IGarcia, Mark Anthon T.

BSA II

I. Bulk Sales Law (Act. No. 3952)

Situation 1. Andres is an owner of a business engaged in manufacturing empanada. His assets include
100 pcs of empanada, 100 thousand worth of ingredients, 200 thousand worth of equipment. Andres
decided to sell 100 pcs of empanada and 100 thousand worth of ingredients.

 Is Andres covered by Bulk Sales Law, why or why not?

-Andres stated that he is decided to sell 100 pcs of empanada and 100 thousand worth of
ingredients, in sellers point of view Andres does not covered by Bulk Sales Law because there's
no sale of stock happens and also because Andres should produce and deliver a written waiver
of the provision of bulk sales law.
 Suppose Andres is covered by Bulk Sales Law, what must he do in order to legally sell his Assets?
-He must sale substantially all of his assets orn80% of it that are not included in his
ordinary course of business. If he meet that requirement, he must do the following:
1. Deliver a sworn statement containing a list of all his creditors with the corresponding
amounts of indebtedness to the buyer
2. Apply the payment received from the sale pro rata to the claims of the creditors as
shown in the sworn statement
3. Make a full and detailed inventory of the stock to be sold/mortgaged in bulk
4. Inform the creditors of the sale at least 10 days before it actually takes place

II. Agency (Art. 1868 - 1932)

a. Give an example of express agency and implied agency

-Express agency
Manuel, the owner of a house and lot in Tanauan City, wants to donate his property to
Mrs. De Luna. However, during the turn over, he got an emergency, thus, authorizing his agent
in writing to legitimately represent him.
-Implied agency
Manuel have finally decided to sell his house and lot, however, his friend Abby take an
action and sell his property on his behalf without authority. On the other hand, Manuel did not
oppose to his friend Abby, considering that he appointed Abby as his agent. In line with this,
Abby received her commission from the proceeds of sale.

Situation 2. Barbie, an overseas worker, is an owner of the house and lot located in Tanauan City. She
also has a mango tree and a pet, named Bantay. Her sister, Carrie, manages the affairs of the house
because Barbie is working abroad.

b. In the following acts, indicate whether she needs a general power of attorney or special power
of Attorney to legally do the following acts and explain why.

1. Repair of house
-It's subjected to special power of Attorney, Barbie (principal) has no capability to
execute this specific duty as an overseas worker, therefore, the agent Carrie will take place
and perform the acts in accordance to the will of its principal.

2. Selling of house
-Since Barbie is working abroad, in order to sell the house , she needs a general power
of Attorney, so that, Carrie, her sister will be granted a legal right to make legal decisions in
behalf of the real owner or principal.

3. Installation of electricity
 -The agent Carrie can have this obligation on behalf of the owner, this specific duty
needs special power of Attorney since the principal works outside the country and does not
have capacity to have her electricity installed.
4. To donate the fruits of the mango tree located in the house to their relatives

-The tree is owned by Barbie so that, Carrie has no right to donate its fruit, not
unless she will be given an extensive power by the owner to carry out any transaction even
if it is up for donation and it’s consider as an act of administration. Therefore, General
Power of Attorney will be needed in this act.

5. To send Bantay to the veterinarian for a routine checkup.

-Special Power of Attorney will be needed in this act because, Barbie cannot perform
her duty as a pet owner, therefore the agent Carrie can take care of Bantay in behalf of her
sister who’s working abroad . Also because, Special Power of Attorney offers limited powers
for a specific duty that’s likely related to this given scenario.

c. In situation no. 2, should there be agency established between Barbie and Carrie, how will it be
extinguished?
-In situation 2, agency should be establish between Barbie and Carrie even if they’re blood
related because, as between the principal and third person, any person may become agent.

Agency is extinguished:

(1) By its revocation

(2) By the withdrawal of the agent

(3) By the death, civil interdiction, insanity or insolvency of the principal or of the agent

(4) By the dissolution of the firm or corporation which entrusted or accepted the agency

(5) By the accomplishment of the object or purpose of the agency

(6) By the expiration of the period for which the agency was constituted.