Question 1

"A principal can ratify an agent's contract that was done without authority as long as the agent makes it clear that they are entering into the contract 'subject the principal's ratification.'" Discuss the accuracy of this statement.

Accepted Answer

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Question 2

Explain under what circumstances a principal can be held liable for torts committed by an agent.

Accepted Answer

The answer of Explain under what circumstances a principal can...

Question 3

When an agent has been dealing with a third party for an undisclosed principal and there is a default,what rights are available to the third party?

Accepted Answer

The answer of When an agent has been dealing with...

Question 4

Explain what is meant by an "undisclosed principal" and the significance of such a relationship.

Accepted Answer

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Question 5

The ratification of a contract by the principal must be done in writing.

Accepted Answer

A) True 
 B)False

Question 6

Identify the true statement concerning the law of principal and agent.

Accepted Answer

A)  Agency is only created by way of a contract. 
B)  The principal and his agent owe each other the same duties. 
C)  An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal. 
D)  An agent with no express authority can never bind his principal into a contract with a third party. 
E)  An agent can never be liable to the third party himself while the principal will bear no such liability.

Question 7

The only situation where an agent can be sued by a third party is where he has gone beyond his apparent and actual authority.

Accepted Answer

A) True 
 B)False

Question 8

How is an agency relationship created?

Accepted Answer

The answer of How is an agency relationship created?...

Question 9

Explain how the principle of fiduciary duty works in a partnership relationship.

Accepted Answer

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Question 10

Which one of the following statements is correct with respect to the liability of partners?

Accepted Answer

A)  When a partner enters into a partnership arrangement, he can only lose what he has invested in that partnership. 
B)  If a third party is injured because of an activity carried on by the partnership, that third party can only go after the personal assets of a partner if the assets of the partnership are not enough to provide compensation and the damage was actually caused by the conduct of that partner. 
C)  A general partner is responsible, independent of what she has invested, for any losses caused to outsiders through the partnership business if the assets of the partnership are not enough to cover the claim. 
D)  If there are three equal partners in a partnership, an injured third party can collect only one third of the claim from any one partner. 
E)  A partner can protect himself from any liability beyond his investment if one of the other partners specifically agrees in the partnership agreement to be responsible for all such liability.

Question 11

Partners are vicariously liable for the wrongful acts of employees committed on partnership business.

Accepted Answer

A) True 
 B)False

Question 12

Explain when a group of people would create a society.

Accepted Answer

The answer of Explain when a group of people would...

Question 13

An agent need not disclose the fact that she is acting for a principal in dealings with a third party,and that contract may still be binding on that third party.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is correct with respect to an agent's performance of his duties?

Accepted Answer

A)  The agent may profit at the expense of the principal, if the agent comes into some previously unknown information. 
B)  The agent must never take advantage of the third party. 
C)  The agent must never compete with the principal. 
D)  When an agent fails to act in the best interest of the principal and is an independent contractor, this is just cause for constructive dismissal. 
E)  The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.

Question 15

Chan sold a business to Scott and in the process they valued the "good will" at $50 000.In the sale contract,it was agreed that this amount would be paid by Scott giving Chan 15 percent of the business profits until it was paid.This creates a partnership between them.

Accepted Answer

A) True 
 B)False

Question 16

Of the following,who is not an agent in the eyes of the law?

Accepted Answer

A)  the cashier at London Drugs 
B)  an editor for the Gazette who writes some of the articles and proofreads the final draft of the paper 
C)  the paperboy who sells subscriptions for the Globe and Mail 
D)  a real estate salesman working for Royal LePage 
E)  a computer programmer hired by a real estate agency to help computerize the office by buying appropriate software and hardware for the company and adapting the programs to fit the agency's needs

Question 17

Apparent authority is the authority the agent has based on what the principal has led the third party to believe.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the advantages and disadvantages of partnership as a method of carrying on business compared to incorporation.

Accepted Answer

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Question 19

When one partner dies,what happens to the partnership?

Accepted Answer

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Question 20

Which of the following is correct with respect to the ratification of an agent's contracts?

Accepted Answer

A)  A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority. 
B)  A principal can only ratify an agreement entered into by an agent if his name has not been used. 
C)  When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract. 
D)  The agent can set a time limit within which the ratification must take place. 
E)  A contract can only be ratified if the principal was not able to enter into the contract herself at the time of ratification.

Exam 11: Agency and Partnership

"A principal can ratify an agent's contract that was done without authority as long as the agent makes it clear that they are entering into the contract 'subject the principal's ratification.'" Discuss the accuracy of this statement.

Explain under what circumstances a principal can be held liable for torts committed by an agent.

When an agent has been dealing with a third party for an undisclosed principal and there is a default,what rights are available to the third party?

Explain what is meant by an "undisclosed principal" and the significance of such a relationship.

The ratification of a contract by the principal must be done in writing.

Identify the true statement concerning the law of principal and agent.

The only situation where an agent can be sued by a third party is where he has gone beyond his apparent and actual authority.

How is an agency relationship created?

Explain how the principle of fiduciary duty works in a partnership relationship.

Which one of the following statements is correct with respect to the liability of partners?

Partners are vicariously liable for the wrongful acts of employees committed on partnership business.

Explain when a group of people would create a society.

An agent need not disclose the fact that she is acting for a principal in dealings with a third party,and that contract may still be binding on that third party.

Which of the following is correct with respect to an agent's performance of his duties?

Chan sold a business to Scott and in the process they valued the "good will" at $50 000.In the sale contract,it was agreed that this amount would be paid by Scott giving Chan 15 percent of the business profits until it was paid.This creates a partnership between them.

Of the following,who is not an agent in the eyes of the law?

Apparent authority is the authority the agent has based on what the principal has led the third party to believe.

Discuss the advantages and disadvantages of partnership as a method of carrying on business compared to incorporation.

When one partner dies,what happens to the partnership?

Which of the following is correct with respect to the ratification of an agent's contracts?