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UGBA 175 Ch 19-20 Questions and Correct
Answers/ Latest Update / Already Graded
Q: What is agency?
Ans: A: A consensual relationship in which one person (agent)
acts on behalf of another (principal) and is subject to the
principal's control.
Q: What acts may a principal delegate to an agent?
Ans: A: Any act the principal could lawfully perform personally.
Q: What acts may NOT be delegated to an agent?
Ans: A:
Illegal acts
Crimes
Purely personal services (e.g., painting a portrait)
Q: Are all employees agents?
Ans: A: Yes.
All rights reserved © 2025/ 2026 |
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Q: Are all agents employees?
Ans: A: No.
Q: Does an unpaid agent have authority equal to a paid agent?
Ans: A: Yes — unpaid agents can bind principals and create
liability.
Q: What is agency by estoppel?
Ans: A: Liability imposed when a principal creates the
appearance of authority for an agent and a third party
reasonably relies on it.
Q: Elements of agency by estoppel (EXAM LIST)?
Ans: A:
Principal causes belief of authority (intentionally or carelessly)
Principal knows or should know and fails to correct
Third party reasonably and in good faith relies
Third party changes position detrimentally
Q: Liability consequence if agency by estoppel exists?
All rights reserved © 2025/ 2026 |
UGBA 175 Ch 19-20 Questions and Correct
Answers/ Latest Update / Already Graded
Q: What is agency?
Ans: A: A consensual relationship in which one person (agent)
acts on behalf of another (principal) and is subject to the
principal's control.
Q: What acts may a principal delegate to an agent?
Ans: A: Any act the principal could lawfully perform personally.
Q: What acts may NOT be delegated to an agent?
Ans: A:
Illegal acts
Crimes
Purely personal services (e.g., painting a portrait)
Q: Are all employees agents?
Ans: A: Yes.
All rights reserved © 2025/ 2026 |
, Page |2
Q: Are all agents employees?
Ans: A: No.
Q: Does an unpaid agent have authority equal to a paid agent?
Ans: A: Yes — unpaid agents can bind principals and create
liability.
Q: What is agency by estoppel?
Ans: A: Liability imposed when a principal creates the
appearance of authority for an agent and a third party
reasonably relies on it.
Q: Elements of agency by estoppel (EXAM LIST)?
Ans: A:
Principal causes belief of authority (intentionally or carelessly)
Principal knows or should know and fails to correct
Third party reasonably and in good faith relies
Third party changes position detrimentally
Q: Liability consequence if agency by estoppel exists?
All rights reserved © 2025/ 2026 |
