True or False Quiz on Agency Law

A principal must have the capacity to enter into a contract with the third party.

• True

• False

A wife can be an agent for her husband by implied appointment.

• True

• False

An agent who is faced with emergency can decide what actions to take without getting the principal's instructions.

• True

• False

A principal is estopped from denying the agent's authority if the principal terminates the agent's authority without informing the third party who continues to deal with the agent thinking that the agent still represents the principal.

• True

• False

A factor is an agent who does not have goods to sell but negotiates a contract on behalf of the principal.

• True

• False

Agent must produce proper account of his principal's money which the agent manages.

• True

• False

A contract of agency which is fixed for 5 years is terminated when the period of 5 years expires and the contract is not renewed.

• True

• False

An agent can delegate his authority to another person if it will make it faster to finish the work.

• True

• False

An agent must give the principal all the sums he received on behalf of the principal even though the principal has not paid the expenses which the agent incurred for the principal.

• True

• False

An agent cannot reveal the trade secrets of his principal's business to a third party.

• True

• False