NAME: Mariel O.

Sedentario
DATE: October 08, 2021

QUIZ ON AGENCY

b. 1. An agent, authorized by a special power of attorney to sell a land belonging to the principal
succeeded in selling the same to a buyer according to the instructions given to the agent. The
agent executed the deed of absolute sale on behalf of his principal two days after the principal
died, an event that neither the agent not the buyer knew at the time of the sale. What is the
standing of the sale?
a. Voidable b. Valid c. Void d. Unenforceable

b 2. X, who was abroad, phoned his brother, Y authorizing him to sell X’s parcel of land in
Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed
of absolute sale of the land to Z after receiving payment. What is the status of the sale?
a. Valid since a notarized deed of absolute sale covered the transaction and full payment
was made.
b. Void since should have authorized agent Y in writing to sell the land.
c. Valid since Y was truly his brother X’s agent and entrusted with the title needed to
effect the sale.
d. Valid since the buyer could file an action to compel X to execute a deed of sale.

___3. As an agent, A, was given a guarantee commission, in addition to his regular commission,
after he sold 20 units of refrigerators to a customer. The customer, however, failed to pay. A’s
principal, P demanded payment from A for the customer’s accountability. Which is correct?
a. A can refuse to pay on the ground that his job aws only to sell and not to collect
payment.
b. P should demand payment from the customer.
c. A is not liable if he was authorized to sell on credit.
d. A bears the risk of collection and should pay P the proceeds of the sale.

___4. The following are the obligations of an agent, except

a. In the execution of the agency, the agent shall act in accordance with the instructions
of the principal.
b. Shall be bound to advance the necessary funds, except when the principal is insolvent.
c. Shall finish the business already begun on the death of the principal, should delay
entail any danger.
d. In case a person declines an agency, he is bound to observe the diligence of a good
father of a family in the custody and preservation of the goods forwarded to him by the
owner until the latter should appoint an agent.

___5. Which of the following statements is false?

a. P in writing appoints A as his agent to sell his specific parcel of land for P40,000. A
sold it orally on X. The contract of A and X is valid.
b. B wrote A, his sister, to sell his parcel of land. The land was purchased by X, but A did
not forward the money to B. B now wants to recover the parcel of land. B can recover
because the authority of S is not in special power or attorney.
c. P orally appoints A as his agent to sell his land for P40,000. A sold it to X in writing.
The sale by A to X is not valid.
d. P orally appointed A to sell a house on a parcel of land belonging to X. A sold it to B
orally. The contracts by P and A, and A and B are valid.

___6. P sends a letter to A in Cavite, authorizing A to sell his specific car for P90,000. If no reply
is made by A, is there a presumption of implied agency between the two of them.
a. None, because as between persons who are absent, the acceptance of the agency
cannot be presumed from the silence of the agent.
b. Yes because no reply was send, there is implied acceptance or implied consent.
c. Yes unless A is habitually engaged in the business of selling and buying cars.
d. None acceptance must always be expressed.
___7. M appointed R and Z as her agents to sell her specific property for P100,000 on cash
basis. Solidarity has been agreed upon. Can M hold Z liable if R sell the property for P80,000?
a. Yes because the obligation is solidary.
b. No because the appointment of 2 or more agents in one and the same obligation is
joint and any stipulation to the contrary is void.
c. Yes but only for Z’s share that is P10,000.
d. No because R acted beyond the scope of his authority.

___8. The following are the characteristics of a contract of agency, except

a. Consensual b. Principal c. Innominate d. Bilateral

___9. If an agent enters into a contract in the name of his principal, exceeding the scope of his
authority, the contract entered into is
a. Voidable b. Unenforceable c. Rescissible d. Void

___10. P appointed A to be his agent to administer his mango orchard while P is in USA, but A
died leaving his son, B, of legal age to take care of the mango orchard until P arrived. This is an
agency created by
a. Estoppel b. Ratification c. Assignment d. Operation of
Law

___11. This require a special power of attorney, except

a. To accept or repudiate inheritance c. To enter into compromise
b. To effect novation d. To lease real property for one
year

___12. A, a manufacturer and B, a distributor agreed to a contract where A will deliver 2,000 units
of A’s products to B every month and B will sell the products at A’s suggested prices plus 15%.
All unsold units at the end of the year shall be bought back by A at the same price at the time the
products were ordered. A shall hold B free from any claim for defects in the units. The contract
between A and B is
a. Contract of sale b. Pacto de retro sale c. Contract of lease d. Agency to
sell

___13. He bears the risk of collecting from the buyer the price of the sale,
a. Commission agent b. Delegacion c. Del credere agent d.
Expromission

___14. On day 1, A appointed B as his agent covered by a general power to lease his car to Z for
eight months. On day 2, A appointed C as his agent covered by a special power to lease the
same car for two months. On day 3, A directly transacted business with Z, leasing the car for two
months. Which is correct?
a. The appointment of B is valid because it is covered by a general power.
b. The appointment of C is valid because it is covered by a special power.
c. The appointment of B and C are considered revoked because the principal directly
transacted with Z.
d. The appointment of B is valid because it is the earliest appointment.

___15. Which of the following is correct?

a. A contract of agency must be in writing to be a valid agreement.
b. A sale of personal property made by an agent without authority from the owner is void.
c. A sale of a piece of land made by an agent with oral authority from the owner is void.
d. An unemancipated minor cannot be appointed as agent.

___16. In which of the following acts may a person not appoint an agent?
a. To represent the principal in a wedding ceremony where the principal is a principal
sponsor.
b. To vote for the principal during the meetings of stockholders where the principal is a
stockholder.
 c. To represent the principal in a baptismal ceremony where the principal is the father of
the child to be baptized.
d. To attend a meeting of the board of directors of a corporation where the principal is a
director.

___17. Not a fundamental obligation of the agent

a. Sacrifice his interest and give it to the principal if there is conflict.
b. To render an accounting of the transaction.
c. Should not carry out the agency even if that is the transaction, if he knew it would
result in a loss or damage to the principal.
d. Can be the borrower if he is authorized to lend.

___18. A appointed B as his agent to sell his car for P250,000. B sold the car to C for P250,000
but B acted in his own name. After delivery, C inspected the car and she found hidden defects in
the car. Is A, as principal, liable to C even if B acted in his own name?
a. No applying caveat emptor or let the buyer beware
b. Yes because this is a contract involving property belonging to the principal.
c. No because the contract of sale is between B and C.
d. Yes if C was aware of the hidden defects.

___19. To improve the financial condition of his principal, an agent with general powers of
administration given to him by the principal in writing sold two parcels of land, one for less than
the price appearing in the inventory prepared by the principal and the other for double the price
that appeared in the aforesaid inventory. Which is correct?
a. Both contracts cannot be enforced against the principal.
b. Both contracts are binding upon the principal.
c. The sale for double the price appearing in the inventory is binding upon the principal.
d. The sale for less than the price appearing in the inventory is binding upon the principal.

___20. Not a mode of extinguishing an agency

a. Accomplishment of purpose of agency
b. Death of the principal, and the agency is for the interest of either the principal or agent
c. Insanity of the principal or agent
d. Dissolution of the firm or corporation which entrusted or accepted the agency

___21. Agency can be revoked at will

a. When a bilateral contract depends upon it
b. If it is a means of fulfilling an obligation already contracted
c. If a partner is appointed managing partner in the articles of partnership and his removal
is unjustifiable
d. When the principal directly manages the business entrusted to the agent

___22. In agency, the agent represents

a. A person who is capacitated
b. A person who is incapacitated
c. Heirs and creditors of the estate
d. The judicial court

___23. I. When a sale of a piece of land or any interest therein is through an agent, the authority
of the latter should be in a public instrument, otherwise the sale shall be void.

II. Agency is presumed to be without compensation unless there is proof to the contrary.

a. True, True b. False, False c. False, True d. True, False

___24. I. A special power to sell includes the power or mortgage and a special power to mortgage
includes the power to sell.

II. Should there be a stipulation that the agent shall advance the necessary funds, he
shall be bound to do so even when the principal is insolvent.
 a. True, True b. False, False c. False, True d. True, False
___25. I. If the agent has been empowered to borrow money he may himself be the lender at the
current rate of interest and if he has been authorized to lend money at interest, he can borrow it.

II. Every agent is bound to render an account of his transactions and to deliver to the
principal whatever he may have received by virtue of an agency even though it may not be owing
to principal.

a. True, True b. False, False c. True, False d. False, True

___26. I. The responsibility of two or more agents who have been appointed simultaneously is
solidary.

II. When two or more principals have granted power of attorney for a common
transaction, any one of them may revoke the same provided it is with the consent of the others.

a. False, False b. True, True c. False, True d. True, False

___27. I. The limits of the agent’s authority shall be considered exceeded even if it have been
performed more advantageous to the principal than that specified by him.

II. If the agent acts on his own name, he is directly bound as if the transaction were his
own and that the contract shall not be valid between the principal and the third party.

a. True, True b. False, False c. False, True d. True, False

___28. I. In the execution of the agency, the agency shall observe the diligence of a father of a
good family.

II. In case a person declines an agency, he is bound to observe ordinary diligence in the
custody and preservation of the goods forwarded to him by the owner until the latter should
appoint an agent.

a. True, True b. False, False c. True, False d. False, True

___29. I. If the agent contracts in the name of the principal exceeding the scope of his authority
and the principal does not ratify the contract, the contract shall be void if the party with whom the
agent contracted is aware of the limits of the powers granted by the principal.

II. A third person cannot set up the fact that the agent has exceeded his powers if the
principal has ratified or has signified his willingness by the principal.

a. True, True b. True, False c. False, True d. False, False

___30. Which of the following statements refers to a contract of agency?

a. He represents an incapacitated person. c. He is controlled by the
principal.
b. There is no meeting of minds. d. The legal relation is always
created by law.