Contract of Agency MCQs – Agency agreement

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An agent is a person employed to do any (lawful) act for another or to represent another in dealing with a third person.
Contract of Agency MCQs | MCQs.CLUB

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Contract of Agency MCQs

An agent is a person employed to do any (lawful) act for another or to represent another in dealing with a third person. Here on MCQs.club we have prepared useful Multiple-Choice Questions (MCQs) on contract of agency that fully cover MCQs on agency agreement, contract of agency notes, agency Indian contract act MCQs, sub agent Indian contract act, principal agent agreement MCQs. These MCQS also define agent in contract law, principal agent contract, undisclosed agency agreement, co agent in contract. Our prepared mcq on contract of agency are useful for Professional Accountancy exams, Business management exams, Competitive exams.

  1. Agent – An agent is a person employed to do any (lawful) act for another or to represent another in dealing with a third person.
    1. The above definition is correct
    2. The above definition is incorrect
  1. Types of agent include:
    1. Commercial agent or mercantile agent
    2. Auctioneer
    3. Company directors and managers
    4. Partners in a business partnership
    5. All of the above
  1. A sub-agent is the person employed by the original agent to act under his control in the business of agency. The general rule is that an agent is not entitled to delegate his authority to another person without the consent of his principal. Under what circumstances an agent may appoint a sub-agent and delegate the work?
    1. The principal has expressly permitted delegation of such power.
    2. The ordinary custom of trade a sub-agent may be employed.
    3. The nature of work is such that a sub-agent is necessary
    4. All of the above
  1. Where a sub-agent is properly appointed by an agent to delegate the work:
    1. The principal is bound by the acts of the sub-agent as if the subagent was an agent originally appointed by the principal.
    2. The agent is responsible to the principal for the acts of the subagent.
    3. The sub-agent is responsible for his acts to the agent, but not to the principal, except in case of fraud or willful wrong.
    4. All of the above
  1. Where a sub-agent is not properly appointed by an agent to delegate the work:
    1. The agent stands as a principal towards such a sub-agent
    2. The principal is not represented by such sub-agent and hence he is not liable for the acts of the sub-agent.
    3. The agent is responsible for the acts of the sub-agent to the principal as well as to the third parties.
    4. All of the above
  1. Which of the following is correct for Co-agent or substituted agent?
    1. A co-agent works under the instructions of the principal.
    2. There is a contract between co-agent and the principal.
    3. Co-agent is not affected by the termination of the original agency.
    4. All of the above
  1. What are the ways in which an agency relationship, recognised in law, can be established?
    1. by express appointment (by agreement)
    2. by ratification
    3. by estoppel
    4. by necessity.
    5. All of the above
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