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law of agency

Total questions: 13

Worksheet time: 13mins

Name
Class
Date
1.

'He is a person for whom such act is done, or who is so represented in dealing with a third party.'


‘He’ refers to _____

a)

Principal

b)

Agent

c)

Boss

d)

3rd party

2.

The agreement created between principal and agent is _____

a)

Contract of employment

b)

contract of service

c)

contract of agency

d)

contract of necessity

3.

'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 ______________

a)

necessity

b)

ratification

c)

holding out

d)

estoppel

4.

_____________ is an authority conferred expressly upon the agent either by oral or written agreement.

a)

express authority

b)

apparent authority

c)

secret authority

d)

special authority

5.

In the agency by ratification, if the principal does not ratify the contract made by the agent, the effect of the contract is _____

a)

The principal will not be responsible for the contract

b)

The agent will not be responsible for the contract

c)

The agent will be responsible for the contract

d)

The principal will be responsible for the contract

6.

In which of the following circumstances, an agency by necessity may be created?

a)

when an agent signed an estoppel agreement

b)

when a person who is with authority act as an agent

c)

when an agent breaches the agreement with the principal

d)

when it is impossible for the agent to get the principal’s instruction

7.

Malaka enters into a contract with Sumith to sell him 1000 kg of wheat. Sumith used his own name when signing the contract. Afterwards Malaka discovered that Sumith was actually acting as an agent for Wasana. If later Wasana breaches the contract, under the law of agency,Malaka _____

a)

cannot sue none of them.

b)

may sue Sumith and Wasana for the price of wheat

c)

may not sue Sumith but may sue Wasana for the price of wheat.

d)

may not sue Wasana but may sue Sumith for the price of wheat.

8.

To whom the agent is responsible?

a)

Principal

b)

Sub Agent

c)

Contractor

d)

None of these

9.

Principal's liability to the agent....

a)

To request remuneration or commission for services performed

b)

To claim remuneration or commission for services performed

c)

To claim an indemnity against P for most expenses reasonably incurred in carrying act his obligations

10.

Contracts are made between the principal and the third party or directly with the agent.

a)

True

b)

False

11.

_________ 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.

a)

Ratification

b)

Estoppel

c)

Necessity

d)

Agreement

12.

To become an agent by necessity requires __________ condition to be satisfied.

a)

A's property is entrusted to P

b)

it's not possible to communicate with A

c)

An emergency arises making it necessary for A to act

13.

An agency relationship can be established in some ways....

a)

by ratification, express necessity, by necessity, enforced agreement

b)

implied necessity, enforced agreement, implied agreement

c)

by estoppel, implied necessity, express necessity

d)

by ratification, implied agreement, by estoppel, by necessity