on
the foregoing, which of the
following statement/s are/1s
false?
A will be liable to P if S is
I.
Three months thereafter, X, who was not aware of the
or insolvent without prejudice to the right of P to
notoriously incompetent
go after S.
revocation of A's authority, in the course of his usual
business
transactions
delivered goods to A.
goods.
a.
b.
with
A
as
P's
agent,
sold
II.
and
C
.
III.
b.
P is liable to X because P should have specially
informed X that A's authority had been revoked.
P is liable because A was a customer of long
standing and must be given the benefit of the
doubt.
d.
49
Lease of a lot located in Quezon City to Y on a
month-to- month basis at a. monihly rental of
P5,000.00.
Which of the two leases is valid and binding upon P?
a.
I only.
I and II are false.
I and IIl are false.
II and III are faise.
Only IlI is false.
Pgave a special power of attorney to A to sell a piece
land belonging to P. On April 1, P was able to sell the land
to X. The sale was in a public instrument with X taking
immediate physical possession of the land. A learned of
the sále made by P but nonetheless, he sold the same
piece of land to Y. The sale was in a public instrument
which Y registered in the Register of Deeds. Neither X nor
Y knew of the sale made to the other
The piece of land belongs to X.
a.
The piece of land belongs toY.
.
The piece of land shall be owned jointly by X and Y
C.
since no one was aware of the sale made to the
d.
other
The ownership of the piece of land remains with P
since neither X nor Y is entitled to the land.
II only.
P appointed A as his exclusive agent to sell generators on
cash basis in
Davao City. As A had to leave for Europe
for a one-month pleasuré trip, he asked P to allow him to
In
S sold a piece of land belonging to his father F, to B.
before
w
a
s
which
absolute
acknowledged
the deed of
sale
a notary public, S signed as the agent of F. The fatt,
in
however, was that no power of attorney was executed
favor of S by his father. Later, in the presence of two
F told B that he would abide by the sale
appoint a substitute to take his place during his absence.
executed by S.
Both I and II.
d
48
A will be liable to P whether or not
is notoriously
or insolvent without
prejudice to the
ight of P to go after S.
P is not liable because the revocation as published
P120,000.00.
b.
is not notoriously
incompetent
P is liable to X because X did not read the
publication of the revocation of A's-power.
P gave a general power of attorney to A . During the year,
A entered into two lease contracts involving properties
belonging to P as follows:
ease of a drilling equipment located in Manila to
for a period of 2 years with an annual rental of
I.
A will not be liable to P S
incompetent or insolvent.
X now sues P for the price of the
is binding upon any person including X although X
has not read the publication.
47.
613
AGENCY
Neither I nor II.
50.
witnesses,
AGENCY
614
AGENCY
void at the start but was validated
by F.
upon the
void
despite the ratification by
remained
The sale
The sale
a.
b.
was
ratification
b
C.
Either Alcantara or Adviento
may be held liable by
Precious for P20,000.00 sirice their liability is
d.
The purchase of the carpets and
rugs is voidable;
The sale was valid from the start since it was made
a
public
instrument and F, the owner, agreed to
abide by the same.
from the seller of the said items.
was ratified when F agreed to abide by the same.
Almirante
51.
was
given
a
general
power
of
attorney
by
53
Building which is owned by
During the month of November 2015,
Pamplona.
Almirante made the following payments:
Purchase price of the adjacent lot which was
Pamplona
to manage Polaris
II.
acquired by Pamplona.
Salaries and wages of the building employees for
III.
Service fee of Otis Elevators for the maintenanceof
V.
Cost of electrical and other building supplies.
the building elevator.
C.
d.
the foregoing facts, which of the payments will
54.
P gave
Only the sale of Lot X is binding on P.
Only the sale of Lot Y is binding on P.
special
Precious Rugs
power of attorney to A to buy 1,000
of
EXXO Corporation which was then
shares of
being traded at the stock exchange at P50.00 per share. P
instructed A to make the purchase within two aays and
advance the purchase price of P50,000.00 plus the stock
transaction tax, commission and other expenses which
amounted to P3,000.00.
With the instruction, A made
the purchast and received the stock certificate for the
shares. However, three days thereafter and before A was
general
of attorney
their liability to Precious would
able to get his reimbursement from P for the advances he
had made, the price of EXXO shares went down to P45.00
be binding on Pamplona?
a.
I, II and III.
b.
II, III and IV.
C.
I, II and IV.
d.
I, III and IV.
52.
P 30 years old, gave a special power of attorney to A, 17
years old, to sell 2 lots (Lot X and Lot Y) belonging to P.
The contract of agency provided for a term of 2 years from
the date of execution. Before reaching the age of 18, A
was able to sell Lot X. After turning 18 years old and
before the expiration ot the two-year term, he also sold Lot
Y.
a.
Lot X and Lot Y are binding on P.
b.
sale of both Lot X and Lot Y are not binding on
P.
The sale of both
The
November 2015.
Based
solidary.
hence, the amount of P20,000.00 may be recovered
The sale was merely unenforceable at the start but
d.
Alcantara and Adviento will be liable jointly at
P10,000.00 each to Precious.
F.
in
615
stock
Alcantara and Adviento were appointed as agents by
and Carpets, Inc. to sell its products. Since
Alcantara and Adviento would be working together, the
granted to them indicated that
power
be solidary.
In a trip to
Davao, Alcantara, without the knowledge of Adviento,
purchased rugs and carpets in behalf of Precious at a
discounted price of P20,000.00 using the funds that they
had collected from their sales.
When the company
learned of the purchase, it
sought to recover the amount
of P20,000.00 from Alcantara and Adviento.
a.
Alcantara
Precious.
a
alone will be liable for P20,000.00
to
per share. P now is having second thoughts on making the
reimbursement to A.
a.
Pis liable to A only for P48,000.00 [(1,000 shares x
P45.00) + P3,000.00.]
b.
P is liable
P50.00) +
C
to A for P53,000.00 [(1,000 shares x
P3,000.00.]
P is not liable at all because the
resulted in a loss.
transaction
AGENCY
616
d
55
AGENCY
C
A alone will shoulk er the loss because the risk of
loss is part of his joh as an agent.
d.
the circumstances show
Refer to No. 54. Assuming that
advanced by A, but Pis
amount
the
for
that P is liable to A
A can retain
the
reimbursement,
make
unwilling to
until he receives the
of the stock
possession
reimbursement.
certificate
58.
56
b.
legal pledge.
C.
real motgage.
antichresis.
C
d.
59
is a general power of attorney?
Sale of a pieceof land.
Lease of a piece of land to a third person for a
by the agent.
Contract of partnership
with
the
Insolvency of the agent.
foregoing facts, the following statements are present d
principal as
to
you for evaluation:
I.
P and T shall have no right of action against each
other.
III.
sixth
year, P gave a notice to A that he was revoking the latter's
authority. Despite the revocation of his authority, Asold
revoked. The revocation of A's authority was published
the Manila Bulletin but T was not able to read
a.
in
it.
Although T had paid the price to A who kept the proceeds
to himself, the goods had not yet been delivered to T. SoT.
demanded delivery from P.
P is not obliged to deliver the goods because he
a.
revocation of A's
deliver
authority
the
goods
was not
60
P appointed Al and A2 as his agents to manage P's
grocery store. The general power
attorney given by P to
the agents indicated that their liability to P shall be
solidary. One day, a truck salesman visited the store and
to sell his delivery truck for a discounted price.
of
had already revoked A's authority.
to
The
contract of lease is a valid and binding
contract between A and T.
P can go after A for damages for preferring his
interest over that of P.
In your evaluation of the foregoing facts and statements:
I and II àre true.
I and llI are true.
D.
II and Il are true.
C.
All are true.
d.
goods to T who was not aware that A's authority had been
obliged
at least
brisk business in the area, A presented himself as the
lessee instead of P. Accordingly, A lease contract was
executed between A as lessee, and T as lessor, who was
not aware of the agency between P and A.
Based on the
attorney to A to sell P's goods. For more than 5 years, T
dealt with A for the purchase of P's goods. On the
is
Insanity of the agent:
Continued business losses of the
agent for
a special power of
attorney to A to lease a building
good location where P could put up an auto supply
business. A found a building at a good location that
I.
P
the
P gave
P, in Manila, wrote a letter to T, who is based in Cebu,
informing the latter that he (P) had given a power of
b.
publication
authority.
belonged to T at Banaue in Quezon City, but seeing the
partner.
57
P had
at a
period of 2 years.
Gifts made to employees in the business managed
d.
of A's
2 years.
authority
b.
obliged
goods
goods.
price
Which of the following does not
extinguish an agency
a.
Dissolution of the corporation that entrusted
b.
Which of the following contracts entered into by the agent
is binding upon the principal although the agent's
a.
obliged
to deliver the
because
not yet received the
of the
P is not
to deliver the
goods because T is
presumed to have read the
of the
agency.
which is in the nature of a:
chattel mortgage.
Pis not
revocation
Such right of retention is also a security
a.
617
because
binding
on
the
T.
offered
AGENCY
618
The lcase of a vehicle for the usc of the principal
who is a duly lice.n sed driver for two
nor.ths.
at the store at that time
since he believed that
behalf
truck in Ps
the store really needed a vehicle in the delivery of goods
Al, who w a s
purchased the
the
only
one
from suppliers and to custoi.ers.
619
AGENCY
The
d
attendance at the board meetings
of wihich the principal is a
corporation
Moreover, he thought
purehase,
he
discounted price. Al paid the price out of
from grocery sales. When P learned of the
sought
to disaffirm the sale and recover
63
Both Al and A2 are liable to P for the amount paid
for the delivery truck.
b.
Only Al can be held liable by P for the returnof
the amount paid for the delivery truck.
P cannot hold the agents liable because
the
transaction benefited P.
d.
P and Al should shoulder the purchase price
equally in fairness to Al whose only concern was
the benefit to the business of the transaction.
P and B never became bound by the
P, the owner of a condominium, gave a general power of
attorney to A to manage the building. P and A, however,
had a private understanding that A should not lease any
unit to a foreigner. For he month of May 2014, A entered
into the following leases of two condominium units:
Unit 2, to F, a Filipino, for a period of 2 years.
II
Unit 5, to J, a Japanese, who was in a business
trip to the Philippines, for 3 months.
64.
Based on your review of the foregoing statements:
b.
Both
lease contracts are yalid and bindirg on P.
Both lease contracts are hot binding on P.
C.
Only I is valid and bindihg on P.
d.
Only II is valid and binding on P.
a.
62
Which
of the
following
is a
valid
delegation
by
contract of
sale because it was not susceptible of ratification.
d.
61.
Shortly after the sale, P sent B a telegram
informing him that he (P) was ratifying the sale.
B,
however, had already changed his mind and informed P
that he (B) was withdrawing from the contract.
P and B became bound by the contract of sale at
a.
the time of execution because it was in a public
instrument.
P and B became bound by the contract of sale at
b.
the time that P ratified the saie.
amount paid for the purchase.
a.
P, the owner of a lot, gave an oral authority to A to sell the
lot. A thus sold the lot to B in P's name in a public
instrument.
the
a
director
that the transaction was a good one since the truck was
sold at a
being
his collections
of
the
B can no longer withdraw from the contract
because P had made an earlier ratification of it.
P gave a general power of attornev to A to manage
business in Manila. While P was in Bacolod City, he made
a cali to A to sell P's lot located in Sampaloc. A thus sold
the lot to X by presenting the generai power of attorney
The sale to X was in a public
given to him by P.
instrument. Thinking that A had not yet soid the lot, P
sold the same lot to Y with whom he was meeting in
Bacolod and who was interested in the lot. Y was not
aware of the sale entered into byi.with X. The sale to Y
was likewise in a public instrument.
The lot belongs to X.
a.
The lot belongs to Y.
b.
Neither X nor Y is entitled to the lot.
.
The lot will be owned joihtly by X and Y.
d.
principal to his agent?
a.
p.
The
purchase
Manila. The
The
the agent of a land located in
principal is an American.
exercise of the voting right in the
elections.
The
by.
principal
is
qualified voter like the agent.
Filipino
who
loca
is a
65.
Which of the following contracts entered into
is
binding
upon
the
principal
although
the
by
agent
the agent's
authority is a general power of attorney?
Sale of a building.
a.
b.
Lease of a piece of land to a third person for
period of 2 years.
a
AGENCY
620
C
Customaiy gifts to charity.
Contract of partnership with
the
principal
as
d.
partner.
A has been the agent of P for the past 3 years in the
purchase of palay in different provinces of Luzon.
68.
agent:
If the
.
The
authority given by P to A provided that A need not render
One day, A chanced
agent
61.
The
foilowing
statements
the agent of a substitute:
if the
agent
was
to the
pertain
authorized
to
In your evaluation of the forcgoing state ments:
Both statements are true.
a.
Both statements are false.
b.
Only Statement i is true.
d
Only Statement II is true.
69
P, 28 years old, gave a power of attomey to A, 17, to sell
antique furniture. Pursuant to the authority, A sold an
antique table for P50,000.00 to B, who is insane, and an
antique desk for P20,000.00 to C, 35 years old. Which of
the foregoing contracts is valid?
a.
The contract of agency
The sale of the artique table.
b.
The sale of the antique desk.
c.
None of the foregoing contracts is valid.
d.
70.
These statements are presented to you:
A general agency may be couched in specific terms.
A special agency may be couched in general terms.
II.
but the substitute was not
designated, the agent
will not be liable to the
principal if the substitute
appointed was not notoriously incompetent or
I.
insolvent
fbutthetheagent was authorized
substitute
not be liable to the
was
.
Both statements
Both statements
appoint
a
substitute
designated,
principal
notoriously incompetent
In your evaluation of the
a.
was
to
foregoing
are
true.
are
false.
even
or
the agent will
if the substitute
insolvent.
statements:
by pitbiic advertisement,
pubication.
substitute
a
an
such as by
a newspaper of generai circulation,
the person appointed will be tonsidered as agent
with regard to
any person who reads the
appointment by
appoint
of
the arnnouncement of the appointment of an
agent
is made
publication in
them from a supplier at the regular price of P600.00
which was the same purchase price of palay in his earlier
transactions.
passed
appointment
special iníormation.
t
warehouse. Every time that P needed palay, A would get
thenm from his stock and made it appeaf that he bought
.
is
appointed
the discounted price of Ps00.00 per sack. A purchased all
the paiay using his own money and stored them at his
b.
announcemenit of the
by specia' information, the person
wil be considered a duly authorized
agent with respect to the person who received the
upon a wholesaler of palay who oftered to sell them to A at
A must aceount to P all the profits that he obtained
from the transaction.
need not account to P the profits that he
obtained because he used his own money.
ATeed not render an accounting of his
transactions because he was not obligated to do so
under the power of attorney given to him by P.
A cannot be held liable for
damages because he
on the palay to P at the purchase
price of
his previous transactions.
Only Staternent is true
Only Statement is true.
The following siatements Tertain to the appointment of an
an accounting of his transactions.
a.
621
AGENCY
In your evaluation of the foregoing
a.
Both statements are true.
b.
Both statements are false.
Only Statement l is true.
Only Statement il is true.
C.
l.
statements:
AGENCY
622
71.
AGENCY
the
price within 30 days from the receipt of the shiprnent,
minus a discount of 25%. What contract was entered into
P, who owns a lot, gave A, his agent, the authority to sell
the lot. Jn which of the following cases is thé sale of the lot
between Sampaca and Bergonio?
a.
Contract of sale
b.
Contract of agency to sell
C.
Contract to sell
d.
Contract of consignment
unenforceable?
Form of A's Authority
Form of Contract of
Oral
Public Instrument
Private instrument
Public Instrument
Oral
Sale
3-
Public Instrument
Public Instrument
C.
a.
72.
Private Instrument
76.
These statements are presented to you:
Il.
523
An agent acts for himself and for his principal.
A partner acts for himselí, for the partnership, and
for his partners.
These statements are presented to you:
If the agent has been
I.
empowered to borrow money
of his principal, he may himself be the
in
behalf
lender at the current rate of interest.
If the agent has been authorized to lend the money
II.
of his principal, he may himself be a borrower
the principal's consent provided the
even
is
than the current rate.
higher
interest
without
In your evaluation of the foregoing statements:
Only Statement I is true.
Only Statement II is true.
Both statements are true.
d.
Both statements are false.
In your evaluation of the foregoing statements:
a.
.
C.
13
These statemcnis are presented to you:
Agency and partnership are preparatory contracts.
Partnership is a branch of the law on agency.
1.
d.
77.
power of attprney to Almiro to manage the business.
75
business at
1% interest per month. Almiro himsef is ihe
one who lends the money at such interest rate. Thus, in
the said contract of loan, Almiro enters into the contract
Only Statement I is true.
Only Statement II is true
Agency is different from negotiorum gestio because in
agency:
a.
There is a meeting of minds.
b.
The legal relation is created by law.
The one who acts follows his own judgment and
C
the presumed will of the owner.
No representation has
d.
been agreed upon.
Sampaca,
manufacturer
Sergonio entered into a
of "Dreamland" beds, and
contract with the following terms:
Sampaca was to furnish beds to Bergonio who must pay
Paladino, the owner of a grocery store, gave a genera
Almiro was given the authority to borrow money for the
In your evaluation of the foregoing statements:
a.
Both statements are true.
.
Both statement are false.
C.
Both statements are true.
Both statements are faise.
Only Statement I is true.
Only Statement lI is true.
in his own behalf as lender and represents Paladino as
The contract of ioan in such ä case is
borrower.
considered as:
an auto-contract.
78.
b.
an aleatory contract.
C.
a remuneratory contract.
d.
a gratuitous contract.
Principe,
the owner of a BMW car, gave a power of
Agerico to sell it. A week later, Principe gave
to
attorney
another power of attorney to Anastacio to sell the same
car without giving notice thereof to Agerico. Agenco was
able
to
sell
the car to Borsaljno.
When
Borsalino
AGENCY
624
AGENCY
demaned h
dclivery of the car, Prncipe Tefused to do sn
that
Agerico's authority to sell the c a r was
claiming
to Anastacio.
impliedly r e r oked by the authority given
w a s inmpliedly revoked by the
authority
a.
b.
C.
Pastorfide can proceed only
against Sulpicio
because Angeles exercised
prudence
when he
appointed as his substitute one who was not
d.
Pastorfide
Agcrico's
Anastacio to sell the car.
appon3ent of
the car was not revoked
Agerico s auihority to sell
to Anastacio.
gven
new
authoriy
despite the
did n o t co-exist with that given
to Anastacio.
d.
81.
nullifioi because of confict.
Statementi - A sipulation exempting the' agent from the
obligation to render an accournt of his transaciions is valid
provided the principal does not suffer any damage.
79
notoriously incompetent or insolvent.
can
proceed against Angeles
and
Sulpicio for the uncollectible account and other
damages that he sustained by him.
Agerico's authority
The authority given io boih agents is considered
625
A was appointed by P to sell the latter's
car for a cash
price of P100,000.00. However, A was able to seil the car
for P120,000.00 cash.
a.
A must turn over
only the amount of P100,000.00
to P whose only right was to demand the cash
price
Thus, the A keeps the excess of
agreed upon.
P20,000.00.
b
Statement II - A stipuiation that the agent will àdvance
the necessary funds to carny out tiie agency is void.
A must turn over the amount of
since A must acount all that he had
Pi120,000.00
to P
received in
carrying out the agency. Besides, A did not act in
of his authority because the sale he made
was more beneficial to P
A must turn over the amount of
P100,000.00 to P
since A acted in excess of authority when he sold
the car for more than P100,000.00.
A must turn over the amount of Pl20,000.00 to P,
but P must eventually give the excess of
excess
Both statenents are true.
a.
Both statemenis are false.
Only Statement I is true.
Only Statement Ii is true.
b.
C.
d.
d.
Pastorfide, an importer of fire extinguishers, gave Angeles
80.
the exclus1ve authority to distribute the product in Laoag
City. The authority provided that all sales should be on
cash basis, but no mention was made whether or not
Angeles couid appoint a substitute. Without notifying
Pastorfide, Angeles appointed Sulpicio, a reasonably
prudent nan, as his substitute when he went on a onemonth Asian cruise. Sulpicio sold the fîre extinguishers on
of 60 days.
The sales later proved to be
uncollectible.
a.
Pastorfide cannot proceed against Angeles because
the lattet acted in good faith in
appointing a
substitute.
Neither can he proceed against
a
term
Sulpicio because the latter was a reasonably
prudent mån.
b.
Pastorfide
can
only proceed against Angeles
damages since Sulpicio
incompetent or insolvent.
was
not
for
notoriously
P20,000.00 to A.
82.
P, the owner of several properties including a certain car,
appointed A to manage them.
Later, the car was
repossessed by the bank on account of P's default in the
payment of a lcan obligation for which the car was
given
as security by way of chattel mortgage.
During the
auction sale, A, in his personal capacity, was able to buv
the car since his bid was the highest among 10 bidders.
His
purchase
of the
car was
without the
What is the status of the sale?
a.
b.
knowledge
of A.
Valid, because A bought the car fair and square as
his bid was the highest among 10 bidders
Voidable, because an agent cannot acquire by
purchase any property of the principal placed
under his administration without the principal's
consent.
AGENCY
626
Void,
C
purchase of the, car by A was
of his fiduciary duty to P.
because the
a
86.
violation
Unenforceable, because the acquisition of the car
by & was
P gave
83.
a
These statements
to you:
sell includes
II.
A special power to mortgage excludes the power to
special
power
to
to A
to sell a
In your evaluation of the foregoing statements:
P was able to sell the piano
Both statements are true.
b.
Y
C.
knew of the sale made to the other. Whose contract will
d.
Both statements are false
Only Statement I is true.
Only Statement il is true.
private
Nonetheless,
A
instrument and
still
sold
the
informed A about
piano
to
Y
nor
prevail?
The contract with X.
a.
b.
C.
d.
87.
The contract with Y.
Neither, because of conflict of interest.
Both contracts with X and Y becoming co-owners
of the piano.
Who wil1 be iiable for damages to the
Refer to No. 83.
party whose contract will be rejected?
P, because he disregarded the authority he gave to
a.
A when he made the sale to X.
A, because he was in bad faith when he made the
sale to Y although he had knowledge of the
previous sale made by P.
C.
Both A and P wili share equally in the payment of
Almonte was given general powers of administration by
Pampilo who was suffering from financial difficulties. In
order to help Pampilo, Almonte sold the former's lot for
double its market price, which amount was more than
Is
enough to improve Pampilo's financial condition.
Pampilo bound by the sale made by Almonte?
Yes, because the transaction resulted in saving
a.
Pampilo from his financial difficulties.
Yes, because an agent is not considered to have
b.
exceeded his authority if he acted in a manner
more advantageous to this principal.
No, because Almonte acted in excess of authority.
.
Yes,
because the disposition of amy property
d.
belonging to Pampilo is embraced in the authority
he gave to Almonte.
damages.
d.
Neither A nor P, because both contracts will be
honored.
Principal appointed Agent fora period of two years:
Principal may revoke the agency before the end
I.
of
the two-year period.
II.
may withdraw from the agency before the
end of the two-year period.
Agent
In your evaluation of the foregoing statements:
Both statements are true.
b.
Both statements arc false.
a.
C.
to
certain piano.
who
through
a
the -power
sell
power of attorney
it.
the piano. Neither X
immediately took possession of
d.
presented
A
a.
to X
85.
are
.
mortgage.
without P's consent.
Before A could find a buyer,
84.
627
AGENCY
Only Statement i is true.
Only Statement IT is true,
88.
Primicias gave a special power of attorney to Amper to sell
the former's lot for P100,000.00. Amper offered to sell the
lot to Letada who, however, was willing only to lend
P100,000.00 and take a mortgage o n the lot. Amper thus
mortgaged the lot and received the loan proceeds of
P100,000.00. Which contract was binding on Primicias?
The loan obligation of P100,000.00.
a.
The real mortgage on the lot.
b.
Both (a) and (6), because the transactions were
C.
advantageous to Primicias. He gets P100,000.00,
while the mortgage allowed him to retain title to
d.
the lot.
Neither (a) nor
of authority.
(b)
because Amper acted in
excess
628
89
AGENCY
Pomeranz, the owner of three cars, authorized Abrazado to
sell Car 1 for P600,000.00; Car 2 for P400,000.00; and
Car 3 for P700,000.00, all on cash basis. Later, Abrazado
gave an account of his transactions to Pomeranz as
follows:
AGENCY
TEST II- MATCHING TYPE. lndicate
your answers by writing
the letter repre senting the staternent or
phrase. that best
describes, defines or explains the numbered iterns.
Terma
Car 1-sold for P590,000.00 cash.
Car 2-sold for P450,000.00in three equal monthly installments of P150,000.00.
Car 3- sold for P720,000.00 cash.
III.
The sale that is binding on Pomeranz is the sale of:
Car 1 and Car 3.
a.
Car 2 and Car 3.
b.
Car 3 only.
None of the three cars, because Abrazado acted in
d.
excess of authority in each case.
90
The
following
acts
require
a
special
power of
1
Agency
Fiduciary
3.
5.
6.
7.
9.
10.
11
Broker
Del credere commission
Implied agency
12
13
Express agency
14
General agency
15.
Special agency
Pri.cipal
Agent
16.
17.
Arbitration
General power of attorney
Speciai power of attorney
Substitute
Commission agent
b.
C.
d.
Civilterdiction
Compromise
18. Revocation
19. Withdrawal
20.
Instructions
attorney,
except:
ai
629
Statements
To
To
To
To
loan the money of the prin
al
borrow money in behalf of the principal.
submit questions to arbitration.
lease real property for one year or less.
A.
The
B.
The person who
receipt thereof by the agent, in addition to the
ordinary commission, will make the agent bear the risks of
collection.
C.
Di
E.
F.
gives authority to another to pertorm a
certain act in the former's behalf.
It comprises all the business of the principal.
The nature of the relationship of the
principal and the
agent, which is founded on trust and confidence.
This refers to the act of the principal of
terminating the
agency at will.
He serves as intermediary between his principal and the
buyer or seller and has no relation to the property subject
G.
H.
.
matter of the transaction.
A contract whereby a person binds himself to render
some service or to do something in representation or in
behalf of another, with the consent and authority of the
latter.
A person appointed by the agent to perform the tasks
entrusted to him by the principal.
This refers to the submission of the controversý to a third
person for decision and which will require a special power
AGENCY
630
of attorney
.
when
made
by
an
agent
in
AGENCY
behalf of his
Legal capacity of the agent is not necessary for the validity
of his acts since they are considered to
be those of the
principal.
A contract whereby the parties agree to make reciprocal
concessions
to
avoid
or
end
a
litigation,
and
principal.
the
performance of which by an agent will require a special
2.
3.
to the principal.
M.
N.
service or does something in
representation or in behalf of another with the latter's
consent and authority.
A penalty which deprives a person of the right to managRe
or dispose his property and which will cause the
extinguishment of an agency if imposed upon the principal
or the agent.
The authority required when the act to be performed by an
agent is an act of ownership or strict dominion, a
gratuitous act, or an act where trust and confidence is the
essence of the agreement.
O.
P.
Q
R
S.
T.
U.
They refer to the orders given by the principal to hisagent
relating to the manner by which the agency shall be
carried out.
An agency that is inferred from the acts of the principal or
from his silence or inaction, or from his failure to
repudiate the agency knowing that another person is
acting in his behalf without authority.
The authority given by the principal to his
agent when the
act to be performed is an act of
administration
An agency that is entered into
orally or in writing.
An
agency that comprises one or more specific
transactions.
A person who buys and sells
goods consigned or delivered
to him by his
principal, for a compensation known as
4.
1.
8.
9.
10.
TRUE
OR FALSE. Write the word "TRUE" if the
statement is true, and the word FALSE" if
the statement is false.
-
a piece of land is made
through an agent,
of the agent must be in
writing for the sale to
The right to vote during elections for a
be
public office maythat
delegated by a person to his agent since it is a right
the principal may lawfully do.
A general agency may be couched in
specific terms.
A special agency may be couched in
terms.
general
The agent may borrow money in behalf of the
principal
even without a special
power of attorney if the same is
urgent and indispensable for the preservation of the
property under the administration of the agent.
Payments made by the agent, whether or not they are
considered as acts of administration, require only a
general power of attorney from the principal.
Customary gifts for charity, when made by an agent,
requires a special power of attorney.
An agent is deemed to have impliedly
accepted an agency
if the principal transmits to hin by letter or
telegram a
to the business in which he
respect
power
attorney
is habitually engaged as an agent and the
agent did not
reply to the letter or telegram.
f the announcement of the appointment of an agent is by
special information, and the announcement of the
revocation of the appointmnent is made by public
advertisement, the person to whom the special
.
of
with
information was given is bound by the revocation although
11.
Commission.
None of the foregoing.
TEST III
authority
be valid.
n
A person who performs a
When the sale of
the
the principal.
power of attorney from
A mode of extinguishment of an agency when the agent
terminates the agency by giIVing notice of such termination
631
12.
he has not read the advertisement.
If an agent acts with the authority of the principal but in
his (agent's) own name, the third person with whom the
agent had contracted shall have no' right of action against
the principal unless the contract involves things belonging
to the principal.
An agent is bound to advance the necessary funds for the
accomplishment of the agency although there is no
stipulation that the agent shall make such advances.
13.
Third persons are bound to know whether an agent is
acting within his authority or not and thus can require the
agent to present his power of attorney.
AGENCY
632
14.
The agent may, even wit'iout the consent of the principal
borrow the money of tiie principal which is under his
15.
(agent's) custody or admii
and the principal that the
A stipulation between the agent
render an accounting of his transactions is
not
need
agent
AGENCY
each other, the principal shall be liable
for damages to
the person whose contract shall be
rejected if the agent
acted in good faith.
istration.
27.
The
The agent shall be liable for damages if there being a
conflict between his interest and that of the principal, he
28.
not insolvent.
The principal may terminate
should prefer his own.
An agent may appoint
29.
valid.
16.
17.
a
substitute
if
30.
from doing so.
18.
agénts
The liability of two or more
simultaneously by the principal is solidary.
appointed
19.
An agent who acts within the scope of his authority and in
the name of his principal shall not be liable to the third
person with whom he contracts unless he expressly bound
himself.
If an agent acts in excess of authority and the person with
whom he contracts knows of such fact, the agent shall not
be liable if he did not undertake to get the principal's
ratification.
21.
22
23.
24.
A commission agent can sell on credit even without the
consent of his principal.
The principal and the agent may stipulate that the
principal shall be liable for the expenses of the agency up
to a certain amount only.
When two or more principals have appointed an agent for
a common transaction or undertaking, they shall be
jointly liable for all the consequences of the agency.
The principal shall reimburse the agent the sums
advanced by the latter even if the business or
undertaking
was not successful provided that the agent is free from all
fault.
25.
The agent has the right to
retair in pledge the things
which are the object of the
agency until the principal pays
him the indemnity for all damages which the execution or
the agency may have caused the agent, without fault or
26.
When two persons contract with
regard to the same thing
one of them with the
agent, and the other with the
principal, and the two contracts are incompatible Wit
negligence on his part.
insolvency
of
the
agent
does
not
cause
the
extinguishment of the agency as long as the principal is
an
agency
bilateral contract depends upon it.
An agency is not terminated
by the
if it
the power of
attorney does not contain any prohibition to the agent
20.
633
at will
although
death of the
a
principal
constituted in the common interest of the
principal and the agent.
Although the agent knows of the death of the principal, he
must finish the business that he had
already begun on
the death of the principal.
was
AGENCY
634
AGENCY
635
TEST III- TRUE OR FALSE
ANSWERS
TO DLAGNOSTIC EXERCISES
1.
TRUE
2.
TRUE
AGENCY
TESTI - MULTIPLE
.
B
B
3.
A
4.
C
A
5.
7.
8.
D
B
A
10. A
11. A
12. B
13.
14. B
15. B
16. D
17. A
18. A
19. C
20. D
9.
CHOICE
21. A
22. A
23. D
24. D
25. B
26. B
27.A
28. A
29
30
B
C
31. C
32.
33.
34.
35.
D
D
A
A
36. D
37.
38.
39.
40.
A
B
B
A
41.
42.
43.
44.
45.
D
C
B
B
B
46. B
47. C
48. D
49 B
50. B
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
B
A
A
B
B
C
B
C
D
B
81. B
82. B
83. B
61. D
62. C
63. C
64. B
84. B
85. A
86. D
87. C
88. D
89. C
90. D
65. C
66. A
67. A
68. C
69. C
70. A
71. C
72. B
73. A
74. A
75. A
76. C
77. A
78. B
79. B
80. D
TEST II -MATCHING TYPE
1
2.
3.
G
D
P
4.
R
5.
C
6.
7.
8.
9.
10.
S
Q
N
H
T
11. F
A
13. M
14. B
15. L
12
16.
17.
18.
19.
20.
J
E
K
O
11. TRUE
12. FALSE
FALSE
13. TRUE
TRUE
14. FALSE
5.
TRUE
6.
TRUE
7.
FALSE
8. FALSE
9. TRUE
10. FALSE
15. FALSE
16.
17.
18.
19.
20.
TRUE
TRUJE
FALSE
TRUE
TRUE
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
FALSE
TRUE
FALSE
TRUE
TRUE
TRUE
FALSE
FALSE
TRUE
TRUJE