Chapter:

360+ Albano MCQs Solved MCQs

in Philippines Civil Law Society

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Uncategorized topics .

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251.	A entered into a contract to sell over a residential lot. He has already paid more than 2 years installments. Thereafter, he failed to pay. What right does A have if the contract is cancelled?
A.	He has the right of reimbursement of all his payments regardless of the number of years of payment;
B.	He has the right to seek for a grace period of 1 month for every year of installment payments;
C.	He has the right of refund of the cash surrender value of the payments on the property equivalent to 50% of the total payments made;
D.	He has the right of reimbursement of 100% of his installments after payment for five (5) years.
Answer» C. He has the right of refund of the cash surrender value of the payments on the property equivalent to 50% of the total payments made;

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252.	If the buyer of a subdivision lot in a contract to sell under the Maceda Lawfails to pay after payment of at least two (2) years of installments, can he still pay the balance?
A.	Yes, with additional interest he can pay the unpaid installments due with a grace period of one (1) month for every year of installment payments;
B.	Yes, without additional interest he can pay the unpaid installments with a grace period of one (1) month for every year of installment payments;
C.	Yes, provided that he pays additional amount of penalty;
D.	Yes, provided that he pays the full amount of the price.
Answer» B. Yes, without additional interest he can pay the unpaid installments with a grace period of one (1) month for every year of installment payments;

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253.	If the seller cancels the contract to sell under the Maceda Law, when will it take effect after receipt of notice of cancellation or demand for rescission by notarial act?
A.	10 days
B.	30 days
C.	20 days
D.	One (1) year
Answer» B. 30 days

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254.	How often can the buyer under the Maceda Law make use of the grace period of one (1) month for every year of installment payments?
A.	Every 10 years of the life of the contract and its extensions if any;
B.	Every five (5) years of the life of the contract;
C.	Every two (2) years of the life of the contracts;
D.	There is no limit.
Answer» B. Every five (5) years of the life of the contract;

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255.	If the buyer under the Maceda Law has paid less than two (2) years of installments, what is the grace period he is entitled to from the date the installments became due?
A.	20 days;
B.	60 days;
C.	30 days;
D.	40 days.
Answer» B. 60 days;

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256.	A & B entered into a contract of lease over A’s house and lot. Without the consent of A, B assigned the lease to C. Is the assignment valid?
A.	The assignment is valid because B has the right of possession over the leased property and can transfer it to anyone.
B.	The assignment is void because of lack of consent of A.
C.	The assignment is void because the same partakes of the nature of subjective novation which needs the consent of A.
D.	The assignment is valid since it is a property of B which can be disposed of.
Answer» C. The assignment is void because the same partakes of the nature of subjective novation which needs the consent of A.

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257.	A leased his house & lot to B who subleased it to C. B failed to pay the rentals. What does A have against C?
A.	A can sue C for the rentals.
B.	A can hold C liable for the rentals by suing him for ejectment.
C.	A can hold C liable for the rentals, but the liability is merely subsidiary.
D.	A can never make C liable for the rentals because of lack of privity between them.
Answer» C. A can hold C liable for the rentals, but the liability is merely subsidiary.

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258.	A contract of lease was entered into between A & B with a provision that it is for a period of 5 years renewable for another 5 years. The contract expired on June 30, 2010 but up to now, the lessee is still in possession of the premises. What does the implicit renewal of the contract mean?
A.	That all the provisions of the contract relative germane to possession are renewed.
B.	That the period originally agreed upon shall likewise be the period in the renewed contract.
C.	That the right to purchase agreed upon in the original contract is impliedly renewe
Answer» A. That all the provisions of the contract relative germane to possession are renewed.

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259.	A is the owner of a parcel of land adjoining B’s lot. B, knowing that the lot did not belong to him constructed his house on the lot belonging to A. Which of the following is the not correct?
A.	A can appropriate the house without paying any compensation.
B.	A can eject B.
C.	B is entitled to at least 50% of the value of the house in the interest of justice and inorder that no one shall enrich himself at the expense of another.
D.	A can compel B to buy the land even if the value is considerably more than the value of the improvement.
Answer» C. B is entitled to at least 50% of the value of the house in the interest of justice and inorder that no one shall enrich himself at the expense of another.

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260.	A leased his house and lot to B with “option to renew.” How will the contract be renewed?
A.	At the option of B;
B.	At the option of A;
C.	Automatically;
D.	Upon agreement of A and B as it must be interpreted to be reciprocal in character where the renewal is subject to agreement of the parties.
Answer» D. Upon agreement of A and B as it must be interpreted to be reciprocal in character where the renewal is subject to agreement of the parties.

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261.	A partnership begins from:
A.	The moment of the execution of the contract;
B.	The moment of the notarization of the document of partnership;
C.	The registration with the SEC;
D.	The moment all contributions are paid.
Answer» A. The moment of the execution of the contract;

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262.	What does the sharing of gross returns in a business undertaking mean?
A.	Conclusive evidence of partnership;
B.	Prima facie evidence of partnership;
C.	Does not establish a partnership whether or not the persons sharing them have a joint or common right in any property upon which the returns are derive
Answer» C. Does not establish a partnership whether or not the persons sharing them have a joint or common right in any property upon which the returns are derive

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263.	A, B and C formed a partnership with C contributing an immovable, but no inventory of such immovable was attached to the contract. Is the contract valid?
A.	The contract is valid because a contract is valid in any form it may be entered into;
B.	The contract is voidable;
C.	The contract of partnership is void;
D.	The contract is unenforceable.
Answer» C. The contract of partnership is void;

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264.	A, B and C are the partners. A conveyed to X his whole interest in the partnership. What is the effect of the conveyance?
A.	It dissolved the partnership;
B.	The assignee became a partner;
C.	The assignee has the right to interfere in the management or administration of the partnership business;
D.	Merely gave him the right to receive his shares in the profits (Art. 1813, NCC)
Answer» D. Merely gave him the right to receive his shares in the profits (Art. 1813, NCC)

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265.	When may a partner who was appointed as manager in the articles of partnership be removed?
A.	May be removed at anytime;
B.	May be removed with just or lawful cause by majority of the partners;
C.	May be removed for just and lawful cause by a vote of partners representing controlling interest ;
D.	May be removed by order of the court.
Answer» C. May be removed for just and lawful cause by a vote of partners representing controlling interest ;

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266.	If a partnership has a capital of more than P3,000.00 and it is not registered, is the contract valid?
A.	Void;
B.	Voidable;
C.	It does not invalidate the same as among the partners so long as the contract has the essential requisites.
D.	Unenforceable.
Answer» C. It does not invalidate the same as among the partners so long as the contract has the essential requisites.

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267.	In connection with the rule of mutual agency of the partners in a partnership which of the following is not correct?
A.	Partnership is liable to every partner for amounts disbursed on behalf of the partnership, plus interest, from the time the expenses are made; (Art. 1796, NCC)
B.	Unless otherwise agreed upon, all partners shall be considered agents and whatever any one of them may do alone binds the partnership; (Art. 1803(1); Art. 1818)
C.	Anyone of the partners may make important alterations on the immovable property of the partnership; (Art. 1803, NCC)
D.	Admission or representation made by a partner concerning partnership affairs is evidence against the partnership. (Art. 1820)
Answer» C. Anyone of the partners may make important alterations on the immovable property of the partnership; (Art. 1803, NCC)

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268.	P appointed A, his agent to manage his business in the United States of America. A died and his son, S, managed the same until P could appoint another agent to personally take over. The agency of S is one based on:
A.	Ratification;
B.	Necessity;
C.	Estoppel;
D.	By operation of law.
Answer» B. Necessity;

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269.	P appointed A, his agent for the purpose of selling the former’s car for P500,000.00. A sold the car in his name to B. After delivery, it was found out that the car has hidden defects which rendered the car unfit for the purpose of B. Can B file an action against P even if A acted in his own name?
A.	No, because the legal principle than becomes applicable is caveat emptor.
B.	Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.
C.	No, since in the law on agency, the Rule is that if the agent acted in his name, the principal is bound to the third person and the third person does not become bound to the principal.
D.	No, because the contract is already perfected and executed.
Answer» B. Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.

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270.	A special power to sell on credit includes the power to:
A.	Mortgage
B.	Sell in cash
C.	Barter
D.	To enter into a contract of pledge.
Answer» B. Sell in cash

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271.	In an agency to sell real property which of the following renders the authority and contract of sale valid?
A.	General power of attorney, granting the agent authority to sell real property, not put into writing.
B.	General power of authority put into writing without authority to sell.
C.	A special power of attorney put into writing authorizing the agent to sell real property of the principal.
D.	Special power of attorney couched in general terms without referring to specific acts of dominion.
Answer» C. A special power of attorney put into writing authorizing the agent to sell real property of the principal.

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272.	Under the law on agency, what is the nature of the act when an agent violates the terms of the agency and acts outside the scope of the authority vested in him?
A.	Void;
B.	Unenforceable;
C.	Voidable;
D.	Valid and binding upon the principal.
Answer» B. Unenforceable;

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273.	Donna, authorized her friend Joyce to sell his Prada bag worth P100,000 on installment basis. Joyce, however, sold the bag on cash in contravention of the authority given to her. Was the sale valid?
A.	No, because the agent acted beyond the scope of his authority.
B.	Yes, because the sale in cash redounds to the benefit of Donna. Hence, despite violation of the authority given, the sale is valid.
C.	Yes, because Donna as principal is always bound by the act of his agent, Joyce.
D.	No, because the agent violated the terms of the authority given to her.
Answer» B. Yes, because the sale in cash redounds to the benefit of Donna. Hence, despite violation of the authority given, the sale is valid.

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274.	A wrote his brother B authorizing the latter to sell a parcel of land belonging to him located in Cagayan Valley. On the strength of such letter-authority, B sold the land. Is the sale valid?
A.	No, because the letter-authority must be in a public instrument.
B.	No, because the letter-authority must be participated in a notary public.
C.	Yes, because it is sufficient that the letter-authority be in writing.
D.	No, sale in invalid.
Answer» C. Yes, because it is sufficient that the letter-authority be in writing.

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275.	A, B and C formed a limited partnership. They named their partnership AB&C. In 2008, the firm incurred an indebtedness of P5M. A suit was filed for the recovery of debt. Which of the following statements is correct?
A.	No partnership was constituted because the word “limited” was omitted in the partnership name.
B.	B and C as limited partners are liable only up to the extent of their contributions.
C.	All are liable as general partners.
D.	A, B and C are not liable because there was a defect in the formation of their partnership.
Answer» C. All are liable as general partners.

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276.	A constituted B as his agent to sell his property. B found C as the buyer who was willing to buy under the terms agreed upon but suddenly A changed his mind and decided not to sell the property. One week later, A and C, entered into a contract of sale over the property. Is B entitled to commission?
A.	No, because when A decided not to sell, his agency was terminated;
B.	No, because he was not the procuring cause;
C.	Yes, because A acted in bad faith. (Infante v. Cunanan, 49 O.G. 3320; Art. 19, NCC)
D.	Yes, because he did not give justice to B in the exercise of his right.
Answer» C. Yes, because A acted in bad faith. (Infante v. Cunanan, 49 O.G. 3320; Art. 19, NCC)

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277.	What is not a requirement for existence of negotiorum gestio?
A.	A property or business is neglected or abandoned by the owner.
B.	A person has been constituted manager of the property or business so abandoned.
C.	The management of the owner’s business was assumed by another not an owner or manager so authorize
Answer» B. A person has been constituted manager of the property or business so abandoned.

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278.	A sold a parcel of land to B covered by TCT NO. 152 with C as a witness. When D wanted to buy a property, he executed a special power of attorney for E to buy a property for him. E entered into a contract of sale with A for the purchase of the same lot and registered it under the name of D. Who between B and D has a better right over the lot?
A.	D has a better right because of prior registration;
B.	B has a better right because he is the first buyer;
C.	D has a better right because he is the buyer in good faith;
D.	D has a better right because the knowledge by his agent of a prior sale is immaterial.
Answer» B. B has a better right because he is the first buyer;

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279.	When is the guarantor liable for the obligation of the debtor?
A.	Once the obligation becomes due and demandable;
B.	Only after judgment is obtained against the principal debtor and he is unable to pay; (Baylon v. CA, August 17, 1999)
C.	The moment the judgment against the debtor becomes final and executory;
D.	Once demand is made for both the debtor and guarantor to pay.
Answer» B. Only after judgment is obtained against the principal debtor and he is unable to pay; (Baylon v. CA, August 17, 1999)

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280.	The guarantor paid the obligation of the debtor when demand is made. Can he ask for reimbursement?
A.	No, because he is a voluntary payor;
B.	No, because judgment has yet to be obtained against the debtor;
C.	No, because he has not been able to exercise the benefit of excussion;
D.	Yes, because the benefit of excussion is a right granted to him which can be waived.
Answer» D. Yes, because the benefit of excussion is a right granted to him which can be waived.

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281.	The following statements are correct, except:
A.	There can be a continuing guaranty;
B.	There can be a continuing surety;
C.	There can be a continuing chattel mortgage;
D.	There can be a continuing real estate mortgage.
Answer» C. There can be a continuing chattel mortgage;

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282.	A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?
A.	Yes, because the encashment is an automatic appropriation of the security;
B.	A is not correct because the bank had yet to perform an act to appropriate the money deposited;
C.	A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)
D.	A is correct because there can be no compensation since the relationship between the bank and A is one of deposit.
Answer» C. A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)

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283.	A entered into a contract whereby he obligated himself to pay B on or before September in the form of Australian currency. When the obligation became due and demandable, A delivered to B Australian currency. Is A correct?
A.	B can refuse to accept the payment because the currency being offered is not legal tender in the Philippines.
B.	A is correct in offering Australian currency because of the contract.
C.	A is not correct because the stipulation to pay in Australian currency is void because it is contrary to law.
D.	A is not correct because the stipulation to pay in the form of another currency is void because it is contrary to public policy. (RA 8183)
Answer» B. A is correct in offering Australian currency because of the contract.

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284.	A & B entered into a contract of loan in the amount of P1M with interest at 192% per annum. When the obligation became due and demandable B failed to pay despite demand, hence, A filed a complaint against B. On the interest rate, what is a valid contention of B?
A.	B can ask the court to declare it void on the ground that it is contrary to the Usury Law.
B.	B can ask the court to declare it void and be not liable at all.
C.	B can ask the court to delacre it void on the ground that it is unconscionable, hence, contrary to morals and the court may fix the interest rate at its discretion.
D.	A can contend that the interest rate is valid because of the principle of binding effect of contracts.
Answer» C. B can ask the court to delacre it void on the ground that it is unconscionable, hence, contrary to morals and the court may fix the interest rate at its discretion.

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285.	X and Y entered into a contract. X agreed to deposit P50,000 with Y’s account to make it appear that Y had sufficient capitalization in forming an incorporation. They agreed that Y should return the money plus 12% interest within 30 days. What is the nature of the contract?
A.	Mutuum, because of the stipulation as to interest.
B.	Mutuum, because Y acquired ownership upon depositing the amount in his account.
C.	Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.
D.	Commodatum, because the stipulation for the payment of interest did not convert it to mutuum.
Answer» C. Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.

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286.	Which of the following statements is not true about the dragnet clause?
A.	It is one specifically phrased to subsume all debts of past or future origins.
B.	It operates as a convenience and accommodation to the borrowers as it makes available additional funds without executing additional security documents.
C.	It is also known as the “blanket mortgage clause”
D.	It is different from a continuing mortgage clause.
Answer» D. It is different from a continuing mortgage clause.

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287.	What is a contract of precarium?
A.	It is a contract by virtue of which a person called the guarantor, binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so.
B.	It is a contract by virtue of which a person binds himself solidarily with the principal debtor to fulfill the obligation.
C.	It is an accessory, real and unilateral contract by virtue of which the debtor or a third person delivers to the creditor or to a third person movable property as security for the performance of the principal obligation.
D.	It is a contract of commodatum where the bailor has the right to demand the return of the thing which is the object of the contract at will.
Answer» D. It is a contract of commodatum where the bailor has the right to demand the return of the thing which is the object of the contract at will.

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288.	A entered into a contract of loan with a bank. They stipulated that if there will be a law or BSP circular that will allow the increase in the interest rate, the bank will increase it. Is the stipulation valid?
A.	Yes, because of the principle of liberty of contracts;
B.	Yes, because of the principle of mutuality of contracts;
C.	No, considering that there is no corresponding de-escalation clause;
D.	Yes, because the increase is not unilateral.
Answer» C. No, considering that there is no corresponding de-escalation clause;

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289.	Which of the following is correct if the interest rate in a loan is void?
A.	The contract is totally inexistent;
B.	The creditor cannot recover interest at all;
C.	The creditor can recover legal rate of interest;
D.	The court shall rule as if no interest has been agreed upon and contrary to law.
Answer» C. The creditor can recover legal rate of interest;

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290.	A checked in at ABC Hotel Corporation with his valuables. While shopping nearby, she left the room for half a day but when she went back, all his valuables were gone as her room was ransacked with the use of force. She filed a complaint for damages. Is the hotel keeper liable?
A.	The hotel keeper is liable as depositary.
B.	The hotel keeper is not liable because under the contract, it is not liable in case of loss of things belonging to the guest for any reason.
C.	The hotel keeper is not liable because of force majeure.
D.	The hotel keeper is liable because it is its duty to protect the properties of its guests.
Answer» C. The hotel keeper is not liable because of force majeure.

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291.	A obtained P50,000.00 from B to be placed in A’s safety deposit box. What is the nature of the contract?
A.	The contract is a loan.
B.	It is a contract of lease.
C.	It is a commodatum.
D.	It is a deposit.
Answer» D. It is a deposit.

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292.	In case of contract of deposit, the depository has the following rights or obligations except:
A.	To keep the thing safely.
B.	To return the thing deposited.
C.	To make use of the thing deposited with the permission of the depositor.
D.	To deposit the thing deposited with a third person when there is an express stipulation allowing the same.
Answer» C. To make use of the thing deposited with the permission of the depositor.

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293.	What is the nature of the contract of rent of safety deposit boxes?
A.	Mutuum
B.	Commodatum
C.	Deposit
D.	Lease.
Answer» D. Lease.

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294.	When is the hotelkeeper shall be liable for the loss of the things belonging to the guests?
A.	If the things were actually delivered or surrendered to the hotelkeeper.
B.	If the guests did not sign any waiver of liability.
C.	If the hotelkeeper was notified of the valuables and the guests took the necessary measure to the care and vigilance over the same.
D.	If the loss was due to the act of a thief done with the use of irresistible force.
Answer» C. If the hotelkeeper was notified of the valuables and the guests took the necessary measure to the care and vigilance over the same.

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295.	A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?
A.	Yes, because the contract is the law between the parties;
B.	Yes, because of the doctrine of mutuality of contracts
C.	No, because it is a case of pactum commissorium;
D.	Yes, because of the liberty of contracts.
Answer» C. No, because it is a case of pactum commissorium;

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296.	In the question above, suppose B failed to pay and A foreclosed the mortgage. Is A entitled to the balance?
A.	No, because the law on pledge is applicable to the law on mortgages.(Arts. 2041,2087,2115,NCC)
B.	Yes, because there is no law that prohibits recovery of deficiency under the mortgage laws;
C.	Yes, because while the law on pledge applies to the law on mortgage, the same is true if there is no inconsistency between the two (2) laws. ( Pameca Word Treatment Corp. v. CA)
D.	No, because of the principle of solution indebt.
Answer» C. Yes, because while the law on pledge applies to the law on mortgage, the same is true if there is no inconsistency between the two (2) laws. ( Pameca Word Treatment Corp. v. CA)

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297.	A & B entered into a contract of pledge, where B delivered his car to A as security for the payment of an obligation in the amount of P2M. For failure of B to pay what is the remedy of A?
A.	Appropriate the car as his own as provided for in the contract
B.	Sell the car but must deliver to B the excess.
C.	Sell the car but cannot recover any deficiency despite the agreement.
D.	Sell the car and recover the deficiency because of the agreement in the contract of pledge.
Answer» C. Sell the car but cannot recover any deficiency despite the agreement.

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298.	To secure the payment of his obligation, A pledged to his surety C, his car who sold the car after paying the obligation of A. The obligation was P2M but the car was sold for only P1M. Can the surety recover the deficiency?
A.	Yes, otherwise, there would be solution indebiti;
B.	Yes, no law prohibits him from doing so as he is not the direct creditor;
C.	No. In the foreclosure of a pledge, if the price of the sale is less than the indebtedness secured by the pledge, the creditor shall not be entitled to recover the deficiency, notwithstanding any stipulation to the contrary.
D.	Yes, if there is a stipulation.
Answer» C. No. In the foreclosure of a pledge, if the price of the sale is less than the indebtedness secured by the pledge, the creditor shall not be entitled to recover the deficiency, notwithstanding any stipulation to the contrary.

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299.	A obtained a loan from B secured by a mortgage over his house & lot. B failed to pay hence, A foreclosed the mortgage but it was sold for less than the amount of the obligation. Can B recover the deficiency?
A.	A cannot recover the deficiency because the law on pledges are applicable to the law on mortgages where there is a prohibition against recovery of deficiency.
B.	A can recover the deficiency as there is nothing in the law that prohibits the same.
C.	A can appropriate the object because the contract provides for it.
D.	A can sue B for sum of money and foreclose the mortgage if B cannot pay the judgment obligation.
Answer» B. A can recover the deficiency as there is nothing in the law that prohibits the same.

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300.	Within what period should an action to foreclose a mortgage over real property be filed?
A.	Within 10 years from date of registration of the contract;
B.	Within 10 years from the execution of the contract;
C.	Within 10 years from demand, for unless demand is prove, there can be no default. (Nunez v. GSIS Family Bank, 17 November 2005);
D.	Within 10 years from notarization of the contract.
Answer» C. Within 10 years from demand, for unless demand is prove, there can be no default. (Nunez v. GSIS Family Bank, 17 November 2005);

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360+ Albano MCQs Solved MCQs

A entered into a contract to sell over a residential lot. He has already paid more than 2 years installments. Thereafter, he failed to pay. What right does A have if the contract is cancelled?

If the buyer of a subdivision lot in a contract to sell under the Maceda Lawfails to pay after payment of at least two (2) years of installments, can he still pay the balance?

If the seller cancels the contract to sell under the Maceda Law, when will it take effect after receipt of notice of cancellation or demand for rescission by notarial act?

How often can the buyer under the Maceda Law make use of the grace period of one (1) month for every year of installment payments?

If the buyer under the Maceda Law has paid less than two (2) years of installments, what is the grace period he is entitled to from the date the installments became due?

A & B entered into a contract of lease over A’s house and lot. Without the consent of A, B assigned the lease to C. Is the assignment valid?

A leased his house & lot to B who subleased it to C. B failed to pay the rentals. What does A have against C?

A contract of lease was entered into between A & B with a provision that it is for a period of 5 years renewable for another 5 years. The contract expired on June 30, 2010 but up to now, the lessee is still in possession of the premises. What does the implicit renewal of the contract mean?

A is the owner of a parcel of land adjoining B’s lot. B, knowing that the lot did not belong to him constructed his house on the lot belonging to A. Which of the following is the not correct?

A leased his house and lot to B with “option to renew.” How will the contract be renewed?

A partnership begins from:

What does the sharing of gross returns in a business undertaking mean?

A, B and C formed a partnership with C contributing an immovable, but no inventory of such immovable was attached to the contract. Is the contract valid?

A, B and C are the partners. A conveyed to X his whole interest in the partnership. What is the effect of the conveyance?

When may a partner who was appointed as manager in the articles of partnership be removed?

If a partnership has a capital of more than P3,000.00 and it is not registered, is the contract valid?

In connection with the rule of mutual agency of the partners in a partnership which of the following is not correct?

P appointed A, his agent to manage his business in the United States of America. A died and his son, S, managed the same until P could appoint another agent to personally take over. The agency of S is one based on:

A special power to sell on credit includes the power to:

In an agency to sell real property which of the following renders the authority and contract of sale valid?

Under the law on agency, what is the nature of the act when an agent violates the terms of the agency and acts outside the scope of the authority vested in him?

Donna, authorized her friend Joyce to sell his Prada bag worth P100,000 on installment basis. Joyce, however, sold the bag on cash in contravention of the authority given to her. Was the sale valid?

A wrote his brother B authorizing the latter to sell a parcel of land belonging to him located in Cagayan Valley. On the strength of such letter-authority, B sold the land. Is the sale valid?

A, B and C formed a limited partnership. They named their partnership AB&C. In 2008, the firm incurred an indebtedness of P5M. A suit was filed for the recovery of debt. Which of the following statements is correct?

A constituted B as his agent to sell his property. B found C as the buyer who was willing to buy under the terms agreed upon but suddenly A changed his mind and decided not to sell the property. One week later, A and C, entered into a contract of sale over the property. Is B entitled to commission?

What is not a requirement for existence of negotiorum gestio?

When is the guarantor liable for the obligation of the debtor?

The guarantor paid the obligation of the debtor when demand is made. Can he ask for reimbursement?

The following statements are correct, except:

A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?

A entered into a contract whereby he obligated himself to pay B on or before September in the form of Australian currency. When the obligation became due and demandable, A delivered to B Australian currency. Is A correct?

A & B entered into a contract of loan in the amount of P1M with interest at 192% per annum. When the obligation became due and demandable B failed to pay despite demand, hence, A filed a complaint against B. On the interest rate, what is a valid contention of B?

X and Y entered into a contract. X agreed to deposit P50,000 with Y’s account to make it appear that Y had sufficient capitalization in forming an incorporation. They agreed that Y should return the money plus 12% interest within 30 days. What is the nature of the contract?

Which of the following statements is not true about the dragnet clause?

What is a contract of precarium?

A entered into a contract of loan with a bank. They stipulated that if there will be a law or BSP circular that will allow the increase in the interest rate, the bank will increase it. Is the stipulation valid?

Which of the following is correct if the interest rate in a loan is void?

A checked in at ABC Hotel Corporation with his valuables. While shopping nearby, she left the room for half a day but when she went back, all his valuables were gone as her room was ransacked with the use of force. She filed a complaint for damages. Is the hotel keeper liable?

A obtained P50,000.00 from B to be placed in A’s safety deposit box. What is the nature of the contract?

In case of contract of deposit, the depository has the following rights or obligations except:

What is the nature of the contract of rent of safety deposit boxes?

When is the hotelkeeper shall be liable for the loss of the things belonging to the guests?

A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?

In the question above, suppose B failed to pay and A foreclosed the mortgage. Is A entitled to the balance?

A & B entered into a contract of pledge, where B delivered his car to A as security for the payment of an obligation in the amount of P2M. For failure of B to pay what is the remedy of A?

To secure the payment of his obligation, A pledged to his surety C, his car who sold the car after paying the obligation of A. The obligation was P2M but the car was sold for only P1M. Can the surety recover the deficiency?

A obtained a loan from B secured by a mortgage over his house & lot. B failed to pay hence, A foreclosed the mortgage but it was sold for less than the amount of the obligation. Can B recover the deficiency?

Within what period should an action to foreclose a mortgage over real property be filed?