Chapter 4 Questions Flashcards
the concept of agency is tripartite, what are the three relationships
principal and agent
principal and third party
agent and third party
what conditions need to be fulfilled to achieve a valid ratification
person doing the act must do it as agent and not for themselves
principal must have been in the agent’s mind at the time
principal must have full knowledge at the time of ratification
principal must have been in existence at the time of the unauthorised act
whole contract must be ratified in a reasonable time
void or illegal acts cannot be ratified
when may an agent delegate their duties
where expressly authorised by the principal
where the right to delegate in implied (i.e. routine administration)
where delegation is in accordance with trade custom
in cases of necessity
what are the duties of the agent
obedience
care and skill
personal performance
good faith
accounting for money
Gina is acting as an agent of the insured. She has provided advice to the proposer on business insurance and completed a proposal form on their behalf for them to sign. If it becomes clear with a subsequent claim that incorrect pre-contractual information has been provided, the insurer may:
be able to avoid the policy. In this case, the insured may sue Gina for breach of duty.
A principal has just unilaterally served the notice required to terminate the agreement with their agent. This is known as termination by
withdrawal of authority.
Jack works for Insuranceforyou, an insurance intermediary that is an agent of an insurer, ASR. Although not a deliberate act, Jack wrongly explains the cover provided under an insurance contract to a client. Who would ultimately be liable for his actions, if anyone?
ASR
In arranging insurance for its business premises, the insured gave information about the nature of the risk to an insurance intermediary. The intermediary was acting on behalf of the insurer but failed to pass this information on to the insurer. In the event of a subsequent related claim, what would the position be?
The insurer would be bound by the contract because the insurer would be regarded as having the same information as the agent.
in negligence, what standard of care would be required of a newly qualified electrician
the standard for the profession only
one of the requirements for a claimant to succeed in an action for trespass to the person is
intention
A gardener who was entitled to £2,000 under a contract with a private client assigned her rights under the contract to one of her plant suppliers. To be legally valid as a statutory assignment, this assignment must be
absolute
a characteristic of a limited company is that
its activities are defined in the memorandum of association
After what period of time does an action for breach of a simple contract become statute-barred if the action is NOT in respect of personal injuries?
6 years
One of the requirements for the rule in Rylands v Fletcher to operate, is that there must be
a non-natural use of land by the defendant
in tort, pure financial loss can be recoverable when
There is a special relationship between parties where there is an assumption of responsibility towards the claimant by the defendant
