20.

If the agent has been empowered to borrow money he may himself be the lender at the current rate of
interes and if he has been authorized to lend money at interest, he can borrow it. F Every agent is bound
to render an account 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. T a. Both are true.
c. Only the first statement is true b. Both are false.
d. Only the second statement is true
A
21. A person who buys and sells goods consigned or delivered to him by his principal, for a
compensation, e. Commission agent
c. Agent b. Broker
d. Dealer
B
22. The responsibility of two or more agents who have been appointed simultaneously is solidary. F When
two or more principals have granted a power of attorney for common transaction, any one of them may
revoke the same provided it is with the consent of the others. F a. Both are true.
c. Only the first statement is true b. Both are false.
d. Only the second statement is true
B
23. The limits of the agent's authority shall be considered exceeded even if it have been
performed in a manner more advantageous to the principal than that specified by him. F If the
agent acts in his own name, he is directly bound as if the transaction were his own and that the
contract shall not be valid between the principal and the third party. E a. Both are true.
c. Only the first statement is true b. Both are false.

d. Only the second statement is true

(24. In the execution of the agency, the agent shall observe the diligence of a
father of a good family.
In case a person declines an agency, he is bound to observe ordinary diligence
in the custody and preservation of the goods forwarded to him by the owner until
the latter should appoint an agent. a. Both are true.
c. Only the first statement is true b. Both are false.
d. Only the second statement is true
25. Every stipulation exempting the agent from the obligation to render an
account shall be void. T The agent and the principal must be both capacitated. F
a. Both are true.
c. Only the first statement is true b. Both are false.
d. Only the second statement is true
A
26. This is an agency that comprises one or more specific transactions of the
principal. a Special agency
c. Agency couched in specific terms . General agency
d. Agency couched in general terms

B27. Pisot leads Bingot to believe that Epal is his (Pisot's) agent. However, Epal
is not really the agent of Pisot.
Later, Bingot transacted with Epal believing that Epal is the agent of Pisot. What
kind of agency was created here?
c. agency by appointment a. agency by ratification
d. agency by necessity b. agency by estoppel
c
28. Which of the following is a valid delegation by the principal to his
agent? a. The purchase by the agent of a land located in Manila. The
principal is an American. b. The exercise of voting rights in the local
elections. The principal is a Filipino who is qualified voter like the
agent s. The lease of a vehicle for the use of the principal who is a
duly licensed for two months d. The attendance at the board meetings
of a corporation of which the principal is a director X
29 Which of the following contracts entered into by an agent is binding
upon the principal although the agent's authority is a general power of
attorney? a. sale of a building b. lease of a piece of land to a third
person for a period of 2 years * c. customary gifts to charity
> d. contract of partnership with the principal as partner