ACCA F4 Agency Law

Which of the following is not a quality of an expressed agency agreement?

• Agent is expressly appointed by the principle

• Appointment may be in oral or writing

• Agent has actual authority to act on principle's behalf

• Agent is appointed by virtue of relationship between agent and principle

Which of the following option talks about the principle of rectification?

• It means to expressly form an agency relationship

• It means to create an agency relationship by implication or conduct

• It means to give validation to an act done by the agent

• It means agent having more authority than the principle has consented to

Which of the following is not an essential for a valid ratification?

• The principle must have existed at the time when contract was made

• Partial ratification can be done by the principle

• The principle must have had legal capacity at the time the contract was made

• Principle communicate their ratification to the third party sufficiently clearly

Which of the following shows the meaning of Agency by estoppel?

• The principal will be stopped from denying the agency relationship as he hold out to third party about the agent having authority

• The principle may validate the act of the agent which would give retrospective effect to the act done by agent earlier

• The principle will stop and cease the existence of the agency relationship between the agent and the principle

• Agent would perform act beyond his authority as expressed in the agency relationship

In which of the following authority principle represents to other persons that they have given to the agent the authority to act on principle's behalf.

• Express/Actual authority

• Implied Authority

• Actual Authority

• Apparent/Ostensible Authority

Is it neseccary for the principle to inform the third party to revoke the authority of the agent?

• Yes

• No

• He has an option to inform

• None of the above

Which of the following cannot terminate the agency relationship by operation of law?

• Death of Principle or Agent

• Insanity of Principle or Agent

• Bankruptcy of Principle or Agent

• None of the above

Which of the following cannot terminate the agency relationship by operation of law?

• Death of Principle or Agent

• Insanity of Principle or Agent

• Bankruptcy of Principle or Agent

• None of the above

In which of the following situation the agent will be personally liable for the contract formed?

• If the agent does contract within the preview of his actual or ostensible authority

• Where the agent is acting on their own behalf even though they purport to act for principle

• The agent was acting on principle's behalf as he had the implied authority to do so

• All of the above

What do you understand by breach of warranty of authority?

• Agent being personally liable for exceeding his authority and entering into a contract on principle's behalf

• Agent acting in the interest of the principle without having actual authority to do such an act

• Agent creating a contract on principle's behalf as having the actual authority to perform such an act

• None of the above