Quiz on Agency Law

Which of the following best defines an "Agent" according to Section 182?

• A person who appoints another to do an act for him.

• A person employed to do any act for another, or to represent another in dealings with third parties.

• The person for whom an act is done.

• A person who performs a duty for himself.

According to the basic rule of the Law of Agency, who is responsible for any act of an agent?

• The agent alone is responsible.

• Both the agent and the principal are equally responsible.

• The principal is responsible as if the act has been done by the principal himself.

• A third party involved in the transaction.

Who may employ an agent according to Section 183?

• Any person who has attained the age of majority.

• Any person who is of sound mind.

• Any person who has attained the age of majority and is of sound mind.

• Any person, regardless of age or mental state.

Is consideration necessary for a contract of agency?

• Yes, consideration is always necessary.

• No, consideration is not necessary for a contract of agency.

• Only if the agent is paid a commission.

• Only if the contract is in writing.

Which of the following is NOT a mode of creation of agency?

• Express Authority

• Implied Authority

• Agency by Force Majeure

• Agency by Ratification

An example of agency by express authority is when:

• A station master feeds a horse not delivered at the destination.

• A broker sells goods on credit without custom.

• A in Delhi appoints B in Kolkata by a Power of Attorney to care for his house.

• Partners are considered agents of each other.

Agency by Estoppel occurs if:

• A person explicitly states another is their agent.

• A person permits another to act on his behalf so that a reasonable person would believe a principal-agent relationship has been created.

• An agent acts without authority but their actions are later ratified.

• Circumstances create a relation of agency in an emergency.

What is the definition of a "Sub-Agent" according to Section 191?

• A person who appoints an agent.

• A person employed by the Agent.

• A person who delegates power to an agent.

• A person who is named by the Agent for performing a part of the business.

What is the legal maxim associated with an agent's inability to delegate authority?

• Qui facit per alium, facit per se

• Delegatus non potest delegare

• Caveat emptor

• Res ipsa loquitur

A Substituted agent is defined as:

• A person employed by a sub-agent.

• A person who replaces the principal.

• A person who is named by the Agent for performing such part of the business of the agency as is entrusted to him.

• A person appointed by the principal without the agent's knowledge.