#1
What legal relationship does a subagent have with the principal?
Fiduciary relationship
ExplanationA subagent has a fiduciary relationship with the principal.
#2
Which of the following is NOT a type of agency relationship?
Bilateral agency
ExplanationBilateral agency is not a type of agency relationship.
#3
Which of the following best describes the concept of agency in law?
A legal relationship where one party acts on behalf of another, with the authority to create legal obligations for the other party.
ExplanationAgency in law involves one party acting on behalf of another, creating legal obligations for the latter.
#4
Which of the following is NOT a characteristic of an agency relationship?
Equal authority between the principal and the agent
ExplanationAn agency relationship doesn't entail equal authority between the principal and the agent.
#5
Which of the following is NOT a way in which an agency relationship can be terminated?
Change in the law
ExplanationAn agency relationship cannot be terminated solely by a change in the law.
#6
What is ratification in the context of agency law?
The act of the principal accepting or approving an unauthorized act performed by the agent.
ExplanationRatification in agency law involves the principal accepting or approving an unauthorized act by the agent.
#7
What is the significance of the doctrine of undisclosed principal in agency law?
It allows the principal to avoid liability by remaining undisclosed in a transaction.
ExplanationThe doctrine of undisclosed principal enables the principal to avoid liability by staying undisclosed.
#8
What is the legal doctrine that holds the principal responsible for the actions of the agent?
Respondeat superior
ExplanationRespondeat superior doctrine holds the principal accountable for the agent's actions.
#9
In agency law, what is the agent's duty of loyalty?
To act in the best interests of the principal
ExplanationThe agent's duty of loyalty in agency law is to act in the principal's best interests.
#10
In agency law, what is ostensible authority?
Authority that is apparent to third parties, based on the actions of the principal.
ExplanationOstensible authority in agency law refers to authority apparent to third parties due to the principal's actions.
#11
What doctrine holds the principal liable for the authorized acts of the agent?
Respondeat superior
ExplanationRespondeat superior doctrine holds the principal responsible for the agent's authorized acts.
#12
What is the difference between actual authority and apparent authority in agency law?
Actual authority is expressly granted, while apparent authority is implied by the actions of the principal.
ExplanationActual authority is explicitly given, whereas apparent authority is inferred from the principal's actions.
#13
Under what circumstances can an agent be personally liable for contracts made on behalf of a disclosed principal?
If the agent exceeds their actual authority and the principal is undisclosed.
ExplanationAn agent can be personally liable if they exceed their authority and the principal remains undisclosed.
#14
Which of the following is a consequence of a principal's breach of the duty to indemnify the agent?
The agent is entitled to reimbursement for losses incurred in the course of agency.
ExplanationA principal's breach of the duty to indemnify entitles the agent to reimbursement for incurred losses.
#15
What is the difference between a disclosed principal and an undisclosed principal?
A disclosed principal is known to the third party, while an undisclosed principal is unknown.
ExplanationA disclosed principal is identified to third parties, whereas an undisclosed principal remains anonymous.