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. Which one of the following is not a method of creating a relationship of agency?

Agency arising due to estoppel correct incorrect

Agency by frustration correct incorrect

Agency by agreement correct incorrect

Agency by operation of law correct incorrect

Agency by ratification correct incorrect

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. A relationship of agency cannot be created unless both agent and principal so consent.

True correct incorrect

False correct incorrect

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. An agent who lacks capacity to enter into a transaction cannot enter into such a transaction on his principal's behalf.

True correct incorrect

False correct incorrect

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. Which of the following statements are correct? Please select all that apply.

Generally, a contract entered into with a mentally incapacitated person will not be binding. correct incorrect

A person is presumed to have mental capacity, unless the contrary is established. correct incorrect

An incapacitated principal will not be bound to a third party if the principal was incapacitated at the time that he represented the agent's authority. correct incorrect

Where a person enters into a contract of agency with a mentally incapacitated person, then the contract of agency will be binding, unless the other party knew of the incapacity. correct incorrect

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. Which one of the following statements are incorrect? Please select all that apply.

An agent can only negotiate contracts on behalf of his principal if his appointment was created via a contract. correct incorrect

If an agent is appointed to execute a deed on behalf of the principal, then the agent will usually need to be appointed by deed. correct incorrect

Generally, the law does not impose any formalities upon those who wish to create an agency relationship. correct incorrect

If an agent is engaged to create an interest in land, he must be authorized to do so in writing. correct incorrect

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. Where no contract of agency exists, then the agent will be known as a ______ agent.

Your response

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. Where the act of an agent is ratified by his principal, then the agent is deemed to have authority to engage in that act from the time of ratification onwards.

True correct incorrect

False correct incorrect

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. There are numerous limitations and conditions regarding when agency by ratification can arise. Which one of the following is not a valid limitation or condition?

Only the principal may ratify the actions of the purported agent. correct incorrect

An act that is void in law cannot be ratified. correct incorrect

Ratification must take place within a reasonable time. correct incorrect

The agent must purport to act as agent for a disclosed principal. correct incorrect

The principal must have a choice whether or not to ratify. correct incorrect

The principal must exist at the time that the agent purported to act as agent. correct incorrect

In order to ratify, the agent must have contractual capacity to enter into the contract on the date that he entered into the contract on the principal's behalf. correct incorrect

Ratification will not take place if it would unfairly prejudice a third party. correct incorrect

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. Identify the requirements needed for agency of necessity to arise. Please select all that apply.

The actions of the agent must be necessary for the benefit of the principal. correct incorrect

The principal must consent to the actions undertaken by the agent. correct incorrect

It must not be reasonably practicable for the agent to communicate with the principal. correct incorrect

The agent's actions must be reasonable and prudent. correct incorrect

The principal must be competent at the time of the agent's actions. correct incorrect

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. Which one of the following is not a situation where statute imposes a relationship of agency upon the parties?

Every partner in a firm is deemed to be an agent of the firm, and of the other partners. correct incorrect

A director of a company is an agent of the company correct incorrect

The administrator of a company is an agent of the company correct incorrect

The receiver of a company is an agent of the company. correct incorrect

In certain consumer credit agreements, the person negotiating for the debtor will be acting as an agent of the creditor correct incorrect