Agency Basic Principles
24 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

In a business setting, who typically negotiates business dealings on behalf of another person or business?

  • The Third Party
  • The Agent (correct)
  • The Manager
  • The Principal

    • What is the primary function of an Agent in a business transaction?

  • To enter into a contract with the Third Party
  • To take personal responsibility for the contract
  • To act on behalf of the Third Party
  • To act as a liaison between the Principal and the Third Party (correct)

    • In the context of Agency Law, who bears the legal liability in a contract between the Principal and the Third Party?

  • The Principal (correct)
  • Both the Principal and the Third Party
  • The Third Party
  • The Agent

    • What is the relationship between the Principal, the Agent, and the Third Party in a business transaction?

    <p>The Agent represents the Principal, and the Principal enters into a contract with the Third Party</p> Signup and view all the answers

    Under what circumstances does the Agency relationship arise?

    <p>In various circumstances, including business and personal dealings</p> Signup and view all the answers

    Who is the party that is not directly involved in the contract, but is represented by the Agent?

    <p>The Principal</p> Signup and view all the answers

    What is the term for when an agent's powers are clearly set out in their appointment?

    <p>Express Appointment</p> Signup and view all the answers

    In what type of agency relationship does the principal approve a contract after the fact?

    <p>Agency by Ratification</p> Signup and view all the answers

    What is the term for when an agent is appointed without receiving payment?

    <p>Gratuitous Agency</p> Signup and view all the answers

    In what type of agency relationship does the court imply a principal/agent relationship based on the actions of the parties?

    <p>Implied Agency</p> Signup and view all the answers

    What type of agency arises when an agent is appointed to act in a specific transaction?

    <p>Specific Agency</p> Signup and view all the answers

    What type of agency relationship arises when an individual agrees to act for another without receiving payment?

    <p>Gratuitous Agency</p> Signup and view all the answers

    What is the primary requirement for an agent to take action in an emergency situation on behalf of the principal?

    <p>There must be no practical way to obtain instructions from the principal</p> Signup and view all the answers

    What is the term for when an agent holds themselves out to others as an agent of the principal, and the principal is aware of this but does nothing?

    <p>Agency by Estoppel</p> Signup and view all the answers

    What is the consequence for the principal if they are aware that an agent is holding themselves out to others as their agent, but do nothing about it?

    <p>The principal is estopped from denying the agency relationship</p> Signup and view all the answers

    What is the primary duty of an agent to the principal?

    <p>To follow the instructions of the principal</p> Signup and view all the answers

    What is the term for an agency relationship that arises due to an emergency situation?

    <p>Agency by Necessity</p> Signup and view all the answers

    What type of document may be required for the appointment of an agent, depending on the actions to be carried out?

    <p>All of the above</p> Signup and view all the answers

    What is the primary duty of an agent with regards to the principal's instructions?

    <p>To act with reasonable care and skill, regardless of the type of agency relationship</p> Signup and view all the answers

    In what circumstance can an agent exercise a lien over the principal's property?

    <p>When the principal fails to pay the agreed remuneration</p> Signup and view all the answers

    What is the consequence of an agent making a secret profit or misusing confidential information?

    <p>The agent may be sued by the principal</p> Signup and view all the answers

    How can an agency relationship be terminated?

    <p>By the mutual agreement of the parties or by the unilateral action of one party</p> Signup and view all the answers

    What is the agent's duty with regards to the principal's money and property?

    <p>To keep the money and property separate from the agent's own</p> Signup and view all the answers

    In what circumstance can an agent claim indemnity against the principal?

    <p>When the agent incurs expenses in the performance of services</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser