Chapter 4 (Law of Agency) - Quiz

Which of the following is a duty of an agent in an agency relationship?

• To act in the best interest of the principal

• To represent the third party

• To act independently of the principal

• To disclose all personal information

What is the primary purpose of an agency agreement?

• To limit the agent's authority

• To create a partnership

• To define the client's obligations

• To establish a legal relationship

Which of the following best describes a principal in an agency relationship?

• The person who provides compensation

• The person who delegates authority

• The person who acts on behalf of another

• The person who is represented in a transaction

There commission received by a broker is called as a _________.

In the power of attorney, _________ is the one who delegates the authorities to his/her agent.

The followings are the correct statements regarding a factor except:

• Has lien over the principal's property entrusted to him

• Has possession over the title and property belonging to his principal

• Can contract in his own name

• Cannot conceal the fact that he is an agent acting for the principal

A lied to C in the presence of B that she is B's agent.

B did not deny the untrue statement made by A.

B later cannot avoid from paying for the goods that was given by C to A.

This kind of agency is known as __________.

• Ratification

• Doctrine of Estoppel

• Necessity

• Implied Appointment

Which of the following refers to an implied appointment in an agency?

• Letter

• Phone Call

• Email

• Circumstance

In Springer v. Great Western Railway Company (1921) 1 KB 257, the only element that failed to be established by agent is __________.

• The action done is necessary to protect principal's interest.

• The impossibility of obtaining principal's instruction.

• The agent's action was done in the ordinary prudence or the custom which prevails.

• The agent acted in a good faith.

If the third party fails to settle his debts to his principal, this kind of agent will be held liable.

• Del credere agent

• Commission agent

• Broker

• Factor