WorksheetsTopic 3 - Law of Agency
Total questions: 20
Worksheet time: 10mins
'He is a person for whom such act is done, or who is so represented in dealing with a third party.'
Agent
Third Party
Principal
Leader
The agreement created between principal and agent is
Contract of employment
Contract of service
Contract of sale and purchase
Contract of agency
'A person, by his words/conducts, allows a 3rd party to believe that B is his agent even when B is not, and the 3rd party relies on it to his detriment, that person will be estopped/precluded from denying the existence of B’s authority.'
A is agent by way of
necessity
ratification
implied appointment
estoppel
In the agency by ratification, if the principal does not ratify the contract made by the agent, the effect of the contract is _____
The agent will be responsible for the contract
The principal will not be responsible for the contract
The agent will not be responsible for the contract
The principal will be responsible for the contract
Contracts are made between the principal and the third party or directly with the agent.
True
False
_________ arises where P implies that A is his agent even though that is not. He is then prevented or "stopped" from denying A's authority.
Ratification
Necessity
Estoppel
Implied Appointment
A void or illegal contract may still be ratified.
True
False
An agency relationship can be established in some ways....
by ratification, express necessity, by necessity, enforced agreement
by estoppel, implied necessity, express necessity
implied necessity, enforced agreement, implied agreement
by ratification, by implied agreement, by estoppel, by necessity and express appointment
In which of the following circumstances, an agency by necessity may be created?
when an agent signed an estoppel agreement
when an agent breaches the agreement with the principal
when a person who is with authority act as an agent
when it is impossible for the agent to get the principal’s instruction
Nouman enters into a contract with Kassim to sell him 1000 kg of wheat. Kassim used his own name when signing the contract. Afterwards Nouman discovered that Kassim was actually acting as an agent for Zakir. If later Zakir breaches the contract, under the law of agency, Nouman _____
cannot sue none of them.
may not sue Kassim but may sue Zakir for the price of wheat.
may sue Kassim and Zakir for the price of wheat
may not sue Zakir but may sue Kassim for the price of wheat.
This appointment of agency is created when a person acts as an agent for a principal without the principal’s authority and the principal has the option either to approve or accept the act.
agency by estoppel
agency by ratification
agency by statute
agency by implied appointment
What will happen if the agent fails to obey the principle's instruction?
The agent will not be liable for any loss incurred
The agent will be liable for any loss incurred
No further action will be taken
The agent will be forgiven
The parties in an agency contract is called
Offeror and offeree
Agent and Principal
Seller and Buyer
Agent and Middle Man
Which one of the following statements is incorrect?
An agency relationship may be created through necessity.
An agency relationship may be created through estoppel.
All agents are entitled to be paid for their services.
An agent creates a legal relationship between a third party and a principal.
Which of the following statements is incorrect?
An agency may be terminated by death of either party.
An agency may be terminated by express agreement.
An agency agreement can never be terminated once signed.
Mental incapacity of an agent will terminate the agency relationship.
Frank enters into a contract with Sally believing that Sally is acting on her own behalf when in fact she is acting as an agent for Derek on his express instructions. In the event of a breach of contract who can Frank take action against?
No-one, the contract is invalid.
Sally
Sally or Derek
Derek
Which one of the following is not a duty of an agent?
Duty to render proper account.
Duty to avoid a conflict of interest.
Duty to exercise care and skill.
Duty to take a commission.
Which of the following is not a method of terminating an agency relationship by acts of the parties?
lapse of parties
mutual agreement
achievement of agency purpose
bankruptcy of the principal
Which of the following is not a method of terminating an agency relationship by operation of law?
death of either the principal or the agent
insanity of either the principal or the agent
bankruptcy of the principal
mutual agreement
The person or company whom the agent deals with on behalf of the principal is referred to as
sidekick
agent
third person
principal
