AGENCY

ARTICLE 2085
1. Elements of contracts of pledge and mortgage except?
a.
b.
c.
d.

Both are accessory contracts

Both are real contracts
Both cannot exists without a valid obligation
In case of default, the creditors cannot appropriate the things pledged or
mortgaged

Answer: B

ARTICLE 1874
2. With written authority from his principal, the agent sold orally the land of the
principal. The sale is:
a. Rescissible

b. Voidable

c. Unenforceable

d. Void

Answer: C

ARTICLE 1874
3. Without authority from B, A orally sold Bs house in Bs name. the sale is:
a. Rescissible

b. Voidable

c. Unenforceable

d. Void

Answer: D

ARTICLE 1895
4. P appointed A1 and A2 as his agents for a common transaction and they
agreed that they shall be solidarily liable to the P for damages in case of
violations of their obligation as such. When is the agents at fault the only one
liable for damages even if solidarity has been stipulated?
a.
b.
c.
d.

If the other agent is not at fault

Both of them shall be liable always since solidarity was agreed upon
If the one fault shall answer for all the damages
If the one at fault acted in excess of authority

Answer: B

ARTICLE 2140
5. Chattel Mortgage as distinguished from pledged:
a.
b.
c.
d.

The
The
The
The

delivery of the personal property is necessary

registration of the property in the Registry of Property is not necessary
excess over the amount due after foreclosure goes to the debtor
sale in auction of the object extinguishes the obligation

Answer: C

ARTICLE 2115
6. D pledged his watch to C for Php 20,000. D failed to pay his obligation on
time.
Case 1 If C sold it at public auction for Php 18,000, C cannot recover the deficiency
even if there is stipulation.
Case 2 If C sold at the public auction for Php 22,000, D can recover the excess if
stipulated.
a.
b.
c.
d.

1st wrong, 2nd correct

1st correct, 2nd wrong
Both cases are correct
Both cases are wrong

Answer: C