Page 132 - DCOM103_COMMERCIAL_LAW

Unit 12: Law of Agency

12.10 Self Assessment Notes

State whether the following statements are true or false:

1. A substituted agent is as good agent of the agent as a sub-agent.
2. An ostensible agency is as effective as an express agency.

3. Ratification tantamount to prior authority
4. Agent being merely a connecting link is never personally liable.

5. An agency coupled with interest is irrevocable.
Fill in the blanks:
6. The principal is not liable for ……………… acts done by the agent at the instance of the
principal.

7. The liability of an undisclosed principal is similar to that of a disclosed principal unless
there is a ……………… making the agent liable.
8. A ………………… is a mercantile agent engaged to buy and/or sell property.

9. The person executing the deed is known as the ……………….
10. The power of attorney is required to be engrossed on ……………….

12.11 Review Questions

1. How is agency created?
2. What is ‘agency by estoppel’? In what way does it differ from agency by holding out?
3. Explain clearly the meaning of ‘agency by ratifi cation’. What conditions must be fulfi lled

for a valid ratification? Explain the effects of a valid ratifi cation.
4. Discuss the extent to which agent can delegate his authority. State the consequences where
the agent properly employs a sale agent and when he appoints him without authority.
5. Discuss the rights of agent against his principal.
6. In what ways may a contract of agency be terminated by the act of the parties?
7. Describe the meaning of ‘agency by ratification’. What conditions must be fulfilled for a

valid ratification? Explain the effect of a valid ratifi cation.

8. “Agent having an authority to do an act has authority to do every lawful thing which is
necessary in order to do such act.” Comment.
9. What do you mean by del credere agent?
10. D, a carrier, discovers that a consignment of tomatoes owned by E has deteriorated badly
before the destil reached. He, therefore, sells the consignment for what he can get; this is
about a third of the market price for good E sues D for damages. 0 claims he was an agent
of necessity. Advise him
11. P, a solicitor, entrusted all his work to his clerk and rarely attended to it himself. The clerk
induced a c1ier conveyance of his property under the impression that it was merely apower
of attorney. Later he sold the pre absconded with the money. The client sues P. Is Pliable?

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