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1.1.2 Creation of Agency

Total questions: 9

Worksheet time: 5mins

Name
Class
Date
1.

For a valid Agency contract, the Agent...

a)

must be the age of majority and sound of mind.

b)

must be competent.

c)

must be older than the principal.

d)

There is no requirement for validity

2.

What is the risk of having a agent which is not sound of mind or in the age of majority

a)

The contract is void.

b)

The contract is valid, so he is responsible of his acts.

c)

The contract is valid but the agent is not responsible toward the principal.

d)

The agent does not get any commission .

3.

For a valid Agency contract, the principal

a)

must be in the age of majority and sound of mind.

b)

can be a minor.

c)

can be someone unsound of mind but will not be entitled to sue the agent.

d)

must be a business man.

4.

X is an agent of Y but is not getting anything in exchange, he has no interest into this contract.

a)

His contract is void for lack of consideration.

b)

His contract is valid.

5.

An agency contract is formed

a)

By an oral agreement

b)

By behaviour

c)

By a state of necessity

d)

By written agreement only

6.

An express agency contract is

a)

Expressly written

b)

Written or Oral

c)

Written, oral or by state of necessity

d)

By behaviour

7.

Which of these situations is an implied Agency contract

a)

By conduct of the parties

b)

By the particularity of the situation

c)

Due to the relation between the parties

d)

By an email requesting/offering to enter into an agency contract

8.

If, while exceeding its authority, the 'Head of Sales' of a company signs a contract with you in the company's name.

a)

I can't sue the company because he did not have authority from it.

b)

I can sue the company by application of implied agency.

c)

The contract is void, I should have checked that he had authority.

d)

I can use the Estoppel doctrine

9.

What are the conditions for Agency of necessity?

a)

Inability to communicate with principal

b)

Already having an established relationship

c)

Bina fide in the interest of the party concerned

d)

Act should be reasonably necessary