AGSABA BQs

AGENCY

This kind of agent merely makes the principal and the third person meet and when they arrive at
an agreement or contract becomes entitled to compensation.
a. Broker
b. Commission agent
c. Factor
d. Attorney-at-law

C appointed S to sell the former’s car for P200,000. S sold the car to P for P200,000 but S acted
in her own name. After delivery, P inspected the car and she found hidden defects in the car. Can
P file an action against C even when S acted in her own name?
a. No, under “caveat emptor” let the buyer beware.
b. Yes, because this is a contract involving property belonging to the principal.
c. No, because S acted in her own name not of the principal.
d. Yes, because the contract of sale is already perfected.

Harp entered into a contract with Rex on behalf of Gold. By doing so, Harp acted outside the
scope of his authority as Gold’s agent. Gold may be held liable on the contract if
a. Gold retains the benefits of the contract.
b. Gold ratifies the entire contract after Rex withdraws from the contract.
c. Rex elects to hold Gold liable on the contract.
d. Rex was aware of the limitation on Harp’s authority.

Magnus Real Estate Developers, Inc. wanted to acquire certain tracts of land in Marshall
Township in order to build a shopping center complex. To accomplish this goal, Magnus
engaged Dexter, a sophisticated real estate dealer, to represent them in the purchase of the
necessary land without revealing the existence of the agency. Dexter began to slowly but steadily
acquire the requisite land. Which of the following is correct under these circumstances?
a. The use of an agent by Magnus, an undisclosed principal, is manifestly illegal.
b. Either Magnus or Dexter may be held liable on the contracts for the land.
c. An undisclosed principal such as Magnus can have no liability under the contract since
the third party believed he was dealing with Dexter as a principal.
d. An agent for an undisclosed principal assumes no liability as long as he registers his
relationship to the principal with the clerk of the proper county having jurisdiction.

Which of the following is not a type of authority of an agent that a third party can expect to
encounter?
a. Apparent.
b. Express.
c. Expert.
d. Implied.

Which of the following is not an essential element of an agency relationship?

a. It must be created by contract.
b. The agent must be subject to the principal’s control.
c. The agent is a fiduciary in respect to the principal.
d. The agent acts on behalf of another and not himself.

P authorized A, a minor, to sell his car for P 1,000,000 in cash. A sold the said car to X on
installment at a lesser price of P 900,000. P is now repudiating the contact with X on the ground
that he is not bound to since X contracted with a minor who exceeded his authority. Decide.
 a. P is liable under the contract because it is enough that the principal is capacitated since he
is the one entering into the contract.
b. P is not liable for the sale on installments since it is unenforceable because his agent
acted beyond his powers.
c. P is not liable because the agent is a minor with whom X contracted
d. P is liable provided the sale is in cash for P 1,000,000.

The following are modes of extinguishing an agency, except:

a. Death, civil interdiction, insanity or insolvency of the principal or agent
b. Accomplishment of the purpose of the agency
c. Expiration of the period for which the agency was constituted
d. Continued losses on the part of the principal or agent

SALES

A contract of sale is not a

a. Principal contract c. Consensual contract
b. Nominate contract d. Real contract

One of the following characteristics of dacion en pago is also a characteristic of a contract of

sale. Which is it?
a. There is a pre-existing credit
b. Obligations are extinguished
c. There is less freedom in fixing the price
d. Ownership of the object transferred to the other party

It is an affirmation of fact or any promise by the seller relating to the thing which has a natural
tendency to induce the buyer to purchase the same, relying on such promise or affirmation.
a. Condition c. Warranty
b. False representation d. Seller’s talk

BAILMENTS

It is the right of the mortgagor to redeem the property that was mortgaged after it was sold.
a. Equity of redemption c. Right of subrogation
b. Right of redemption d. Right of pre-emption

A gets a loan of P 1,000,000 from B which becomes due on October 1, 2008 and mortgaged his
house as security for the debt. On June 30, 2008, the mortgaged house completely destroyed the
fire through the fault of C. A week later, B demanded payment from A. Is B’s demand valid?
a. No, the destruction of the house was not thru the fault of A.
b. No, the obligation is one with a definite period which is deemed intended for the
benefit of both the debtor and creditor
c. Yes, the debt becomes demandable unless A can give another security equally
satisfactory
d. Yes, the debt becomes demandable even if A can give another security equally
satisfactory

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