1. Which of the following does not amount to ratification? a.

Receipt of premiums and demand for additional security of the principal. b. Silence of the principal. c. Act of the principal in collecting by court action part of the loan made to unqualified buyers. d. Approval by the principal of the accounts submitted by the agent. 2. The principal is not liable for the expenses incurred by the agent in the following cases, except: a. If the agent acted in contravention of the principal's instructions. b. When the expenses were due to the fault of the agent. c. When the agent incurred them without knowledge that an unfavorable result would ensue, if the principal was 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 sum. 3. An agency cannot be revoked under the following circumstances, except: a. If the agency has been constituted in the common interest of the principal and the agent. b. If it is the means of fulfilling an obligation an obligation already contracted. c. If a partner is appointed manager of a partnership in the contract of partnership and his removal for the management is unjustified. d. If a bilateral contract contract depends upon it. 4. In the following statements, which of the following choices is correct? Statement 1: The termination of the agency will necessarily free the principal from liability. Statement 2: Where an agency is created for a fixed period, expiration of such period will not end the agency if the purpose for which the agency was created was not accomplished. a. Statement 1 is TRUE. b. Statement 2 is FALSE. c. Both statements are TRUE. d. Both statements are FALSE. 5. The agent is not liable for the expenses incurred by him when he incurred them with knowledge that unfavorable result would ensue and the principal was not unaware thereof. a. Statement is TRUE. b. Statement is FALSE. c. Statement is Misleading. d. With exceptions. 6. A mode of extinguishment of an agency which does not admit of any exceptions, except: a. Death of the agent. b. Withdrawal of the agent. c. Civil interdiction of the agent. d. None of the above. 7. The appointment of a new agent for the same business or transaction revokes the previous agency from the day on which notice thereof was given to the former agent without prejudice to: a. Article on agency for purpose of contracting with specified third persons. b. Revocation of agency not causing prejudice to third persons who acted in good faith without knowledge of revocation. c. Both A & B are TRUE.

d. Both A & B are FALSE. 8. The following, except one, are true on the basis of estoppel and ratification: a. b. c. d. Ratification rest on intention; estoppel rest on prejudice In estoppel, substance is inducement; in ratification, substance is confirmation Ratification is after the act is done; estoppel is before the act is done Ratification affects only part of the transaction; estoppel affects entire transaction

9. A. If the reason for the extinguishment of agency is not rule, the agent can insist on reinstatement with damages B. Implied in every contract is the understanding that it shall be capable of being carried out legally at the time called for by the contract, thus, agency then terminates if a change in law makes the purpose of agency impossible or unlawful a. b. c. d. Statement B is true, A is false Statement A is false, A is true Statements are both false Statements are both true

10. Why is solidarity the rule when two or more persons have separately appointed an agent? a. To necessarily bind the two principals in all the acts of the agent as to third person b. Because the principals have all concurred in the appointment of the same agent, then they are estopped to deny the same c. Because of the commonality of transaction or undertaking, thus it is proper in line with equity and justice d. To fix the liability of the principals with certainty or particularity since the appointments are separately done.