BULE Unit 4 Exam questions well
answered to pass
What is required to form an agency relationship?
a) The agency agreement must be in writing.
b) The agent and principal must agree to enter the relationship.
c) The agent must have contractual capacity.
d) The principal must pay the agent.
b) The agent and principal must agree to enter the relationship.
Which one does NOT form an agency relationship?
a) by express oral agreement between agent and principal
b) implied by the conduct of the principal
c) implied by the conduct of the agent
d) by express written agreement between agent and principal
c) implied by the conduct of the agent
Fiduciary meaning
Relationship based on trust
What are the fiduciary duties of an agent to her principal?
, obedience, accounting, loyalty, performance, notification
What are the fiduciary duties of a principal
Compensation, Reimbursement, Cooperation, Safe working conditions
Express Authority
Oral or written. Authorization must be in writing for contract
Implied Authority
Authority necessary for agent to carry out expressly authorized tasks.
Apparent Authority
When principal causes third party to believe that an agent has authority to act.
Ratification
A principal's affirmation of an agent's unauthorized action. Effective when principal knows all
material facts
How does a principal become liable to third parties on contracts?
answered to pass
What is required to form an agency relationship?
a) The agency agreement must be in writing.
b) The agent and principal must agree to enter the relationship.
c) The agent must have contractual capacity.
d) The principal must pay the agent.
b) The agent and principal must agree to enter the relationship.
Which one does NOT form an agency relationship?
a) by express oral agreement between agent and principal
b) implied by the conduct of the principal
c) implied by the conduct of the agent
d) by express written agreement between agent and principal
c) implied by the conduct of the agent
Fiduciary meaning
Relationship based on trust
What are the fiduciary duties of an agent to her principal?
, obedience, accounting, loyalty, performance, notification
What are the fiduciary duties of a principal
Compensation, Reimbursement, Cooperation, Safe working conditions
Express Authority
Oral or written. Authorization must be in writing for contract
Implied Authority
Authority necessary for agent to carry out expressly authorized tasks.
Apparent Authority
When principal causes third party to believe that an agent has authority to act.
Ratification
A principal's affirmation of an agent's unauthorized action. Effective when principal knows all
material facts
How does a principal become liable to third parties on contracts?
