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CA Foundation Agency — practice questions — page 2

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 31–60 of 79.

Which of these events terminates an agency under the Act?Read the answer and worked solution →An agency ends when the business of the agency isRead the answer and worked solution →B may sell A's land to repay his own debts. A's death or insanityRead the answer and worked solution →A principal may revoke authority any time before it isRead the answer and worked solution →After part exercise of authority, revocation fails as toRead the answer and worked solution →Where an agency was for a fixed period, revoking it without sufficient cause requiresRead the answer and worked solution →Revocation or renunciation of an agency requiresRead the answer and worked solution →A empowers B to let A's house and later lets it himself. This isRead the answer and worked solution →As regards third persons, termination of an agent's authority takes effectRead the answer and worked solution →A revokes B's authority by letter, but B sells for Rs 100 before getting it. With 5 per cent commission, B getsRead the answer and worked solution →A's agent pays money to C after A's death, before hearing of it. The payment isRead the answer and worked solution →When the principal dies or becomes insane, the agent mustRead the answer and worked solution →Termination of an agent's authority has what effect on his sub-agents?Read the answer and worked solution →Absent directions, an agent must conduct business according toRead the answer and worked solution →If an agent departs from directions and a profit accrues, he mustRead the answer and worked solution →A broker sells on credit against custom and the buyer fails. The broker mustRead the answer and worked solution →An agent must always act withRead the answer and worked solution →For his neglect, an agent must compensate the principal forRead the answer and worked solution →An agent must render proper accounts to the principalRead the answer and worked solution →In cases of difficulty, an agent must use reasonable diligence inRead the answer and worked solution →An agent deals on his own account without consent. The principal mayRead the answer and worked solution →From sums received for the principal, an agent may retainRead the answer and worked solution →After permitted deductions, the agent must pay the principalRead the answer and worked solution →Without a special contract, an agent's pay falls dueRead the answer and worked solution →An agent guilty of misconduct in part of the work gets no pay forRead the answer and worked solution →An agent's right to retain the principal's goods and papers until dues are paid is aRead the answer and worked solution →An employer must indemnify his agent against consequences ofRead the answer and worked solution →An agent acts in good faith and a third party is hurt. The employerRead the answer and worked solution →A employs B to beat C and promises indemnity. B, after paying C,Read the answer and worked solution →A builder puts up faulty scaffolding and his bricklayer B is hurt. A mustRead the answer and worked solution →

Worked practice questions

Which of these events terminates an agency under the Act?

  1. The agent takes a loan
  2. The goods rise in price
  3. The agent changes address
  4. The principal is made insolvent
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Correct answer: D. The principal is made insolvent

Section 201 lists adjudication of the principal as insolvent among the modes of ending an agency.

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An agency ends when the business of the agency is

  1. completed fully
  2. advertised widely
  3. audited yearly
  4. taxed locally
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Correct answer: A. completed fully

Completion of the very business for which the agent was appointed brings the agency to an end.

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B may sell A's land to repay his own debts. A's death or insanity

  1. ends the authority
  2. makes B a trustee
  3. makes the sale void
  4. leaves it unterminated
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Correct answer: D. leaves it unterminated

Because B has an interest in the subject-matter, the agency cannot be ended by revocation, death or insanity of the principal.

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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