Quiz on Agency Law

Who is considered an "agent" under Section 135 of the Contracts Act 1950?

• A person employed to manage only his own affairs

• A person acting on behalf of the government

• A person employed to do any act for another or to represent another

• A legal representative in court

Which of the following is not a method of creating agency?

• Express appointment

• Necessity

• Ratification

• Coercion

In Bolton Partners v Lambert, what was held regarding ratification?

• Ratification must be done immediately

• Ratification cannot validate unauthorized acts

• Ratification validates the contract retrospectively

• Ratification only applies in emergencies

Which is NOT a condition for agency of necessity?

• Impossible to get principal's instructions

• The agent must act in bad faith

• Must act to prevent loss

• Must act in good faith

According to Section 164 CA, what must the agent do?

• Act based on assumptions

• Conduct business according to the principal’s direction

• Take advice from third parties

• Delay communication during difficulty

Under Section 166 CA, what is the agent’s obligation?

• Destroy all records

• Render proper accounts to the principal

• Keep all profits

• Share accounts with third parties

What can the principal do if the agent makes secret profit without consent?

• Promote the agent

• Ignore it

• Repudiate the transaction

• Take the agent to police

Which of the following is a valid exception allowing an agent to delegate authority?

• Without informing the principal

• When dealing with family

• When clerical work is involved

• When no loss is caused

Under S172 CA, when does the agent’s remuneration become due?

• After sending an invoice

• After starting the work

• After completing the act

• At the time of agreement

Which is an example of implied actual authority?

• Authority stated in a written contract

• Authority shown through words

• Authority inferred by position or necessity

• Authority given by court