CHAPTER 5: LAW OF AGENCY

Firdaus wishes to sell his piano for RM15000 to Fadhil. He meets his old friend, Fatim seeking for her help to sell the piano on behalf of him to Fadhil. Under the law of agency, Fatim is called ....

• an agent

• a promisor

• a principal

• a third party

Fuad appoints Hew to be his agent to buy goods from Rose. Fuad is …

• an agent

• a mentor

• a principal

• a guidance

Which of the following statute is the law applicable for law of agency in Malaysia?

• Contracts Act 1950

• Agency Act 1957

• Bills of Exchange Act 1949

• Partnership Act 1961

Ratification by the principal to the act of his agent occurs when the principal ....

• examines the act of the agent

• accepts the act of the agent

• advises the agent on his act

• gives the instruction to the agent

Appointment of an agent can be made by the following except ...

• express appointment

• implied appointment

• ratification

• self appointment

Among the conditions to be fulfilled before a principal ratifies his agent’s act are …

I. The principal must ratify the whole contract

II. The act or contract must be unauthorized

III. Ratification must not injure the third party

• I, II

• I, III

• II, III

• I, II, III

When the agent was duly appointed to do the work, but he has exceeded the authority given, he is the agent appointed by…

• necessity

• express appointment

• ratification

• estoppel

Mel bought 10 bags of flour at a price higher than instructed by his principal. His principal approved his action.

In the above situation, an agency relationship exists by…

• express appointment

• implied appointment

• ratification

• estoppel

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

• when an agent signed the agreement with the principal

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

• when an agent signed an estoppel agreement

• when a person who is without authority act as an agent

Suppose Ali tells Tommy in the presence of Ponniah that Ali is Ponniah's agent and Ponniah does not contradict this statement. Ponniah cannot later deny that Ali is his agent if Tommy sells goods to Ali believing him to be Ponniah's agent and later claims for the price. What is the type of agency created in the above situation?

• estoppel

• ratification

• implied appointment

• express appointment