on his behalf.

Statement I:
BLR 211 - Statement II: In both Assignment of credits is

Midterm agency by estoppel and

implied agency, there is
unilateral,
and
gratuitous
innominate.
Exams intention to create an Statement II: The
agency and the agent consent of the debtor to
Total points97/140 acquires all rights and the assignment of credit
liabilities of a duly is not required. *
True or False appointed agent. *
30 of 46 points Only Statement I is true.
Statement I: A special Only Statement I is true.
power of attorney is Only Statement II is true.
revoked by a general  
Both statements are true.
one granted to another
agent. Statement II: If Only Statement II is true.
Both statements are
the agent has been false.
Both statements are true.
empowered to borrow
money, he may himself Both statements are Determine whether the
be the lender. * false. statement is TRUE or
FALSE. * 
Only Statement I is true. Statement I: Pre-
emption is exercised Agency may be presumed.
Only Statement II is true.
after the sale against F
the vendee. Statement The acts of the agent on
Both statements are true.
II: Mere trespass in fact behalf of the principal
Both statements are does not give rise to within the scope of his
false. the application of the authority produce the
same legal and binding
doctrine of eviction. *
Statement I: A special effects as if they were
personally done by the
power of attorney is an Only Statement I is true.
principal. T
instrument in writing by
which one person Only Statement II is true. There must be a
price/consideration in a
appoints another as his
Both statements are true. contract of agency. T
agent and confers upon
him all authority to act Both statements are
false.
An agency for the sale of Legal redemption applies Assignment of credit is a
real property may be oral to immovable property contract whereby one of
or in writing. T only. F the parties binds himself to
give one thing in
If notice of the fact of There can be legal
consideration of the other's
agency is done through redemption by a co-owner
promise to give another
publication, then the against his co-owner. F
thing. F
revocation of said agency
In legal redemption, tender
must also be by The assignor of credit is
of payment is not
publication. T responsible for the
necessary. F
existence and legality of
Acts of administration may
Conventional redemptions the credit and the solvency
be couched in general
applies to foreclosures, of the debtor at the time of
terms but acts of strict
homesteads and tax sales. the sale. F
dominion must be couched
T
in specific terms. F An assignor in bad faith is
The right of legal pre- liable not only for the
Statement I: Every payment of the price and
emption or redemption
stipulation exempting shall not be exercised all the expenses but also
the agent from the except within 30 days from for damages. T
obligation to render an verbal notice given by the
One who sells for a lump
vendor. A, B and C are co-
account is void. sum the whole of certain
owners of a parcel of land;
Statement II: All acts of rights, rents, or products,
if A sells his interest to C,
generally warrants each of
the sub-agent B may exercise the right of
the various parts of which
appointed against the legal redemption against
it may be composed. F
prohibition of the C. F
Payment to the original
principal is void. * In legal redemption, there
creditor is valid and the
is reservation by contract
debtor shall be released
Only Statement I is true. of the right to repurchase
from his obligation even if
the thing sold. F
payment was made after
Only Statement II is true.
The right of pre-emption notice to the debtor of the
and legal redemption can assignment of credit. F
Both statements are true.
both be exercised after a
As a general rule, bulk
sale by the owner of an
Both statements are sales are fraudulent and
false. adjoining land to another.
void as to creditors of the
T
vendor. T
Determine whether the Determine whether the In bulk sales, the vendor
statement is TRUE or statement is TRUE or must make a full detailed
FALSE. * FALSE. *  inventory showing the
quantity and the cost price
of the goods at least five Only Statement I is true.
Statement I: If an agent
(5) days before the sale. F
acts in his name, the
Only Statement II is true.
If the Bulk Sales Law is principal shall have a
violated, the sale is still right of action against Both statements are true.
valid as between the seller
the persons with whom
and buyer. T Both statements are
the agent has
false.  
Barter is governed by the contracted. Statement
provisions of the New Civil
II: Should there be a
Code on the law on Statement I:
stipulation that the
agency. F Commission del
agent shall advance the
Statement I: Personal credere is the
necessary funds, he
acts can be done compensation of a
shall be bound to do so
through an agent factor agent. Statement
even if the principal is
because the general II: An agent acting with
insolvent. *
rule is that what a man authority and in his
may do in person, he Only Statement I is true. principal’s name may
may do thru another. be liable if he
Statement II: Between Only Statement II is true. personally bound
persons who are himself as to such act
Both statements are true.
present, the or transaction. *
acceptance of the Both statements are
false. Only Statement I is true.
agency may also be
implied if the principal Only Statement II is true.
delivers his power of Statement I: An
attorney to the agent assignment of a credit, Both statements are true.
and the latter receives right or action produces
no effect as against Both statements are
it without any false.
objection * third person unless it
appears in a public
Determine whether the
Only Statement I is true. instrument. Statement
statement is TRUE or
II: The assignment of a
Only Statement II is true. FALSE. *
credit excludes all the
accessory rights, such
Both statements are true. An equitable mortgage is
as a guaranty,
preferred over a pacto de
Both statements are mortgage, pledge or retro sale. F
false. preference. *
If the vendor a retro fails to Statement I: In case of armed with a special
comply with payment, title
doubt, a contract power of attorney if he
is automatically
purporting to be a sale waives an obligation
consolidated in favor of the
vendee a retro. T with right of repurchase gratuitously. *
is construed as an
When the right of a co-
assignment of rights. Only Statement I is true.
owner over an undivided
thing is sold as regards to Statement II: The
Only Statement II is true.
his own share, the vendee creditors of the vendor
retro can compel him to cannot make use of the Both statements are true.
redeem the whole
right of redemption
property. T
against the vendee until Both statements are
The creditors of the vendor false.
after exhausting the
cannot make use of the
property of the
right of redemption against Statement I: When a
vendor. *
the vendee even after they sale of a piece of land
have exhausted the
Only Statement I is true.
or any interest therein
property of the vendor.F
is through an agent, the
The right of pre-emption Only Statement II is true. authority of the latter
can be exercised after a
shall be in writing,
sale by the owner of an Both statements are true.
adjoining land to another.
otherwise the sale shall
F be unenforceable.
Both statements are
false. Statement II: Agency is
The redemption by a co-
owner of the property in its
presumed to be
entirety does not make Statement I: The gratuitous unless there
him the owner of all of it. T Doctrine of Agency by is proof to the
A vendee cannot compel
Necessity states that by contrary. *
total redemption in virtue of the existence
separate sales by co- of an emergency, the Only Statement I is true.
owners of an undivided authority of an agent is
immoveable. T Only Statement II is true.
correspondingly
If at the time of redemption enlarged in order to Both statements are true.
the land has fruits paid by cope with the
the vendee, the vendor Both statements are
exigencies or
must reimburse him for all false.
natural, industrial and civil
necessities of the
fruits. F moment. Statement II:
An agent must be
Statement I: The power whether the agency A gratuitous
to compromise does was or was not for assignment is in the
not include the power to compensation. * nature of a donation. *
submit to arbitration.
Statement II: The Only Statement I is true. Only Statement I is true.
power to sell includes
Only Statement II is true. Only Statement II is true.
the power to mortgage.
Statement III: The Both statements are true. Both statements are true.
power to mortgage
includes the power to Both statements are Both statements are
false. false.
enter into a 2nd
mortgage. *
Statement I: While Multiple Choice
services may be the 35 of 52 points
Only Statement I is true.
object in a contract, this The following
Only Statement II is true. excludes contracts of statements are true in a
sale. Statement II: An pacto de retro sale
Only Statement III is except: *
assignment of a credit,
true.
right or action produces
The vendee a retro
Both statements are no effect as against
becomes the owner of
false.
third person unless it the property subject of
appears in a public the sale.
Both statements are true.
instrument. *
The vendee a retro can
Statement I: sell or mortgage the
Only Statement I is true. property to a third
Instructions person.
contemplate only Only Statement II is true.
private rules of The vendee a retro can
only sell or mortgage the
guidance to the agent Both statements are true. property only after the
and are independent expiration of the period
Both statements are of redemption.
and distinct from the false.
agent’s authority. The vendee a retro is
Statement II: The subrogated to the
Statement I: Debtor’s vendor's rights and
liability of the agent for consent is required actions.
either fraud or before credit is
negligence shall be assigned. Statement II:
judged according to
 Specific performance
Which is NOT to be Bubblegum. The sale
paid by the principal to by Jake is: (A) valid (B)
Damages
the agent? * voidable (C) void (D)
rescissible *
Which is NOT a
advanced funds
formality required by
valid
indemnity for damages the Bulk Sales Law? *
suffered due to agency
void
demanding and giving of
expenses stipulated to a list of creditors
voidable
be paid by the agent
publication of said list
rescissible
interest for amounts paid
by the agent
giving of actual or
constructive notice to Which is an obligation
such creditors by record
D borrowed P1M from of the agent who
or otherwise
C. C assigned his credit declines the agency? *
to A. Does C need D’s making of an inventory
consent for the Observe the diligence of
a good father of a family
assignment to be If in the immediately in the custody and
valid? * preceding question, C preservation of the
goods forwarded to him
did not give notice of
Yes the assignment to D, Appoint an agent in his
but D has actual stead
No
knowledge of the
Do acts pursuant to the
assignment. If D pays agency
What is the remedy if
C, is the payment valid
the contract purports to
as to A? * None of the above
be a pacto de retro sale choices
when in fact it is an
Yes
equitable mortgage? Is there a right of legal
(A) reformation (B) No redemption in sales of
rescission (C) specific credit in litigation? *
performance (D) Finn authorized Jake to
damages * sell his land but no Yes, absolutely.
written authority was
Reformation Yes, except as against a
given. Jake was able to co-owner, creditor or
sell the land to Princess
Rescission
 possessor of the Within 4 years from the
he made. One day,
tenement. date of the contract
Anton bought certain
No, this right is not materials needed for Within 10 years from the
available. the improvement. Is the date of the contract

father liable for the

Within 30 days from final
The following are payment of the judgment
characteristics of an materials purchased? *
agency, EXCEPT: * Within 30 days from
notice in writing by the
Yes, there is a contract vendor
Principal of agency.

None of the above

Fiduciary No, there is no contract
of agency.
Unilateral if for A, B, and C are co-
compensation If two persons contract owners of a parcel of
separately with the land. In a pacto de retro
Representative relation
agent and the principal sale of the property to X
with regard to the same : *
X gave to Y a Special
thing and the two
Power of Attorney to
contracts are A may exercise
sell Y’s land. The redemption of the entire
incompatible: * property
authority of X is: *

the contract is void C may exercise

Express redemption of 2/3 of the
property
the one of later date is
Implied preferred
B may exercise
Apparent / ostensible redemption of 1/3 of the
the one of prior date is property
preferred
By operation of law  
X can be compelled to
the agent is liable for accept partial redemption
damages
Anton was allowed by
his father to use the S is the adjoining owner
S and B entered into an
latter's land and to of the property of B
absolute sale of a
make improvements on which is rural and is
parcel of land. Until
it. He was also less than 1 hectare. If B
when can S repurchase
authorized to get profits sold his property to X,
the land? *
from the improvements until when can S
 Yes, there is a contract
repurchase the property R sold T’s pair of shoes
of agency.
from X? * without T’s authority but
with T’s knowledge and No, there is no contract
Within 4 years from the without his opposition of agency.
date of the contract
before the sale. Which
is legally correct? * If two or more adjoining
Within 10 years from the
date of the contract owners of rural lands
There is agency formed desire to exercise the
Within 30 days from final by estoppel. right of redemption at
judgment
the same time, who
There is no agency.
Within 30 days from shall be preferred?: *
notice in writing by the
There is express agency.
vendor
the owner of the
adjoining land of greater
None of the above Who is bound when an area
agent acts without
should both lands have
As to 3rd persons authority and is given
the same area, the one
dealing with the agent subsequent ratification who first requested the
by the principal for such redemption
in good faith, anything
done by the agent, action? *
the owner whose
without knowledge of intended use of the land
Agent in question appears best
the death of the
justified
principal or of any other
Principal
cause which
S and B entered into a
extinguishes the Both agent and principal pacto de retro sale but
agency, is: *
no period for
The third person dealing
with the agent redemption was
valid
stipulated. Until when
void Ana gave Ben P10,000. can S repurchase the
Ben used the money as property? *
voidable
down payment to obtain
equipment necessary Within 4 years from the
rescissible date of the contract
for Ben's business from
unenforceable Cris. If Ben fails to pay Within 10 years from the
the balance, can Cris date of the contract

recover from Ana? *

 Within 30 days from final Dissolution of the firm or
It is a stipulation giving
judgment corporation which
power to the creditor to entrusted or accepted
the agency
Within 30 days from automatically
notice in writing by the appropriate the thing
vendor
given as security, if the A assigns his hereditary
principal obligation is rights to B. What
None of the above
not fulfilled, without any warranty does A give to
formality such as B? *
Anna now manages her
ice cream business foreclosure proceeding.
That he will inherit
entrusted to her agent, It is void and is what is properties.
Olaf, and she deals avoided by reason of
directly with 3rd which a contract That he is a legitimate
heir.
persons, The agency is purporting to be a pacto
extinguished by: * de retro sale is Both of the above
construed as an choices
Withdrawal equitable mortgage: *
Neither of the above
choices
Implied revocation Policitation

Dissolution Attornment by bailee If the principal dies, the

agency remains in full
Accomplishment of the Reformation force and effect: *
purpose of the agency

Caveat emptor If it has been constituted

In the assignment of his in the common interest of
credit to A, what Pactum commissorium the latter and of the
agent
warranties does C
make to A? * Which is NOT a cause If it has been constituted
of extinguishment of in the interest of a third
person who has
That D will pay his debt agency? * accepted the stipulation
in his favor
That D's debt is valid and Revocation
existing
Both of the above
Withdrawal of the agent choices
Both of the above
choices
Death, civil interdiction, None of these choices
insanity or insolvency of
Neither of the above 3rd persons dealing with
choices the principal or agent
Which is NOT true of a Which is NOT true of P gave a general power
commission agent? * revocation? * of attorney to A for the
latter to convey all of
He is responsible for the The principal may revoke his cars. P later gave X
goods received by him in the agency at will.
the terms and conditions a special power of
and as described in the attorney to sell P’s
Revocation may be
consignment
express or implied. Lamborghini. What is
He is not liable if he the effect of X’s SPA on
Revocation may be total
makes a written A’s GPA? *
or partial.
statement of the damage
and deterioration
suffered by the goods   It is an act of the agent. A’s authority is totally
revoked.

He must designate the The agency is revoked if

merchandise the principal directly X may convey all of P’s
respectively belonging to manages the business cars.
each principal entrusted to the agent,
dealing directly with third A may still sell P’s
persons. Lamborghini.
He may sell on credit

If two or more adjoining All of the above choices.

If an agent, acting
owners of urban lands
beyond authority, None of the above
desire to exercise the choices.
makes
right of redemption at
misrepresentations, is
the same time, who Should an agent lease
the principal liable? *
shall be preferred?: * any real property to
Absolutely not. another person, he
the owner of the
adjoining land of greater must be armed with a
Yes, at all times. area special power of
attorney if such lease is
  should both lands have
the same area, the one for: *
who first requested the
No, since the agent is in redemption
estoppel. A year

the owner whose Less than a year

Yes, if the principal intended use of the land
receives benefits from in question appears best
the misrepresentations. justified More than a year

12 calendar months
S sold to B his land with is owned by a person or own name. Which is
right to repurchase. company, or claims to legally correct? *
Before he could sums which are
exercise his right, he owing: * A is liable for the sale.
died, leaving behind X
B is a disclosed principal.
& Y as his only heirs. Credit
May X and Y exercise Both of the above
Debt
S’s right to choices
repurchase? * Right
Neither of the above
choices
Yes Liability

No
D owes C P1,000.00,
Jose owns a sari-sari
with G as guarantor. C
store. One day, while
Which describes the assigns his credit to T
drinking milk tea, Jose
prescriptive period for with notice given to D.
fainted and bumped his
conventional In case D fails to pay T,
head on the floor. He
redemption? * may T enforce the
was rushed to the
guaranty of G? *
hospital and was in
It must be exercised
within 1 year from comatose for one
Yes 
registration of the sale month. While he was in
a coma, Wally No
It must be exercised
within 5 years from the managed the sari-sari
conveyance by the store. Is there a A and B have adjacent
widow or heir of the
homestead owner contract of agency? * urban lands. B offers to
sell his land to C, who
If with stipulation of the Yes, there is a contract is yet to decide whether
parties, same maximum of agency.
period as with co- or not to accept it. A
ownership offers to buy the land
No, there is no contract
of agency. from B instead. This is
If without stipulation of
the parties, within 4 a case of: *
years from the death of A, being the agent of B
the vendee a retro  and acting under B’s Equitable mortgage
authority, was able to
Anything of material sell B’s cellphone in A’s Pre-emption

value or usefulness that

 Conventional redemption The one exercising the Within 4 years from the
right is an adjacent date of the contract
owner.
Legal redemption
Within 10 years from the
The land is about to be date of the contract
Other:
resold, or that its resale
has been perfected.
Within 30 days from final
Which is not a requisite judgment
for the exercise of the S sold to B his land
Within 30 days from
right of legal with right to
notice in writing by the
redemption of rural repurchase. Before S vendor
lands? * could exercise his right,
B died, leaving behind None of the above
The lands must be X & Y as his only heirs.
adjacent. Ava owes Connor
S can exercise his right
to repurchase: * P10,000. Connor
There is alienation.
assigns his credit right
The piece of rural land The whole property as to Bree for a
must exceed one against X or Y consideration with
hectare.
notice to Ava. Which is
The whole property as
The rural land must not against X and Y NOT true? *
be separated by brooks,
drains, ravines, roads
Either of the above Connor is the assignor
and other apparent
choices
servitudes.
Bree is the assignee
Neither of the above
Which is NOT a choices
Ava's new creditor is
condition for the Bree
exercise of the right of S and B entered into a
Connor warrants Ava's
pre-emption or pacto de retro sale and
solvency to Bree
redemption of urban they stipulated that
lands? * Sharon can repurchase
If, there being a conflict
the property at any time
between the agent’s
The urban land was she has the money.
bought merely for interests and those of
speculation. Until when can S
the principal, the agent
repurchase the
should prefer his own: *
The piece of land is so property? *
situated that it has a
variety of purposes to the principal is liable for
choose from. damages
 the agent is liable for both of the foregoing
described in each of the
damages
following: *
neither of the first 2
the contract is void choices
Also known as mandante.
the agency is fraudulent
An agent must advance One who acts in
necessary funds: * representation of or on
Which is an obligation behalf of another
of an agent who if there is a stipulation to
do so Acts as an intermediary or
withdraws from the
go-between and does not
agency? * receive possession of the
regardless of principal’s
insolvency object of the agency
Notify the principal
Bears the risk of collection
all of these
Indemnify the principal and pays to the principal
for damages suffered the proceeds of the sale
none of these
Receives a portion of the
Continue to act until the proceeds also known as
principal has had An agency cannot be factorage
reasonable opportunity ANSWERS
revoked: *
to take the necessary
steps to meet the 1. principal
situation If a bilateral contract 2. agent
depends upon it 3. broker
All of the above 4. del credere agent
If it is the means of
fulfilling an obligation 5. commission agent
None of the above
already contracted
Determine what is
P gave A a special If a partner is appointed being described. *
power of attorney with manager of a partnership
in the contract of
an added stipulation partnership and his Conventional redemption
exempting A from the removal from the
management is Equitable mortgage
obligation to render an unjustifiable
account. Which is Legal redemption
void? * All of the above
After the sale, the vendor
remains in possession of
the contract of agency None of the above
the subject property

Takes place when the

the stipulation exempting Determine the party to
A vendor reserves the right
the contract of agency to repurchase the thing
sold, with the obligation to 6. Equitable mortgage Do the following acts
comply with the provisions 7. Equitable mortgage
require a special power
of Article 1616 and other 8. Legal redemption
9. Equitable mortgage of attorney? *
stipulations which may
have been agreed upon Determine what kind of
agency is being Yes.
Sale with unusually
inadequate purchase price described. * No.

Pacto de retro sale To authorize a person

Couched in general terms employed to sell goods in
The right to be
Couched in specific terms a retail store
subrogated, upon the
same terms and conditions General To waive any obligation
stipulated in the contract, gratuitously
in the place of one who Special
To bind the principal to
acquires a thing by
Ostensible/Representative render some service
purchase or dation in
without compensation
payment, or by any other Agency which comprises
transaction whereby all the business of the To make customary gifts
ownership is transmitted principal. for charity
by onerous title
Agent acts in the name To borrow money which is
Extension of redemption and in representation of needed urgently for the
period after expiration the principal. preservation of the thing
under administration.
An equity of redemption in Comprises one or more
cases of judicial specific transactions To obligate the principal as
foreclosures a guarantor or surety.
Comprises only acts of
Redemption by an administration 1. N
agricultural tenant of land
Comprises of acts of strict 2. Y
sold by the landowner
dominion 3. Y
Vendor binds himself to
4. N
pay the taxes on the thing ANSWERS
5. Y
sold
6. N
ANSWERS 1. General
2. Ostensible/
1. Equitable mortgage Representative Determine the kind of
2. Conventional 3. Special liability incurred by the
redemption 4. Couched in general parties in the following
3. Equitable mortgage terms
4. Equitable mortgage situations: *
5. Couched in specific
5. Legal redemption terms
individual the right to appeal from a Determine the legal
judgment
joint principle for the
1. VOID following: *
solidary
2. VOID
Two or more agents 1. “You cannot sell what
3. VALID
having the same principal you do not own”
over the same transaction 2. "Owner bears the risk of
In the following loss"
Two or more principals
obligations, is the
having the same agent 3. “He who acts through
over the same prinicipal liable? *
another acts himself”
transaction?
In case of doubt, apply the 4. “Buyer beware”
The agent who acted general rule.
without any authority 5. “First in time, first in
whatsoever? right”
Yes.
What is the nature of the nemo dat quod non habet
No.
power of two or more
res perit domino
principals having the same Expenses of the agent for
agent to revoke the advancing funds where qui fact per alium facit se
agency? there was a stipulation to
caveat emptor
do so
1. Joint
prior tempore potior jure
2. Joint Contract in the agent’s
3. Individual name, involving things
belonging to the principal
4. Solidary
Contract in excess of
authority, subsequently
Determine the status of
ratified by the principal
the agency described: *
Contract in principal’s
name, without his authority
VALID
Contract of a sub-agent
VOID
who is insolvent
Agency without
compensation of the agent
1. N
2. Y
Agency for the sale of
3. Y
fenced goods
4. N
Agency to enter into 5. Y
compromise, to renounce