MONDRIAAN AURA COLLEGE

Refresher 1
Business Law
BL 006

1. For the donation to be considered valid, acceptance of the donation must be made.
a. during the lifetime of the donor only.
b. during the lifetime of the donee only
c. during the lifetime of the donor and the donee
d. none of the choices

2. First statement: Donors tax shall be levied, assessed collected and paid upon the transfer of
property by any person , resident or non-resident as a gift.
Second statement: For the purpose of donor’s tax, a stranger is a person who is not a relative
by consanguinity in the collateral line within the fifth degree of relationship.
a. True, True
b. False, False
c. True, False
d. False True

3. One of the following donees will not entitle the donor-parent to a P10,000 dowry exemption.
a. Legitimate Child
b. Recognize Natural Child
c. Adopted Child
d. Stepchild

4. Which of the following statement is incorrect?

a. A separate return shall be filed by each donor for each gift or donation made on different
dates during the year reflecting therein any previous net gift made in the same calendar year.
b. Only one return shall be filed for several gift or donations by a donor to the different donees
on the same date.
c. When a donors tax return was filed and it was found out by the BIR to have errors which
gave rise to a deficiency donors tax, the donor cannot be required to pay the deficiency.
d. The government is not legally bound by the agreement between the donor and the donee that
the later shall pay the donors tax instead of the former.

5. First statement: In all cases, void donations are not subject to donors tax.
Second statement: Every donation between the spouses during the marriage shall be void.

a. both statements are true

b. both statements are false
c. First statement is true while second statement is false
d. First statement is false while the second statement is true

6. Mr. John Samuelson, resident alien, donated a piece of jewelry to his son who got married on
January 15, 2009. The piece of jewelry was mailed to his son on January 10, 2009 and was
accepted on January 20, 2009. When is the last day to file the donors tax return?
a. February 9, 2009
b. February 14, 2009
c. February 19, 2009
d. March 20, 2009

7. When a property is donated in contemplation of death the basis of the tax shall be:
a. Fair market value at the time of death
b. Fair market value in the hands of the donor before the time of donation
c. Fair market value at the time of death of the donor
d. Cost when the property was acquired

8. Which of the following is a stranger for donor’s tax purposed?

a. A child born out of wedlock of parents who are legally impeded to marry each other at
the time the child is being conceived.
b. The son of the donor’s first cousin
c. The donor’s grandmother
d. The donor’s spous
9. When the donee is a stranger the tax payable is:
a. 30% of the gross gifts
b. 30% of the net gifts
c. based on the graduated tax rates
d. based on the graduated tax rates or 30% of gross gifts whichever is higher

10. First statement: A donation on which the donor’s tax is net paid is a valid donation
Second statement: Title to a tax –exempt donation of a real property cannot be transferred to
the donee in the Register of Deeds unless the donor’s tax on the donation had been paid

a. True, True
b. False, False
c. True, False
d. False, True

11. The donation of personal (movable) property may be made:

I. Orally of the value is P5,000 or less requiring simultaneous delivery.
II. In Writing if the value is more than P 5,000
a. Both I and II are correct
b. Both I and II are incorrect
c. Only I is correct
d. Only II is correct

12. The donation of movable property may be made:

a. Orally
b. Writing
c. Either A or B
d. Neither A or B

13. Using the preceding number, the donation and acceptance should be in writing if the value of the
property donated is:
a. Less than P 5,000
b. P5,000 or less
c. P5,000 or more
d. More than 5000

14. The donation of an immovable property shall be made

a. In writing
b. In public instruments
c. Either A or B
d. Orally

15. Using the preceding number, acceptance by the donee may be made:
a. In same deed of donation
b. In a separate document
c. Either A or B
d. Neither A or B

16. A. For the purpose of donor’s tax, second degree cousins are strangers to each other.
B. Encumbrance of the property donated, if assumed by the donor is deductible for the donors
tax purposes.

a. True, True
b. True, False
c. False, True
d. False, False

17. A. As a rule, donation between husband and wife during marriage is void
B. Donation can be made to conceived or unborn children

a. True, True
b. True, False
c. False, True
d. False, False
18. A donation which takes upon the death of the donor
a. Donation mortis causa
b. Partakes of the nature of a testamentary disposition
c. Shall be governed by the law on succession
d. A, B and C

19. A donation which is intended by the donor to take effect during his lifetime
a. Shall be subject to donor’s tax using the tax table for donation
b. Shall be in writing if the value exceeds P 5,000
c. Donation inter vivos
d. A, B and C

20. A. gift is perfected from the moment the donor effects the delivery either actual or constructively
of the property donated.
B. Donors tax is a property tax imposed on the property transferred by way of gift inter-vivos

a. True, True b. True, False c. False, True d. False, False

MONDRIAAN AURA COLLEGE
Refresher 1
Business Law
BL 007

1. The following are essential requisites of a negotiable promissory note except

a. must be written and signed by the drawer
b. must contain an unconditional promise to pay a sum certain in money
c. must be payable upon fixed determinable future time.
d. must be payable to order or bearer

2. Which of the following is not an essential element of a bill of exchange?

a. must be written and signed by the drawee
b. must contain an unconditional promise to pay a sum certain in money
c. must be payable to order or bearer
d. drawee must be named therein

3. The following are negotiable except

a. “Pay to bearer Jose Cruz P 10,000 upon demand”, signed by A and addressed to B
b. “Pay to Jose Cruz or bearer P 10,000 upon demand”, signed by A and addressed to B
c. “I oblige myself to pay Pedro Reyes or order P 3,000 ten days after day signed by M as maker.
d. “Good to L or order P 5,000 July 1, 2009 signed by M as maker

4. Which of the following is negotiable?

a. “ I promise to pay Jose Cruz or order P 10,000 or deliver 1 cow 20 days after date at the option of
the holder” signed by M as maker
b. “Pay to Pedro Reyes or bearer P 10,000 or deliver 1 cow on 4-4-10 at the option of the drawee”,
signed by A and addressed to B
c. “Pay to Pedro C. Cruz or order P 5,000 out of fund I deposited with you” signed by A and
addressed to B
d. I promise to pay K. KHO or order P 10,000 in 5 installments, first installment August 1, 2009 and
every month thereafter, signed by M as maker

5. The following are functions of negotiable instrument; except:

a. used as substitute for money
b. medium of credit transactions
c. medium of exchange for commercial transactions
d. none of them.

6. Which of the following is no an incident in the life of negotiable instrument?

a. Issue c. Preparation
b. notice of dishonor d. Negotiation

7. Which of the following is negotiable?

a. Postal Money order
b. Certificate of stock
c. Treasury warranty
d. None of them

8. A promissory note is payable to bearer when:

a. It is payable to a person named therein or bearer
b. the only indorsement is blank
c. the name of payee does not support to be the name of a person
d. all of the above

9. The following are considered negotiation except

a. issue
b. indorsement plus delivery
c. delivery
d. none of them

10. This indorsement constitutes the indorser as a mere assignor of the title of the instrument:
a. Special c. qualified
b. Blank d. restrictive
11. The following are requisites in order that a person can be considered a holder in due course; except
a. that the instrument is complete and regular upon its face.
b. the instrument is not yet overdue or no notice of dishonor
c. holder for value and in good faith
d. none of them.

12. Which of the following is not false?

a. a holder for value is not necessarily a holder in due course
b. only person whose signature appear in the instrument can be held liable therein
c. forgery is both real and personal defense
d. an accommodation party is liable only to a holder in due course

13. Real defenses are those that attached to the instrument itself and can be set up even against holder in
due course. Which of the following is not considered real defense?
a. fraud in factum c. absence or failure of consideration
b. forgery d. minority

14. The existence of the payee and his then capacity to indorse is a warranty of:
a. the maker c. drawer
b . acceptor d. all of them

15. Which of the following is not a warranty of a qualified indorser?

a. the instrument is genuine
b. he has a good title
c. prior parties have capacity to contact
d. instrument is valid and subsisting

16. Notice of dishonor is not required to be given by a drawer when:

a. The drawer and the drawee are the same person
b. the drawee has countermanded payment
c . the drawee is fictitious
e. all of the above

17. Which of the following is not considered material alternation

a. changing the date
b. changing the amount
c. changing the relation of the parties
d. none of them

18. A negotiable instrument is discharged by:

a. payment in due course by or on behalf of the party primarily liable
b. payment in due course by the party accommodated
c. intentional cancellation thereof by the holder
d. none of them

19. Who of the following is party with primary liability?

a. Maker c. drawer
b. Indorser d. person negotiating by mere delivery

20. A check is not presented for payment within a reasonable length of time after issue is called
a. certified c. memorandum
b. Stale d. crossed

21. Signification by the drawee of his assent to comply with the order of the drawer is:
a. Indorsement c acceptance
b. delivery d. presentment for acceptance

22. Presentment for acceptance is required when

a. the bill is payable after sight
b. the bill requires it
c. the bill is drawn payable elsewhere than the residence of the drawee
d. all of them

23. Protest is required when this bill is dishonored:

a. domestic/local c. trade acceptance
b. foreign d. all of the above
24. The following are promissory notes except:
a. due bill c. certificate of deposit
b. bond d. none of them

25. Which of the following is false?

a. the acceptor is primarily liable
b. the drawer is secondarily liable
c. the issue is not negotiation
d. when the drawer and drawee are the same person the holder consider the bill was a note

26. I promise to pay Jose Reyes or order P 10,000 ten days after the date signed by M as maker. The note
is undated. Which of the following is correct?
a. the note is non negotiable
b. the payee can require payment 10 days after issue
c. the payee can require payment at any time
d. the payee cannot negotiate the note

27. The negotiable promissory note signed by M as maker for P 10,000 is payable to Jose Cruz or bearer
on May 10, 2009. M however issued the note to the payee May 15, 2009. In this case:
a. The instrument is considered non-negotiable because the date of issue is later than the date of
payment.
b. Cruz can ask for payment at anytime
c. Cruz can require payments only on May 15, 2009
d. Cruz cannot negotiate the note

28. “Pay to Maria or order P 20,000 upon demand”, signed by A as drawer and addressed to B. Maria
negotiated the bill to C, C to D, E stole the bill from D and indorsed it to F by forging the signature of
D. F in turn indorsed the bill to G & G to H. Which of the following is false?
a. all indorsers prior to the forgery are discharged
b. the drawer is liable to H
c. F is liable to H
d. Forgery is real defense

29. M is the maker of a note payable to J. Cruz or order for P 5,000 due July 30, 2009. Cruz borrowed P
2,000 from C payable July 31, 2009 and pledged the note by indorsing it to C. Which of the following
is correct?
a. a promissory note cannot be pledged without the consent of the maker
b. On July 30, 2009 C can collect from M only P 2,000
c. on July 30, 2009 C can collect from M P 5,000
d . partial indorsement is allowed

30. A is the drawer of a bill addressed to B, payable to C or order 10 days after acceptance for P 8,000. C
negotiated the bill to D, to E and E to F. The bill was accepted by B when presented by F. If the
signature of A is forge, which of the following is false?
a. B is required to pay F even if the signature of A is a forgery
b. B is not required to pay F since he has the defense of forgery
c. Forgery is considered a real defense
d. If B dishonors the bill by non-payment F may give to any indorse

31. M is the maker of a note, payable to C or order for P 10,000. C negotiated the note to D, D to E, E to
F, F to G and G to H. M dishonored the note when presented by H for payment. H gave notice of
dishonor to F. Which of the following is true.
a. all indorsers prior to F are discharged
b. only G is discharged
c. H is required to notify M
d. F in turn can give notice to G

32. “ Pay to Pedro Reyes or order P 20,000 ten days after sight

SIGNED
By A drawer as agent of B

To: B

Pedro Reyes negotiated the bill to C, C to D and D to E. B dishonored the bill by non payment. E gave
notice of dishonor to all prior parties except B. Which of the following is not correct?
a. The drawer is not liable to E
b. The drawer is liable to E since he was duly notified of the dishonor
 c. if D paid E , C becomes liable to D
d. this bill maybe considered as a note

33. M signed a promissory note payable to C or order for P 5,000 ten days after date. C indorsed the note
to D, D to E and E to F. F, without authority from the prior parties, altered the amount to P 15,000
then indorsed the note to G.
a. the unauthorized alteration renders the note void
b. G cannot require M to pay anything
c. G can require M to pay only P 5,000 if G is a holder in due course
d. G can require M to pay P 25,000 if G is a holder in due course

34. Drawer A addressed a bill to B for P 20,000 payable to C or order 20 days after acceptance. B made a
conditional acceptance in this case:
a. the bill becomes non-negotiable
b. it is still negotiable notwithstanding the conditional acceptance
c. the holder cannot refuse to take a conditional acceptance
d. B is considered a constructive acceptor

35. M is the maker of a note for P 30,000 payable to C or bearer. C negotiated the note to D, D to E, E to
F and F to M. Which is correct?
a. the note is discharged
b. the noted is not discharged since there is no payment
c. M cannot re-issued the note
d. The indorsers are not dischaged
MONDRIAN AURA COLLEGE
Refresher 1
Business Law
BL 008

1. Which of the following individuals shall not be subject to the income tax under Section 24 (A)?
a. Individual citizen of the Philippines residing therein;
b. Individual citizen of the Philippines who residing outside the Philippines including overseas
contract workers;
c. Individual alien who is a resident of the Philippines;
d. Individual alien who is not a resident of the Philippines.

2. Which of the following income is not from a related trade, business or activity of a domestic
proprietary educational institution?
a. Income from rent of available office spaces in one of the school buildings
b. Income from the hospital where medical graduates are trained for residency
c. Income from the canteen situated within the school campus
d. Income from bookstore situated within the school campus

3. How much is the annual community tax for individuals?

a. P 25 c. P 10
b. P 20 d. P 5

4. Under this system there is a merger of all the properties of the husband and the wife owned by them
at the time of the celebration of the marriage, or those acquired thereafter.
a. Conjugal partnership of gains
b. Absolute community of properties
c. Complete separation of properties
d. None of the choices

5. Which is not an essential characteristic of tax?

a. Limited as to amount
b. Proportionate in character
c. Payable in money
d. Regular payment

6. A contract of sale is not a

a. Principal contract c. Consensual contract
b. Nominate contract d. Real contract

7. “I promise to pay P or his order the sum of P 10,000.00 30 days after the death of X.” This is an
instrument payable:
a. At a determinable future time
b. On Demand
c. Upon the fulfillment of a condition
d. At an indefinite time, hence, non-negotiable

8. A corporation acquires juridical personality

a. Upon the filing of the articles of incorporation
b. Upon the filing of the by-laws
c. Upon the issuance of the certificate of incorporation
d. Within 30 days from receipt of notice of the issuance of the certificate of incorporation

9. It is the right of the mortgagor to redeem the property that was mortgaged after it was sold.
a. Equity of redemption c. Right of subrogation
b. Right of redemption d. Right of pre-emption

10. A with violence in her eyes intimidated her husband B to sell his exclusive property to her. The
contract of sale is
a. Rescissible c. Unenforceable
b. Voidable d. Void

11. Which of the above will be subject to a 25% civil penalty of the tax or of the deficiency tax?
a. Willful neglect to file the return within the period prescribed by the Tax Code or rules and
regulations
b. A false or fraudulent return is willfully made
 c. A person who is not VAT-registered issues an invoice or receipt showing his TIN, followed
by the word "VAT"
d. Failure to file any return and pay the tax due thereon as required under the provisions of the
Tax Code or rules and regulations on the date prescribed

12. Which of the following statements is INCORRECT?

a. The amount of “de minimis” benefits conforming to the ceiling prescribed in the Tax Code
shall not be considered in determining the P30,000 ceiling of “other benefits” included in the
exempt 13th month and other benefits;
b. If the employer pays more than the ceiling prescribed for “de minimis” benefits, the excess
shall be taxable to the employee receiving the benefits only if such excess is beyond the
P30,000 ceiling.
c. Any amount given by the employer as benefits to its employees, whether classified as de
minimis or fringe benefits, shall constitute as deduction upon such employer;
d. Representation and transportation allowance which are fixed in amounts and regularly
received by the employees as part of their monthly compensation shall be treated as taxable
fringe benefits if received by managerial and supervisory employees.

13. Jose Josue qualified as head of a household for 2007 tax purposes. Mr. Josue’s 2008 gross income
was P200,000 inclusive of P10,000 short term capital gain. Mr. Josue had a long-term loss of P8,000
in 2008. What amount of this capital loss could Mr. Josue deduct in 2008?
a. Zero c. P4,000
b. P3,000 d. P8,000

14. Penalties and/or interest imposed on the taxpayer may be abated or cancelled on the ground that the
imposition thereof is unjust and excessive, except when:
a. The taxpayer is declared insolvent or bankrupt.
b. The filing of the return or payment of the tax is made at the wrong venue.
c. The taxpayer’s mistake in payment of his tax is due to erroneous written official advice of a
revenue officer.
d. The assessment is brought about or a result of the taxpayer’s non-compliance with the law
due to a difficult interpretation of the said law.

15. The actual residential home of the decedent and his family at the time of his death, as certified by the
Barangay Captain of the locality where the family home is situated, has a fair market value of
P3,000,000. The family home is part of the common property of the spouses. How much is the
family home deduction?
a. P1,500,000 c. P750,000
b. P1,000,000 d. P500,000

16. A negotiable instrument that is not dated will be considered dated as at the time of
a. Acceptance c. Last endorsement
b. First endorsement d. Issuance

17. A delinquent stockholder is not entitled to the following rights, except the right:
a. To be voted
b. To vote or be represented in the meetings of stockholders
c. To dividends
d. He is not entitled to all the rights of a stockholder

18. Three of the following partnership contracts are void. Which one is not?
a. A universal partnership of present property between husband and wife
b. A universal partnership of profits between a man and a woman living together as husband and
wife without the benefit of marriage
c. A particular partnership between husband and wife
d. A universal partnership between a private individual and a public officer

19. The following are modes of extinguishing an agency, except:

a. Death, civil interdiction, insanity or insolvency of the principal or agent
b. Accomplishment of the purpose of the agency
c. Expiration of the period for which the agency was constituted
d. Continued losses on the part of the principal or agent

20. Three of the following instances will render an offer ineffective before acceptance is conveyed.
Which one will not?
a. Civil interdiction of either party c. Insanity of either party
b. Insolvency of either party d. Intoxication of either party
MONDRIAAN AURA COLLEGE
Refresher 1
Business Law
BL 009

1. The taxpayer's 2003 percentage tax return is required to be filed through the authorized agent bank
under the jurisdiction of RDO East Makati. Without prior authorization from the Commissioner, the
taxpayer files the return and pays the tax through an authorized agent bank under the jurisdiction of
RDO Davao City on June 30, 2004. The tax due per return is P100,000.

How much is the total amount due on June 30, 2004

a. P 154,155.25 c. P 25,000.00
b. P 129,155.25 d. None of the choices

2. Which of the following shall not be subject to income tax?

I- Pedro Reyes, an official of Corporation X, asked for an “early retirement” because he was
emigrating to Australia. He was paid P2,000,000 as a separation pay in recognition of his
valuable services to the corporation.
II- Juan Cruz, another official of the same company was separated for occupying a redundant
position. He was given P500,000 as separation pay.
III- Jose Bautista was separated due to his failing eyesight. He was given P500,000 as
separation pay.
All the three (3) were not qualified to retire under the BIR-approved pension plan of the corporation.
a. I, II and III c. I only
b. I AND II d. II AND III ONLY

3. This refers to the control number issued by authorized agent bank (AAB) to the taxpayer and BIR to
acknowledge that the taxpayer's account has been successfully debited electronically in payment of
his tax liability.
a. Filing Reference Number
b. Acknowledgment Number
c. Confirmation Number
d. Taxpayer's Information Number

4. A taxpayer paid excessive tax on April 15, 2000. On December 20, 2001, she filed a written claim
for refund. Her claim was denied by the BIR and she received the denial on March 15, 2002. She
filed a motion for reconsideration with the BIR on March 31, 2002. On April 10, 2002, she received
the final denial of the BIR. What will be the taxpayer’s remedy?
a. File another motion for reconsideration with the BIR within 30 days after the receipt of the
final denial
b. File an appeal with the Court of Tax Appeals on or before May 10, 2002
c. File an appeal with the Court of Tax Appeals on or before April 15, 2002
d. The taxpayer has no more remedy against the final denial

5. A VAT subject real estate dealer sold a residential lot on January 15, 2007. The following
information was made available on the terms of the sale:
Gross selling price P 3,000,000
Initial payments on January 15, 2007 750,000
Balance to be paid in equal installment,
installments starting February 15, 2007 2,250,000

The zonal value of the residual lot was P3,500,000.

How much was the output tax on January 15, 2007 using 12% VAT rate?
a. P 420,000 c. P 105,000
b. P 360,000 d. None of the choices

6. Payment made to a third person is valid to extinguish the obligation of the debtor to the creditor in
the following cases, except:
a. After payment to the creditor, the third person acquires the creditor’s right.
b. When the creditor ratifies the payment to the third person.
c. When through the creditor’s conduct, the debtor was led to believe that the third person
had authority to receive payment.
d. When the third person is subrogated to the rights of the creditor.

7. N, R and J solidarily bound themselves to deliver to S a Honda motorcycle valued at P 60,000. The
obligation was not fulfilled through the fault of J. Thereupon, S filed an action in court against N and
 the court awarded P 72,000 to S representing the value of the motorcycle plus damages. Which of
the following situation is valid?
a. If N pays S the P 72,000, N can collect R and J P 24,000 each
b. S has to collect P 24,000 each from N, R and J to satisfy the court’s award of P 72,000
c. N can refuse to pay the penalty because it should be charged against J, the guilty party
d. If S succeeds in collecting the P 72,000 from N, N in turn can collect from R P 20,000 and
from J P 32,000.

8. A gets a loan of P 1,000,000 from B which becomes due on October 1, 2008 and mortgaged his
house as security for the debt. On June 30, 2008, the mortgaged house completely destroyed the fire
through the fault of C. A week later, B demanded payment from A. Is B’s demand valid?
a. No, the destruction of the house was not thru the fault of A.
b. No, the obligation is one with a definite period which is deemed intended for the benefit
of both the debtor and creditor
c. Yes, the debt becomes demandable unless A can give another security equally satisfactory
d. Yes, the debt becomes demandable even if A can give another security equally
satisfactory

9. One of the following characteristics of dacion en pago is also a characteristic of a contract of sale.
Which is it?
a. There is a pre-existing credit
b. Obligations are extinguished
c. There is less freedom in fixing the price
d. Ownership of the object transferred to the other party.

MONDRIAAN AURA COLLEGE

Refresher 1
Business Law
BL 010

1. An obligation where various prestations are due but the performance of all of them is required in
order to extinguish the obligation is known as:
a. Alternative obligation c. Conjunctive obligation
b. Facultative obligation d. Simple obligation

2. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural
tendency to induce the buyer to purchase the same, relying on such promise or affirmation.
a. Condition c. Warranty
b. False representation d. Seller’s talk

3. Which of the following contacts is rescissible?

a. Contracts entered into during a hypnotic spell
b. Contracts entered into in a state of drunkenness
c. Contracts entered into to defraud creditors when the latter cannot collect the claims due them
d. Contracts where both parties are incapable of giving consent

4. Which among the following contracts is void?

a. A contract of barter between S, insane, and B, 17 years old
b. A contract of sale where B, the buyer, twisted the arm of S, the seller, so that S would sign the
deed of sale
c. A contract of sale where B, the buyer, aimed a gun at the wife of S, so that S would sign the
deed of sale
d. A contract for the sale of a cow which is suffering from a contagious disease

5. Who among the following is the holder of a negotiable instrument originally payable to order?
a. The original payee who has negotiated the instrument
b. The endorsee who is in possession of the instrument
c. The possessor of the instrument to whom the instrument was delivered without any
endorsement
d. The endorsee who has negotiated the instrument

6. An instrument payable to bearer may be negotiated through any of the following means, except:
a. Special endorsement plus delivery
b. Mere delivery
c. Blank endorsement plus delivery
d. No delivery is required as long as there is an endorsement, whether blank or special
7. One of the following is not a characteristic of contract of partnership.
a. Real, in that the partners must deliver their contributions in order for the partnership contract to
be perfected
b. Principal, because it can stand by itself
c. Preparatory, because it a means by which other contracts will be entered into
d. Onerous, because the parties contribute money, property, industry to the common fund

8. Recording in the Registry of Property in the appropriate book is required for the validity of the
contract of:
a. Chattel mortgage c. Conventional pledge
b. Real mortgage d. Antichresis

9. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P 20,000.00
a. V may collect from B P 20,000 c. V may collect from B P 5,000
b. V may collect from B P 4,000 d. V may collect from B P 1,000

10. The following are modes of extinguishing an agency, except:

a. Death, civil interdiction, insanity or insolvency of the principal or agent
b. Accomplishment of the purpose of the agency
c. Expiration of the period for which the agency was constituted
d. Continued losses on the part of the principal or agent