Free Printable commercial law

1.

The __ creates legal relationship between the principal and third party.

a)

Contractor

b)

Agent

c)

Principal

d)

Owner

2.

___ guarantees to the principal that if the third party does not pay then the agent will pay

a)

Broker

b)

General agent

c)

Del credere agent

d)

Subagent

3.

_______________--is a legal document authorizing one person (called an agent) to act on behalf of another (the principal).

a)

Special power of attorney

b)

Particular power of attorney

c)

General power of attorney

d)

all the above

4.

The consideration in case of contract of agency_____

a)

Can be past, present, future

b)

Need not be adequate

c)

Need to be real

d)

Not mandatory

5.

Advocates are classified as__

a)

general agent

b)

Special agent

c)

mercantile agent

d)

Non-mercantile agent

6.

In case of ratification the principal must ratify _________

a)

Part transaction based on necessity

b)

the agreement of agency

c)

whole transaction

d)

the third party about agency

7.

The power given to agent ____

a)

reasonable and unreasonable

b)

expressed and implied

c)

legal and illegal

d)

all of these

8.

To create an agency _____is not required

a)

Principal

b)

Agent

c)

consideration

d)

third party

9.

Contract is a ____

a)

a legally binding agreement

b)

a mutual understanding between two parties

c)

a verbal understanding between two parties

d)

a written agreement between two or more parties

10.

An agent is personally liable _______.

a)

Where the agent has agreed to personally liable to the third party

b)

Where the agent acts for a principal residing abroad

c)

When the agent signs a negotiable instrument in his own name without making it clear that he is signing it only as agent

d)

all the above

11.

The power of attorney is an example of agency by ________________________

a)

Express agreement

b)

implied agreement

c)

Ratification

d)

Special agreement

12.

Which of the following is not a duty of an agent to the principal?

a)

Acting in good faith

b)

Rendering accurate account

c)

Disclosing all profit made

d)

Making secret profit

13.

----------------- is a person employed by, and acting under the control of, the original agent in the business of the agency.

a)

subordinate agent

b)

sub agent

c)

Del crede agent

d)

general agent

14.

As per Section 182 of the Contract Act, an agent is one _______

a)

Who is employed by another

b)

To do any act for another

c)

To represent another in dealing with third person

d)

All the above

15.

Substituted agent is -----------

a)

Agent’s agent

b)

Principal’s agent

c)

None of the above

d)

Both (A) and (B)

16.

____________ arises where a person by his words or conducts induces third persons to believe that a certain person is his agent.

a)

Agency by Holding-out

b)

Agency by Necessity

c)

Agency by Estoppel

d)

None of these

17.

The various modes to create the contract of agency ______________

a)

By Express Agreement

b)

By Implied Agreement

c)

By operation of law

d)

By ratifications

e)

All the above

18.

An agency which has to be understood from the conduct and behavior of the parties is called______________

a)

Expressed agency

b)

Implied agency

c)

none of the above

d)

both a and b

19.

___________ arises where the law treats one person as an agent of another

a)

Agency by Express Agreement

b)

Agency by Implied Authority

c)

Agency by Operation of Law

d)

None of these

20.

The _______is the party who authorizes the other to act in their place, and the agent is the person who has the authority to act on behalf of the principal.

a)

Principal

b)

Agent

c)

Seller

d)

buyer

commercial law

Total questions: 20

Worksheet time: 10mins

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