11. 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

12. 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

13. 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

14. 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.

15. 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.

16. .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.

17. 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.

18. .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

19. 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.

20. 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.