B 1. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to buy the land.

In A’s letter he gives B a period of two (2) months within to produce the P200,000. After 45 days, A told B that the
price of the land is now P250,000. Can B compel A to accept the P200,000 first offered by A and execute the deed of
sale?
a. Yes, because there was actual meeting of the minds of A’s offer
b. No, for B did not signify his acceptance of A’s offer
c. Yes, because A is already estoppels by his signed letter
d. Yes, because the period of two (2) months has not expired

C 2. S & B agreed on the sale of a four hectare property at Macapagal Boulevard for the price of P75000 per square meter
on a condition that if the price is not paid on a particular date, the sale will be considered automatically cancelled. On
the particular date agreed upon, B did not pay S, but B never asked for a judicial cancellation nor made a notarial act of
rescission. In this case
A. The sale is cancelled as per agreement
B. Cannot anymore pay the price simply because the sale is cancelled due to the failure to pay on the stipulated
date
C. B can still pay S the price
D. S can validly refuse any subsequent offer to pay by B

3. Unless there is stipulation to the contrary the expenses for the execution or registration of the sale shall be borne by:
B a. The Vendee
b. The Vendor
c. The Vendee and Vendor
d. The agent or broker

B 4. Which of the following statement is not correct?

a. The vendor is bound to deliver the thing sold and its accessions and accessories in the condition in which they were
upon the perfection of the contract (putol)
b. All the fruits of the thing sold shall pertain to the vendor from the day on which the contract was perfected
c. The vendor shall not be bound to deliver the thing sold, if the vendee has not paid him the price, or if no period for the
payment has been fixed in the contract
d. The vendor is bound to transfer the ownership of and deliver, as well as warrant the thing which is the object of the
sale

B 5. A and B are co-owners of one hectare rural land. A sold his 1/2 share to Y. C, an adjoining land owner is interested in buying
the share which A sold to Y. Which of the following is correct?
A. B can redeem what A sold to Y if Y already owns a rural land
B. B can redeem what A sold to Y even if Y does not own any rural land
C. As adjoining land-owner C has superior right to redeem what A sold to Y
D. C can redeem what A sold to Y whether or not Y already owns a rural land

B 6. A sells to B her car for P300,000 on a “sale or return within 10 days” after delivery. On the 5 th day after delivery, the car was
lost through fortuitous event. Who bears the loss?
A. A under the principle of “res perit domino”
B. B and he must pay the purchase price
C. Both A and B jointly
D. No one because the loss was due to a fortuitous event
 7. J is the sole owner of one hectare of land. In need of money, she sold 1/2 of the land wihtout specifying which portion she is
D selling to H. In this case, the sale is
A. Void, because co-ownership is discouraged by law
B. Void, because the 1/2 part is not determinate
C. Valid, only if H has paid the purchase price
D. Valid as the sole owner of a thing may sell an undivided interest therein

8. E owns a piece of land and sells it to S with a right of repurchase within 4 years from the date of sale. If S sells the property
C to T, which of the following is not correct?
A. The sale is valid because things subject to a resolutory condition maybe the object of a contract of sale
B. E can still exercise her right of redemption against T
C. The sale is void because it is a conditional sale
D. T acquires the property but subject to the right of conventional redemption

9. Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten (10) days Mrs. Pat will
A name and fix the price. On the tenth (10th) day, Mrs. Pat called up by telephone Mrs. Go and stated the price at
P10,000. Mrs. Go agreed. IS the sale perfected?

a. Yes, the price stated and named by one of the contracting parties was accepted by the other.
b. No, at the time of the sale the price was not fixed.
c. No, the price was left to the discretion of one of the parties
d. No, at the time of the sale the price is not known.

10. The following are the rights of an unpaid seller, except:

A. A right of lien over the thing sold while he is still in possession
B. In case of insolvency on the part of the buyer, the right of stoppage in transit
D C. Right to resell the things sold
D. Right to interest on the price of the sale

11. Mr. Sy sold a parcel of land to Mr. Tan for P200,000. Mr. Sy delivered the transfer Certificate of Title of the land to Mr.
Tan. Later, Mr. Tan wanted to register the land to his name and he needed a Deed of Sale. What can Mr. Tan do?
A A. Mr. Tan can compel Mr. Sy to execute a Deed of Sale
B. Mr. Tan cannot compel Mr. Sy to refund the P200,000 because the contract is not enforceable
C. Mr. Tan can sue Mr. Sy enriching himself at the expense of another.
D. Mr. Tan can possess and utilize the land as a buyer in good faith.

12. Three (3) of the following are option money. Which is the earnest money?
A a. Given when contract of sale is perfected.
b. Given when there is no contract of sale.
c. Given to bid the offer or in a unilateral promise to sell or to buy.
d. Given as a separate consideration from purchase price.

13. S sold to B a thing with the waiver of warranty against eviction. Eviction took place subsequently. Is S still liable for
breach of warranty against eviction?
A. No, if it were waiver consciente
D B. Yes, even if it was waiver intencionada.
C. No, provided the seller was in good in faith in entering into the contract of waiver of warranty against
eviction.
D. No, if it was waiver intencionada.

14. In a sale, this is actual delivery.

a. Execution and signing of the sale document.
B b. When the goods sold are placed in the control and possession of the buyer.
c. Delivery by the seller to the buyer of the key where the goods sold are kept.
d. The buyer is already in actual possession of the goods.
 15. Action to seek a corresponding reduction in price by reason of some vices or defects in the thing purchased
A. Accion quanti minoris
A B. Redhibilitory action
C. Accion Pauliana
D. Accion reinvidicatoria

16. If the article already exists and subsequently acquired by another, it is a contract of sale, and if the article is still to be
manufactured at the instance of another, it is a contract for a piece of work. This is
A. English rule
C B. Massachusetts rule
C. New York rule
D. Chicago rule

17. If the object of the contract is specially made or manufactured at the specific order of another, it is a contract for a
piece of work. This is
A. English rule
B B. Massachusetts rule
C. New York rule
D. Chicago rule

18. A purchased on installment from B a house and lot. After a year of installment payment, A died. B refuses to accept the
monthly installment being tendered by his heirs contending that upon the death of their father with whom he has a
contract, the contract automatically terminated or cancelled. B is:
A. Correct because the parties did not agree on the transmissibility of the right
C B. Wrong for the right to continue the payment is personal only to A
C. Wrong for right acquired in virtue of an obligation is transmissible
D. Correct for the contract is between him and A only

19. Mutuum as distinguished from commodatum

A. Object is generally non-consummable
B B. Loan for consumption
C. Bailor retains the ownership of the thing loaned
D. Essentially gratuitous

20. In which of the following cases will delivery transfers ownership over the thing sold,
a. In case of express reservation by the seller until certain conditions have been fulfilled, particularly the full payment of
D the purchase price
b. In case of implied reservation of title as when goods are deliverable to the order of the seller or his agent
c. In sale or approval, or on trial or on satisfaction
d. In sale or return within seven days

21. In case of foreclosure of the personal property mortgaged, where such thing was previously sold to the buyer on an
installment basis and the proceeds of the sale at public auction is less than the principal obligation, can the seller recover the
B deficiency from the buyer?
First Answer- No, the seller is not entitled to recover the deficiency from the buyer.

Second Answer- Yes, if there is a stipulation to that effect in the contract of sale with mortgage

A. True, true
B. True, false
C. False, true
D. False, false
 22. A bought a car from B, a minor, for P100,000. one week later, A discovered that B was a minor at the time of sales so he
filed a complaint in court to annul the sale. Will the action prosper?
B
A. Yes, B being a minor is incapacitated to enter into contract
B. No, the right to annul the sale is given to B
C. Yes, B cannot file the action to annul the sales because he is a minor
D. No, unless there is a lesion of more than 1/4 of the value of the property

23. On January 15, 2010, X sold for P2M her house and lot to V. It was agreed that delivery of the house and lot, and the
payment therefore, would be made on March 10, 2010. Unfortunately, Z a stranger negligently set the house on fire on
February 25, 2010, and the house was completely destroyed. Which is correct?
B
A. V is not required to pay the P2M since the contract had no subject matter.
B. X must still deliver the lot but is excused from delivering the house, while V must still pay the P2M
C. X must deliver the lot while V should pay only the amount equivalent to the value of the lot.
D. X need not deliver the lot while V need not pay the P2M

24. Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object of sale
unfit for the use intended or knowledge of which the vendee should not have bought the thing
D A. Accion quanti minoris
B. Accion reinvidicatoria
C. Accion pauliana
D. Redhibilitory action

25. In a contract of sale, of personal property, the price of which is payable in installments, the vendor may exercise any of
the following remedies, except

D A. Exact fulfillment of the obligation, should the vendee fail to pay any installment
B. Cancel the sale, should the vendee’s failure to pay cover two or more installment
C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s failure to pay
cover two or more installments
D. Rescind the sale should the vendee fail to pay any installment.

MORTGAGE
26. Mr. AB owes Mr. CD P150,000 due on August 1, 2010. Mr. AB executed mortgage in favor of Mr. CD on Mr. AB’s
building to guaranty the obligation. On August 10, 2010, the mortgage building was totally lost due to a strong
typhoon. On August 12, 2010, Mr. CD demanded payment from Mr. AB. Is Mr. CD’s demand valid?
C
a. No, the obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation as
such would the prejudicial to the rights of the debtor.
b. No, the obligation is extinguished because the obligation is lost through a fortuitous event.
c. Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous event. Unless the
debtor can mortgage another property that is equally satisfactory.
d. Yes, the debt becomes due at once because, from the tenor benefit is given solely to the creditor thereby giving the
creditor the right to demand performance even before the date.

27. What is the effect of the proceeds in an extrajudicial foreclosure sale is not sufficient to pay for the obligation?
A. The mortgagee cannot claim for deficiency judgment from the debtor because it is an extrajudicial
foreclosure.
B B. The mortgage can claim for deficiency judgment from the debtor.
C. The mortgagee has no more recourse or claim against the debtor
D. The mortgage can claim for deficiency judgment from the mortgagor even though it is a third party mortgage.
 28. D constituted a chattel mortgage on his car as security for the loan he obtained from C of P1M. it was further
stipulated that the same mortgage shall secure the payment of another loan which the debtor D may incur in the
B future. Is the chattel mortgage valid?
A. The chattel mortgage for both loans is valid
B. The mortgage for the P1M is the only one valid
C. The mortgage as regards the future loan is the one valid
D. The mortgage is extinguished because of the void stipulation on the ground that it cannot secure a future
obligation

29. This shall take place when the vendor reserves the right to repurchase the thing sold
a. Policitacion
B b. Conventional Redemption
c. Equitable Mortgage
d. Legal Redemption

30. A sold his piano to B for P200,000 payable in installment. A chattel mortgage was constituted on the piano. B defaulted in
two installment payments. A demanded payment of the unpaid obligation amounting to P120,000 and a writ of attachment as
issued and the piano was sold for P100,000. Can A still recover the deficiency?
First answer - No, the foreclosure of the piano extinguished B’s obligation
D Second answer - Yes, only if it is stipulated that the in case of foreclosure the buyer will pay any deficiency
a. True, True
b. True,False
c. False,True
d. False, False

31. D mortgaged his land to C as security for a loan. Fearing foreclosure of the mortgage due to his inability to pay the loan, D
D
sold the land to B without the consent of C. Which is correct?

a. The sale is void unless D can give another security

b. B cannot acquire ownership over the land even if it delivers the land to him
c. D cannot sell the land if there is an agreement prohibiting the mortgagor from alienating the land
d. D can sell the land even without the consent of C

32. A mortgage his car to B for P200,000. A failed to pay his obligation. B sold it at public auction for P180,000. Can B recover
the deficiency?
a. Yes, even without stipulation
A b. Yes, only if there is stipulation
c. No, even if there is stipulation
d. No, unless there is stipulation

33. A mortgaged his residential land to B as a guarantee for the payment of P400,000 obligations to B. They agreed that A
should not sell the land while the obligation exists. Before the maturity of the mortgage, C offered to buy the land from
C
A. Which is correct?
a. A cannot sell the land to C because of the agreement not to sell
b. A can sell the land to C only if B consents in writing
c. A can sell the land to C despite the agreement not to sell
d. A cannot sell the land to C unless A pays the obligation

34. When delivery takes place by the mere consent or agreement of the contracting parties as when the vendor merely
points to the thing sold which shall thereafter be at the control and disposal of the vended if the thing sold cannot be
transferred to the possession of the vendee at the time of sale, delivery is effected:
B a. By tradition symbolica
b. By traditio longa manu
c. By traditio brevoi manu
d. Answer not given
 35. Similarly between real mortgage and antichresis
a. The property is delivered to the creditor
B b. The subject matter is a real property
c. The creditor acquires the right to receive the fruits of the property
d. The creditor is obliged to pay the taxes and charges upon the estate

36. An oath in a contract of chattel mortgage wherein the parties severally swears that the mortgage is made for the purpose of
securing the obligation specified in the conditions thereof and for no other purposes and that the same is a just and valid
obligation and one not entered into for the purpose of fraud is

a. Oath of allegiance
C b. Antichresis
c. Affidavit of good faith
d. Equity of redemption

37. A owes B P500 and as security, A pledged his diamond ring. Later A borrowed again P200. As a result
a. B has a right to retain the thing until P700 is paid
B b. B has a right to retain the thing until the P500 is paid
c. A has a right to demand that thing deposited with a third person
d. B has the right to use the thing pledged until the pledge effects payment of the obligation

38. J mortgaged his residential land to R as guarantee for the payment of P500,000 loan of J. They agreed that J will not sell the
land while the obligation exists. Before the maturity of the mortgage, C offered to buy the land from J. Which of the following
statements is correct?

a. J cannot sell the land to C because of the agreement not to sell

C
b. J can sell the land to C only if R consents in writing
c. J can sell the land to C despite the agreement not to sell
d. J cannot sell the land to C unless J pays R the obligation

PLEDGE

39. The following are instances of pledge created by operation of law, except:
D A. Hotel keeper retains the things brought into the hotel by the guest who cannot pay his hotel bills
B. A depository retains the thing deposited until he is paid the charges due him
C. A mechanic retains the car he repaired until he is paid
D. An agent retains in pledge the thing which is the object of the agency regarding his commission

40. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation 60 days after it was due. C
sold the machine at public auction for P6,000.
a. C cannot recover the deficiency of P2,000 even if there is stipulation that he can.
A b. C can recover the deficiency of P2,000 even without stipulation.
c. C cannot recover the deficiency of P2,000
d. C can recover the deficiency of P2,000.

41. Which of the following statements is true?

a. Any stipulation in a contract of pledge authorizing the pledge to sell the thing pledged if the pledgor cannot pay is
D void.
b. In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing mortgaged.
c. In mortgage and in pacto de retro sale, the title to the property which is the subject matter of the contract is
transferred to the other party.
d. Real estate mortgage is an accessory contract.
 42. A minor sold his ring to B for P4,000. Later, B borrowed P6,000 from C and as security pledged the ring to C. B failed to pay
C and the latter foreclosed the pledge, sold it at public auction for P5,000 to X. As a result,
B a. The title of B is not valid, therefore the pledge of the ring to C is also not valid because in pledge the pledgor must
be the owner
b. The deficiency of P1,000 cannot be recovered by C from B
c. The deficiency of P1,000 can be recovered if there is a stipulation to that effect
d. If X is in bad faith (X has knowledge that A, the original owner is a minor) ownership will not pass to B

43. Which of the following statement is not correct?

a. The sale of the thing pledged shall extinguish the principal obligation, whether or not the proceeds of the sale are
equal to the amount of the principal obligation, interest and expenses in a proper case
C b. If the price of sale of the thing pledged is more than the obligation, the debtor shall not be entitled to the excess unless
it is otherwise agreed
c. If the price of the thing pledges is less than the obligation, the creditor shall not be entitled to recover the deficiency,
unless it is otherwise agreed
d. At the public auction the pledgor or owner may bid and he shall have a better right if he should offer the same terms
as the highest bidder

44. In real estate mortgage, the mortgagor can sell the property mortgaged
a. Only if with the oral consent of the mortgagee
D b. Only if with the written consent of the mortgagee
c. If not prohibited to sell
d. Even without the consent of the mortgagee

45. A borrowed P100,000 from B, and as a security A pledged his ring to B. After the obligation falls due, A goes to b
relinquishing ownership of the ring in favor of B. This is
a. Caveat emptor
B b. Dacion en pago
c. Pactum comisorio
d. Pacto de retro

46. Which of the following statements is not correct?

a. If the thing pledged will be returned by the pledgee the contract of pledge is extinguished
b. Unlawful partnership is void ab initio
D
c. Any stipulation allowing the pledgee or mortaggee to appropriate the thing pledged or mortgaged is void
d. In case the creditor foreclosed the chattel mortgage, he cannot recover any deficiency in case the proceeds of the
foreclosure sale are less than the unpaid obligation

47. D is indebted to C in the amount of P200,000 and delivers to C his diamond ring by way of pledge. If D sells the same
D diamond ring to T, when will T acquire ownership of the same?
A. From the time the sale is perfected between D and T
B. From the time T pays the price to D
C. From the time T obtains actual possession of the diamond ring
D. From the time C consents to the sale between D and T

48. S, minor of 16 years old, sold her bracelet to B for P8,000. Later, B, needing money to pay her daughter’s tuition fee,
borrowed P15,000 from C and as a security, pledged the bracelet to the latter. B failed to pay C resulting into auction
sale of the bracelet in favor of D for P10,000 only. Which of the following statements is correct?
C
a. The title of B over the bracelet is not valid, hence the pledge, as well as the sale of said bracelet is likewise
defective. The pledgor must be the owner of the thing pledged.
b. The deficiency of P5,000 may still be recovered by C from B if there is a stipulation to this effect.
c. C can no longer recover the deficiency of P5,000 from B. The pledge together with the sale is valid. The voidable
title of B is valid because it is not yet annulled.
d. If D was a purchaser in bad faith as he knew of the defective title of B over the bracelet from S, ownership will not
pass to him (D).
 49. The following may be objects of contract of pledge, except
a. Shares of stocks
C b. Pieces of Jewelry
c. An agricultural land
d. A negotiable bill of exchange

50. The following are essential requisites common to the contracts of pledge and mortgage, except,
a. That they are constituted to secure the fulfillment of a principal obligation
b. That the pledgor or mortgagor is the absolute owner of the pledged or mortgaged
C
c. That the contract is registered with the Register of Deed
d. That the constituting the contract has free disposal of his property or that he is authorized legally for the purpose

51. A pledged her ring to F to secure a P10,000 obligation payable in two years. One year thereafter, F gives a note in writing to
A stating that the debt need not be secured and that A may get the ring back at her most convenient time. As a result,
D a. The principal obligation and the contract of pledge are both extinguished
b. Only the principal obligation is extinguished but not the contract of pledge because A did not get back the ring
c. Both the principal obligations and the contract of pledge are not extinguished because A did not get back the ring
d. The pledge is extinguished and F is constituted as a depository

52. L pledged his shares of stock to m to secure his obligation. Later, L sold his shares to J. As a result,
a. L can compel M to surrender the shares certificate to J
D b. J can compel M to deliver the shares certificate to him
c. The refusal of M to surrender the shares certificate will invalidate the sale
d. M can refuse to surrender the shares certificate

AGENCY

53. This is a mode to extinguish an agency:

a. Death of the principal, but the agency is for the interest of the principal and agent.
D b. Partial accomplishment of the agency.
c. Upon withdrawal of the principal.
d. Insanity of principal or agent.

A 54. P, 25 years old, appointed A, 17 years old, as his agent to sell certain goods for P20,000.00. Thereafter, A sold the
goods to B for the said amount. P, however, learned that the price of the goods had increased to P22,000.00 so he
sought to disaffirm the sale made by A to B, and brought an action to recover the goods from B on the ground that A’s
act was voidable., A being a minor and hence, could not be an agent. Decide.

A. The sale is valid because the principal is capable.

B. The sale is void, because A is a minor and therefore, cannot be an agent.
C. The sale is voidable, because A is a minor.
D. The sale is unenforceable, because A exceeded his authority.

55. P appointed A as the manager of his coconut plantation. After managing the plantation for 4 years, A informed P than
on account of failing health, he was turning over the administration of plantation to B, an experienced coconut
C plantation administrator. P neither repudiated the designation of B nor appointed a new agent. He also remained
silent for 5 years, all the while allowing B to manage the plantation. Is B an agent of P?

A. No, because P himself, did not give a general power of attorney to B.

B. No, because the designation of B as manager by A was without p’s authority.
C. Yes, B became an agent of P because of P’s failure to repudiate the agency.
D. Yes, because B was highly qualified to administer the plantation.
 56. Which of the following acts may not be delegated by a principal to his agent?
B A. Vote during the meeting of stockholders of a corporation where the principal is a stockholder.
B. Attend meetings of the board of directors of a corporation where the principal is a director.
C. Vote the shares of stock because of a voting trust agreement.
D. Represent the principal as proxy in voting the shares.

57. Which of the following acts requires a special power of attorney?

D
A. To make gifts to employees in the business managed by the agent.
B. To borrow money which is urgently needed to preserve the property of the principal under the
administration of the agent.
C. To make payment for purchases in the ordinary course of the business.
D. To lease the real property of the principal to another person for more than one year.

58. P and M appointed A to sell the land they own in common with the stipulation that A will advance the necessary
B funds to execute the agency. Who is liable to A for reimbursement of all funds?
A. P and M will share equally therefore A may demand one-half only from either
B. Either or both shall be liable for the entire amount
C. Neither shall be liable since it was stipulated that A shall advance the funds to execute the agency
D. P and M shall not be liable because the expenses were incurred as a consequence of the performance of the
agent’s obligation

D 59. As an agent, A was given a guarantee commission in addition to his regular commission, after he sold 20 units of
refrigerators to a customer. The customer, however failed to pay. A’s principal, P demanded payment from A for the
customer’s accountability. Which is correct?
a. A can refuse to pay on the ground that his job was only to sell and not to collect payment
b. P should demand payment from the customer
c. A is not liable if he was authorized to sell on credit
d. A bears the risk of collection and should pay P the proceeds of the sale

60. P, who was abroad, learned that F was interested in buying his lot located in Quezon City. To take advantage of the
B opportunity, he made an overseas call to A, who was in Manila, to sell the lot in his behalf, to F, for P1M, A thus sold
the lot promptly to F. The contract of sale is in a public instrument which was signed by A in behalf of P as seller, and
F as buyer. The said contract sale is:

A. Valid, because it is in a public instrument and A was duly authorized to represent P.

B. Void, because the authority of A was not in the form required by law.
C. Unenforceable, because P did not sign the contract of sale and so he had no consent therein.
D. Rescissible, because the contract was entered into in representation of an absentee.

61. F published in the Manila Bulletin that it was appointing A as its duly authorized agent for the sale of its products.
A
With the authority, A sold flour to various bakeshops. After three years, F revoked A’s authority by giving a notice of
revocation to A and publishing a notice of revocation in the Philippine Star. Despite the revocation, A still sold 50
bags of flour to S, who did not read the notice of revocation of A’s authority in the Philippine Star. S now wants to
have the flour she had ordered delivered but F seeks to set aside the sale of 50 bags of flour to S.

A. F is not obliged to deliver 50 bags of flour because S is deemed to have known of the revocation of A’s
authority.
B. F is obliged to deliver 50 bags of flour because S did not read the revocation of A’s authority.
C. F is obliged to deliver 50 bags of flour because the revocation was published in another newspaper.
D. F is not obliged to deliver 50 bags of flour because the notice of revocation to A is sufficient.

A 62. P, which is based in Manila, sent a letter with a special power of attorney, to A, an agent dealing with appliances, in
the latter’s office in Cebu, appointing A as the agent of P to sell its new appliances. The letter, which was sent through
LBC Courier Services, was duly received by A who, however, did not respond to the letter. Based on the foregoing
data:
 A. An agency was created between P and A by the implied acceptance of A of the agency.
B. No agency was created between P and A because A did not respond to the letter.
C. An agency was created by the ratification of A when he duly received the latter with special power of
attorney.
D. No agency was created because of the inaction of A.

D 63. A brother wrote his sister to sell his parcels of land. The lands were purchased by third person, but the sister did not
forward the money to the brother, The brother now wants to recover the parcels of land.
A. The brother may still recover the lands because the sale is unenforceable
B. The buyer shall be liable to the brother for the purchase price because the sister failed to forward it to her
brother
C. The sale is void because the authority of the sister is not in public instrument
D. The sale is enforceable because the letter of the brother is sufficient authority to sell

64. The following are obligations of the agent, except

B a. In the execution of the agency, the agent shall act in accordance with the instructions of the principal
b. Shall be bound to advance the necessary funds, except when the principal is insolvent
c. Shall finish the business already begin on the death of the principal, should delay entail any danger
d. In case a person declines an agency, he is bound to observe the diligence of a a good father of a family in the custody
and preservation of the goods forwarded to him by the owner until the latter should appoint an agent.

A 65. P, 25 years old, appointed A, 17 years old, as his agent to sell certain goods for P20000. Thereafter, A sold the goods
to B for the said amount, P, sought to reaffirm the sale made by A to B, and brought an action to recover the goods
from B on the ground that A’s act was voidable. A, being a minor, and hence, could not be an agent. Decides:
A. The sale is valid because the principal is capable
B. The sale is void, because A is a minor and therefore, cannot be an agent
C. The sale is voidable, because A is a minor
D. The sale is unenforceable, because A exceeded his authority

66. Which of the following statements is false?

a. P in writing appoints A as his agent to sell his specific parcel of land for P40,000. A sold it orally to X. The contract
B of A and X is valid.
b. B wrote A, his sister, to sell his parcel of land. The land was purchased by X, but A did not forward the money to B.
B now wants to recover the parcel of land. B can recover because the authority of S is not in special power of
attorney.
c. P orally appoints A as his agent to sell his land for P40,000. A sold it to X in writing. The sale by A to X is not
valid.
d. P orally appointed A to sell a house on a parcel of land belonging to X. A sold it to B orally. The contracts by P and A,
and A and B are valid.

67. P, an authorized dealer of cars, appointed A as its agent to sell its cars. The authority of A includes the giving discount
B of P20,000.00 to customer who pay in cash. One day, C, a customer, went to the company’s car center and told A 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 A that she
would take the car if A agreed to a discount of P50,000.00. A agreed and sold the car to C for P550,000.00 in behalf of
the corporation. What is the status of the sale made by A and C?
A. Voidable at the instance of P because it did not give its consent to the sale at the discount of P50,000.00.
B. Unenforceable against P, the principal, because A acted beyond the scope of the authority.
C. Void, because the additional discount of P30,000.00 given by A was not authorized by P.
D. Rescissible, because P suffered damage of P30,000.00.
 68. P gave A a special power of attorney wherein it was written that A was being authorized to sell the two cars of P.
B However, P and A had an understanding that A should sell only one of the cars. A sold the two cars to B who was not
aware of the instruction given by P to A.
A. P is bound by the sale of only one car in accordance with his understanding with A.
B. P is bound by the sale of two cars because that is what is contained in the special power of attorney.
C. P is not bound at all by the sale of either one or both cars because A violated the instructions given by P.
D. P will be bound by the sale of one or both cars at his option.

69. P sends a letter to A in Cavite authorizing A to sell hos specific car for P90,000. If no reply is made by A, is there a
presumption of implied agency between the two of them?
A a. None, because as between persons who are absent, acceptance of the agency cannot be presumed from the silence of
the agent.
b. Yes, because no reply was send; there is an implied acceptance or implied consent
c. Yes, unless A is habitually engaged in the business of selling and buying cars
d. None, acceptance must always be expressed

70. If the agent is incapacitated, the contract of agency is voidable as well as the contract entered into by him in behalf of
D the principal.
If it were the principal who is incapacitated, both contracts are voidable.

A. Both statements are false.

B. Both statements are true.
C. Only the first statement is true.
D. Only the first statement is false.

71. P appointed A as her agent to sell a set of bakery equipment for P50,000.00 with an ordinary commission of 10%
A and a guarantee commission of 15%. A is authorized to sell on credit. A was able to sell, in behalf of P, the bakery
equipment to N who issued a check dated ten days after the sale. On the tenth day, however, the check was
dishonored by the bank because N did not have sufficient funds for it.

A. A is liable to P because she must bear the risk of collection.

B. A is not liable to P because the dishonor of the check was without A’s fault.
C. A is not liable to P because she is not the purchaser but N.
D. A is liable to P because she acted beyond the scope of her authority.

72. X, Y and Z, co-owners of a house and lot, appointed A to sell the house and lot at a price of not less than
B P1,500,000.00 cash with A being entitled to a commission of 10% of the selling price. A was able to sell the house and
lot for P1,800,000.00. How much commission may A collect from X?

A. P150,000.00
B. P180,000.00
C. P60,000.00
D. P50,000.00

D 73. M appointed R and Z as her agents to sell her specific property for P100,000, on cash basis. Solidarity has been agreed
upon. Can M hold liable if R sell the property P80,000?
a. Yes, because the obligation is solidary
b. No, because the appointment of 2 or more agents in one and the same obligation is joint and any stipulation to the
contrary is void
c. Yes, but only for Z’s share that is P10,000
d. No, because R acted beyond the scope of his authority

C 74. P leads B to believe that A is his (P’s) agent. However, A is not really the agent of P. Later, B is transacted with A
believing that A is the agent of P. What kind of agency is created here?
 A. Agency by ratification.
B. Agency by appointment.
C. Agency by estoppel.
D. Agency by necessity.

75. P appointed A as his agent to sell the appliance products of P. The agreement between P and A provides for the
A payment to A of 5% ordinary commission and a 10% guarantee (del credere) commission. A sold several appliances
to B for P20,000.00 the same being payable after thirty days. When A went to B’s place to collect the price of
appliances, B, together with the appliances that were sold, was nowhere to be found:

A. A is liable to P for the price of the appliances because A must bear the risk of collecting.
B. A is not liable to P for the price of the appliances because it was not his fault that B disappear.
C. P must bear the risk of collection this is the owner of the appliances.
D. A is liable to P because A acted beyond the scope of the authority.

A 76. One known to be working for and in behalf of the principal either because the latter represented him to be his agent
or the people believe him to be acting in behalf of the principal is:

A. Ostensible agent
B. Implied agent
C. Special agent
D. Universal agent

Commodatum

77. Which of the following is not correct?

D a. A movable or immovable property may be the object of commodatum
b. The bailor in commodatum need not be the owner of the thing loaned
c. The stipulation that the bailee may make use of the fruits of the thing loaned is valid
d. The bailor is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned

78. Agreement giving a person the right to enjoy the thing as well as its fruits
a. Quantum meruit
C b. Quantum velebant
c. Usufruct
d. Pacto de retro sale

79. Ownership is retained despite delivery, except

a. commodatum
B b. mutuum
c. universal partnership of profits
d. on trial or satisfaction