Chapter 12 Multiple choice questions

. In the majority of cases, agency is the result of agreement between whom?

Principal and creditor

Principal and agent

Principal, agent and the third party

Principal and debtor

. In a typical transaction conducted by the agent, who are the contracting parties?

The agent and the third party

The agent and the principal

The principal and the third party

. Which one of the following kinds of authority exists with the consent or agreement of the principal?

Apparent

Actual

Necessity

Ostensible

. With actual authority, how is the authority actually given?

Express or implied

Express

Implied

. When can an agent's authority be implied?

When it is inferred on an objective basis

When it is inferred from the circumstances of the case

When it is inferred from the conduct of the third party and the circumstances of the case

When it is inferred from the conduct of the parties and the circumstances of the case

. There was no question of actual authority arising in Watteau v Fenwick [1893] 1 QB 346 because the agent had been forbidden to do the act in question. But why was there no apparent authority?

Because the principal has told the third party not to deal with the agent

Because the principal had terminated the agency agreement

Because neither the principal (nor anyone authorised by him) had represented to the third party that the agent had authority to act on his behalf

. Which one of the following conditions is not a requirement for an agency of necessity?

The principal must approve the transaction, either expressly or by implication.

The principal must be competent when the agent intervened.

The agent must be in control of his principal's property.

It must be impossible (or at the very least not reasonably practicable) for the agent to contact his 'principal' so as to get his instructions.

. If an agent carries out an act in the name of a principal for which he was not authorised, what steps, if any, can the principal take to save the act?

Nothing. If the act was not authorised, it cannot be saved.

He may seek the third party's consent for the transaction to proceed.

He may ratify the act.

He may obtain an order of the court to affirm the act.

. Is it possible for a principal to ratify part of a transaction but reject the remainder of it?

No

Yes

Only if the agent authorises it

Only if the court authorises it

. Is it possible for an undisclosed principal to ratify an act?

Only if the agent authorises it

Only if the court authorises it

Yes

No

Chapter 12 Multiple choice questions

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