Law of Agency Quiz Intro & Creation

What is the primary legislation governing the law of agency in Malaysia?

• Contracts Act 1950

• Companies Act 1965

• Partnership Act 1961

• Sales of Goods Act 1957

Who is considered the principal in an agency relationship?

• The person who acts on behalf of another

• The person who authorizes another to act on their behalf

• The third party in a transaction

• The person who sells goods

Which section of the Contracts Act 1950 defines an agent?

• Section 135

• Section 136

• Section 137

• Section 140

What is required for a principal to ratify an unauthorized act?

• The principal must be unaware of the act

• The agent must act in their own name

• The principal must have knowledge of the material facts

• The agent must be a minor

Under what condition can a minor act as an agent?

• Only if they are of sound mind

• They cannot act as an agent

• They can act but are not responsible for their acts

• Only if they are authorized by a court

Which case illustrates the concept of agency by necessity?

• Chan Yin Tee v William Jacks & Co

• Keighley Maxted & Co v Durant

• Great Northern Railway Co v Swaffield

• None of the above

What is the effect of ratification by the principal?

• The contract is void

• The contract is binding as if the agent was authorized beforehand

• The agent is liable for any losses

• The third party must renegotiate the contract

Which section of the Contracts Act 1950 deals with the capacity of the principal?

• Section 135

• Section 136

• Section 137

• Section 140

In which situation is an agency relationship implied?

• When the principal explicitly states it in writing

• When the agent acts without any authority

• When it is inferred from the circumstances

• When the principal is a minor

What is the presumption in law regarding agency between husband and wife?

• The husband has authority to pledge the wife's credit

• The wife has authority to pledge the husband's credit

• Both have equal authority to pledge each other's credit

• Neither has authority to pledge the other's credit