Law of Agency Quiz

What is the definition of an agent according to the Contracts Act 1950?

• A person who is not liable towards their principal for acts done by them as agents

• A person employed to do any act for another or represent another in dealings with third person

• A person who owns a shop in Kuantan

• A person who is below 18 years of age

Who can become an agent according to Section 136 of the Contracts Act 1950?

• Any person who is not liable towards their principal for acts done by them as agents

• Any person who is not of sound mind

• Any person who is below 18 years of age

• Any person who is eighteen years old and above and who is of sound mind

How can an agency be created according to the Contracts Act 1950?

• Express appointment, implied appointment, ratification, necessity, and estoppel

• Express appointment, implied appointment, and necessity

• Ratification, necessity, and estoppel

• Express appointment, implied appointment, and ratification

Under what circumstances can an agency be ratified according to Section 149 of the Contracts Act 1950?

• When acts are done by one person on behalf of another but without his knowledge or authority

• When the principal accepts and confirms such a contract

• When the principal has full knowledge of all material facts

• When the principal has no contractual capacity at the time of ratification

What are the duties of a principal to an agent according to the Contracts Act 1950?

• Agent's right to retainer out of sums received on principal's account, agent's duty to pay sums received for the principal

• Agent's duty to communicate with the principal, right of principal when agent deals on his own account

• Skills and diligence required from the agent, agent's account

• Indemnify against consequences of lawful acts, indemnify against consequences of acts done in good faith

What is the authority of an agent according to the Contracts Act 1950?

• Actual or apparent

• Express or implied

• Express, implied, or from the conduct of parties

• Express, implied, or from the circumstances of the case

How can an agency be terminated according to the Contracts Act 1950?

• By the agent's remuneration becoming due, by the agent's lien on principal's property

• By the expiry of the period fixed in the contract, by the agent's misconduct

• By the act of party, by the death of the agent

• By the act of party, by operation of law

Under what circumstances can an agency be revoked by operation of law?

• When the contract of agency has been performed, upon the expiry of the period fixed in the contract

• Death of the principal or agent, when the principal or agent become insane

• When the principal or agent become insolvent, upon the happening of an event which renders the agency unlawful

• All of the above

What is the duty of the principal to an agent according to Section 175 of the Contracts Act 1950?

• To indemnify against consequences of lawful acts

• To indemnify against consequences of acts done in good faith

• Non-liability of employer of agent to do criminal act

• Compensation to agent for injury caused by principal's negligent

What is the type of authority an agent may have according to the Contracts Act 1950?

• Actual or apparent

• Express, implied, or from the circumstances of the case

• Express or implied

• Express, implied, or from the conduct of parties