Topic 3 - Law of Agency

'He is a person for whom such act is done, or who is so represented in dealing with a third party.'

• Agent

• Third Party

• Principal

• Leader

The agreement created between principal and agent is

• Contract of employment

• Contract of service

• Contract of sale and purchase

• Contract of agency

'A person, by his words/conducts, allows a 3^rd party to believe that B is his agent even when B is not, and the 3^rd party relies on it to his detriment, that person will be estopped/precluded from denying the existence of B’s authority.'

A is agent by way of

• necessity

• ratification

• implied appointment

• estoppel

In the agency by ratification, if the principal does not ratify the contract made by the agent, the effect of the contract is _____

• The agent will be responsible for the contract

• The principal will not be responsible for the contract

• The agent will not be responsible for the contract

• The principal will be responsible for the contract

Contracts are made between the principal and the third party or directly with the agent.

• True

• False

_________ arises where P implies that A is his agent even though that is not. He is then prevented or "stopped" from denying A's authority.

• Ratification

• Necessity

• Estoppel

• Implied Appointment

A void or illegal contract may still be ratified.

• True

• False

An agency relationship can be established in some ways....

• by ratification, express necessity, by necessity, enforced agreement

• by estoppel, implied necessity, express necessity

• implied necessity, enforced agreement, implied agreement

• by ratification, by implied agreement, by estoppel, by necessity and express appointment

In which of the following circumstances, an agency by necessity may be created?

• when an agent signed an estoppel agreement

• when an agent breaches the agreement with the principal

• when a person who is with authority act as an agent

• when it is impossible for the agent to get the principal’s instruction

Nouman enters into a contract with Kassim to sell him 1000 kg of wheat. Kassim used his own name when signing the contract. Afterwards Nouman discovered that Kassim was actually acting as an agent for Zakir. If later Zakir breaches the contract, under the law of agency, Nouman _____

• cannot sue none of them.

• may not sue Kassim but may sue Zakir for the price of wheat.

• may sue Kassim and Zakir for the price of wheat

• may not sue Zakir but may sue Kassim for the price of wheat.