
Understanding Agency by Estoppel

Interactive Video
•
Business, Social Studies
•
11th Grade - University
•
Hard

Sophia Harris
FREE Resource
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the term 'estoppel' mean in the context of agency?
To prevent a principal from denying an agent's authority
To establish a new agency relationship
To terminate an agent's contract
To allow an agent to act freely
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key characteristic of agency by estoppel?
It automatically terminates after a year
It is based on the principal's actions or inactions
It requires a written contract
It is only applicable in employment relationships
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Under what condition is a principal estopped from denying an agent's authority?
When the principal has informed the third party of the agent's lack of authority
When the agent has terminated the contract
When the principal has led the third party to believe the agent has authority
When the agent acts without any authority
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does agency by estoppel protect third parties?
By holding the principal accountable for the agent's actions
By allowing them to terminate the agent's authority
By providing them with a direct contract with the principal
By ensuring they are aware of all agent's actions
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the Freeman and Lockyer case, what was the main reason the company was estopped from denying the agent's authority?
The agent had explicit authority from the board
The other directors were unaware of the contract
The third party was informed of the agent's lack of authority
The directors allowed the third party to believe the agent had authority
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the role of the board of directors in the Freeman and Lockyer case?
They explicitly authorized the agent's actions
They were unaware of the agent's actions
They allowed the third party to believe the agent had authority
They terminated the agent's contract
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one effect of agency by estoppel on the principal?
The principal is not liable for any contracts made
The principal is liable for contracts made by the agent
The principal can terminate the agent's authority without notice
The principal can deny the agent's authority at any time
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