Question 1

The bankruptcy of the principal is not a valid reason to terminate an agency.

Accepted Answer

A) True 
 B)False

Question 2

Only a lawyer can become an attorney-in-fact.

Accepted Answer

A) True 
 B)False

Question 3

A party who employs another person to act on his or her behalf is known as a ________.

Accepted Answer

A) agent 
B) principal 
C) independent contractor 
D) employee 
A) agent 
B) principal 
C) independent contractor 
D) employee

Question 4

Canton has listed his house for sale, but cannot be present to take care of the sale as he needs to go out of town.He intends to give his brother Stratham the power of attorney to just make decisions regarding selling of his house while he is gone.What kind of power of attorney should Canton execute?

Accepted Answer

A) a general power of attorney 
B) a special power of attorney 
C) a limited power of attorney 
D) an implied power of attorney 
A) a general power of attorney 
B) a special power of attorney 
C) a limited power of attorney 
D) an implied power of attorney

Question 5

Which of the following is true of an agency coupled with an interest?

Accepted Answer

A) It is created for the benefit of the principal. 
B) It is irrevocable by the principal alone. 
C) It can be terminated prior to completion of the agency by the principal. 
D) It is terminated by the death of either the agent of principal. 
A) It is created for the benefit of the principal. 
B) It is irrevocable by the principal alone. 
C) It can be terminated prior to completion of the agency by the principal. 
D) It is terminated by the death of either the agent of principal.

Question 6

Which of the following would lead to the termination of an agency by operation of law?

Accepted Answer

A) loss or destruction of the subject matter of the agency 
B) death of either the principal or agent 
C) loss of a required qualification 
D) a change in the law 
A) loss or destruction of the subject matter of the agency 
B) death of either the principal or agent 
C) loss of a required qualification 
D) a change in the law

Question 7

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Accepted Answer

A) True 
 B)False

Exam 29: Agency Formation and Termination

The bankruptcy of the principal is not a valid reason to terminate an agency.

Only a lawyer can become an attorney-in-fact.

A party who employs another person to act on his or her behalf is known as a ________.

Which of the following is true of an agency coupled with an interest?

Which of the following would lead to the termination of an agency by operation of law?

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Legal Heritage and the Digital Age

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