BLR 211 Final Quiz (AY 2021-2022) New 

EXAM PROPER: Q1 to Q10.

1. It is a gratuitous loan of a thing, to be used for a certain time and for a certain
purpose, and with the obligation to return the same thing after the time expires or the
purpose accomplished.
2 points
a. Guaranty
b. Pledge
c. Commodatum
d. Mutuum

2. A contract by virtue of which one of the contracting parties delivers to the other
money or any other consumable thing subject to the condition that the same amount
of the same kind and quality be paid or returned.
2 points
a. Guaranty
b. Pledge
c. Commodatum
d. Mutuum

3. It is an accessory obligation whereby real property is offered as security for a debt

or loan.
2 points
a. Real Estate Mortgage
b. Antichresis
c. Commodatum
d. Lease

4. It is an accessory obligation whereby personal property is offered as security for a

debt.
2 points
a. Pledge
b. Chattel Mortgage
c. Pacto de Retro
d. Mutuum

5. The deposit of personal property by debtor with a creditor as security for payment
of the debt.
2 points
a. Pledge
b. Chattel Mortgage
c. Pacto de Retro
d. Mutuum

6. A contract by virtue of which the creditor acquires the right to receive the fruits of
an immovable of his debtor with the obligation to apply them to the payment of the
interest, if owing, and thereafter to the principal of his credit.
2 points
a. Real Estate Mortgage
b. Antichresis
c. Commodatum
d. Lease

7. It is where the owner of the thing lends it gratuitously for use of the bailee for as
long as the bailor or owner pleases, however the latter may demand for its return at
will.
2 points
a. Real Estate Mortgage
b. Antichresis
c. Precarium
d. Commodatum

8. A contract by which the parties exchange goods or commodities for other goods.
2 points
a. Contract for a Piece of Work
b. Commdatum
c. Barter
d. None of the above

9. It is the right of an adjacent owner of a parcel of land to buy the adjoining property
before it is offered for sale to others.
2 points
a. Legal Redemption
b. Conventional Redemption
c. Pre-emption
d. Condemnation
10. A contract which is constituted from the moment a person receives a thing
belonging to another with the obligation of safely keeping it and retuning the same.
2 points
a. Deposit
b. Commodatum
c. Antichresis
d. None of the above

4. It is an accessory obligation whereby personal property is offered as security for a

debt.
2 points
a. Pledge
b. Chattel Mortgage
c. Pacto de Retro
d. Mutuum

Q11 to Q20.
11. Another term of a deposit constituted by virtue of a court order.
2 points
a.Necessary Deposit
b. Voluntary Deposit
c. Sequestration
d. Escrow

12. A petition to be filed in order to obtain possession of a chattel before its actual
foreclosure.
2 points
a. Attachment
b. Escrow
c. Replevin
d. None of the above

13. A necessary deposit is:

2 points
a. Constituted in compliance with a legal obligation
b. On the occasion of a calamity
c. Constituted by guests in hotels or inns
d. All of the above

14. Depositary is liable for the loss of the thing through a fortuitous event when:
2 points
a. It is so stipulated
b. If he uses the thing without the depositor’s permission
c. If he delays its return
d. All of the above

15. A hotel or inn keeper does not incur any liability if the loss:
2 points
a. Is caused by the guest, his family or servant
b. Arises from the character of thing deposited
c. Is caused by thief or robber using irresistible force
d. All of the above

16 .The following are the characteristics of pledge, except:

2 points
a. It is a subsidiary contract
b. It is an indivisible contract
c. Ownership is transmitted to the Creditor
d. None of the above

17. A appoints B as his agent to sell his land. Which of the following is valid?
2 points
a. The authority of A is oral and B sells the land to C for P50,000.00 in a written contract of sale
b. The authority of B is in writing but the sale of the land in writing was made beyond the period
expressly set forth by A
c. The authority of B from A is by way of letter and B sells the land to C in writing
d. The authority of B is in writing and the sale of the land to C is oral

18. A stipulation whereby the pledge or mortgagee automatically becomes the owner
of the thing pledged or mortgaged.
2 points
a. Consolidation of ownership
b. Conventional Redemption
c. Consignation
d. Pactum Commissorium

19. A mortgaged his residential land to B as a guarantee for the payment of

P408,000.00 obligation of A. They agreed that A shall not sell the land while the
obligation of A exists. Before maturity of the mortgage, C offered to buy the land from
A:
2 points
a. A cannot sell the land to C because of the agreement not to sell
b. A can only sell the land to C only if B consents in writing
c. A can sell the land to C despite the agreement not to sell.
d. A cannot sell the land to C unless A pays the obligation.

20. The distinction between a chattel mortgage and a pledge is that in chattel
mortgage:
2 points
a. The delivery of the personal property is necessary
b. The registration of the property in the Registy of Property is not necessary
c. The excess over the amount due after foreclosure goes to the debtor
d. Answer not given

Q21 to Q30.
21. B pledged his 24 k gold necklace to C for P4,000.00. B failed to pay C the
P4,000.00, on due date. C sold the gold necklace at a public auction to the highest
bidder for P3,500.00.
2 points
a. C can recover the deficiency of P500.00 from B
b. C can recover the deficiency of P500.00 even without stipulation
c. C cannot recover the deficiency of P500.00 unless there is stipulation
d. C cannot recover the deficiency of P500.00 even if there is stipulation.

22. Mr. Santos authorized Mr. Canlas to sell his car for P200,000.00 with 5% agents
commission. Mr. Canlas sold the car to Mr. Dizon for P250,000.00. For how much is
Mr. Canlas accountable to Mr. Santos?
2 points
a. P200,000.00
b. P190,000.00
c. P250,000.00
d. P240,000.00

23. Statement 1. In gratuitous deposit, the depositor is not obliged to reimburse the
expenses for preservation as he has the implied authority to use the thing deposited.
Statement 2. Hotel keeper has the right to retain the things brought by guest within the
hotel as security for the payment of the accommodation of the said guest. 
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

24. Statement 1. A chattel mortgage exists when personal property is recorded in the
Chattel Mortgage Register as a security for the performance of an obligation.
Statement 2. In chattel mortgage, the mortgagor must execute an affidavit of good
faith in order that the mortgage shall be valid against third persons.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

25. Statement 1. An unregistered chattel mortgage is valid upon parties but void as to
innocent third persons. Statement 2. Real Estate Mortgage is an accessory contract
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

26. Statement 1. The parties to a mortgage of a house and lot cannot validly stipulate
that the mortgage property cannot be sold except with the consent of the mortgagee.
Statement 2. Real Estate Mortgage to be valid as to third person is sufficient if it has
been embodied in a public instrument.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

27. Statement 1. In both chattel mortgage and pledge, the thing as a security for the
fulfillment of the principal obligation is delivered to the creditor. Statement 2. A
stipulation for bidding the owner from alienating the immovable mortgage is valid.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE
28. Statement 1. The surety is entitled to Benefit of Excussion. Statement 2. The
objects in Mutuum are non-fungible objects.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

29. Statement 1. In pledge personal properties are delivered by the pledgor to the
pledgee primarily for safekeeping purposes. Statement 2. Ownership is transferred to
the bailee in commodatum.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

30. Statement 1. Mutuum is a consensual contract. Statement 2. The pledgor will

retain possession over the subject matter of the contract.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

Q31 to Q40.
31. Statement 1. The subject matter of antichresis is movable properties. Statement 2.
Only non-consumables can be given in commodatum.
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

32. Statement 1. Guaranty is a unilateral contract. Statement 2. A guarantor is allowed

to appoint a sub-guarantor
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

33. Statement 1. Credit transactions are also known as contract of bailments.

Statement 2. Bailor is also known as the creditor
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

34. Statement 1. In case the depositary delays its return, the depositary is liable for the
loss of the thing through a fortuitous event. Statement 2. In deposit, when it is
necessary to open a locked receptacle, the depositary is conclusively and absolutely
presumed to have the authority to do so. 
2 points
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

35. Three of the following are fundamental obligations of the agent. Which is the
exception?
2 points
a. Can be the borrower if he is authorized to lend.
b. Sacrifice his interest and give it to the principal if there is a conflict
c. To render an accounting of the transaction.
d. Shall not carry out the agency even if that is the instruction, if he knew it would result in a loss
or damage to the principal.

36. Three of the following are modes of extinguishing agency. Which is the exception?
2 points
a. Insanity of the principal.
b. Death of the principal, but the agency is for the benefit of a third person.
c. Accomplishment of the purpose of the agency.
d. Dissolution of the firm or corporation which entrusted or accepted the agency.

37. Bears the risk of collecting from the buyer the price of the sale.
2 points
a. Commission agent
b. Delegante
c. Quasi-tradition
d. Agente del credere

38. P appointed A as his agent with general powers on January 1. The next day, X
transacted business with A. On January 5, P revoked the agency by publishing it in a
newspaper of general circulation. On January 10, or five (5) days after the revocation
was published, X consummated another transaction with A. Is the act of A in entering
into another contract with X on January still binding against P?
2 points
a. Yes, because X is in good faith.
b. No, because the agency was already revoked and its publication is a sufficient warning.
c. No, because the power is just general and the act performed by A is an act of ownership which
needs special power
d. Yes, because there was no special notice sent to X.

39. P appointed A as his special agent to sell a specific land for P10,000.00. P sends A
his papers of appointment including a letter addressed to X notifying the latter of the
appointment of A as his agent. Ten days after, P revoked the agency and published it
in a newspaper of general circulation. X did not read the newspaper publication, but
has got actual knowledge of the revocation. Later, A and X transacted business. Is the
act of A binding against P?
2 points
a. Yes, because A and X are in good faith.
b. No, X having knowledge of the revocation is considered in bad faith.
c. Yes, because X was not given a general power hence the revocation through publication is
sufficient.
d. Yes, since the appointment of A is by special information, the revocation must also be by
special information in order that the same is effective.

40. P verbally appointed A as his agent to sell his parcel of land for P10,000.00. Five
days after, A sold to B the parcel of land for P8,000.00 by means of public instrument
executed between A and B. What are the effects and the status of the sale between A
and B?
2 points
a. The sale is valid because it was executed in a public instrument.
b. The sale is unenforceable because the agent acted beyond the scope of his authority for
selling the land for less than the price instructed.
c. The sale is void because the authority to sell is not in writing.
d. The sale is voidable because the contract of sale was not notarized.

Q41 to Q50. 
41. Gloria appointed Sally to sell the former’s car for P500,000.00. Sally sold the car to
Pam for P500,000.00 but acted in her own name. After delivery, Pam inspected the car
and she found hidden defects in the car. Can Pam file an action against Gloria even
when Sally acted in her own name?
2 points
a. No, under “caveat emptor” let the buyer beware.
b. Yes, because this is a contract involving property belonging to the principal.
c. No, because Sally acted in her own name, not of the principal.
d. No, because the contract of sale is already perfected.

42. The principal is liable for the expenses incurred by the agent, except:
2 points
a. If the agent acted in contravention of the principal’s instruction.
b. Expenses were due to the fault of the agent.
c. Agent incurred them knowing that an unfavorable result would ensure, and the principal was
not aware thereof.
d. All of the above.

43. A guarantee commission agent shall

2 points
a. Bear the risk of collection on the same terms agreed upon with the purchaser.
b. Be liable to the principal even if the buyer is really insolvent.
c. Be liable for damages if he will not collect the credit on time.
d. Be entitled to another commission aside from ordinary commission.
e. All of the above.

44. P delivered to A 10,000 pieces of Cebu fabricated shell craft jewelry for the
purpose of selling them at P1.00 each. Out of the proceeds of the expected sale, A is
to receive a 10% commission. After 3 days, however, A sold all the items at P1.50 each
to B, but on 30-day credit. What is the status of the sale?
2 points
a. The sale is valid since A performed his function in a manner more advantageous on the part of
his principal.
b. The sale is void because the agent exceeded the instruction of the principal
c. The sale is unenforceable because the agent exceeded the limits of his authority.
d. The sale is unenforceable because sale of personal property P500 or more must be written in
conformity with Statute of Fraud
e. The sale does not bind the principal as the agent exceeded the limits of his authority
45. An agent with general powers of administration given to him by the principal in
writing, desirous of improving the financial condition of his principal, sold two parcels
of rice field, one for less than the price appearing in the inventory prepared by the
principal and the other double the price that appeared in the said inventory.
2 points
a. The sale for double the price appearing in the inventory is binding upon the principal.
b. The two contracts cannot be enforced against the principal.
c. The sale for less than the price appearing in the inventory is binding upon the principal.
d. Both contracts are binding upon the principal.
e. None of the above.

46. An agent without any express authority from the principal appointed a sub-agent to
help him carry out the agency. What is the effect of the substitution?
2 points
A. The substitution is void.
B. The substitution is valid but the agent is the only one liable for the acts of the sub-agent.
C. Both the agent and the sub-agent are liable to the principal for the acts of the sub-agent under
the valid substitution.
D. The substitution is valid but the substitute is the only one liable for his own acts.
E. None of the above

47. P called A expressly authorizing him to sell his parcel of land situated in Bulacan.
The land was later on purchased by X, but A and X did not reduce the sale in writing.
The sale of A to X is:
2 points
a. Void because the authority of A is not in a public instrument.
b. Unenforceable because the authority of A is not in a public instrument.
c. Unenforceable because the contrac of sale violated the rule on Statute of Fraud
d. Valid and binding on the part of P because the property sold belongs to him.
e. None of the above

48. In three of the following, a special power of attorney is required. Which one is
considered the exception?
2 points
a. To obligate the principal as guarantor.
b. To effect novation which put an end to obligation already contracted before the agency was
created
c. To borrow money not necessary for the preservation of the property under administration.
d. To lease real property to another person for one year.
e. None of the above
49. P owns a parcel of land valued at P100,000.00 and appoints A as his agent in
writing. The agency to sell the property on cash basis for the same amount. A
succeeded in selling it for P120,000.00 in two installment payments payable within 20
days. What is the rule as regards the act of A?
2 points
a. A exceeded his authority because the power to sell on cash does not include the power to sell
on credit.
b. A did not exceed his authority because the act done is more advantageous than that of his
instruction.
c. The act cannot be ratified because it is void from the beginning.
d. A’s act is valid and enforceable.
e. None of the above
50. Without P’s authority, A (agent), sold P’s car to X in P’s behalf. The contract is:
2 points
a. Unauthorized
b. Unenforceable
c. Subject to ratification
d. All of the above
e. None of the above

Q51 to Q60.
51. A commission agent:
2 points
a. Is liable to pay damages if he does not collect the credit on the due date
b. Generally, cannot sell on credit
c. Receives a guaranty commission
d. All of the above

52. If the agent is authorized by his principal to collect or receive cash payment in full,
his authority includes:
2 points
a. To accept partial payment
b. To accept check covering full payment
c. To accept property equivalent to the monetary claim being collected
d. None of the above

53. Today, P appointed A1 as his agent covered by general power to lease his car to X
for 6 months. The next day, P appointed A2 with special power of attorney to lease the
same car to X for 5 months. On the third day, P directly transacted business with X
leasing the car for 2 months. What is the effect of agency between the parties?
2 points
A. The appointment of A1 is valid because it has got a prior date
B. The appointment of A2 is the one that is valid because it is covered by a special power
C. The agency of A1 and A2 are considered revoked because the principal directly transacted
with X.

54. Agency may be created by:

2 points
A. Appointment
B. Ratification
C. Estoppel
D. Necessity
E. All of the above

55. If an agent contracts in the name of his principal, exceeding the scope of his
authority, what would be the status and effect of the contract?
2 points
A. Unenforceable
B. Void
C. Voidable
D. Valid
56. P appointed A as his agent to sell a specific car for P10,000 with 10% commission.
A, using his persuasive skills was able to sell if for P12,000.
2 points
A. A must give to P P10,000.00
B. A must give to P P12,000.00
C. A must give to P P10,000.00 minus the commission
D. A must give to P P12,000.00 minus the commission

57. In agency, the agent represents:

2 points
a. A person who is capacitated
b. A person who is incapacitated
c. Heirs and creditors of the debtor
d. Judicial Court
e. All of the above
58. The kind of agency according to the manner of creation may be implied from the
following:
2 points
a. Acts of the principal
b. Principal’s silence
c. Principal’s lack of action
d. Principal’s failure to repudiate the agency
e. All of the above

59. If P (principal) leads X (a third person) to believe that A is his agent, when in fact
such is not true, P is liable because there is:
2 points
a. A general agency created
b. A special agency created
c. An agency by estoppel
d. An agency by necessity
e. None of the above

60. Statement 1. Agency to sell real property or real rights may be oral or in writing.
Statement 2. Agent must always get the consent and authority of the Principal to
name a substitute.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

Q61 to Q70.
61. Statement 1. Authority of an agent is not considered exceeded if it is
advantageous to the principal. Statement 2. Agent is obliged to carry out the agency
strictly in accordance with the instructions of the Principal even if it will be
disadvantageous to the principal.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

62. Statement 1. Two agents appointed by a principal for a common agency are as a
rule solidarily liable to the principal for consequences of the agency. Statement 2. Two
principals appointing one agent for a common agency will be solidarily liable to the
agent for consequences of the agency.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

63. Statement 1. A juridical person may validly enter into a contract of agency either
as the principal or the agent. Statement 2. Appointment of a new agent for the sale
transactions revokes the prior agency even without due notice to the first agent.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

64. Statement 1. Act of a sub-agent or substitute appointed by the agent against the
prohibition of the Principal, will be valid if performed in accordance with the
instructions of the Principal and the Agent. Statement 2. A principal may personally
appoint a substitute or sub-agent for his agent.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE

65. Statement 1. Death of any of the parties in a Contract of Agency extinguishes the
contract. Statement 2. Ordinary commission is the additional commission given by the
Principal to the Agent so that the latter may assume the risks of collection.
2 points
a. Only Statement 1 is FALSE
b. Only Statement 2 is FALSE
c. Both Statements are FALSE
d. Both Statement are TRUE
66. Statement 1. A Special Power of Attorney is necessary for the agent to perform an
act of administration. Statement 2. Contract of Agency is always presumed to be for
compensation.
2 points
a. Only Statement 1 is FALSE
b. Only Statement 2 is FALSE
c. Both Statements are FALSE
d. Both Statement are TRUE

67. Statement 1. A commission agent who handles goods of the same kind and mark
which belong to different owners is required to distinguish them by countermarks.
Statement 2. If the commission agent is authorized to sell on credit, he must inform
the principal of his credit sales and the names of buyers and their addresses.
2 points
a. Only Statement 1 is FALSE
b. Only Statement 2 is FALSE
c. Both Statements are FALSE
d. Both Statement are TRUE

68. Statement 1. A stipulation to exempt the agent from rendering an account is valid
and binding between the principal since it is the “law” between the contracting parties.
Statement 2. If the principal is insolvent, the agent can be required to advance the
necessary expenses if there is an agreement between the principal and the agent to
that effect.
2 points
a. Only Statement 1 is FALSE
b. Only Statement 2 is FALSE
c. Both Statements are FALSE
d. Both Statement are TRUE

69. Statement 1. The agent is required to be in possession of a special power of

attorney in order to ratify an obligation contracted after the agency was constituted.
Statement 2. The principal is also known as “mandante”.
2 points
a. Only Statement 1 is FALSE
b. Only Statement 2 is FALSE
c. Both Statements are FALSE
d. Both Statement are TRUE
70. Statement 1. Arras is a proof of perfection of the contract of sale. Statement 2. In
the consummation of a contract of sale, the option money given by the buyer to the
seller is deductible from the purchase price.
2 points
a. Only Statement 1 is TRUE
b. Only Statement 2 is TRUE
c. Both Statements are TRUE
d. Both Statements are FALSE