Question 1

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?

Accepted Answer

B

Question 2

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?

Accepted Answer

C

Question 3

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

Accepted Answer

A can hold C liable for the rentals, but the liability is merely subsidiary.

Question 4

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?

Accepted Answer

The implicit renewal of the contract means that all the provisions of the contract relative to possession are renewed, allowing the lessee to continue occupying the premises under the same terms.

Question 5

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?

Accepted Answer

B's entitlement to at least 50% of the value of the house in the interest of justice is not a general legal principle. The options available to A, the landowner, typically include appropriating the house (with or without compensation depending on jurisdiction), ejecting B, or compelling B to buy the land. The specific rights and obligations can vary, but there's no automatic entitlement for B to receive a percentage of the house's value.

Question 6

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

Accepted Answer

The option to renew a lease typically requires mutual agreement between both parties, A and B, as it is a reciprocal arrangement. The renewal is not automatic or solely at the discretion of one party.

Question 7

A partnership begins from:

Accepted Answer

A partnership begins from the moment of the execution of the contract. This is when the partners agree on the terms of the partnership and sign the partnership agreement, formalizing their business relationship and intentions to operate as a partnership. Notarization, registration with the SEC, or payment of contributions are not required for the partnership to commence.

Question 8

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

Accepted Answer

The answer of What does the sharing of gross returns...

Question 9

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?

Accepted Answer

The contract of partnership is void because the contribution of an immovable requires an inventory to be attached to the contract for it to be valid.

Question 10

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

Accepted Answer

The conveyance of a partner's whole interest in the partnership to a third party does not dissolve the partnership or make the assignee a partner. Instead, it merely gives the assignee the right to receive the share of the profits that the assigning partner would have received.

Question 11

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

Accepted Answer

A partner appointed as manager in the articles of partnership may be removed for just and lawful cause by a vote of partners representing a controlling interest, ensuring that the decision is made by those holding a majority stake in the partnership.

Question 12

If a partnership has a capital of more than ₱3,000.00 and it is not registered, is the contract valid?

Accepted Answer

In the context of partnerships, the amount of capital does not inherently affect the validity of the partnership agreement among the partners as long as the essential requisites of a contract are present. These requisites include consent of the contracting parties, a lawful object, and a cause of the obligation. Therefore, even if a partnership with a capital of more than ₱3,000.00 is not registered, the contract among the partners can still be valid. Registration may affect the partnership's ability to enforce rights against third parties, but it does not invalidate the agreement among the partners themselves.

Question 13

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

Accepted Answer

The rule of mutual agency generally does not allow any one partner to make significant alterations to partnership property without the consent of the other partners.

Question 14

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:

Accepted Answer

S's agency is based on necessity because he managed the business until P could appoint another agent, indicating an urgent need to keep the business running after A's death.

Question 15

P appointed A, his agent for the purpose of selling the former's car for ₱500,000.00. 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?

Accepted Answer

The correct choice is B because in the context of agency, even if the agent acts in their own name, the principal can still be held accountable for matters related to the property (in this case, the car) that belongs to them. This is especially relevant when the transaction involves a defect in the property that was not disclosed to the buyer.

Question 16

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

Accepted Answer

Selling on credit inherently includes the ability to sell in cash, as selling on credit is an extension of the basic ability to sell goods or services.

Question 17

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

Accepted Answer

A special power of attorney put into writing that specifically authorizes the agent to sell real property of the principal is necessary for the authority and contract of sale to be valid. This ensures that the agent has clear, explicit authority to perform this significant act on behalf of the principal.

Question 18

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?

Accepted Answer

The answer of Under the law on agency, what is...

Question 19

Donna, authorized her friend Joyce to sell his Prada bag worth ₱100,000 on installment basis. Joyce, however, sold the bag on cash in contravention of the authority given to her. Was the sale valid?

Accepted Answer

The sale is valid because it benefits Donna, as she receives the full cash amount immediately, which is generally considered advantageous.

Question 20

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?

Accepted Answer

The law does not require that the authority to sell real property be in a public instrument or notarized. It is sufficient that the authority be in writing.

Quiz 21: Legal Contracts, Partnerships, and Agency Law