Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ICAEW Law 03: Agency > 03. STUDY MANUAL questions on Agency. > Flashcards

03. STUDY MANUAL questions on Agency. Flashcards

You may prefer our related Brainscape-certified flashcards:
Civil Procedure 1L flashcards MBE flashcards MPRE flashcards
1
Q

T/F: a valid agency relationship can be created by law.

A

TRUE

An agency of necessity is so created.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

T/F: a valid agency relationship can be created by ratification.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

T/F: a valid agency relationship can be created by consent between the parties.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

T/F: a valid agency relationship can be created by the agent holding themselves out as agent.

A

FALSE

‘holding out’ only exists where the PRINCIPAL holds someone out as agent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The (agent / principal) has a duty not to retain benefit from the relationship.

A

agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The (agent / principal) has a duty to pay agreed remuneration, even if no benefit has been derived from the relationship.

A

principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The (principal / agent / both) have duties of confidentiality.

A

both

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The purchasing manager of a building firm, whithout having express permission to make a particular purchase, nevertheless has the … authority to make a contract for the purchase of timer on behalf of her employer.

A

implied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Agency.

A

The relationship which exists wereby a party is brought into contract with third parties by another acting on their behalf.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The relationship which exists wereby a party is brought into contract with third parties by another acting on their behalf.

A

Agency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Identify the four ways in which an agency can arise.

A

Mutual consent (express or implied).
Ratification.
Operation of law (agency of necessity).
Agency by estoppel (holding out by the principal).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

T/F: a principal may, in certain circumstances, ratify the acts of an agent, which have retrospective effect.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Ostensible authority.

A

The authority which the principal represents to other persons they have given to the agent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The authority which the principal represents to other persons they have given to the agent.

A

Ostensible authority.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

T/F: an agent may disobey the instructions of the principal if they believe disobedience to be in the best interests of the principal.

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The three types of authority that an agent might have.

A

Actual Express.
Actual Implied.
Ostensible or Apparent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

T/F: provided an agent has authority and is known to be an agent, they can never have any personal liability under the contract and only the princpial can be liable.

A

FALSE

A contrary intention may be express or implied.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Creation of agency: C* E R N

A

consent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Creation of agency: C E* R N

A

estoppel

20
Q

Creation of agency: C E R N*

A

necessity

21
Q

Creation of agency: C E R* N

A

ratification

22
Q

Three types of authority: AE* AI OA

A

actual express

23
Q

Three types of authority: AE AI* OA

A

actual implied (incidental and usual)

24
Q

Three types of authority: AE AI OA*

A

ostensible or apparent

25
Q

T/F: A person properly appointed to a position has the actual implied usual authority of that position.

A

TRUE

26
Q

A person NOT properly appointed to a position but behaving as if they were, unchallenged, will potentially be deemed to be acting with …

A

ostensible or apparent authoritiy

‘unchallenged’ being the key word

27
Q

T/F: When an agent enters into a contract with a third party on behalf of the principal, the agent must have full contractual capacity.

A

FALSE

only the principal need have full contractual capacity

28
Q

T/F: An agent must be appointed in writing.

A

FALSE

29
Q

Modern methods of communication make an agency …

A

of necessity unlikely to be deemed to exist.

30
Q

T/F: A principal can ratify, even though they had no legal capacity at the time the contract was made, provided they have full legal capacity at the time of any purported ratification.

A

FALSE

a principal must have legal capacity at BOTH at the time the contract was made AND at the time of ratification.

31
Q

T/F: A principal can ratify even if the agent had no authority at all to enter into the contract?

A

TRUE

ratification creates a valid agency relationship

32
Q

T/F: The relationship between a principal and their agent is a fiduciary one.

A

TRUE

33
Q

The relationship between a principal and their agent is a … one.

A

fiduciary

34
Q

T/F: An agent only owes duties to a principal to the extent that such duties have been negotiated and included in the contract between them.

A

FALSE

there are also duties under common law and statute due to their fiduciary relationship

A C P O S P C and I R L

35
Q

T/F: A person authorised to sell a car also has authority to advertise the car for sale.

A

TRUE

such authority is incidental to express authority

36
Q

T/F: A person authorised to sell a car ‘for £10,000’ also has authority to reduce the price.

A

FALSE

37
Q

A partner doing work outside the normal business of the firm, unchallenged by their fellow partners, …

A

will be deemed to have ostensible/apparent authority

38
Q

A third party believing an agent to be acting on their own account …

A

may choose to sue the agent or the principal

39
Q

If a third party believes an agent to be acting on their own account, the ‘unknown principal’ …

A

has the primary right to sue the third party

40
Q

If a third party believes an agent to be acting on their own account, the agent …

A

has a right to sue the third party, but this is subordinate to the principal’s

41
Q

If a third party believes an agent to be acting on their own account, the third party …

A

may choose to sue either the principal or the third party

42
Q

T/F: If an ‘agent’ acts without authority the ‘principal’ has no liablity to the third party.

A

TRUE

43
Q

T/F: If an ‘agent’ acts without authority the third party has no claim against the ‘principal.’

A

TRUE

44
Q

If an ‘agent’ acts without authority the third party has a claim for …

A

the tort of deceit

45
Q

If an ‘agent’ acts without authority the principal has a claim for …

A

breach of warranty of authority

ICAEW Law 03: Agency (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions