LAW OF AGENCY

Who can become a principal according to the Contracts Act 1950?

• Any person above 21 years old

• Any person of sound mind and above 18 years old

• Anyone with authority from the court

• Any legal entity

Which of the following is a method of creating an agency?

• Assignment

• Delegation

• Ratification

• Subrogation

What is an implied agency?

• Agency created by written agreement

• Agency formed based on the conduct or situation

• Agency formed through a formal contract

• Agency created through verbal communication

What is the meaning of agency by estoppel?

• When the principal prevents the agent from resigning

• When the agent refuses to act on behalf of the principal

• When the agent is estopped from acting for multiple principals

• When the principal makes a third party believe a person is their agent

Which of the following situations can result in an automatic termination of an agency?

• Rita who is the principal of Aminah has been declared bankrupt

• John who is 17 years old who was appointed by Brenda to sell her watch

• Asri appointed Yan to manage his restaurant and Yan stole RM6,000 from the restaurant

• Mona purchased a house for Mashita and she received a secret commission of RM10,000 from the seller.

In which case an agency cannot be revoked?

• When the agent has an interest in the property

• When the agency is for a fixed term

• When the agent agrees to the revocation

• When the principal gives notice

Which of the following is a duty of an agent towards the principal?

• To delegate authority

• To make a secret profit

• To obey instructions

• To act on behalf of third parties

What happens if an agent exceeds their authority and the principal does not ratify the action?

• The contract remains binding

• The agent is personally liable

• The third party is liable

• The principal is forced to accept the action

Ahmad saw a cow was hit by a lorry in his way to go home. The cow was severely injured and about to die. Without wasting time, Ahmad took his cutting knife from his car and slaughtered the cow. Ahmad here is an

• agent by estoppels

• agent by ratification

• agent by implied appointment

• agent by necessity

What is an agency by necessity?

• When an agent is appointed by express agreement

• When a principal orders the agent to act

• When a third party declares someone an agent

• When a person acts as an agent in an emergency without formal authority