mixed quiz law

Which of the following conditions is necessary in order for a principal to be able to ratify a contract entered into by an agent?

• The principal need only have contractual capacity when the contract is ratified

• The principal need only have contractual capacity when the contract was entered into

• The agent must have contractual capacity when the contract was entered into

• The principal must have contractual capacity when the contract was entered into and when it is ratified

Barry is managing director of Soap Ltd. He enters into a contract to buy some property on behalf of the company. What is the legal position?

• The contract is invalid and must be ratified by the members

• The contract is valid as Barry has implied authority to act in this way

• The contract is invalid as Barry has not acted out of necessity

• The contract is invalid as the contract must be by deed

Arthur entered into a contract with Ted without disclosing that he was acting as an agent on the instructions of Patricia.

What right does Ted have?

• Ted may sue Arthur only, as he had no knowledge that he was an agent

• Ted may sue Patricia only, because Arthur was in fact an agent

• Ted may sue Patricia or Arthur, since Arthur was acting as an agent for an undisclosed principal

• Ted may sue Patricia and Arthur, since Patricia and Arthur are treated as principals

A principal refuses to ratify a contract entered into by an agent in his own name on the principal’s behalf but in excess of that agent’s authority.

Who may the third party concerned sue?

• The principal only

• The agent or the principal

• The agent only

• The agent and the principal

Adam, Ben and Carol have carried on business together in partnership since July. In September they decided to enter into a formal partnership agreement. The partners agreed the terms of the agreement in October and signed the completed agreement in November.

When did the partnership commence?

• July

• September

• October

• November

Which of the following statements regarding different types of partnerships is correct?

• The accounts of a limited liability partnership must be filed at Companies House

• An incoming partner immediately becomes liable for all debts incurred before his admission

• The estate of a deceased partner is not liable for debts incurred before the partner’s death

On which of the following grounds is a court order needed for dissolution of a partnership on application by a partner?

• On the expiration of the fixed term for which the partnership was created

• On bankruptcy or death of a partner

• On a charging order being made against a partner

• On the permanent incapacity of a partner

A restaurant is owned by a partnership whose partners are Ted, Lauren, and Richard. Lauren and Richard are actively involved in the business and run the restaurant on a daily basis. Ted initially contributed money to form the partnership and shares in profits of the business but does not participate in the operations of the restaurant.

Ted can be described as which of the following types of partners?

• General partner

• Fixed share partner

• Sleeping partner

• Nominal partner

In relation to company law, which of the following statements is correct?

• A company limited by shares is fully liable for all its debts

• Shareholders are fully liable for the debts of the company

• Directors are fully liable for the debts of the company

A company is owned by its shareholders and managed by its directors

(2) A company is entitled to own property in its own name

(3) The shareholders can never incur personal liability over and above the amount due on their shares even if the veil of incorporation is lifted

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

• 1, 2 and 3