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CA Foundation Agency — practice questions

Explore 79 free Agency questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Agency questions and exercises with answers

Showing questions 1–30 of 79.

Under Section 183, who may employ an agent?Read the answer and worked solution →Under Section 185, to create a valid agency:Read the answer and worked solution →An authority given to an agent by words, spoken or written, is called:Read the answer and worked solution →A caretaker who, during the owner's absence abroad, incurs expense to save the farm from a fire is an example of:Read the answer and worked solution →Under Section 198, a valid ratification requires that the person ratifying:Read the answer and worked solution →Under Section 199, ratification must be of:Read the answer and worked solution →Under Section 191, a 'sub-agent' is a person:Read the answer and worked solution →A partner, in relation to the firm's business, is an agent of the firm. This is an example of agency arising:Read the answer and worked solution →Under the Indian Contract Act, an agent is a person who isRead the answer and worked solution →The person for whom an agent acts or whom he represents is called theRead the answer and worked solution →Who may employ an agent under the Indian Contract Act?Read the answer and worked solution →What does the Act say about consideration for creating an agency?Read the answer and worked solution →An authority inferred from circumstances or the ordinary course of dealing isRead the answer and worked solution →An agent authorised to do an act may also doRead the answer and worked solution →A is appointed to carry on B's ship-building business. A mayRead the answer and worked solution →An agent for sale may have goods repaired, if necessary, to protect the principal from loss inRead the answer and worked solution →As between the principal and third persons, who may become an agent?Read the answer and worked solution →An agent may appoint a sub-agent for personal work only ifRead the answer and worked solution →A person employed by the agent and acting under his control in the agency business is aRead the answer and worked solution →A properly appointed sub-agent is ordinarily responsible for his acts toRead the answer and worked solution →A sub-agent is answerable to the principal directly in cases ofRead the answer and worked solution →An agent appoints a sub-agent without authority. Toward that person the agent stands asRead the answer and worked solution →A solicitor allowed to employ an auctioneer names C. C isRead the answer and worked solution →An agent naming another person for the principal must use the discretion ofRead the answer and worked solution →When acts are done for a person without his authority, he mayRead the answer and worked solution →Ratifying an unauthorised act has the effect that it is treated asRead the answer and worked solution →Ratification of an unauthorised act can be madeRead the answer and worked solution →A valid ratification cannot be made by a person whose knowledge of the facts isRead the answer and worked solution →Ratifying one part of a transaction ratifiesRead the answer and worked solution →C, with no authority, ends a tenant's lease. B's later approvalRead the answer and worked solution →

Worked practice questions

Under Section 183, who may employ an agent?

  1. A person who has attained majority and is of sound mind
  2. Only the Government
  3. Any person, including a minor
  4. Only a registered company
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Correct answer: A. A person who has attained majority and is of sound mind

Section 183 allows only a major of sound mind to appoint an agent a minor or person of unsound mind cannot.

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Under Section 185, to create a valid agency:

  1. Consideration is essential
  2. Registration is required
  3. Past consideration is required
  4. No consideration is necessary
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Correct answer: D. No consideration is necessary

Section 185 provides that no consideration is necessary to create an agency.

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An authority given to an agent by words, spoken or written, is called:

  1. Express authority
  2. Ostensible authority
  3. Authority of necessity
  4. Implied authority
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Correct answer: A. Express authority

Section 187 makes authority express when given by words spoken or written implied authority is inferred from conduct or circumstances.

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More Businesslaw topics

Negotiable Instruments Act 1881Nature of ContractsThe Limited Liability Partnership Act 2008PartnershipContract of Indemnity and GuaranteeBreach of Contract and its RemediesPerformance of ContractCompanies Act 2013