Agency Law True/False Quiz

A principal cannot appoint a minor to be his agent.

• True

• False

When an agent exceeds the authority given by the principal, the principal can still ratify the contract made by the agent if the conditions are fulfilled.

• True

• False

To be an agent by necessity, one of the conditions to be fulfilled is that the agent must have been entrusted with the principal's property.

• True

• False

A broker is a commercial agent who is entrusted with goods to sell on behalf of the principal.

• True

• False

Agent does not have to follow the principal's instructions which are against the law.

• True

• False

Principal can refuse to pay the agent's commission if the agent makes a secret profit even though the agent has completed his task.

• True

• False

A contract of agency is not terminated if the principal becomes a bankrupt.

• True

• False

If the agent did not disclose everything about the contract to the principal,

the principal's ratification is not binding.

• True

• False

An agent cannot act on behalf of the principal and the third party at the same time without the consent of the principal.

• True

• False

An agent who was appointed by the principal for his professional skills must exercise his skills when representing the principal.

• True

• False