Mod 32 Wrong Answers

Question 1

An agent can bind the principal even if…

Answer 1

The agent is. Minor

Question 2

Upon the loss or destruction of subject matter on which the Agency relationship is based…

Answer 2

The agency relationship is terminated

Question 3

If an art collection to be sold by an agent was, destroyed before the agent found a buyer, the agent…

Answer 3

The agent would not be liable to the principal

Question 4

When an agent enters into a contract with a third person on behalf of an undisclosed principal, the agent is personally liable unless…2

Answer 4

1 Unless the third person discovers the existence and identity of
principal and

2 chooses to hold the principal to contract instead of the agent

Question 5

Ratification is the…2

Answer 5

1 the approval after the fact of an unauthorized act done by an
Agent or

2 act done by someone who is not yet an agent

Question 6

Undisclosed principals cannot…

Answer 6

Cannot ratify unauthorized acts of the agent

Question 7

An agency relationship is terminated by operation of law if…3

Answer 7

1 the subject of the agreement becomes illegal or impossible

2 principal or agent dies or becomes insane

3 principal becomes bankrupt

Question 8

Agent’s renunciation of the agency will…

Answer 8

Not cause the termination of an agency relationship

Question 9

Renunciation

Answer 9

Formal rejection

Question 10

An agent must merely have…

Answer 10

Sufficient mental and physical ability to carry out instructions of
His principal