80. In all cases of extrajudicial sale made under A ct No.

3135 or extrajudicial foreclosure, the 'following

persons may redeemed the real propeity sold' in thep ublic auction, except

a. Debtor-mortgagor

b. Successor in interest of debtor-mortgagor

c. Judgment creditor of the debtor-mortgagor

d. Any person having a lien on the real property sold subsequent to the mortgagee or deed of trust e

Any third person

81. In case of extrajudicial foreclosure of real property under Act No. 3135, what is the p iod of the
exercise of right of redemption by the debtor-mortgagor or any other persons authorized by the said la 7
. 11

a. Within the term of one year and after the date of sale or registration 0 the sheriffs certificate of
foreclosure sale.

b. Within the term of 90 days and afte1 the date of extrajudicial sale or registramn of the sheriffs
certificate of foreclosure sale.

c. Within the term of two years and alter the date of exhajudicial sale or gistmtion of the sheriffs
certificate of foreclosure sale

d. Within the term of six months and after the date of extrajudicial sale or iregistration of the sheriffs
certificate of foreclosure sale.

82. Notwithstanding Act 3135, Section 47 of RA 8791 (General Banking Laws) provides that juridical
persons whose property is being sold pursuant to an extrajudicial foreclosure by banks, shall have the
right of redemption to be exercised

a. Within 3 months after the foreclosure and sale but not after the registrati 11 of the certificate of
foreclosure sale with the applicable Registe of Deeds. ‘

b. Within 6 months after the foreclosure and sale but not after the registration of the certiiicate of
foreclosure sale with the applicable Register of Deeds.

c. Within 1 year after the foreclosure and sal'e but not after the registration of the ce1tif1cate of
foreclosure sale with the applicable Register of Deeds“

d. Within 2 years after the foreclosure and sale but not alter the registration of the certificate of
foreclosure sale with the applicable Register of Deeds. I
83. Indicate the proper order on how the proceeds of sale from judicial or extrajudicial forileclosure of
Real Estate Mortgage shall be distributed:

I. Cost of sale.

II. Claim of the person foreclosing the mortgage.

III. Claims of Junlor encumbrances 1n the order of their priority.

IV. Mortgagor or his agent.

a. I11HIIV 5 b. I-III-II-IV c. II-I-IV-III d. HI-II-I-IV

84. In case the proceeds of the sale from judicial or extrajudicial foreclosure of Real Estate Mortgage is
higher than the principal obligation and costs, which is true?

a. The mortgagee may retain the excess in the absence of stipulation to the contrary.

b. The mortgagor is entitled to the excess in thf absence of stipulation to the contrary.

c. The mortgagee shall always retain the excess.

d. The mortgagor shall always recover the excess.

85. In case the proceeds of the sale fiom judicial or entra udicial foreclosure of Real Estate Mortgage 1s
lower than the principal obligation and costs, which is true?

a. The mortgagee may recover the deficiency in the absence of stipulation to the contrary.

b. The mortgagor shall not pay the deficiency 1n the absence of stipulation to the contrary.

c. The mortgagee shall always recover the deficiency.

d. The mortgagor shall always pay the deficiency l

86. It is a conditional sale of personal property as security for the payment of a debt, or the performance
of some other obligation specified therein, the condition being that the sale shall be void upon the seller
paying to the purchaser | a sum of money or doing some other act named. If the condition is performed
according to its terms the mortgage . and sale immediately become void, and the mortgagee is thereby
divested oi his title.
a. Chattel Mortgage

b. Pledge

c. Real Estate Mortgage

d. Antichresis

87. The following are the requisites of chattel mortgage for its validity, except

a. That it be constituted to secure the fulfillment of a principal obligation.

b. That the mortgagor be the absolute owner of the thing mortgaged.

c. That the person constituting the mortgage must have the free disposal of his property, and in the
absence thereof, that he be legally authorized for the purpose.

d. That the document in which the mortgage appears he recorded in the Chattel Mortgage Register.

e. That an affidavit of good faith must be appended to the Deed of Chattel of Mortgage and recorded
therewith in the Chattel Mortgage Register.

88. The following are the important characteristics of contract of chattel mortgage, except

a. Accessory -It cannot exist without a principal obligation or contract of loan.

b. lndivisible- It creates a lien on the wnole or all of the properties mortgaged, which lien continues until
the obligation 1s secures has been fully paid.

c. Inseparable -It subjects the property upon which it is imposed, whoever the possessor may be, to the
fulfillment of the obligation for whose security it was constituted.

d. Real contract- It is perfected by delivery of the personal property mortgaged.

89. The following may become object of chattel mortgage, except

a. Personal property

b. Movable property

c. Intangible assets
d. Real or immovable property

90. The following are the rules for the place of registration of Chattel Mortgage, except

a. As a general rule, it must be recorded in the Chattel Mortgage Register of the province where the
mortgagee resides.

b. It must be recorded in both Chattel Mortgage Registers of the provinces whene the mortgagor resides
and where the property is located

c. If the mortgagor is domiciled outside the Philippines, the mortgage must be registered in the Chattel
Mortgage Register where the property is located.

d. With respect to motor vehicles, it must be registered with Chattel Mortgage Register where the
mortgagor resides and with Land Transportation Office where the motor vehicles are recorded.

e. With respect to shares of stock, it must be registered with Chattel Mortgage Register in the province
where the corporation has its principal office and the Chattel Mortgage Register of the province of
domicile of the mortgagor.

f. With respect to vessel, it must be registered in the office of the Philippine Coast Guard of the port of
documentation of the vessels.

91. Which of the following statements concerning contract of chattel mortgage is correct?

a. The mortgagee is not obligated to f1le an independent action for the enforcement of his credit or loan
secured by a chattel mortgage. To do otherwise would defeat the purpose of the chattel mortgage,
which is to give him preference over the mortgaged chattels for the satisfaction of his credit.

b. A mortgagee who sues and obtains a personal judgment against 11 mongagor upon his credit waives
thereby his right to enforce the mortgage seeming it and therefore no longer allowed to foreclose the
chattel mortgage.

c. Both A and B
d. Neither A nor B

92. What is the minimum period required to \apse from the time of the breach of the condition in
Chattel Mortgage before the mortgagee may extrajudicial se“ or foreclose in the public auction the
mortgaged property?

a. At least 30 days

b. At least 60 days

c. At least 90 days

d. At least 120 days

93.When a movable property is foreclosed and sold under Act No. 1508 for Chattel Mortgage, the public
auction sale by a puhhc officer shah be made at the public place of municipality

a. Domiciie of mortgagor

b. Location of movabie property

c. Domiciie of mortgagee

d. Either A 01 B

94. Indicate the proper order on how the proceeds of sale from judicial or extrajudicial foreclosure of
Chattel

Mortgage shall be distributed:

I. Cost of sale.

II. Claim of the person foreclosing the mortgage.

III. Claims of junior encumbrances in the order of their priority.

IV. Mortgagor or his agent.

a.--IIIIII-IV b.---IIIIIIIV

c. I-I-IV-III d. III---IIV ; i ' l

95. In case the proceeds of the sale from judicial or extrajudicial foreclosure of Chattel 'oftgage is higher
than the principal obligation and costs, which is true? .

a. The mortgagee may retain the excess in the absence of stipulation to the contr z'

b. The mortgagor is entitled to the excess in the absence of stipulation to the con ary.

c. The mortgagee shall always retain the excess.

d. The mortgagor shall always recover the excess.

96. In case the proceeds of the sale from judicial or extrajudicial foreclosure of Chattel ortgage is ioWer
than the principal obligation and costs, which is true?

a. The mortgagee may recover the dehc' 1ency in the absence of stipu lation to the eontrary.

b. The mortgagor shall not pay the deficiency in the absence of stipu lation to the contrary.

c. The mortgagee shall always reco ver the deficiency.

d. The mortgagor shall always pay the deficiency

97. It is a contract whereby the creditor acquires the right to receive the fruits of an immmIab of his
debtor, with the obligation to apply them to the payment of the inte st, if owing, and thereafter to the
principal of his credit.

a. Pledge

b. Chattel mortgage

c. Real mortgage

d. Antichresis
98. The following are the important characteristics of contract of antichresis, except

a. Accessory -It cannot exist without a principal obligation or contract of loan. b IndivisibleIt creates a
lien on the whole 91' all of the properties mortgaged, which lien continues until the obligation is secures
has been fully paid.: Inse arable It subjects the property upon' which it is imposed, whoever the
possessor may be, to the

tiJh‘iilment of the obligation for whose security it was constituted a (1. Real right It creates a lien on the
property mortgaged. e. Real contract It is perfected by the delivery of the thing mortgaged.

c.

99 I11 contract ofantichresis, what shall be the basis of measurement of the h-uits in its application to
the interest and

principal of the loan? a. The actual market value of the hits at the time of the application.

b. The actual market value of the fiuits at the time of harvest

The actual market value of the fruits at the 4 e of sale of h'uits.

c. e of perfection of the contract of antichresis.

d. The actual market value of the fruits at the '

‘00. What is the nature of the contract of antic sis? a It is a consensual contract perfected by mere
consent.
b. It is a real contract perfected by delivery ot‘the real property. It is a formal contract perfected by the
execution of the written instrument containing the antichretic

c. agreement together with the amount of the principal and interest of the loan.

Who shall be liable to pay the real property taxes and expenses necessary for the repair and preservation
of the real property used as collateral 1n contract of antichresis?

a. Always antichretic creditor

b. Always debtor

c. Antichretic creditor in the absence ot‘stipuiation to the contrary

d. Debtor in the absence of stipulation to the contrary x.

Upon non-payment or default of the antichretic demo? of the principal obligation, may the antichretic
creditor automatically appropriate the real property used as security?

a. No because it is paetum commissorium which is prohibited by law and public policy.

b Yes because the prohibition against pactum commissorium is not applicable to contract of antwhresw

c. Yes because it is the right of the creditor.

d. Yes if it is agreed upon by the parties.

103. It is a contract, whereby a person binds himself to render some service or to do something in
mpmentation or in behalf of another, with the consent and authority of the latter.

a. Contract of agency
b. Contract of partnership

c. Contract of sales

d. Contract of pledge

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

a. Principal-it can stand by itself.

b. Preparatory-It is a means by which other contracts may be entered into.

c. Consensual-It is perfected by mere consent.

d. Onerous-It is presumed to be onerous unless declared to be gratuitous. e. Nominate-It has a name

given to it by law.

e. Bilateral -The parties are bound reciprocally to it by law.

f. Commutative -The parties give and receive almost equivalent values.

g. Formal contract -It is perfected by written special power of attorney.

105. What is the status of the contract of agency ih case the principal is eapacitated and the agent is
incapacitated?

a. Voidable

b. Valid and binding

c. Unenforceable

d. Null and void

106. What is the status of the contract entered into by an agent, who is incapacitated, in behalf of the
principal who id capacitated?

a. Voidable
b. Valid and binding

c. Unenforceable

d. Null and void

107. The following statements pertain to the principal in a contract of agency, except

a. He is the person whom the agent represents.

b. He must be capacitated.

c. He gives authority to the other party.

d. He acts and represents the other‘party.

108. What type of relationship exists between the principal and 380m? Fiduciary relationship based on
trust and nhdenee. Investor-investee relationship.

Debtor-creditor relationship

Protector-bcnefioiary relationship

110. name if the authority of the agent is not in writing?

a. b. e. d.

111. requires special power of attorney and the authority of the agent is only general?

112.
should state that he withholds no power, that the ageit may execute acts he may consider appropriate or
even

though the agency should authorize a general or unlimited management. Which of the following sets an
be performed by the agent in this case?

113.

114.

considered implied acceptance, except

a. b. c.

Contract of agency may be express or implied. An agency may be implied from the {ollowtng nap! Acts of
the principal

Silence of the principal Lack of action of the principal

Failure of the principal to repudiate the agency knowing that snottwr person is satin; in his mum
authority. Special power of attorney

What is the status of the written sale of a piece of land of the principal by the spat in the principsi's

Null and void Unenforceable Voidable Rescissible

What‘ is the status of the contract entered into by the agent in behalf of the principal if die not perform
Voidable

Valid and binding Unenforceable Null and void

Ifthe agency is couched in general terms, only general power of attorney is required even i! the principal

Acts of adminish'ation.

To eEect novau'on.

To compromise liability.

To submit questions to arbitration.

The following acts require sp ecial power of attorney from the principal, except

To lease any personal property to another person for more than a year.

To make such payments as are not usually considered as acts of administration

To effect novations which put an end to obligations already in existence at the time the agency was
constituted

To compromise, to submit questions to arbitration, to renounce the right to appeal horn ejudgment, to
waive objections to the venue of an action or to abandon a prescription already acquired
To waive any obligation gratuitously

To enter into any contract by which the ownership of an immovable is transmitted or acquired either
gratuitously or for a valuable consideration

To make gifts, except customary ones for charity or those made to t mployees in the business managed
W the agent

To loan or borrow money, unless the latter not be urgent and indispensable for the preservation of the
things which are under administration

To lease any real propexty to another person for more than one year

To bind the principal to render some service without compensation

To bind the principal in a contract of partnership

To obligate the principal as a guarantor or surety

. To create or convey real rights over immovable property

To accept or repudiate an inheritance To ratify or recognize obligations connected before the agency To
perform any other not of strict dominion.

The acceptance by the agent of the contract of agency may be express or implied. The following are
Acts of the agent to carry out the agency.

Silence or inaction by the agent according to the circumstances.

Between persons who are present. if the principal delivers his pom r of attorney to the agent and the
latter accepts it without any objection.

Between persons who are absent, when the principal mnsmits his power to the agent, and the latter
returns it with objection.

Between persons who are absent, when the principal enuusts to him by letter or telegram s power of

attorney with respect to the business in whibh he is habitually engaged as an agent, and he did not reply
to the letter or telegram.

115.

Which of the following statements is incorrect?

a. When a person is appointed as special agent through special information, the person appointed will
be

116.

PS"?

117.
considered a duly authorized agent with respect to the person who received the special hiformation.

When a pason is appointed as special agent through a public advertisement, the person appointed will
be considered a duly authorized agent with respect to persons who had read the newspaper only.

If the announcement of the appointment is by special information, revoeation shall be made also by
special information.

If the announcement of the appointment is by public advertisement, revocation of the appointment shall
also be made by public advertisement. ‘

The following are the basic principles of contract of agency, exc ept

The agent must act within the scope of his authority.

The agent may do such acts as may be conducive to the accompl ishment of e purpose of the agency.

The limits of the agent’s authority shall be considered exceeded even it has been performed m a manner
more advantageous to the principal that that speciiied by him.

The agent must act in behalf of his principal and should disclose the pnnc1.

The followmg are the effects if the agent acts within the scope of his autho ity but 1n his (agent’s) behalf

or without disclosing the prin ipal, except

9-? 5"!“

H8.

The principal has no right of action against the person with whom the agent bias contracted.

The person with whom the agent has contracted has no right of action againsi the principal.

The agent is directly bound 1n favor of the one with whom he has eontmcted.‘ 1

The contract does not bind the third person and the principal even if the contrac involves thing
belonging to the principal ‘

A 1s authorized by P to sell his car. A sold the ear of P to X 1n his ovm name 1d without disclosing P as

his principal. Which of the following statements is correct? ;

a b. e. d

119.

The contract does not bind P because the agent acts in his own name. i‘ The contract is unenforceable as
regards te P. ‘

The contract is null and void. 1 The contract binds P and X because it involves the property of the
principal?
What is the status of the contract entered into by the agent in excess of the auth ority of his principal
and

in the name of the principal or by a person without authority of another but 1n the latter: 5 behalf?

:1. Rescissibie unless ratified by the principal

b. Voidable unless ratified by the principal

c Unenforceable unless ratified by the principal d Null and void unless ratified by the principal

120. What is the status of the contract entered into by the agent in excess of the authority of the
principal and

in the agent’ 5 name? a. The contract is enforceable in favor of the principal.

b. The contract is rescissible 1n favor of the principal. c. The contract is valid and binding against the
agent. d. The comract is null and void.

121. What IS the obligation of a person appointed as an agent but declines the appointment? He shall
deliver and return the goods. He shall pay for the price of the goods. He shall observe diligence of a good
fathe of a family' 1n the custody and preservation of the goods; I

He has no obligation over the goods. . ' 1

999'!”
122. The following are the general obligations of an agent, except

To carry out the agency. To be liable for damages through the non-performanoe, the principal may suffer.
. To finish the business already begun on the death of the principal, shou1d delay entail any danger.

To continue the agency despite the fact that its execution would manifestly‘result in loss or damage.

999‘.»

123. The following are the special obligations of an agent, except a. To advance the necessary funds if
there was stipulation to that effect except when the principal is!

insolvent. ' b. To act in accordance with the instructions of the principal in the execution of the agency
and in the' absence of instructions of the pr1nc1pal he shall exercise the diligene of a good father of a
family. No to carry out an agency if the execution would manifestly nesult 1n loss or damage to the
principal.

c. _

d. To be liable for damages if there being a conflict between interest and that of the principal, he shou1d
prefer his own.

e. To lend money to the principal at current ' terest rate if he has been authorized to borrow money

f. To borrow money of the principal at current interest rate without the principal’s consent, if the latter
has
authorized him to lend principal’ 3 money at interest.

124. The following are the special obligations of an agent, except

a. 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. Any obligation exempting the
agent from the obligation to render an account shall be void.

b. To be liable for intenest on the sums he has applied to his own use from the day on which he did so
and those which he still owes after the extinguishment of the agency.

c. To be responsible not only for fraud, but also for negligence which shall bejudged with more or less
right by the court

d. To become personally liable for the contract entered he entered into in behalf of the principal if the
latter ratified such contract.

125. The following are the rules that shall be observed as regards to the liability of agent when he
appoints a substitute, except

a. If the agent is not prohibited to appoint a substitute, the agent may appoint a substitute but he shall
be responsible for the acts of the substitute. _

b. If the agent is authorized to appoint a substitute and the principal designated the person to be
appointed as substitute, the agent is not responsible for the acts of the substitute.
c. If the agent is authorized to appoint a substitute and the principal does not designate the person to be
appointed as a substitute, the agent shall be liable if the person appointed as substitute 1s notoriously
incompetent or insolvent man.

(1. If the agent is prohibited to appoint a substitute, the agent cannot appoint a substitute. If he appoints
one, all the acts of the substitute shall be voidable.

126. What is the degree of liability of two or more agents if they have been appointed shnultaneously?
a. Joint and severally unless agreed otherwise. b. J oint or prOportionate unless agreed otherwise. c.
Solidary unless agreed otherwise. d. No liability unless agreed otherwise.

127. What is the degree of liability of two or more persons who have appointed a single agent to the
same transaction?

a. Joint unless agreed otherwise. _ b. Joint or proportionate unless agreed otherwise. c. Solidary unless
agreed otherwise.

d. No liability unless agreed otherwise. I :3

128. The general rule is that the agent who acts in the name of the prin ipal shall not be liable to the
party with whom he contracts. The following are the exceptions to the general ruie,e1;cept a. If the
agent expressly binds himself. b. If the agent exceeds the limits of his authority without giving such patty
sufficient notice of his powers. c. If the agent acts without the authority of the principal.

d. If the principal ratifies the acts of the agent which exceed the iimits of his authority.

129. What is the status of the contract entered into by the agent without 0: beyond the authority of the
principal
if the other party was aware of the agent's acting. beyond the limits of his authority? a. If the agent did
not undertake to secure the principal’s ratification, the contract shall be unenforceable.

b. If the agent did not undertake to secure the principal’s ratiiication, the contract shall be void. c. If the
agent did not undertake to secure the principal’s ratification, the contract shall be voidable. d. If the
agent did not undertake to secure the principal’s ratification, me contract shall be valid.

130. The following are the rights and obligations of third persons who have conti'acted with an agent
who has

exceeded his authority, except a. As to third persons, an act is deemed to have been performed withii
the scope of the agent’ 8 authority,if such act is within the power of attorney, as written. even if the
agent has in fact exceeded the limits of his authority according to an understanding between the
principal and the agent.» i b. 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. c. A third person may require the agent to present
his power of attomey or the instructions as regards the

agency. d. Private or secret orders and instructions ot‘the principal prejudice third persons who have
relied upon the

power of attomey or instructions shown them

131. He is a person who buys and sells goods or chattels consigned or delivered to him by his principal
for a

compensation known as commission. a. Ordinary agent b. Partnership agent c. Commission agent d.

Preferred agent
132. a. b. :1: C. 133.

The following are the obligations of a commission agent, except

To be responsible for the goods received by him in the terms and conditions and as described in the
consignment unless upon receiving them he should make a written statement of the damage and
deterioration suffered by the same.

To distinguish by countermzirks goods of the same kind and mark which belong to different owners, and
designate the merchandise respectively belonging to each principal. I

To sell the goods on credit.‘ L

To bear the risk of collection and to pay the principal the proceeds of the s » on the same terms agreed
upon with the purchaser ifhe receives on a. sale, 1!) addition to the ordinary c mmission, another called
a

guarantee commission. ‘ To be liable for damages if he does not collect the credits of the principal at th
time they becOme due and demandable, unless he proves that he exerc1sed due diligence for that
purpose. ‘ l

P gives a general power of attorney to A to sell P’s goods for P10, 000 cash fo a Ieommissionf. A sells the

goods on a 15-day credit term for P_,11 000 to B without authority from P. What 1s 1e right of P if he
does not

ratify the sale on credit? . i l a. P may demand immediate payment of P11 ,000 from A. | i b. P may
demand immediate payment ofPlO, 600 from A and A gets the excess 0 P1, 000. l c. P may get the excess
of P1, 000. l d. A cannot be compelled to pay P10, 000 immediately.
134.

135.

9-9 crab

9"?

Using the same data 1n preceding number, hat is the right of P f he ratiiies th seile on credit? P may
demand P11, 000 from A immediatel P may collect P11, 000 upon payment of B. P may only collect P10,
000. . A shall only account P10, 000 to P. . ‘ I l. The following are the obligations of the p ' ieipal in the
Contract of agency, exclept To comply with all the obligations which th agent may have con tracted
withinlthe scope of his authority. To be bound for any obligation wherein the agent exceeded his power
if he ratiiies such obligation

expressly or tacitly. 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. To advance to the agent the sums necessary for the execution of the
agency should the agent so request

To reimburse the agent the sums advanced by the seller even if the business 01 undertaking was not
successful provided that the agent is free from fault including the interest on the sum.

To indemnify the agent for all damages which the execution of the agency may have caused the latter,
without the fault or negligence on his part.
When two or more persons have appointed an agent for a eommon transaction or undertaking, the
principals shall be jointly liable for all the consequences of the agency.

r'-”"' v v

136. The following are the instances wherein the principal shall not be liable for the expenses incurred
by the agent, except

a. When the agent acted 1n contravention of the principal’s instructions and the principal avails himself
of the benefits derived from the contract. :

b. When the expenses were due to the fault of the agent.

0. When the agent incurred them with knowledge that an unfavorable result would ensue if the principal
was not aware thereof.

d. When it was stipulated that the expenses would be borne by the agent, or that the latter would be
alloWed . only a certain amount. l

137. What is the right of the agent over the object of the agency until the principal reimburses him for
the sums necessary for the execution of the agency which he had advanced and umii the principal pays
him the indemnity ‘ for all damages in the execution of the agency? _ i

a. Right to appropriate the property. b. Right to sell the property. c. Right to retain in pledge the property
or legai pledge. (1. R1 ght to destroy the property. 138. When two persons contract with regard to the
same movable thing, one of them with the agent, and the

other with the pn'ncipal, and the two contracts are incompatible with each other, who between the
buyers shall be preferred? . a. First possessor in good faith. b. The buyer of the principal. c. The buyer of
the agent‘ d. Person with older title. ‘
139. 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 two contracts are incompatible with each other, who between
the buyers shall be preferred?

First registrant in good faith.

First possessor in good faith.

Buyer with older title.

Buyer of the principal.

Buyer of the agent.

9999'?

140. The following are the modes of e ctinguislunent of contract of agency: (EDWARD) E-Expiration of
the period for which the agency was constituted.

DDeath, Ci Ii] interdiction, Insanity or hmsolvency of the principal or agent.

WWithdrawal of the agent.

AAccomplishment of the object 01 purpose of the agency.

RRevocation of the agency by the principal.

DDissolution of the firm or corporation which entrusted or accepted the agency.

weaves

l4]. Revocation refers to the act of the principal of terminating the agency at will. The principal may
revoke the agency at will and compel the agent to return the docmnent evidencing the agency. The
revocation may be express or implied. The following acts are considered implied revocation, except a.
When a new agent is appointed for the same business or transaction. b. If the principal directly manages
the business entrusted to the agent,dea1ing directly with third persons. c. When a special power of
attorney is granted to an agent with a general power of attorney. (1. When the principal assist the agent.

142. As a general rule, the principal may revoke the connaet of agency at will The following are the
exceptional instances when contract 01 agency may not be revoked at will by the principal, except a. If a
bilateral contract depends upon an agency. . b. If the agency is a means of fultil' ing an obligation already
contracted. c. If a panner appointed a manager of a pm‘tnership in the contract of partnership and his
removal from the management is unjustifiable. d. If the agency is coupled with interest. e. If the agency
is for the benefit of the principal.

143. The following statements concerning revocation are true, except a. If the agency has been entrusted
for the purpose of contracting with1pecif1ed persons, the principal must give a timely notice of the
revocation to such thiid persons. b. It the agent had general powers, he was entrusted to contract with
general public or any person, revocation of the agency does not prejudice third poison: who acted in
good faith and without'lmowledge of the revocation. 1:. Notice of revocation of general powers in a
newspaper of general circulation 1s sufficient warning to third persons

d. Revocation does not bind third pe1sons who had knowledge therec f.

144. The following statements concerning withdrawal by the agent are true, except a. The agent must
give notice to the principal of the withdrawal. b. The agent must indermtify the pi incipal for any damage
suffered by reason of the withdrawal. 0. The agent shall not be liable for withdrawal if it is based upon
the impossibility of continuing the performance of the agency without grave detriment to himself. ' d.
The age nt who withdraws shouid not take care of the object of the agency if his reason is valid.
145. As a general rule, the death of the principal extinguishes the agency. However, the agency is not
extinguished by the death of the principal in the following exceptional instances, except 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 ofa third persop who has accepted the stipulation in his favor. e. In so far as to
finish the business. already begun on the death of the principal, should delay entail any danger. d. If the
agency has been constituted in favor of the principal.

146. What is the status of the acts done by the agent after the death of the principal or other cause of
extinguishment of the agency? . a. The acts axe unenforceable because the agency is aheady
eminguishetu b. The‘ acts are null and void because the agency is already extinguished

.(3

The acts are valid if done with the tmo'atectge of the death of the principal or of any other cause of
extinguishment and shah be fully effective with respect to third persons who may have contracted in bad
faith. The acts are valid if done without the knowledée of the death of the principal or of any other cause
of

extinguishment and shall be fuhy effective with respect to third petsons who may have contracted in
good faith.

-END