Northern CPAR: Business Laws Law on Agency

NORTHERN CPA REVIEW

4th Floor Pelizloy Centrum, Lower Session Road, Baguio City
Contact Numbers: 09294891758; 09272128204
E-mail: [email protected]
ATTY. ANDRIX DOMINGO, CPA
BUSINESS LAWS
THE Law on Agency

Agency
A contract whereby a person binds himself to render some service or to do something in representation or in behalf of
another, with the consent and authority of the latter.
Characteristics of agency
1. Principal
2. Preparatory
3. Consensual
4. Onerous
5. Nominate
6. Bilateral
7. Commutative
Parties to a contract of agency, capacity of the parties
1. Principal
2. Agent
Distinguish agency from similar contracts or relations
(1) Loan a borrower is given money (a) for purposes of his own (in agency, to advance principals business) and he must
generally (b) return it whether or not the business is successful.
(2) Lease of service The (a) basis of employment and the lessor (like a servant) ordinarily (b) performs only ministerial (not
discretionary) functions.
(3) Contract for a piece of work The independent contractor exercises his employment independently and not in representation of
the employer.
(4) Partnership A partner acts not only for his co-partners and the partnership but also as a principal for himself (in agency, agent
acts only for his principal).
(5) Negotiorum gestio It is (a) quasi-contract; (b) the gestio acts without authority and knowledge of the owner of the property of
business although according to his (c) presumed (not express) will by exercising all diligence of a good father of a family. In
both, however, there is representation.
(6) Sale In sale (as distinguished from agency to sell), the buyer (a) receives the goods as owner, (b) pays the price (the agent
delivers the proceeds of the sale), (c) can deal with principal), and (d) as a general rule, cannot return the object sold.
(7) Brokerage a broker merely (a) an intermediary between the purchaser and the vendor whose only office is to bring together
the parties to the transaction and has (b) no relation to the thing he buys or sells, while a (commission) agent maintains a
relation not only with his principal and the purchaser or vendor but also with the property the subject matter of the transaction
which is placed in his possession and at his disposal in accordance with his authority.
(8) Relations between guardian and ward - While the guardian acts for and in behalf of his ward, he does not, however, derive his
authority to act from the ward.
How agency relationship is created
1. By appointment
2. By ratification
3. By estoppel
4. By necessity
Kinds of agency
1. According to form
a. Express
1) Oral agreement
2) Written agreement
b. Implied an agency may be implied from the following:
1) Acts of the principal
2) Silence of the principal
3) Lack of action of the principal
4) Failure of the principal to repudiate the agency
2. According to extent
a. General agency when it comprises all the business of the principal.
b. Special agency when it comprises of one or more specific transactions.
3. According to authority conferred
a. Agency couched in general terms (general power of attorney)
b. Agency couched in specific terms a special power of attorney is required for the performance of the following
specific acts
1) To make such payments as are not usually considered acts of administration.

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2)
3)
4)
5)
6)
7)
8)
9)

4.
5.

To effect novations
To compromise
To submit questions to arbitration
To renounce the right to appeal from a judgment.
To waive objections to the venue of an action.
To abandon a prescription already acquired.
To waive obligations gratuitously.
To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for
a valuable consideration.
10) To make gifts
11) To loan or borrow money
12) To lease any real property to another person for more than a year.
13) To bind the principal to render some service without any compensation.
14) To bind the principal in a contract of partnership.
15) To obligate the principal as a guarantor or surety.
16) To create or convey real rights over immovable property.
17) To accept or repudiate an inheritance
18) To ratify or recognize obligations contracted before the agency.
19) Any other act of strict dominion.
According to its character:
(a) Gratuitous
(b) Compensated or onerous
According to its nature and effects:
(a) Ostensible representative one where the agent acts in the name and representation of the principal; or
(b) Simple or commission one where the agent acts for the account of the principal but in his own name

Kinds of acceptance of agency by the agent.

1. Express
2. Implied
Announcement of appointment by an agent
1. By special information
2. By public advertisement
Basic principles of agency
1. The agent must act within the scope of his authority.
2. The agent must act in behalf of his principal.
Obligations of an agent
Obligations, in general, of a person who accepts an agency
1. To carry out the agency
2. To be liable for damages which, through his non-performance, the principal may suffer.
3. To finish the business already begun on the death of the principal, should delay entail any danger.
Specific obligations of an agent
1. To advance the necessary funds if there was a stipulation to that effect
2. To act in accordance with the instructions of the principal
3. Not to carry out an agency if its execution would manifestly result in loss or damage to the principal
4. To be liable for damages if there being a conflict between his interest and that of the principal, he should prefer his own
5. Not to borrow the money of the principal without the principals consent, if the latter has authorized him to lend the principals
money at interest.
6. To render an accounting of his transactions and to deliver to the principal whatever he may have received by virtue of the
agency, even though it may not be owing to the principal
7. Agents liability when he appoints a substitute
Who is a subagent?
A sub-agent (or substitute) is a person to whom the agent delegates, as his agent the performance of an act for the principal
which the agent has been empowered to perform.
8. Liability of two or more agents if they have been appointed simultaneously
9. To be liable for interest on the sums he has applied to his own
10. Agents liability if he contracts in the name of the principal
General Rule: The agent who acts as such shall not be liable to the party with whom he contracts.
Exceptions: The agent shall be personally liable in the following cases:
a. If he expressly binds himself.
b. Is he exceeds the limits of his authority giving such party sufficient notice of his powers.
Rules if the other party was aware of the agents acting beyond the limits of his authority
1) If the agent did not undertake to secure the principals ratification, the contract shall be void.
2) If the agent undertook to secure the principals ratification of the act and the principal does not ratify the same, the
agent shall be liable.
3) If the principal ratifies the contract, the contract shall be enforceable against the principal.

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11. To be responsible not only for fraud, but also for negligence
Commission agent
is one who buys and sells goods or chattels consigned or delivered to him by his principal, for a compensation known as
commission.
General rule: The commission agent cannot sell on credit.
Exception: The commission agent can sell on credit only with the express or implied consent of the principal.
Effects if the commission agent sells on credit without principals consent
1) The principal may demand payment from him in cash.
2) The commission agent, however, shall be entitled to any interest or benefit, which may result from such sale.
del credere commission
Del credere commission ( also called guarantee commission) is an additional commission by which the agent (who also gets his
ordinary commission) shall bear the risk of collection and shall pay the principal the proceeds of the sale on the same
terms agreed upon with the purchaser.
Obligations of the principal
1. To comply with all the obligations which the agent may have contracted within the scope of his authority.
2. To be bound for any obligation wherein the agent has exceeded his power if he ratifies such obligation expressly or tacitly.
3. To be solidarily liable with the agent if he allowed the latter to act as though he had full powers when the agent exceeded his
authority.
4. To advance to the agent sums necessary for the execution of the agency should the agent so request.
5. To reimburse the agent the sums advanced by the latter even if the business or undertaking was not successful provided the
agent is free from all fault.
6. To indemnify the agent or all damages which the execution of the agency may have caused the latter, without fault or
negligence on his part
7. Liability when there are two or more principals
Extinguishment of agency
Modes of extinguishment of agency
1. By revocation
2. By withdrawal of the agent.
3. By the death, civil interdiction, insanity or insolvency of the principal or of the agent.
4. By the dissolution of the firm or corporation which entrusted or accepted the agency.
5. By the accomplishment of the object or purpose of the agency
6. By the expiration of the period for which the agency was constituted.
Revocation refers to the act of the principal of terminating the agency at will confidence and representation being the foundation of
the contract.
Kinds of revocation
a. Express
b. Implied
When agency may not be revoked at will
a. If a bilateral contract depends upon the agency.
b. If the agency is a 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. If agency is coupled with interest
Withdrawal by the agent
By the agent giving due notice to the principal of his withdrawal.
Death of the principal
As a general rule, the death of the principal extinguishes the agency. However, the agency is not extinguished in the following:
a. If the agency has been constituted in the common interest of the principal and the agent.
b. If the agency has been constituted in the interest of a third person who has accepted the situation in his favor.
Death of the agent
1. Effect of death of agent in agency
The death of the agent extinguishes the agency
2. Duty of agents heirs
a. Notify the principal of the agents death
To adopt in the meantime such measures as the circumstances may demand in the interest of the principa
QUIZZER:
1. A contract whereby a person binds himself to render some service or to do something in representation or in behalf of another,
with the consent and authority of the later is known as:
a. Contract of lease of services
c. Contract for a piece of work
b. Contract of agency
d. Contract to sell
2.

A contract of agency has the following characteristics except that it is not:

a. A consensual contract
c. A nominate contract

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3.

b. An accessory contract
d. Abilateral contract
P appointed A to be his agent to administer his mango orchard while P is in USA, but A died leaving his son, B, of legal age to
take care of the mango orchard until P arrived. This is an agency created by:
a. Estoppel
b. Ratification
c. Assignment
d. Operation of law

4.

A, a manufacturer and B, a distributor agreed to a contract where A will deliver 2,000 units of A's products to B every month and
B will sell the products at A's suggested prices plus 15%. All unsold units at the end of the year shall be bought back by A at
the same price at the time the products were ordered. A shall hold B free from any claim for defects in the units. The contract
between A and B is:
a. Contract of Sale
c.. Contract to lease
b. Sale with right to repurchase
d. Agency to sell

5.

The following are characteristics of a contract of agency, except:

a. Consensual
b. Principal
c. Innominate

6.

7.

8.

9.

In agency, the agent represents

a. A person who is capacitated
b. A person who is incapacitated

d. Bilateral

c. Heirs and creditors of the estate

d. The judicial court

Which of the following refers to a contract of agency?

a. He represents an incapacitated person
b. There is no meeting of minds

c. He is controlled by the principal

d. The legal relation is always created by law

This requires a special power of attorney, except

a. To accept or repudiate an inheritance
b. To effect novation

c. To enter into compromise

d. To lease real property for one year

If an agent enters into a contract in the name of his principal, exceeding the scope of his authority, the contract is
a. Voidable
b. Unenforceable
c. Rescissible
d. Void

10. On day 1, A appointed B as his agent covered by a general power to lease his car to Z for eight months.
On day 2, A appointed C as his agent covered by a special power to lease the same car for two months.
On day 3, A directly transacted business with Z, leasing the car for two months. Which is correct?
a. The appointment of B is valid because it is covered by a general power
b. The appointment of C is valid because it is covered by special power
c. The appointments of B and C are considered revoked because the principal directly transacted with Z
d. The appointment of B is valid because it is the earliest appointment
11. Not a fundamental obligation of the agent
a. Sacrifice his interest and give it to the principal if there is a conflict
b. To render an accounting of the transaction
c. Should not carry out the agency even if that is the instruction, if he knew it would result in a loss or damage to the principal
d. Can be the borrower if he is authorized to lend
12. A appointed B as his agent to sell his car for P250,000. B sold the car to C for P250,000 but B acted in his own name. After
delivery, C inspected the car and she found hidden defects in the car. Is A, as principal, liable to C even if B acted in his own
name?
a. No, applying caveat emptor or let the buyer beware
b. Yes, because this is a contract involving property belonging to the principal
c. No, because the contract of sale is between B and C
d. Yes, if C was aware of the hidden defects.
13. To improve the financial condition of his principal, an agent with general powers of administration given to him by the principal in
writing, sold two parcels of land, one for less than the price appearing in the inventory prepared by the principal and the other
for double the price that appeared in the aforesaid inventory. Which is correct?
a. Both contracts cannot be enforced against the principal
b. Both contracts are binding upon the principal
c. The sale for double the price appearing in the inventory is binding upon the principal
d. The sale for less than the price appearing in the inventory is binding upon the principal
14. Not a mode of extinguishing an agency
a. Accomplishment of agency
b. Death of the principal, and the agency is for the interest of either the principal or agent
c.
Insanity of the principal or agent
d. Dissolution of the firm or corporation which entrusted or accepted the agency

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15. Bears the risk of collecting from the buyer the price of the sale
a. Commission agent
b. Delegacion
c. Del Credere agent

d. Expromission

16. It is a contract wherein a person binds himself to render some service in representation or on behalf of another, with the
consent or authority of the latter
a. Agency
b. Contract of service
c. Contract of piece or work
d. Partnership
17. Agency can be rovoked at will
a. When a bilateral contract depends upon it
b. If it is the means of fulfilling an obligation already contracted
c. If a partner is appointed managing partner in the articles of partnership and his removal is unjustifiable
d. When the principal directly manages the business entrusted to the agent
18. Pedro trucks corporation (Pedro) which is based in Metro Manila, sent a letter with a special power of attorney to Alberto
Ahente (Alberto) , an agent dealing with trucks in the latters office in Cebu, appointing Alberto as the agent of Pedro to sell its
new trucks. The letter which was sent through LBC Courier Services, was duly received by Alberto Ahente, who signed in the
logbook of LBC. Alberto, however, did not respond to the letter. Based on the foregoing data:
a. An agency was created between Pedro and Alberto by the implied acceptance of Alberto of the agency.
b. No agency was created between Pedro and Alberto because Alberto did not respond to the letter.
c. An agency was created by the ratification of Alberto when he duly received the letter with a special power of attorney.
d. No agency was created because of the inaction of Alberto.
19
I.
II.
III.
IV.

The following statements refer either to authority or instruction given by the principal to his agent.
Relates to the kind of business or transaction upon which the agent is commissioned to act.
Concerns the principal and the agent
Refers to the mode of action by the agent in carrying out the agency.
Third persons can require the agent to present it to them since they are chargeable with knowledge thereof.

You are to determine whether the above statements pertain to authority or instruction.
a. I and II refer to authority
c. II and IV refer to instruction
b. I and IV refer to authority
d. III and IV refer to instruction
20

Petra, a singer based in Cebu, authorized Alma, also a singer, to go to Manila to look for a nightclub where Petra
could sing. When Alma arrived in Manila, she presented herself, not Petra, as the singer, to the Raymond Tiger Bar which
engaged her services to sing nightly for two months at the club. Based on the foregoing information, which of the following
statements is correct?
a. Petra has a right of action against Raymond Tiger Bar.
b. Raymond Tiger Bar has a right of action against Petra.
c. The contract between Alma and Raymond Tiger Bar is a valid contract between them, not between Petra and Raymond
Tiger Bar.
d. The contract between Allona and Raymond Tiger Bar is void because Petra was not the party thereto.

21

Rad Bik Cars Corporation (Rad Bik), an authorized dealer of PONY cars appointed Armando as its agent to sell
the cars of the company. The authority of Armando includes the giving of a discount of P20, 000.00 to customers who pay in
cash. One day, Carmina, a customer, went to the companys car center and told Armando that she wanted to buy a car with a
sales price of P600, 000.00. However, as she only had P550, 000.00, she told Armando that she would take the car if Armando
agreed to a discount of P50, 000.00. Armando agreed and sold the car to Carmina at P550, 000.00 in behalf of the corporation.
What is the status of the sale made by Armando to Carmina?
a. Voidable at the instance of Rad Bik because it did not give its consent to the sale at the discount of P50, 000.00.
b. Unenforceable against Rad Bik, the principal, because Armando acted beyond the scope of his authority.
c.
d.

Void because the additional discount of P30, 000.00 given by Armando was not authorized by Rad Bik.
Rescissible, because Rad Bik suffered damage of P30, 000.00

22

Bal gave Escala a special power of attorney wherein it was written that Escala was being authorized to sell the
two cars of Bal. However, Bal and Escala had an understanding that Escala should sell only one of the cars. Escala sold the
two cars to Zeus who was not aware of the instruction given by Bal to Escala.
a. Bal is bound by the sale of only one car in accordance with his understanding with Escala.
b. Bal is bound by the sale of the two cars because that is what is contained in the special power of attorney as written.
c. Bal is not bound at all by the sale of either one or both of the two cars because Escala violated the instructions given by
Bal.
d. Bal will be bound by the sale of one or both cars at his option.

23

P gave a power of attorney to A for the sale of his two cars, a Toyota and a Lancer. Their agreement included
among other provisions, the following: (1) A shall be entitled to a commission of 10% based on the actual selling price of the
cars which P fixed at a minimum of P400, 000.00 for the Toyota and P500, 000.00 for the Lancer; (2)A need not render P any
accounting of his transactions as long as A turns over the actual selling price of the cars net of the commission of 10%. A was
able to sell the Toyota to Colorado for P410, 000.00, and the Lancer for P500, 000.00 to Escala who gave A a tip of P20,
000.00. After the sale, P demanded from A an accounting of the transactions that he had made but A refused claiming that it

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was enough that he turned over the net selling price of P810, 000.00 (P900,000.00 less 10% of P900,000.00 as commission)
to P as agreed to by the two of them. Decide:
a. A, need not render an accounting to P because that was their agreement.
b. A, must account and deliver to P only the sum of P900, 000.00.
c. A, must account and deliver to P the sum of p910, 000.00.
d. A, must account and deliver to P P930, 000.00.
24

The following statements refer to either a commission agent or a broker.

He has a relation not only with his principal, and the buyers or sellers, but also with the property which is the object of the
transaction.
II. Maintains no relation with the thing he purchases or sells.
III. The goods are placed in his possession and disposal.
IV. He is merely an intermediary whose function is to bring the parties to the transaction.
Determine whether the above statements pertain to commission agent or broker.
a. I and III pertain to a commission agent.
c. II and III pertain to a broker.
b. I and IV pertain to a commission agent.
d. I and IV pertain to a broker.
I.

25
a.
b.
c.
d.
26

The principal is not liable for the expenses incurred by the agent in the following except:
When although the agent acted in contravention of the principals instructions, the principal wishes to avail himself of the
benefits derived from the contract.
When it was stipulated that the agent would be allowed only to a certain sum.
When the agent incurred them knowing that an unfavourable result would ensue, if the principal was not aware thereof.
When the expenses were due to the fault of the agent.

When two persons contract with regard to the same immovable thing, one of them with the agent, and the other
with the principal, and the contract are incompatible with each other, ownership shall be transferred to:
a. The first purchaser in good faith.
b. The first who completed the payment of the price in good faith.
c. The first who will register in good faith the transaction.
d. The one who presents the oldest title who must be in good faith.

27
a.
b.
c.
d.

An agency is impliedly revoked in three of the following cases. Which is the exception?
When a new agent is appointed for the same business or transaction.
When the principal directly manages the business entrusted to the agent, dealing directly with third persons.
When a special power of attorney is granted to another agent pertaining to a special matter involved in a general power of
attorney issued to a previous agent.
When the desire of the principal is to help the agent manage the business.

28

Penelope appointed Alicia as her agent to sell a set of bakery equipment for P50, 000.00 with an ordinary
commission of 10% and a guarantee commission of 15%. Alicia is authorized t o sell on credit. Alicia was able to sell, in behalf
of Penelope, the bakery equipment for P50, 000.00 to Nicole who issued a check ten days after the sale. On the tenth day,
however, the check was dishonoured by the bank because Nicole did not have sufficient funds for it.
a. Alicia is liable to Penelope because she must bear the risk of collecting the price from Nicole.
b. Alicia is not liable to Penelope because the dishonor of the check was without Alicias fault.
c. Alicia is not liable to Penelope because she is not the purchaser but Nicole.
d. Alicia is liable to Penelope because she acted beyond the scope of his authority.

29

P appointed A as his agent. The authority of A did not authorize A to appoint a substitute but it did not also prohibit
him from appointing one. In this case:
a. A may appoint a substitute because he is not prohibited from doing so in his authority but he shall be liable for the acts of
the substitute.
b. A may not appoint a substitute because there is no express provision in his appointment from P allowing him to appoint
one.
c. A may appoint a substitute but he shall be liable for the acts of the substitute only when the substitute is notoriously
incompetent of insolvent.
d. A may appoint a substitute only when the substitute is designated in the authority given by P to A.

30

The following cases were presented to you for evaluation:

I. A bilateral contract depends upon the agency.
II. The agency is a means of fulfilling an obligation previously contracted.
III. The agency is one where the partner was appointed manager in the contract of partnership and the removal of the partner
from the management is unjustifiable.
In which of the above cases is the principal not allowed to revoke the agency?
a. I and II
b. II and III
c. I and III
d. I, II, and III

31
a.
b.
c.
d.

The following are modes of extinguishing an agency, except:

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

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32

R, S and T, each one owning a separate lot, appointed A to sell their lots in one instrument. Under the agreement
A will receive a commission of 10% of the selling price of each lot. A was able to sell the lot of R for P100, 000.00; the lot of S
for P200, 000.00; and the lot of T for P300, 000.00. How much commission may A collect from R?
a. P60, 000.00
b. P10, 000.00
c. P20, 000.00
d. P30, 000.00

33
a.
b.

This is an agency that comprises one or more specific transactions of the principal.
Special agency
c. Agency couched in general terms
General agency
d. Agency couched in specific terms

34

P, owner of a certain car, authorized A to sell the car for P100, 000.00 cash. A, however, sold the car in the name
of P for P110, 000.00 but on credit. B, the buyer knew that at the time of the transaction that As authority was to sell the car to
P on cash basis. The contract entered into by A is:
a. Void, because B was aware of As limit of authority. In this case, A is not liable because he did not undertake to get Ps
ratification.
b. Valid, because the transaction, although, it was for credit, was more advantageous to P. Accordingly, P will be liable.
c. Unenforceable against P because A acted in excess of his authority. Thus, A alone will be liable.
d. Rescissible, because P will suffer damage if the sales price is not paid by B.

35

P appointed A as commission agent to sell Ps goods for P10, 000.00 cash. A, however, sold the goods on credit
for P11, 000.00 without Ps consent. Based on the foregoing fact, which of the following options are available to P?
I. P may demand immediate payment in P11, 000.00 cash.
II. P may demand immediate payment in P10, 000.00 cash. However, A shall be entitled to keep the excess of P1, 000.00
when he collects the price of P11, 000.00.
III. P may ratify the sale on credit of P11, 000.00 and wait for the amount to be collected.
a. Either I or III
b. Either II or III
c. Either I or II
d. I only

36

P leads B to believe that A is his (Ps) agent. However, A is not really the agent of P. Later, B transacted with A
believing that A is the agent of P. What kind of agency was created here?
a. Agency by ratification
c. Agency by estoppel
b. Agency by appointment
d. Agency by necessity

37. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in a public
instrument, otherwise the sale shall be void.
Agency is presumed to be without compensation unless there is proof to the contrary.
a. both are true
b. both are false
c. only the first is true
d. only the second is true
38. A special power to sell includes the power of mortgage and a special power to mortgage includes the power to sell
Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even when the
principal is insolvent.
a. both are true
b. both are false
c. only the first is true
d. only the second is true
39.

If the agent has been empowered to borrow money he may himself be the lender at the current rate of interest and if he
has been authorized to lend money at interest, he can borrow it.
Every agent is bound to render an acount of his transaction and to deliver to the principal whatever he may have received by
virtue of the agency even though it may not be owing to the principal.
a. both are true
b. both are false
c. only the first is true
d. only the second is true

40.

The responsibility of two or more agents who have been appointed simultaneously is solidary.
When two or more principals have granted a power of attorney for a common transaction, any one of them may revoke the
same provided it is with the consent of the others.
a. both are true
b. both are false
c. only the first is true
d. only the second is true

41.

The limits of the agent's authority shall be considered exceeded even if it have been performed in a manner more
advantageous to the principal than that specified by him.
If the agent acts in his own name, he is directly bound as if the transaction were his own and that the contract shall not be valid
between the principal and the third party.
a. both are true
b. both are false
c. only the first is true
d. only the second is true

42.

In the execution of the agency, the agent shall observe the diligence of a father of a good family.
In case a person declines an agency, he is bound to observe ordinary diligence in the custody and preservation of the goods
forwarded to him by the owner until the latter should appoint an agent.
a. both are true
b. both are false
c. only the first is true
d. only the second is true

43.

If the agent contracts in the name of the principal exceeding the scope of his authority and the principal does not ratify the
contract, the contract shall be void if the party with whom the agent contracted is aware of the limits of the powers granted by
the principal.
A third person cannot set up the fact that the agent has exceeded his powers, if the principal has ratified, or has signified his
willingness to ratify the agent's acts.
a. both are true
b. both are false
c. only the first is true
d. only the second is true

Driven for real excellence!

Batch HQ04

BL by Atty. Andrix Domingo, CPA

th

BL 6

Northern CPAR: Business Laws Law on Agency

44.

Every stipulation exempting the agent from the obligation to render an accounting shall be void.
The agent and the principal must be both capacitated.
a. both are true
b. both are false
c. only the first is true
d. only the second is true
----End of Handouts----

Driven for real excellence!

Batch HQ04

BL by Atty. Andrix Domingo, CPA

th

BL 6