alleryUnder Section 185, what consideration is necessary to create an agency?
APast consideration only
BNo consideration is necessary
CAdequate monetary consideration
DConsideration moving from a third party
Answer & Solution
Correct answer: B. No consideration is necessary
Section 185 expressly provides that no consideration is necessary to create an agency.
Keep practising Consideration
Browse all Consideration questions for CA Foundation, or explore more Businesslaw topics.
Related questions
In Beswick v Beswick, what remedy was granted for a term benefiting a non-party?In which case did Cardozo hold that no privity is needed for a dangerous defective productWhich is a recognised common law exception to the privity rule?Mrs Donoghue could not sue under the contract for a bottle with a snail, so she sued the mWhich doctrine states a contract cannot confer rights or obligations on a non-party?Which international instrument expressly rejects the doctrine of consideration?A bonus clause in a contract rewards the contractor forB pays A $5,000 to hold a script exclusively for a year, with $50,000 more if B produces i