1.

It is a contract where a person binds himself to render some service or to do something in

representation or on behalf of another, with the consent or authority of the latter.

A. Contract of service
B. Contract of agency
C. Contract of sale
D. Contract to sell

2. Perfected by mere consent.

a. Consensual
b. Nominate
c. Unilateral
d. Bilateral

3. A person that acts on behalf of the principal within the scope of his authority produce the
same legal and binding effects as if the principal personally did them.

a. Guardian
b. Co-Partner
c. Agent
d. Lessor

4. An act of the principal, from his silence or lack of action or his failure to repudiate the agency
knowing that another person is acting on his behalf w/o authority.

a. Express acceptance
b. Implied acceptance
c. Informal acceptance
d. Formal acceptance

5. Agent receives no compensation for his services.

a. Gratuitous
b. Onerous
a. Voluntary
b. Compensation

6. it can be inferred from the acts of the agent which carry out the agency, or from his silence or
inaction according to the circumstances.
 a. Express acceptance
b. Implied acceptance
c. Informal acceptance
d. Formal acceptance

7. An instrument in writing by which one person, as principal, appoints another as his agent and
confers upon him the authority to perform certain specified acts or kinds of acts on behalf of the
principal.

a. Power of attorney
b. Contract of agency
c. Special contract
d. Contract

8. There is really no agency at all, but the alleged agent seemed to have apparent or ostensible,
although no real authority to represent another.

a. Agency by estoppel
b. Fraud agency
c. Implied agency
d. Express agency

9. One who in behalf of others, and for compensation or fee, negotiate contracts relative to
property. He is the negotiator between the parties, never acting in his own name, but in the
name of those who employ him.

a. Middleman
b. Broker
c. Seller
d. Principal

10. One employed to do all acts that the principal may personally do, and which the principal can
lawfully delegate to another the power of doing.

a. General agent
b. Particular agent
c. Universal agent
d. Double agency

11. One employed to transact all the business of his principal, or all business of a particular kind
or in a particular place, or in other words, to do all acts connected with a particular trade,
business, or employment.
 a. General agent
b. Particular agent
c. Universal agent
d. Double agency

12. One authorized to act in one or more specific transactions, or to do one or more specific acts,
or to act upon a particular occasion.

a. General agent
b. Particular agent
c. Universal agent
d. Double agency

13. One whose business is to receive and sell goods for a commission, being entrusted with the
possession of the goods involved in the transaction.

a. Broker
b. Attorney at law
c. Auctioneer
d. Factor

14. One whose business is to represent clients in legal proceedings.

a. Broker
b. Attorney at law
c. Auctioneer
d. Factor

15. One who is given authority by his principal to do a particular act not of a legal character. In
strict legal sense: An agent having a special authority created by deed.

a. Attorney at law
b. Attorney in fact
c. Special agent
d. Broker

16. The following acts can be done in a “Power to Sell”, except one.

a. Deliver the property

b. Mortgage the property
c. Find a purchaser or to sell directly
 d. Receive the price unless he was authorized only to solicit orders.

17. A kind of authority of the agent that is actually granted, and it may be express or implied. It
results from what the principal indicates to the agent.

a. Implied
b. Express
c. Actual
d. Apparent

18. An authority of the agent which is conferred by words, conduct or even by the silence of the
principal which causes a third person reasonably to believe that a particular person, who may
or may not be the principal’s agent, has actual authority to act for the principal.

a. Ostensible
b. General
c. Special
d. Express

19. An authority which is incidental to the transaction or reasonably necessary to accomplish the
purpose of the agency, and therefore, the principal is deemed to have actually intended the
agent to possess.

a. Special
b. Express
c. Implied
d. General

20. A type of principal which is at the time of the transaction contracted by the agent, the other
party thereto has known that the agent is acting for a principal and has known the principal’s
identity.

a. Undisclosed
b. Partially disclosed
c. Special
d. Disclosed

21. A principal which the party has no notice of the fact that the agent is acting in behalf of him.

a. Undisclosed
b. Partially disclosed
c. Special
d. Disclosed
22. Private directions which the principal may give the agent in regard to the manner of
performing his duties as such agent.

a. Authority
b. Request
c. Demand
d. Instruction

23. When the Agent has a right to disobey the principal’s instructions?

a. When the instruction calls for the performance of illegal acts.

b. He can disobey the instruction anytime.
c. If he doesn’t feel like to do the instruction.
d. When he finds the instruction uninteresting.

24. A person to whom the agent delegates, as his agent, the performance of an act for the
principal which the agent has been empowered to perform through his representative.

a. Sub-agent
b. Partner
c. Assistant
d. Aid

25. What will happen if the execution of the agent manifestly resulted to loss and damages to the
principal?

a. The agent is not responsible for damages.

b. The agent shall be liable for the damages.
c. The principal takes the damages.
d. Both the principal and agent suffer the damages.

26. Which statement is not correct?

a. A third person can set up the fact that the agent has exceeded his powers, if the principal has
ratified, or has signified his willingness to ratify the agent’s acts.
b. If a duly authorized agent acts in accordance with the orders of the principal, the latter cannot set
up the ignorance of the agent as to circumstances whereof he himself was, or ought to have been
aware.
 c. The agent owes interest on the sums he has applied to his own use from the day on which he did
so, and on those which he still owes after the extinguishment of the agency.
d. The agent who acts as such is not personally liable to the party with whom he contracts, unless he
expressly binds himself or exceeds the limits of his authority without giving such party sufficient
notice of his powers.

27. If the agent fails to deliver and instead converts or appropriates for his own use the money or
property belonging to his principal, with what can he be charged?

a. Theft
b. Malversation
c. Estafa
d. Robbery

28. What will happen if an agent appoints a sub-agent but he has no authority to do so?

a. The agent will be free from any responsibility.

b. The sub-agent will become the new agent of the principal.
c. The agent will be responsible for all the acts of the sub-agent.

29. In case the fact of agency or the extent of the authority of the agent is controverted, the
burden of proof is on?

a. Agent
b. Principal
c. Third person

30. One whose business is to receive and sell goods for a commission and who is entrusted by the
principal with the possession of goods to be sold, and usually selling in his own name.

a. Commission agent
b. Broker
c. Seller
d. Ordinary agent.