1.

Statement I: When a sale of a piece of land or any interest therein is through an agent,
the authority of the latter shall be in writing, otherwise the sale shall be unenforceable.
Statement II: Agency is presumed to be gratuitous unless there is proof to the contrary.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

2. Statement I: If an agent acts in his name, the principal shall have a right of action against
the persons with whom the agent has contracted.
Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he
shall be bound to do so even if the principal is insolvent.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

3. Statement I: A special power of attorney is an instrument in writing by which one person

appoints another as his agent and confers upon him all authority to act on his behalf. Statement
II: In both agency by estoppel and implied agency, there is intention to create an agency and
the agent acquires all rights and liabilities of a duly appointed agent.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

4. Statement I: While services may be the object in a contract, this excludes contracts of
sale. Statement II: An assignment of a credit, right or action produces no effect as against third
person unless it appears in a public instrument.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

5. Statement I: A special power of attorney is revoked by a general one granted to another

agent. Statement II: If the agent has been empowered to borrow money, he may himself be the
lender.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

6. Statement I: In case of doubt, a contract purporting to be a sale with right of repurchase

is construed as an assignment of rights. Statement II: The creditors of the vendor cannot make
use of the right of redemption against the vendee until after exhausting the property of the
vendor.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

7. Statement I: Pre-emption is exercised after the sale against the vendee. Statement II:
Mere trespass in fact does not give rise to the application of the doctrine of eviction.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

8. Statement I: Every stipulation exempting the agent from the obligation to render an
account is void. Statement II: All acts of the sub-agent
appointed against the prohibition of the principal is void.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

9. Statement I: The Doctrine of Agency by Necessity states that by virtue of the existence
of an emergency, the authority of an agent is correspondingly enlarged in order to cope with
the exigencies or necessities of the moment. Statement II: An agent must be armed with a
special power of attorney if he waives an obligation gratuitously.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

10. Statement I: Personal acts can be done through an agent because the general rule is
that what a man may do in person, he may do thru another. Statement II: Between persons
who are present, the acceptance of the agency may also be implied if the principal delivers his
power of attorney to the agent and the latter receives it without any objection
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

11. Statement I: Instructions contemplate only private rules of guidance to the agent and
are independent and distinct from the agent’s authority. Statement II: The liability of the agent
for either fraud or negligence shall be judged according to whether the agency was or was not
for compensation.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

12. Statement I: Commission del credere is the compensation of a factor agent. Statement
II: An agent acting with authority and in his principal’s
name may be liable if he personally bound himself as to such act or transaction.
A. Only Statement I is true
B. Only Statement II is true.
C. Both statements are true.
D. Both statements are false.

13. Statement I: The power to compromise does not include the power to submit to
arbitration. Statement II: The power to sell includes the power to mortgage. Statement III: The
power to mortgage includes the power to enter into a 2nd mortgage.
A. Only Statement I is true
B. Only Statement II is true.
C. Only Statement III is true,
D. Both statements are true.
E. Both statements are false.

14. If an agent, acting beyond authority, makes misrepresentations, is the principal liable?
A. Absolutely not.
B. Yes, at all times.
C. No, since the agent is in estoppel.
D. Yes, if the principal receives benefits from the misrepresentations.

15. Anything of material value or usefulness that is owned by a person or company, or

claims to sums which are owing:
a. Credit
b. Debit
c. Right
d. Liability

16. If two or more adjoining owners of urban lands desire to exercise the right of
redemption at the same time, who shall be preferred?:
a. the owner of the adjoining land of greater area
b. should both lands have the same area, the one who first requested the redemption
c. the owner whose intended use of the land in question appears best justified

17. A and B have adjacent urban lands. B offers to sell his land to C, who is yet to decide
whether or not to accept it. A offers to buy the land from B instead. This is a case of:
a. Equitable mortgage
b. Pre-emption
c. Conventional redemption
d. Legal redemption

18. Who is bound when an agent acts without authority and is given subsequent ratification
by the principal for such action?
a. Agent
b. Principal
c. Both agent and principal
d. The third person dealing with the agent

19. S and B entered into a pacto de retro sale and they stipulated that Sharon can
repurchase the property at any time she has the money. Until when can S repurchase the
property?
a. Within 4 years from the date of the contract
b. Within 10 years from the date of the contract
c. Within 30 days from final judgment
d. Within 30 days from notice in writing by the vendor
e. None of the above

20. Which is NOT true of a commission agent? a. He is responsible for the goods received by
him in the terms and conditions and as described in the consignment
b. He is not liable if he makes a written statement of the damage and deterioration suffered by
the goods
c. He must designate the merchandise respectively belonging to each principal
d. He may sell on credit

21. Should an agent lease any real property to another person, he must be armed with a
special power of attorney if such lease is for:
a. A year
b. Less than a year
c. More than a year
d. 12 calendar months

22. Which is NOT to be paid by the principal to the agent?

a. advanced funds
b. indemnity for damages suffered due to agency
c. expenses stipulated to be paid by the agent
d. interest for amounts paid by the agent

23. S is the adjoining owner of the property of B which is rural and is less than 1 hectare. If B
sold his property to X, until when can S repurchase
the property from X?
a. Within 4 years from the date of the contract
b. Within 10 years from the date of the contract
c. Within 30 days from final judgment
d. Within 30 days from notice in writing by the vendor
e. None of the above

24. Which describes the prescriptive period for conventional redemption?

a. It must be exercised within 1 year from registration of the sale
b. It must be exercised within 5 years from the conveyance by the widow or heir of the
homestead owner
c. If with stipulation of the parties, same maximum period as with co-ownership
d. If without stipulation of the parties, within 4 years from the death of the vendee a retro

25. Which is NOT a cause of extinguishment of agency?

a. Revocation
b. Withdrawal of the agent
c. Dissolution of the rm or corporation which entrusted or accepted the agency
d. Death, civil interdiction

26. As to 3rd persons dealing with the agent in good faith, anything done by the agent,
without knowledge of the death of the principal or of any other cause which extinguishes the
agency, is:
a. valid
b. void
c. voidable
d. rescissible
e. unenforceable

27. Which is an obligation of an agent who withdraws from the agency?

a. Notify the principal
b. Indemnify the principal for damages suffered
c. Continue to act until the principal has had reasonable opportunity to take the necessary steps
to meet the situation
d. All of the above
e. None of the above

28. Which is not a requisite for the exercise of the right of legal redemption of rural lands?
a. The lands must be adjacent.
b. There is alienation.
c. The piece of rural land must exceed one hectare.
d. The rural land must not be separated by brooks, drains, ravines, roads and other apparent
servitudes.

29. A, B, and C are co-owners of a parcel of land. In a pacto de retro sale of the property to
X:
a. A may exercise redemption of the entire property
b. C may exercise redemption of 2/3 of the property
c. B may exercise redemption of 1/3 of the property
d. X can be compelled to accept partial redemption

30. Finn authorized Jake to sell his land but no written authority was given. Jake was able to
sell the land to Princess Bubblegum. The sale by Jake
is: (A) valid (B) voidable (C) void (D) rescissible
a. valid
b. void
c. voidable
d. rescissible

31. Anna now manages her ice cream business entrusted to her agent, Olaf, and she deals
directly with 3rd persons, The agency is extinguished by:
a. Withdrawal
b. Implied revocation
c. Dissolution
d. Accomplishment of the purpose of the agency

32. Which is NOT a formality required by the Bulk Sales Law?

a. demanding and giving of a list of creditors
b. publication of said list
c. giving of actual or constructive notice to such d. creditors by record or otherwise making of
an inventory

33. Which is NOT true of revocation?

a. The principal may revoke the agency at will.
b. Revocation may be express or implied.
c. Revocation may be total or partial.
d. It is an act of the agent.
e. The agency is revoked if the principal directly manages the business entrusted to the agent,
dealing directly with third persons.

34. If two or more adjoining owners of rural lands desire to exercise the right of redemption
at the same time, who shall be preferred?:
a. the owner of the adjoining land of greater area
b. should both lands have the same area, the one who first requested the redemption
c. the owner whose intended use of the land in question appears best justified

35. An agency cannot be revoked:

a. If a bilateral contract depends upon it
b. If it is the means of fulfilling an obligation already contracted
c. If a partner is appointed manager of a partnership in the contract of partnership and his
removal from the management is unjustifiable
d. All of the above
e. None of the above

36. If the principal dies, the agency remains in full force and effect:
a. If it has been constituted in the common interest of the latter and of the agent
b. If it has been constituted in the interest of a third person who has accepted the stipulation in
his favor
c. Both of the above choices
d. None of these choices

37. If two persons contract separately with the agent and the principal with regard to the
same thing and the two contracts are incompatible:
a. the contract is void
b. the one of later date is preferred
c. the one of prior date is preferred
d. the agent is liable for damages

38. The following statements are true in a pacto de retro sale except:
a. The vendee a retro becomes the owner of the property subject of the sale.
b. The vendee a retro can sell or mortgage the property to a third person.
c. The vendee a retro can only sell or mortgage the property only after the expiration of the
period of redemption.
d. The vendee a retro is subrogated to the vendor's rights and actions.

39. X gave to Y a Special Power of Attorney to sell Y’s land. The authority of X is:
a. Express
b. Implied
c. Apparent / ostensible
d. By operation of law

40. Ana gave Ben P10,000. Ben used the money as down payment to obtain equipment
necessary for Ben's business from Cris. If Ben fails to pay the balance, can Cris recover from
Ana?
a. Yes, there is a contract of agency.
b. No, there is no contract of agency.

41. A, being the agent of B and acting under B’s authority, was able to sell B’s cellphone in
A’s own name. Which is legally correct?
a. A is liable for the sale.
b. B is a disclosed principal.
c. Both of the above choices
d. Neither of the above choices
42. R sold T’s pair of shoes without T’s authority but with T’s knowledge and without his
opposition before the sale. Which is legally correct?
a. There is agency formed by estoppel.
b. There is no agency.
c. There is express agency.

43. Anton was allowed by his father to use the latter's land and to make improvements on
it. He was also authorized to get profits from the improvements he made. One day, Anton
bought certain materials needed for the improvement. Is the father liable for the payment of
the materials purchased?
a. Yes, there is a contract of agency.
b. No, there is no contract of agency.

44. It is a stipulation giving power to the creditor to automatically appropriate the thing
given as security, if the principal obligation is not fulfilled, without any formality such as
foreclosure proceeding. It is void and is what is avoided by reason of which a contract
purporting to be a pacto de retro sale is construed as an equitable mortgage:
a. Policitation
b. Attornment by bailee
c. Reformation
d. Caveat emptor
e. Pactum commissorium

45. Is there a right of legal redemption in sales of credit in litigation?

a. Yes, absolutely.
b. Yes, except as against a co-owner, creditor or possessor of the tenement.
c. No, this right is not available.

46. Which is NOT a condition for the exercise of the right of pre-emption or redemption of
urban lands?
a. The urban land was bought merely for speculation.
b. The piece of land is so situated that it has a variety of purposes to choose from.
c. The one exercising the right is an adjacent owner.
d. The land is about to be resold, or that its resale has been perfected.

47. If, there being a conflict between the agent’s interests and those of the principal, the
agent should prefer his own:
a. the principal is liable for damages
b. the agent is liable for damages
c. the contract is void
d. the agency is fraudulent

48. An agent must advance necessary funds:

a. if there is a stipulation to do so
b. regardless of principal’s insolvency
c. all of these
d. none of these

49. P gave a general power of attorney to A for the latter to convey all of his cars. P later
gave X a special power of attorney to sell P’s Lamborghini.
What is the effect of X’s SPA on A’s GPA?
a. A’s authority is totally revoked.
b. X may convey all of P’s cars.
c. A may still sell P’s Lamborghini.
d. All of the above choices.
e. None of the above choices.

50. S and B entered into an absolute sale of a parcel of land. Until when can S repurchase
the land?
a. Within 4 years from the date of the contract
b. Within 10 years from the date of the contract
c. Within 30 days from final judgment
d. Within 30 days from notice in writing by the vendor
e. None of the above

51. Which is an obligation of the agent who declines the agency?

a. Observe the diligence of a good father of a family in the custody and preservation of the
goods forwarded to him
b. Appoint an agent in his stead
c. Do acts pursuant to the agency
e. None of the above choices

52. What is the remedy if the contract purports to be a pacto de retro sale when in fact it is
an equitable mortgage? (A) reformation (B) rescission
(C) specific performance (D) damages
a. Reformation
b. Rescission
c. Specific performance
d. Damages

53. A assigns his hereditary rights to B. What warranty does A give to B?

a. That he will inherit properties.
b. That he is a legitimate heir.
c. Both of the above choices
d. Neither of the above choices
54. P gave A a special power of attorney with an added stipulation exempting A from the
obligation to render an account. Which is void?
a. the contract of agency
b. the stipulation exempting A
c. both of the foregoing
d. neither of the first 2 choices

55. S sold to B his land with right to repurchase. Before he could exercise his right, he died,
leaving behind X & Y as his only heirs. May X and Y exercise
S’s right to repurchase?
a. Yes
b. No

56. S and B entered into a pacto de retro sale but no period for redemption was stipulated.
Until when can S repurchase the property?
a. Within 4 years from the date of the contract
b. Within 10 years from the date of the contract
c. Within 30 days from final judgment
d. Within 30 days from notice in writing by the vendor
e. None of the above

57. Jose owns a sari-sari store. One day, while drinking milk tea, Jose fainted and bumped
his head on the floor. He was rushed to the hospital and was in comatose for one month. While
he was in a coma, Wally managed the sari-sari store. Is there a contract of agency?
a. Yes, there is a contract of agency.
b. No, there is no contract of agency.

58. S sold to B his land with right to repurchase. Before S could exercise his right, B died,
leaving behind X & Y as his only heirs. S can exercise his
right to repurchase:
a. The whole property as against X or Y
b. The whole property as against X and Y
c. Either of the above choices
d. Neither of the above choices

59. The following are characteristics of an agency, EXCEPT:

a. Principal
b. Fiduciary
c. Unilateral if for compensation
d. Representative relation
True or false
F - Agency may be presumed.
T - The acts of the agent on behalf of the principal within the scope of his authority produce the
same legal and binding effects as if they were personally done by the principal.
F - There must be a price/consideration in a contract of agency.
F - An agency for the sale of real property may be oral or in writing.
T - If notice of the fact of agency is done through publication, then the revocation of said
agency must also be by publication.
T - Acts of administration may be couched in general terms but acts of strict dominion must be
couched in specifi c terms.

F - Legal redemption applies to immovable property only.

F - There can be legal redemption by a co-owner against his co- owner.
T - In legal redemption, tender of payment is not necessary.
F - Conventional redemptions applies to foreclosures, homesteads and tax sales.
F - The right of legal pre-emption or redemption shall not be exercised except within 30 days
from verbal notice given by the vendor.
F - A, B and C are co- owners of a parcel of land; if A sells his interest to C, B may exercise the
right of legal redemption against C.
F - In legal redemption, there is reservation by contract of the right to repurchase the thing
sold.
F - The right of pre-emption and legal redemption
can both be exercised after a sale by the owner of an adjoining land to another.

T - An equitable mortgage is preferred over a pacto de retro sale.

F - If the vendor a retro fails to comply with payment, title is automatically consolidated in favor
of the vendee a retro.
F - When the right of a co-owner over an undivided thing is sold as regards to his own share, the
vendee retro can compel him to redeem the whole property.
F - The creditors of the vendor cannot make use of the right of redemption against the vendee
even after they have exhausted the property of the vendor.
F - The right of pre- emption can be exercised after a sale by the owner of an adjoining land to
another.
T - The redemption by a co-owner of the property in its entirety does not make him the owner
of all of it.
T - A vendee cannot compel total redemption in separate sales by co-owners of an undivided
immoveable.
T - If at the time of redemption the land has fruits paid by the vendee, the vendor must
reimburse him for all natural, industrial and civil fruits.

Do the following acts require a special power of attorney?

NO - To authorize a person employed to sell goods in a retail store
YES - To waive any obligation gratuitously
YES - To bind the principal to render some service without compensation
NO - To make customary gifts for charity
NO - To borrow money which is needed urgently for the preservation of the thing under
administration.
YES - To obligate the principal as a guarantor or surety.

Determine the legal principle for the following:

nemo dat quod non habet
res perit domino
qui fact per alium facit se
caveat emptor
prior tempore potior jure

individual, joint, or solidary

joint - Two or more agents having the same principal over the same transaction
solidary - Two or more principals having the same agent over the same transaction?
Indv - The agent who acted without any authority whatsoever?
Indv - What is the nature of the power of two or more principals having the same agent to
revoke the agency?

In the following obligations, is the prinicipal liable? In case of doubt, apply the general rule.
yes - Expenses of the agent for advancing funds where there was a stipulation to do so
Yes - Contract in the agent’s name, involving things belonging to the principal
yes - Contract in excess of authority, subsequently ratifi ed by the principal
no - Contract in principal’s name, without his authority
No - Contract of a sub-agent who is insolvent
Valid or void
Valid - Agency without compensation of the agent
Void - Agency for the sale of fenced goods
Valid - Agency to enter into compromise, to renounce the right to appeal from a judgment

Principal, agent, broker, commission agent, or del credere agent

Principal - Also known as mandante
Agent - One who acts in representation of or on behalf of another
Broker - Acts as an intermediary or go-between and does not receive possession of the object
of the agency
Del credere agent - Bears the risk of collection and pays to the principal the proceeds of the sale
Commission agent - Receives a portion of the proceeds also known as factorage

Couched in general terms, Couched in specifi c terms, General, Special, or

Ostensible/Representative
General - Agency which comprises all the business of the principal.
Ostensible - Agent acts in the name and in representation of the principal.
Special - Comprises one or more specific transactions
Couched in general terms General - Comprises only acts of administration
Couched in specific terms - acts of strict dominion

Conventional redemption, Equitable mortgage, Legal redemption

EM - After the sale, the vendor remains in possession of the subject property
CR - Takes place when the vendor reserves the right to repurchase the thing sold, with the
obligation to comply with the provisions of Article 1616 and other stipulations which may have
been agreed upon
EM - Sale with unusually inadequate purchase price
CR - Pacto de retro sale
LR - The right to be subrogated, upon the same terms and conditions stipulated in the contract,
in the place of one who acquires a thing by purchase or dation in payment, or by any other
transaction whereby ownership is transmitted by onerous title
EM -Extension of redemption period after expiration
LR - An equity of redemption in cases of judicial foreclosures
LR - Redemption by an agricultural tenant of land sold by the landowner
ER - Vendor binds himself to pay the taxes on the thing sold