BUSINESS LAW

What is the agent’s obligation when he cannot reach the principal in a crisis situation?

• Take no action and wait

• Act in the best interest of the principal

• Delegate to another person without informing anyone

• Contact a lawyer immediately

when is a sub-agent properly appointed by an agent?

• When the sub-agent agrees to share liability with the agent.

• When the principal expressly or impliedly allows the appointment, or it is customary or necessary to appoint one.

• When the sub-agent is appointed without the knowledge or consent of the principal.

• When the sub-agent is highly qualified.

Ali appointed Zana as his agent to manage his rental properties for a period of two years. After one year, Ali becomes mentally incapacitated due to an accident. What is the legal effect on the agency relationship?

• The agency continues until the 2-year period ends

• The agency is suspended temporarily

• The agency is automatically terminated

• The agency continues with the consent of the agent

Which of the following best explains why an agency “coupled with interest” cannot be unilaterally terminated by the principal?

• Because the agent is also the employer

• Because the agent has a personal financial interest in the subject matter of the agency

• Because the agent is also a minor

• Because the principal has delegated authority to a third party

Which of the following will terminate an agency relationship automatically?

• Change in employment status of the agent

• Death of the principal

• Transfer of property

• Travel of the agent

What is the agent’s obligation when he cannot reach the principal in a crisis situation?

• Take no action and wait

• Act in the best interest of the principal

• Delegate to another person without informing anyone

• Contact a lawyer immediate without informing anyonely

Under which section of the Malaysian Contracts Act 1950 does the agent have the duty to act according to the principal’s instructions?

• Section 165

• Section 168

• Section 172

• Section 175

Which of the following is NOT a duty of the principal towards the agent under the law of agency?

• To pay the agent agreed remuneration or commission

• To indemnify the agent for losses incurred while performing lawful duties

• To delegate the agent’s responsibilities to a sub-agent without notice

• Not to hinder the agent from earning his commission

In what situation can an agent avoid being liable for not obeying the principal’s instructions?

• When the instructions are expensive to follow

• When the instructions are unlawful

• When the principal is rude

• When the agent thinks there is a better way

A sub-agent can sue the third party directly.

• True

• False