11. The agent is responsible for the acts of a substitute which he appoints in the following instances.

Which is not included? a. When he was not given the power to appoint one b. When he was prohibited from appointing one c. When he was given the power to appoint one, but without designating the person, and he appointed incompetent one in good faith d. When the principal designated the person to be appointed ANSWER: D 12. P appointed A to manage his business before leaving for abroad. While abroad, A wrote P that he was withdrawing from the agency due to health reasons and that he appointed B as his substitute and that P should extend an appointment to B. B took over the administration but P did not make the necessary appointment. When required to account for his transactions, B alleged that he is not the agent of P due to lack of appointment from the latter. Decide the kind of agency. a. Implied agency b. Agency by necessity c. Express agency d. Agency by estoppel ANSWER: A

13. Without authority from P, A sold P's car in A's name. Contract is: a. Void b. Valid c. Voidable d. Unenforceable ANSWER: B 14. P appointed A, a minor, as his agent to contract with B. A in the name of P entered into the contract with B. The agency is: a. Void b. Valid c. Voidable d. Unenforceable ANSWER: C 15. If an agent acted in excess of authority in the name of the principal who does not ratify the contract and the third person has knowledge of the excess of the authority, the contract is: a. Void b. Rescissible c. Voidable d. Unenforceable ANSWER: B

16. In case both the principal and agent contracted with different persons as regards the same thing and one of the contracts shall therefore be rejected, the one liable for damages to the third person shall be: a. The principal because he should not have entered into the contract since he already has an agent b. The agent because in case of conflict of interest, the principal's interest prevails c. The principal because he is really the one entering into the contract not the agent d. The agent if he acted in bad faith otherwise it is the principal ANSWER: D 17. Which of the following acts may not be delegated by a principal to his agent? 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. ANSWER: B 18. Which of the following acts requires only a general power of attorney?

a. To bind a principal in a contract of partnership b. To loan money of the principal c. To enter into a contract by which the ownership of an immovable is transmitted or acquired gratuitously or for a valuable consideration d. To make such payments as are usually considered acts of administration. ANSWER: D 19. An agency is impliedly revoked in three of the following causes. Which is the exception? a. When the new agent is appointed for the same business or transaction b. When the principal directly manages the business entrusted to the agent, dealing directly with third persons c. When a special power of attorney is granted to another agent pertaining to a special matter involved in general power of attorney issued to a previous agent d. When the desire of the principal is to help the agent manage the business ANSWER: D 20. The following are modes of extinguishing an agency, except: a. Death, civil interdiction, insanity or insolvency of the principal or agent b. Accomplishment of the purpose of the agency

c. Expiration of the period for which the agency was constituted d. Continued losses on the part of the principal or agent ANSWER: D