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CA Foundation Agency — practice questions — page 3

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 61–79 of 79.

Contracts made through an agent are enforced as if made byRead the answer and worked solution →C pays a debt due to B to B's authorised agent. C isRead the answer and worked solution →An agent exceeds authority and the part within it is separable. What binds the principal?Read the answer and worked solution →B, told to buy 500 sheep, also buys 200 lambs for one price. A mayRead the answer and worked solution →Notice given to an agent in the course of the business has the same effect as notice toRead the answer and worked solution →Without a contrary contract, an agent cannot sue on the contract and isRead the answer and worked solution →Personal liability of an agent is presumed where heRead the answer and worked solution →A presumption of the agent's personal liability also arises where the disclosed principalRead the answer and worked solution →An agent contracts with a person unaware that he is an agent. The principalRead the answer and worked solution →A owes B Rs 500 and sells rice to B as C's undisclosed agent. C cannot compel B to take itRead the answer and worked solution →Where the agent is personally liable, the person dealing with him may hold liableRead the answer and worked solution →A sells cotton to B and later learns B was agent for C. A may sueRead the answer and worked solution →A third party induces belief that only the principal is liable. He laterRead the answer and worked solution →A person untruly claims to be an agent and no ratification follows. He mustRead the answer and worked solution →A person who contracted as agent but really acted on his own accountRead the answer and worked solution →A principal who made third persons believe an agent's acts were authorised isRead the answer and worked solution →A tells B not to sell below a set price, but C, unaware, buys below it from B. A isRead the answer and worked solution →Frauds by agents in matters outside their authorityRead the answer and worked solution →An agent for sale makes an unauthorised misrepresentation and C buys. The contract isRead the answer and worked solution →

Worked practice questions

Contracts made through an agent are enforced as if made by

  1. the agent personally
  2. the principal in person
  3. the third party alone
  4. the court of appeal
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Correct answer: B. the principal in person

Section 226 treats the agent's contracts as the principal's own for enforcement and legal consequences.

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C pays a debt due to B to B's authorised agent. C is

  1. still liable to B
  2. discharged of the debt
  3. liable to the agent too
  4. bound to pay again
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Correct answer: B. discharged of the debt

Payment to an agent with authority to receive money counts as payment to the principal.

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An agent exceeds authority and the part within it is separable. What binds the principal?

  1. Everything he did
  2. Nothing that he did
  3. Only the authorised part
  4. Only the excess part
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Correct answer: C. Only the authorised part

Section 227 binds the principal only to the severable part that lay within the agent's authority.

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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