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WorksheetsLAW OF AGENCY
Total questions: 20
Worksheet time: 15mins
A principal is best described as ________.
A person employed by and to do any act for a principal
A person who appoints and agent to represent him in any act
A person who sell the goods to the buyer
A person who buy the goods from the seller
When a principal accepts and confirms an unauthorized contract made by his agent, it is known as __________.
Implication
Condition
Authorization
Ratification
Which of the following is one of the duties of a principal?
To make secret profit
To pay commission and remuneration
To disclose information entrusted by the agent
to disobey agent's instruction
“Delegates non potest delegare” means _______.
No one can give a better title to the principal
No one can give a better title than he has himself
Agent cannot appoint another agent
Agent can appoint another agent
A General Agent is __________.
An agent who is authorized to catch people
An agent who is authorized to act in court
An agent who is authorized to act only for a special purpose
An agent who is authorized to act in transaction to particular trade/business
A mercantile agent has no authority to sell the goods which is not belong to him
TRUE
FALSE
Agent cannot employ another person to do his duty, except where it is necessary to complete the business.
TRUE
FALSE
A ratification must not have the effect of subjecting a third person to loss
TRUE
FALSE
Agency by estoppel arises when the conduct of the principal causes the public to presume that the person has the authority to represent the principal.
TRUE
FALSE
There are 3 types of authority in agency which is actual, impossible and ostensible
TRUE
FALSE
A person can become an Agent by necessity without formal appointment by Principal in (a) .
Under classification of agents, (a) is an agent who is employed to make a contract with the third party on behalf of his principal but he is not entrusted with possession of the goods.
Del Credere Agent is an agent who entitled to extra (a) when he succeeds and he will be liable if the 3rd party fails to perform the obligations.
(a) authority is established when a person without actual authority acts as an agent and contracts with a 3rd party in the Principal's knowledge.
(a) Principal is when the existence as well as identity of the Principal is not disclosed to 3rd party at the time of the contract.
Identify 3 circumstances where an agency is terminated by operations of law:
by the completion of the business
Principal is bankrupt
Agent become sound mind
expiration of the period
Principal appointed as Director
Agent cannot employ another person to do his duty. however there are exceptions. identify 3 exceptions to the maxim.
where the act to be done is purely ministerial
where the custom or trade or business permits delegation
where the Principal didn't approves to the delegation
where it is necessary to complete the business
identify 3 duties of an agent to his principal
to obey the principal's instruction
to let his personal interest conflicts with his duty
to pay to his principal all sums received on his behalf
Not communicate with the principal
Not to make any secret profit out of his duty
The presumption that a wife is the agent to her husband can be rebutted if the husband can prove: (can choose more than 1 answer)
he expressly forbids his wife to pledge his credit
he expressly warned the tradesman not to supply his wife with goods on credit
his wife insufficiently provided with the goods
his wife was given sufficient allowance to buy goods
Generally, an agency may be created by....
Implied appointment
Bankruptcy
Estoppel
Termination
Necessity
