Untitled Quiz

A business owned and run by one person, with no legal distinction between the owner and the business.

A business owned and run by two or more people, with shared liability.

A partnership with some partners having limited liability, often offering protections similar to limited companies.

A business recognized as a separate legal entity, offering limited liability to its owners.

A legal protection where the personal assets of business owners are not at risk in case of business debt or lawsuits.

A legal concept where a business operates independently from its owners, meaning the business has its own rights and responsibilities.

The process of acquiring funds for business operations or expansion.

Expenses associated with establishing a business, including legal fees and registration.

Protecting sensitive business information from unauthorized access or disclosure.

The power granted to an agent to act on behalf of a principal (Roland Ltd).

An agent's authority to act on behalf of a principal, which extends beyond a single transaction, often stemming from a contract and involving ongoing relationships.

To have a significant role in discussions regarding the terms of a business deal between a principal and a third party, potentially influencing the price or other commercial aspects.

Certain individuals or entities are excluded from the regulations, often due to their primary role not being as a commercial agent.

An agent whose principal activity is acting as an agent, and the predominant part of their job aligns with agency duties.

An agent whose primary activity is not aligned to acting as an agent/ a secondary activity to acting as an agent.

Different interpretations of what constitutes a commercial agent in English and Scottish courts, leading to differing decisions on whether certain individuals are covered by the relevant regulations.

A commercial agent who isn't actively involved in the negotiation process and doesn't influence the terms of the transaction is not covered by the regulations.

Commercial agents primarily deal with a series of transactions, and a one-off transaction wouldn't fall under the definition of a commercial agent because it's a standalone event.

English cases on agency activities should be compared with an agent's other non-agency activities with a principal.

Compare the Department of Trade and Industry role with the agent's non-agency activities.

Scottish case law considers the purpose of the agency arrangement to determine the agent's role.

Widened the definition of 'secondary' agency activities in Scottish law.

Agent's role is central, often involved in core elements of a transaction, like negotiating terms or handling goods.

Agent's is less crucial, often supportive or facilitating elements such as the agent being a conduit in the transaction, the agent not negotiating deal terms, and the principal dealing directly with a customer.

Ways of forming an agency relationship: express agreement, implied agreement, holding out, ratification, and agent of necessity/neg. gesto.

Agency relationship established through a clear, written or oral agreement.

Agency formed through actions and conduct, not from stated words.

No single correct answer regarding the nature of secondary agency.

When an agent's personal interests or relationships conflict with their duties to a principal.

An agent representing more than one party in a transaction, potentially leading to conflicts.

Principals involved in a transaction where their interests are in direct opposition to each other. Example: different dairy farms competing, selling cream

The need to openly reveal potential conflicts of interest between the agent's personal interests and their duties to the principal (e.g. sharing profits with the dairy company)

Contracts that can place restrictions on an agent's ability to represent competing principals, preventing conflicts.

An agent's act of acting without the principal's authorization and the agent's liability to the third party, even if the agent believed they had authority.

The power granted to an agent to act on behalf of a principal.

Authority a third party reasonably believes an agent possesses, even if the agent doesn't have actual authority.

Explicitly or implicitly granted authority to the agent by the Principal.

The act of the principal approving an unauthorized contract after the fact.

Principal can be liable for contracts entered into by agents acting with apparent authority, even if no contract exists.

Agent can be personally liable to third parties for the agent's misrepresentation of their authority. Irrespective of whether the agent reasonably believed they had the authority.

Agent's actions that go beyond the scope of their granted authority.

An agent operating in a specific position or role carries inherent authority associated with that position.

When a third party is involved, focusing first on apparent authority avoids unnecessary delays to address breaches.