Lesson 7 Quiz

Question 1

A relationship in which one person represents another in making contracts with third parties is called a(n):

Answer 1

agency

Question 2

In an agency relationship, the party who appoints another to make contracts for and on behalf of him/her is called the:

Answer 2

principal

Question 3

In an agency, the party who is authorized to make contracts for, and on behalf of, another party is called the:

Answer 3

agent

Question 4

An agent who has limited power of authority, or is authorized to carry out only a specific act or acts, is called a/an:

Answer 4

special agent

Question 5

An agent who is authorized to carry out all of a principal’s business of a particular kind or at a given location is called a/an:

Answer 5

general agent