QUIZ QUESTIONS

LAW OF AGENCY

(The numbers refer to the numbered sections in the text.)

1. What may be said in regard to agency as a separate branch of law?

2. Define agent.

3. Define principal.

4. Wherein does agency differ from service?

5. Give the various classifications of agents. Define general agent; special agent.

6. Name some agencies which are usually given separate consideration.

7. Give the general rule in regard to the purposes for which agents may be appointed.

8. Discuss the rule that an illegal or immoral act cannot be delegated. What classes of acts are forbidden to be delegated as against public policy? Are lobbying agents able to enforce their contracts with the principal?

9. How, in general, is the relationship of principal and agent established? Is it necessary that the contract of agency be in writing?

10. State briefly the necessary elements of the contract of

agency.

11. What consideration should exist between the parties for the contract of agency? State briefly what is meant by consideration in the contract.

12. Give the general rule as to who may be principals. 13. What is the rule in respect to infants as principals? 14-18. What is the rule as to principals in respect to insane persons? Married women? Corporations? Partnerships? Clubs?

19. What is the rule as to who may become agents?

20. What are the legal principles governing the appointment of infants as agents? Married women? Corporations? Partnerships?

21. What is meant by joint principals? Give examples. What are the principles governing the liability of members of unincorporated societies and clubs?

22. What are the rules governing the execution of the authority by joint agents? What exception to the rules?

23. Can an agent act for two opposing principals? If so, state under what circumstances.

24. What is meant by agency by estoppel? Give an illustration.

25-26. What is the meaning of agency from necessity? Give the more common instances in which agency from necessity operates.

27. What is meant by the formation of the relation of principal and agent by ratification?

28. State in a concise manner the meaning of ratification. 29-31. State the necessary elements of ratification and give illustrations of the application of the doctrine of ratification.

32. What form should the ratification by the principal take? When is it necessary that ratification should be in writing? When is it necessary that ratification should be by instrument under seal?

33. State generally what acts may be ratified.

34. Has the validity of the act anything to do with the manner or form of ratification thereof? Can forgery be the subject of ratification?

35. What is the general doctrine as to who may ratify the act of an alleged agent? Can a partner ratify the act of his co-partner? Can an agent ratify the act of a sub-agent? 36. What is the effect of the ratification by the principal of the contract made by the agent?

37. Does the ratification of a contract made by the agent bring the principal into privity with the third party? What is the doctrine as to whether the third party may withdraw before the principal ratifies?

38. Can the principal by ratifying the act of an alleged agent interfere with the previously acquired rights of strangers?

39. After the ratification is the agent wholly released from responsibility to the principal?

40. What is the effect of ratification as between the agent and the third party?

41. May an agent delegate his authority? What is meant by delegation of authority? If possible give the Latin maxim. 42. Are there any circumstances under which an agent may delegate authority involving judgment and discretion? 43. What may be said as to the delegation of mechanical and ministerial duties?

44. Give the definition of a sub-agent. Has an agent authority to employ a sub-agent? If so, state under what circumstances.

45. What are in general the methods of terminating the relation between the agent and the principal?

46-47. What is meant by the termination of the relation of principal and agent by original agreement? What is meant by termination by subsequent agreement?

48. How may a principal revoke the authority of his agent, and what agencies are revocable at will?

49. Distinguish between the principal's right to revoke and his power to revoke, and give examples.

50. Is the element of good faith on the part of the principal in revoking an agency ever a factor in determining the rights of the agent?

51. State what is meant by "power coupled with an interest" and give an illustration.

52. After the revocation of an agency by a principal, what notice, if any, is required to be given by him? Does the principal's liability for the acts of the agent continue where he fails to give notice?

53. What is the result of a renunciation of his appointment by the agent?

54. State the manner in which an agency may be terminated by operation of law.

55. What effect has the death of the principal or of the agent upon the agency?

56-58. What effect has the insanity of either principal or agent upon the agency? What effect has the bankruptcy of

either? What effect has the outbreak of war on the relationship?

59. Has the marriage of either party any effect upon the relationship of principal and agent?

60. What is meant by express authority given to an agent and what may be said as to the extent to which an agent may go in exercising it?

61. How may implied authority in an agent arise? Give an example.

62. (a) What is meant by general authority and what by special authority of an agent? (b) May general authority and special authority arise by implication?

63. (a) Is there any distinction between the authority given to an agent and instructions given to him? (b) A is a diamond merchant, and B is a jeweler. B is accustomed to receive goods from A for sale to his customers. A places in B's hands a diamond ring, and it is agreed that B may offer it for sale and that he is to pay for it when it is sold. B sells the ring to C, but B absconds with the money. A sues C to recover the purchase price. Can he recover? 64. (a) To what extent are third parties protected in dealing with a general agent? (b) To what extent are they protected in dealing with a special agent?

65. (a) What is the general rule of the construction of a written power of attorney? (b) Write out a power of attorney to John Jones, authorizing him to manage your coal business while you are in Europe, and put in such provisions as you would consider necessary for the proper management of the business during your absence.

66. What construction is placed upon the authority when the same is given to an agent by word of mouth?

67. When the authority given to an agent is doubtful or ambiguous, to what extent will the third party be protected in dealing with the agent?

68. When the authority of an agent arises by implication, what is the rule of construction of such implied authority? 69-70. (a) How is an agent given authority to sell land? (b)

A authorizes B to sell his house and lot, but does this by word of mouth. How far may B go in the transaction?

(c) If B conveyed title to C under the oral authority, would C have legal title against the owner?

71. A, in driving through the town of Chatham, stops at the Phenix Hotel over night and leaves his horse and wagon in the stable of B. The next morning before A calls at the stable B represents to C that he owns the horse and wagon and sells it to C. B receives the purchase price. A, learning that C has possession of the horse, attempts to take it away from him, but C resists. What are the rights of the parties?

72. Where an agent is given authority to purchase property,

can he sell his own property to the principal?

73. What is the general rule as to whether an agent may make or endorse negotiable paper on behalf of his principal? 74. To what extent may an agent act who is given authority to manage the business of his principal? 75. (a) How must an agent execute the authority conferred on him? (b) Can agency be proved by the statements and declarations of the agent? (c) Where both the principal and the agent deny the agency, how may the third party prove the same?

76. (a) How should an agent who is to perform an act under seal execute his authority? (b) Assume that the agent has signed an instrument under seal with his own name, and that the third party knew he was signing simply as an agent for a particular principal. Can the principal sue the third party on the sealed instrument?

77. (a) A signs a contract not under seal in his own name. Later the third party learns that A acted merely as agent, whereas he had relied upon the personal responsibility of A at the time the contract was made. The third party sues the principal. Can he recover? (b) In the event that the third party sues the agent, can the agent relieve himself from responsibility by showing that he acted for a principal?

78. May an agent's authority to make and endorse negotiable instruments arise by implication? If so, give an illustration.

79-80. (a) What are the chief duties of the principal toward the agent? (b) Where no amount of compensation has