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BL 3335 Final Exam Questions and Correct
Answers/ Latest Update / Already Graded
How is an agency relationship formed?
Ans: 1. Agreement of the parties (expressed or implied)
2. Ratification
3. Estoppel - to stop them from denying something, arises when
the principal's actions have created the appearance of an
agency that does not in fact exist (ie. If landlord says rent will
be reduced, the landlord is estopped from collecting the full
rent if the tenant relied of this to stay in the building)
4. Operation of Law - often in family relationships and
emergency situations
Sources of law that govern agency relationship
Ans: 1. Common law (most predominant)
2. Statutory law - partners and employment relationships
3. Contracts
Issues with "outside relationships" with agencies
Ans: (relationship between the principal and 3rd party and
between the agents and 3rd party)
issues:
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- vicarious liability-- responsibility of the superior for acts by
subordinate
- conflict of interest
- contract issues
- duty to notify
What common law duties does the principal owe to the agent?
Ans: 1. Compensation
2. Reimbursement and Indemnification
3. Cooperation
4. Safe Working Conditions
Compensation (P-->A)
Ans: agent reasonable expects payment, therefore, the
principal has a duty to pay the agent for services rendered
Reimbursement and Indemnification (P-->A)
Ans: - P has a duty to reimburse A for any costs incurred on P's
behalf
- P has a duty to indemnify (compensate) an agent for liabilities
incurred because of authorized and lawful acts/transactions
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- P must indemnify A for the value of the benefits that an A
covers on the P (specified in agency k)
Cooperation (P-->A)
Ans: P has a duty to cooperate with A and to assist the A in
performing his/her duties
Safe working conditions (P-->A)
Ans: P has to provide safe working premises, equipment, and
conditions for all agents and employees (mitigate reasonable
and foreseeable risks)
What common law duties does the agent owe to the principle?
Ans: 1. Performance
2. Loyalty***
3. Notification
4. Obedience
5. Accounting
Duty of Performance (A-->P)
All rights reserved © 2025/ 2026 |
BL 3335 Final Exam Questions and Correct
Answers/ Latest Update / Already Graded
How is an agency relationship formed?
Ans: 1. Agreement of the parties (expressed or implied)
2. Ratification
3. Estoppel - to stop them from denying something, arises when
the principal's actions have created the appearance of an
agency that does not in fact exist (ie. If landlord says rent will
be reduced, the landlord is estopped from collecting the full
rent if the tenant relied of this to stay in the building)
4. Operation of Law - often in family relationships and
emergency situations
Sources of law that govern agency relationship
Ans: 1. Common law (most predominant)
2. Statutory law - partners and employment relationships
3. Contracts
Issues with "outside relationships" with agencies
Ans: (relationship between the principal and 3rd party and
between the agents and 3rd party)
issues:
All rights reserved © 2025/ 2026 |
, Page |2
- vicarious liability-- responsibility of the superior for acts by
subordinate
- conflict of interest
- contract issues
- duty to notify
What common law duties does the principal owe to the agent?
Ans: 1. Compensation
2. Reimbursement and Indemnification
3. Cooperation
4. Safe Working Conditions
Compensation (P-->A)
Ans: agent reasonable expects payment, therefore, the
principal has a duty to pay the agent for services rendered
Reimbursement and Indemnification (P-->A)
Ans: - P has a duty to reimburse A for any costs incurred on P's
behalf
- P has a duty to indemnify (compensate) an agent for liabilities
incurred because of authorized and lawful acts/transactions
All rights reserved © 2025/ 2026 |
, Page |3
- P must indemnify A for the value of the benefits that an A
covers on the P (specified in agency k)
Cooperation (P-->A)
Ans: P has a duty to cooperate with A and to assist the A in
performing his/her duties
Safe working conditions (P-->A)
Ans: P has to provide safe working premises, equipment, and
conditions for all agents and employees (mitigate reasonable
and foreseeable risks)
What common law duties does the agent owe to the principle?
Ans: 1. Performance
2. Loyalty***
3. Notification
4. Obedience
5. Accounting
Duty of Performance (A-->P)
All rights reserved © 2025/ 2026 |
