Blaw Exam 3- Agency Exam Actual
Questions and Answers 2026
Agency law is based in -
correct answer ✅Common law
Creating an agency relationship -
correct answer ✅Agency is a relationship in which the agent
agrees to perform a task for, and under the control of, the principal
To create an agency, there must be: -
correct answer ✅1. A principal
2. An agent
3. Who mutually consent that the agent will act on behalf of the
principal, and
4. Be subject to the principal's control,
5. Thereby creating a fiduciary relationship
Requirements for Agency -
correct answer ✅Consent, control, and a fiduciary
relationship are required
A formal agreement (acting like agent and principal is enough to
establish agency)
, Blaw Exam 3- Agency Exam Actual
Questions and Answers 2026
Elements NOT required for an agency relationship include -
correct answer ✅A written agreement (unless the business
of the agent requires a written contract)
Duties of Agent to Principal -
correct answer ✅Duty of Loyalty-The agent:
- Must act for the benefit of the principal
-May not receive outside benefits without approval of the principal
-Can neither disclose nor use for her own benefit any confidential
information
-Is not allowed to compete with his principal within the scope of
the business
-May not act for two principals whose interests conflict
-May not become a party to a transaction without the principal's
permission
-May not engage in inappropriate behavior that reflects badly on
the principal
Other Duties of an Agent -
correct answer ✅An agent must obey her principal's
instructions, unless illegal or unethical.
-Agent must act with reasonable care
Questions and Answers 2026
Agency law is based in -
correct answer ✅Common law
Creating an agency relationship -
correct answer ✅Agency is a relationship in which the agent
agrees to perform a task for, and under the control of, the principal
To create an agency, there must be: -
correct answer ✅1. A principal
2. An agent
3. Who mutually consent that the agent will act on behalf of the
principal, and
4. Be subject to the principal's control,
5. Thereby creating a fiduciary relationship
Requirements for Agency -
correct answer ✅Consent, control, and a fiduciary
relationship are required
A formal agreement (acting like agent and principal is enough to
establish agency)
, Blaw Exam 3- Agency Exam Actual
Questions and Answers 2026
Elements NOT required for an agency relationship include -
correct answer ✅A written agreement (unless the business
of the agent requires a written contract)
Duties of Agent to Principal -
correct answer ✅Duty of Loyalty-The agent:
- Must act for the benefit of the principal
-May not receive outside benefits without approval of the principal
-Can neither disclose nor use for her own benefit any confidential
information
-Is not allowed to compete with his principal within the scope of
the business
-May not act for two principals whose interests conflict
-May not become a party to a transaction without the principal's
permission
-May not engage in inappropriate behavior that reflects badly on
the principal
Other Duties of an Agent -
correct answer ✅An agent must obey her principal's
instructions, unless illegal or unethical.
-Agent must act with reasonable care
