1.

Paul appointed Ado his agent to sell his specific car in cash for P100,000 with 10%
commission. Ado using persuasive skills was able to sell it for P150,000 on credit. After the
sale but before payment of the buyer
a. Ado must give P100,000 only
b. Ado must give P100,000 minus the commission
c. Ado must give the P150,00 minus the commission
d. Ado must give P150,000 and in turn is to give Ado P50,000 as commission

2. Pablo appointed Abe as his special agent to sell a specific land for P100,000. Pablo sends
Abe his papers of appointment including a letter addressed to Zen notifying the latter of
the appointment of Abe as his agent. Ten days after, Pablo revoked the agency and
published it in a newspaper of general circulation. Zen did not read the newspaper
publication but has got actual knowledge of the revocation. Later, Abe and Zen transacted
business. Is the act of Abe binding against Pablo?
a. Yes, because Abe and Zen are in good faith
b. No, Zen having knowledge of the revocation is considered in bad faith
c. Yes, because Zen was not given a special notice of revocation
d. Yes, the appointment of Abe is by special information, the revocation must also be by
special information

3. A borrowed from B P50,000. A offered his house by way of mortgage. It was expressly stipulated that upon non-
payment of the debt on time, the house would belong to B. this forfeiture clause, which has traditionally not been
allowed is called
Caveat emptor b. Pactum Commissorium
Dacion en pago d. Pacto de Recto

4. Recording in the Registry of Property in the appropriate book is required for the validity of
the contract of:
a. Chattel mortgage
b. Real mortgage
c. Conventional pledge
d. Antichresis

5.Chattel mortgage as distinguished from pledge:

a. the excess over the amount due after foreclosure goes to the debtor
b. the sale over the object in an auction extinguishes the obligation
c. the delivery of the personal property is necessary
d. the registration of the property in the Registry of Property is not necessary.

6. The following are essential requisites common to pledge and mortgage except one:
a. they are constituted to secure the fulfillment of a principal obligation
b. the pledgor or mortgagor is the absolute owner of the thing pledged or mortgaged
c. the contract of pledge or mortgage is registered with Register of Deeds
d. the person constituting the pledge or mortgage has the free disposal of the thing or he is
legally authorized for the purpose.

7.Andy pledged his Toyota car to Ben for a loan of ₱ 1M. Andy was unable to pay the loan
and therefore Ben sold the car in a public auction but it was sold only for ₱ .5M. Can be
recover the deficiency from Andy?
a. No, he cannot recover the deficiency in the absence of contrary stipulation
b. No, he cannot even if there is an agreement that he can
c. Yes, he can even in the absence of stipulation allowing him
d. No, because recovery can be had only in legal pledge.

8. Stmt 1: If the agent contracts in the name of the principal and the principal does not ratify
the contract, the contract shall be void if the party with whom the agent contracts is aware
of the limits of the agent’s authority.
Stmt 2: A third person cannot set up the fact that the agent exceeded his authority if the
principal has ratified or has signified his willingness to ratify the agent’s acts.
a. Both statements are true b. Both are false
c. First is false, second is true d. First is true, second is false.

9.Papa appointed Anak to manage his business before leaving for abroad. While abroad Anak
wrote Papa that he was withdrawing from the agency due to health reasons and that he
appointed Bez as his substitute and that Papa should extend an appointment to Bez. Bez took
over the administration, but Papa did not make the necessary appointment. When required to
account for his transactions, Bez alleged that he is not the agent of Papa due to lack of
appointment from the latter. Decide the kind of agency:
a. Implied agency b. Express agency
c. Agency by necessity d. Agency by estoppels

10.The agent is responsible for the acts of a substitute which he appoints in the following
instances. Which is not included?
a. When he was not given the power to appoint one
b. When he was prohibited from appointing one
c. When he was given the power to appoint one, but without designating the person, and he
appointed incompetent one in good faith
d. When the principal designated the person to be appointed.

11.The following is required in order that a chattel mortgage will bind third persons.
a. The chattel mortgage must be accompanied by an affidavit of good faith and recorded in
the Chattel Mortgage Register.
b. The chattel mortgage must be in a public instrument showing a description of the thing
mortgaged and the date of the chattel mortgage.
c. It is sufficient that the chattel mortgage be in writing, public or private.
d. The thing mortgaged must be delivered to the creditor.

12.The following may be the object of pledge, except:

a. All movables within the commerce of men which are susceptible of possession
b. Bills of lading
c. Shares of stocks
d. Parcels of land

13.A pledge is extinguished through any of the following, except:

a. Sale of the thing pledged
b. Appropriation of the thing pledged after the thing is not sold at one public auction
c. Written abandonment of the pledge in writing
d. Return of the thing pledged.

14.In a contract of pledge, the pledge/creditor may do the following, except to

a. Use the thing pledged for the purposes of preservation.
b. Retain the thing pledged until the principal obligation is satisfied.
c. Ask for a substitute if he was deceived on the substance or quality of the thing pledged
d. Sell the thing pledged without notice to the pledgor/debtor.
15.D pledged his diamond ring and gold watch to C to secure a debt of P10,000.
a. If D defaults and the ring and watch are sold at a public auction, C may recover any
deficiency if the proceeds of sale amounts to less than P10,000.
b. If D defaults, C may automatically appropriate for himself the ring and the watch.
c. If D pays C P5,000, D may demand either the return of the ring or the watch.
d. If C renounces the pledge in writing, the pledge is extinguished although C continues to
possess the ring and the watch.

16.A contract of agency has the following characteristics except that it is not
a. A consensual contract b. An accessory contract
c. A nominate contract d. A bilateral contract.

17.One of the following acts requires a special power of attorney granted by the principal to
his agent. Which is it?
a. To make gifts to employees in the business managed by the agent.
b. To borrow money which is urgently needed to preserve the property of the principal under
the administration of the agent.
c. To make payments for purchases in the ordinary course of the business.
d. To lease the real property of the principal to another person for more than one year.

18. The following are characteristics of a contract of real mortgage except one:
a. It Is a real right. c. it is indivisible
b. It can secure all kinds of obligation d. It is principal contract

19. The following are essential to the contracts of pledge except one:
a. The pledgor must be the absolute owner of the thing pledged.
b. The pledged was constituted to secure the fulfillment of a principal obligation.
c. Persons constituting the pledge must have the free disposal of their property or
legally authorized to pledge a thing in favor of a principal.
d. The principal obligation must be free from any defect.

20. Which of the following is common requisite for pledge, chattel, mortgage and antichresis?
a. The amount of principal and interest must be in writing.
b. The property must be in the possession of the creditor.
c. To bind third person they must be duly recorded in the office of the Register of
Deeds.
d. It is constituted to secure the fulfillment of the principal obligation.

21. Which of the following statements is true?

a. If a principal appoints an agent in writing with respect to the sale of a piece of land
and the latter sold it to a buyer orally, the contract between the agent and the buyer
is void
b. A contract of agency is generally gratuitous
c. To lease personal property to another person for more than one year does not require
a special power of attorney
d. The insolvency of the principal but not the agent shall extinguish the agency
22. The “power to sell” includes three of the following. Which is the exception?
a. The power to execute the necessary transfer documents
b. The power to sell on credit
c. The power to receive the price, unless he was authorized to solicit orders only
d. The power to fix the place, time and mode of delivery

23. The principal in not liable for the expenses incurred by the agent
a. If the agent acted in contravention of the principal’s instruction
b. Expenses were due to the fault of the agent
c. Agent incurred them knowing that an unfavourable result would ensue, and the
principal was not aware thereof
d. All of the above

24. A commission agent

a. Has the option to act in his own name
b. Generally, cannot sell on credit
c. May be an agente del credere if he receives guaranty commission
d. All of the above

25. Three of the following requires a special power of attorney. Which is the exception?
a. Accept inheritance
b. To waive obligation gratuitously
c. To bond the principal in a contract of partnership
d. Making a reasonable gift

26. The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after
his default in the performance of the conditions of the mortgage but before the confirmation of
the sale by the court is known as:
a. Accion publiciana
b. Right of pre-emption
c. Equity of redemption
d. Right of redemption

27. An accessory contract of pledge or mortgage may secure any of the following, except:
a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. None of the above

28. A public instrument containing the description of the thing is required in a pledge in order
a. To be valid
b. To take effect against third persons
c. To be enforceable
d. To effectively transfer possession

29. As a general rule, in case of excess of the proceeds of the foreclosure sale over the
creditor’s claim, the excess shall belong to the creditor in:
a. chattel mortgage b. real mortgage
c. conventional pledge d. antichrises

30. As a general rule, any deficiency in the foreclosure sale may be recovered in the following
except in:
a. chattel mortgage b. real mortgage
c. conventional pledge d. antichrises