BL 3 Q4

A person is free to refuse to be an agent but once he accepts the agency, he is bound to carry it out in accordance with its terms in good faith.

• To answer for damages which through his performance the principal may suffer.

• To carry out the agency which he has accepted.

• To advance the necessary funds should there be a stipulation to do so.

• To finish the business already begun on the death of the principal should delay entail any danger.

A party whom the agent represents and from whom he derives his authority; he is the person represented.

• Principal

• Agent

• Third Person

• Relatives

A person who either has ceased to pay his debts in the ordinary course of business or cannot pay his debts as they become due.

• Capacitated

• Solvent

• Insolvent

• Incapacitated

The following activities are required before a debtor can conduct a sale or transfer under the Bulk Sales Law, except:

• Giving of list of creditors and the respective amount of indebtedness to the prospective vendee.

• The giving of actual or constructive notice to the creditors.

• Submission of the full detailed inventory showing the quantity and the cost price of the goods and to notify every creditor of the price, terms, and conditions of the sale.

• Payment of existing debts to the creditors.

includes all chattels personal but not things in action or money of legal tender in the Philippines. The term includes growing fruits or crops.

• Merchandise

• Goods

• Fixtures

• Items

Means goods identified and agreed upon at the time a contract of sale is made.

• Generic

• Specific

• Natural

• Artificial

By this contract one of the parties binds himself to give one thing in consideration of the other’s promise to give another thing.

• Sale

• Barter

• Agency

• Loan

This happens to the contract of barter from the time of mutual delivery by the contracting parties of things they promised.

• Negotiated

• Perfected

• Consummated

• Consented

In Bulk Sales Law, it is construed to mean such things as are usually bought and sold in trade by merchants. It means something that is sold everyday, and is constantly going out of the store and being replaced by other goods.

• Goods

• Merchandise

• Fixtures

• Things

This occurs in a contract of barter from the moment there is a meeting of minds upon the things promised by each party in consideration of the other.

• Negotiation

• Perfection

• Consummation

• Initiation