MULTIPLE CHOICE

64. P appointed A as his agent with general powers on January 1. The next day, X transacted business with A. On January 5, P revoked the agency by publishing it in a newspaper of general circulation. On January 10, or five (5) days after the revocation was published, X consummated another transaction with A. Is the act of A in entering into another contract with X on January still binding against P? *

Yes, because X is in good faith.

No, because the agency was already revoked and its publication is a sufficient warning.

No, because the power is just general and the act performed by A is an act of ownership which needs special power

Yes, because there was no special notice sent to X.

65. P appointed A as his special agent to sell a specific land for P10,000.00. P sends A his papers of appointment including a letter addressed to X notifying the latter of the appointment of A as his agent. Ten days after, P revoked the agency and published it in a newspaper of general circulation. X did not read the newspaper publication, but has got actual knowledge of the revocation. Later, A and X transacted business. Is the act of A binding against P? *

Yes, because A and X are in good faith.

No, X having knowledge of the revocation is considered in bad faith.

Yes, because X was not given a general power hence the revocation through publication is sufficient.

Yes, since the appointment of A is by special information, the revocation must also be by special information in order that the same is effective.

66. P verbally appointed A as his agent to sell his parcel of land for P10,000.00. Five days after, A sold to B the parcel of land for P8,000.00 by means of public instrument executed between A and B. What are the effects and the status of the sale between A and B? *

1 point

The sale is valid because it was executed in a public instrument.

The sale is unenforceable because the agent acted beyond the scope of his authority for selling the land for less than the price instructed.

The sale is void because the authority to sell is not in writing.

The sale is voidable because the contract of sale was not notarized.

67. Gloria appointed Sally to sell the former's car for P500,000.00. Sally sold the car to Pam for P500,000.00 but acted in her own name. After delivery, Pam inspected the car and she found hidden defects in the car. Can Pam file an action against Gloria even when Sally acted in her own name? *

No, under "caveat emptor" let the buyer beware.

Yes, because this is a contract involving property belonging to the principal.

No, because Sally acted in her own name, not of the principal.

No, because the contract of sale is already perfected.

68. The principal is liable for the expenses incurred by the agent, except: *

If the agent acted in contravention of the principal's instruction.

Expenses were due to the fault of the agent.

Agent incurred them knowing that an unfavorable result would ensure, and the principal was not aware thereof.

All of the above.

70. P delivered to A 10,000 pieces of Cebu fabricated shell craft jewelry for the purpose of selling them at P1.00 each. Out of the proceeds of the expected sale, A is to receive a 10% commission. After 3 days, however, A sold all the items at P1.50 each to B, but on 30-day credit. What is the status of the sale? *

The sale is valid since A performed his function in a manner more advantageous on the part of his principal.

The sale is void because the agent exceeded the instruction of the principal

The sale is unenforceable because the agent exceeded the limits of his authority.

The sale is unenforceable because sale of personal property P500 or more must be written in conformity with Statute of Fraud

The sale does not bind the principal as the agent exceeded the limits of his authority

73. P called A expressly authorizing him to sell his parcel of land situated in Bulacan. The land was later on purchased by X, but A and X did not reduce the sale in writing. The sale of A to X is: *

Void because the authority of A is not in writing.

Unenforceable because the authority of A is not in a public instrument.

Unenforceable because the contract of sale violated the rule on Statute of Fraud

Valid and binding on the part of P because the property sold belongs to him.

None of the above

75. P owns a parcel of land valued at P100,000.00 and appoints A as his agent in writing. The agency to sell the property on cash basis for the same amount. A succeeded in selling it for P120,000.00 in two installment payments payable within 20 days. What is the rule as regards the act of A? *

A exceeded his authority because the power to sell on cash does not include the power to sell on credit.

A did not exceed his authority because the act done is more advantageous than that of his instruction.

The act cannot be ratified because it is void from the beginning.

A's act is valid and enforceable.

76. Without P's authority, A (agent), sold P's car to X in P's behalf. The contract is:

Unauthorized

Unenforceable

Subject to ratification

All of the above

79. Today, P appointed A1 as his agent covered by general power to lease his car to X for 6 months. The next day, P appointed A2 with special power of attorney to lease the same car to X for 5 months. On the third day, P directly transacted business with X leasing the car for 2 months. What is the effect of agency between the parties? *

The appointment of A1 is valid because it has got a prior date

The appointment of A2 is the one that is valid because it is covered by a special power

The agency of A1 and A2 are considered revoked because the principal directly transacted with X.

None of the above

85. If P (principal) leads X (a third person) to believe that A is his agent, when in fact such is not true, P is liable because there is: *

A general agency created

A special agency created

An agency by estoppel

An agency by necessity

86. P authorized A, 16 years old, to sell his car to B. A sold the car to B for P100,000.00. One week after, because of the floating rate of the peso, prices of car went up. P now wanted to disavow the sale, claiming that A, his agent was a minor and therefore the contract is voidable and no liability is attached in the contract. *

P and A are jointly liable to B

Only A is liable because he executed the agency knowing for himself that he is a minor

P and A are solidarily liable to B

None of the above.

90. When the agent is a minor and the principal is cable of giving consent and by virtue of such authority , the agent entered into a Contract of Sale with X who is capacitated to give valid consent, what is the status of the Contract of Agency? *

Valid

Rescissible

Voidable

Unenforceable

Void