It is contract wherein 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 Sale
B. Contract of Agency
C. Contract of Partnership
D. Contract of Loan
ANSWER: B

Statement 1: One who acts through an agent in law does the act himself. Statement
2: In an agent-principal relationship, the personality of the principal is extended
through the facility of the agent
A. Both Statements are true.
B. Both Statements are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.
ANSWER: A

Statement 1: The appointment of agency may be oral, unless the law requires a
specific form. Statement 2: As to the agent, acceptance must always be express.
A. Both Statements are true.
B. Both Statements are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.
ANSWER: C

Statement 1: An agent must have legal capacity to enter into the contract of
agency, although he may not have capacity to enter into the particular contract
subject of agency. Statement 2: Juridical persons such as corporations and
partnerships can be principals only.
A. Both Statements are true.
B. Both Statements are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.
ANSWER: C

The following are the kinds of contract of agency as to business covered, except:
A. Universal
B. General
C. Specific
D. Special
ANSWER: C

Agency by estoppel is when:

A. The principal manifested a representation of the agent’s authority or knowingly
allowed the agent to assume such authority.
B. An agent acts in his own name.
C. Agent acts are done in accordance with the principal’s manifestations of express
consent.
D. Agents are authorized to do some particular act or to act upon some particular
occasion
ANSWER: A

Attorney-at-law is:
A. One who is given authority by his principal to do a particular act not of a
legal character. In its strict legal sense, it means an agent having a special
authority.
B. One whose business is to receive and sell goods for a commission, being
entrusted with the possession of the goods involved in the transaction.
C. One whose business is to sell property for others to the highest bidder at a
public sale
D. One whose business is to represent clients in legal proceedings;
ANSWER: D

Attorney-in-fact is:
A. One who is given authority by his principal to do a particular act not of a
legal character. In its strict legal sense, it means an agent having a special
authority.
B. One whose business is to receive and sell goods for a commission, being
entrusted with the possession of the goods involved in the transaction.
C. One whose business is to sell property for others to the highest bidder at a
public sale
D. One whose business is to represent clients in legal proceedings;
ANSWER: A

One whose business is to act as intermediary between two other parties.

A. Auctioneer
B. Broker
C. Commission Agent
D. Attorney-in-fact
ANSWER: B

Statement 1: If the act is done within the principal's authority but in the name of
the agent, the agent and the principal are solidarily liable in favor of the person
with whom he has contracted, except when the contract involves things belonging to
the principal. Statement 2: If the act is done within the principal's authority
and in the name of the principal, the principal is bound to comply with the
obligations contracted and the agent is personally liable to the party with whom
he contracts.
A. Both Statements are true.
B. Both Statements are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.
ANSWER: B