NAU ACC 205 FINAL PAPER 2025/2026 QUESTIONS AND
ANSWERS GRADED A+
✔✔Agent - ✔✔One authorized to act for/on behalf of principal (employee)
✔✔Agent authority - ✔✔Express
Implied
Apparent
Emergency
Ratification
✔✔Disclosed principle - ✔✔Agent not liable, principal liable
✔✔Duty of accounting - ✔✔
✔✔Duty of cooperation - ✔✔A principal must allow an agent to perform his duties. This
being the case, a principal must cooperate with and assist an agent.
✔✔Duty of indemnification - ✔✔
✔✔Duty of loyalty - ✔✔most fundamental; A must act solely for benefit of the P
✔✔Duty of reimbursement - ✔✔
✔✔Equal dignity rule - ✔✔Requires that the agency agreement be IN writing IF the
contract the agent will be signing is also required to be IN writing.
✔✔Express authority - ✔✔means the principal gave the agent authority to act (either in
writing or orally).
✔✔Implied authority - ✔✔mean the agent has the ability to do "what is reasonably
necessary to carry out the express authority of the agency.
✔✔Partially disclosed principal - ✔✔Agent possibly liable, principal liable
✔✔Principal - ✔✔One who hires agent to represent him/her (employer)
✔✔Principal's duties - ✔✔Compensation
Reimbursement and Indemnification
Cooperation
Safe Working Conditions
✔✔Principal's liability on agent contract - ✔✔Principle directly responsible if:
Principal directs agent to commit tortious act; or
, Principal fails to provide proper instruments, tools, or adequate instructions
✔✔Undisclosed principle - ✔✔Agent liable, principal liable
✔✔Adverse Possession - ✔✔When person openly treats real property as his/her own,
without protest/permission from real owner, for statutorily-established period of time,
ownership is automatically vested in that person
✔✔Definition of land - ✔✔means the actual land (i.e. soil, ground and earth) plus any
buildings on the land, fixtures attached to the land, mines, minerals and some airspace.
✔✔Easement - ✔✔Irrevocable right to use some part of another's land for a specific
purpose, without taking anything from the land. Example: Utility easement
✔✔Eminent domain - ✔✔Government's ultimate ownership interest in all land in the
U.S.
✔✔Free simple absolute - ✔✔Right to possess for life and devise (will) to heirs upon
death; the most complete interest in real property; includes right to commit waste.
✔✔Fixed term tenancy - ✔✔an express agreement for a specified period of time such a
month, a year, a summer
✔✔Joint tenancy - ✔✔same as in common but interest upon death passes to the
surviving JT (married couples).
✔✔Land boundaries - ✔✔Surface Rights
Airspace
Water Rights
Mineral Rights (Subsurface Rights)
✔✔Leasehold estate - ✔✔Right to possess (but not own) property (land, building,
fixtures, furnishings, etc) for a stipulated period of time. A leaseholder cannot take
permanent improvements with you.
✔✔Life estate - ✔✔Granted for lifetime of an individual; right to possess property
terminates upon life estate holder's death, and property will pass to another party
designated by original grantor
✔✔Periodic tenancy - ✔✔no specified period of time but specifies that rent is to be paid
a certain intervals.
ANSWERS GRADED A+
✔✔Agent - ✔✔One authorized to act for/on behalf of principal (employee)
✔✔Agent authority - ✔✔Express
Implied
Apparent
Emergency
Ratification
✔✔Disclosed principle - ✔✔Agent not liable, principal liable
✔✔Duty of accounting - ✔✔
✔✔Duty of cooperation - ✔✔A principal must allow an agent to perform his duties. This
being the case, a principal must cooperate with and assist an agent.
✔✔Duty of indemnification - ✔✔
✔✔Duty of loyalty - ✔✔most fundamental; A must act solely for benefit of the P
✔✔Duty of reimbursement - ✔✔
✔✔Equal dignity rule - ✔✔Requires that the agency agreement be IN writing IF the
contract the agent will be signing is also required to be IN writing.
✔✔Express authority - ✔✔means the principal gave the agent authority to act (either in
writing or orally).
✔✔Implied authority - ✔✔mean the agent has the ability to do "what is reasonably
necessary to carry out the express authority of the agency.
✔✔Partially disclosed principal - ✔✔Agent possibly liable, principal liable
✔✔Principal - ✔✔One who hires agent to represent him/her (employer)
✔✔Principal's duties - ✔✔Compensation
Reimbursement and Indemnification
Cooperation
Safe Working Conditions
✔✔Principal's liability on agent contract - ✔✔Principle directly responsible if:
Principal directs agent to commit tortious act; or
, Principal fails to provide proper instruments, tools, or adequate instructions
✔✔Undisclosed principle - ✔✔Agent liable, principal liable
✔✔Adverse Possession - ✔✔When person openly treats real property as his/her own,
without protest/permission from real owner, for statutorily-established period of time,
ownership is automatically vested in that person
✔✔Definition of land - ✔✔means the actual land (i.e. soil, ground and earth) plus any
buildings on the land, fixtures attached to the land, mines, minerals and some airspace.
✔✔Easement - ✔✔Irrevocable right to use some part of another's land for a specific
purpose, without taking anything from the land. Example: Utility easement
✔✔Eminent domain - ✔✔Government's ultimate ownership interest in all land in the
U.S.
✔✔Free simple absolute - ✔✔Right to possess for life and devise (will) to heirs upon
death; the most complete interest in real property; includes right to commit waste.
✔✔Fixed term tenancy - ✔✔an express agreement for a specified period of time such a
month, a year, a summer
✔✔Joint tenancy - ✔✔same as in common but interest upon death passes to the
surviving JT (married couples).
✔✔Land boundaries - ✔✔Surface Rights
Airspace
Water Rights
Mineral Rights (Subsurface Rights)
✔✔Leasehold estate - ✔✔Right to possess (but not own) property (land, building,
fixtures, furnishings, etc) for a stipulated period of time. A leaseholder cannot take
permanent improvements with you.
✔✔Life estate - ✔✔Granted for lifetime of an individual; right to possess property
terminates upon life estate holder's death, and property will pass to another party
designated by original grantor
✔✔Periodic tenancy - ✔✔no specified period of time but specifies that rent is to be paid
a certain intervals.
