BUS201 U6

The Singapore case of Hongkong & Shanghai Banking Corp v San's Rent A Car Pte Ltd (1994) affirmed the doctrine of the undisclosed principal. Which of the following is a correct statement about this doctrine?

-IDK Wrong answer: Any defence which a third party may have against the agent would not be available against the undisclosed principal. Wrong answer: An undisclosed principal cannot be sued and held liable for the contract.

An agent has various rights against his principal. Which one of the following is one of such rights?

A right to be paid by the principal for the work done by the agent.

Which of the following best describes the concept of agency?

An agent is a person who has been conferred authority by the principal to establish legal relations on his principal's behalf with an third party.

Which of the following would constitute a conflict of interests between the agent and the principal?

An agent sells a piece of land to his principal, without disclosing to the principal that he (the agent) is the seller.

"A principal is bound to a third party for all acts performed by the agent in certain situations. Which of the following illustrate(s) such a situation? I) The principal had lawfully ratified the contract with the third party. II) The agent has apparent authority. III) The agent did not exceed his scope of authority. IV) The third party agreed to the acts of the agent."

I, II and III

"Which of the following are ways in which an agency can be terminated? I) Full performance of the agency contract so that it comes to a natural end. II) Occurrence of a repudiatory breach of the agency contract. III) Revocation by a principal of the agent's authority, in the absence of any contrary undertaking by the principal. IV) Upon the passing of a reasonable time after the execution of the agency contract."

I, II and III

"Which of the following are types of agencies found in the commercial world? I) Special agent. II) Del credere agent. III) Power agent. IV) General agent."

I, II and IV

"In some situations, an agent will attract personal liability vis-à-vis a third party. Which of the following illustrate(s) such a situation? I) The agent agrees to be held liable to the third party. II) Customs and trade usage have established that an agent will be held liable. III) The agent was not acting on behalf of a principal. IV) The agent had misrepresented his authority to the third party."

I, II, III and IV

"In which of the following scenarios would the doctrine of undisclosed principal not be applicable? I) Where the contract relates to matters that are unique to the agent. II) Where the agent's identity is critical to the contract. III) Where the agent entered into a contract in circumstances which imply that the agent is the principal. IV) Where the principal has made a representation as to the agent's authority."

I, II, III and IV

"What are the conditions for effective ratification or confirmation by the principal of the agent's acts? I) The principal must be identified as such. II) The principal must exist when the contract is made, save for certain instances such as under Section 41 of the Companies Act of Singapore. III) The principal must have the capacity to enter into and perform the contract. IV) The ratification by the principal must be within a reasonable time after the act of the agent."

I, II, III and IV

"Which of the following is/are dut(ies) of an agent? I) Duty to avoid conflicts of interest. II) Duty to follow instructions. III) Duty not to delegate his responsibility to others. IV) Duty not to make a secret profit."

I, II, III and IV

"Which of the following are ways in which an agency relationship can be created? I) Apparent authority as a result of the principal's representation to third parties about the agent's authority. II) The grant of actual authority to the agent in form of an agency contract. III) Confirmation by the principal of an agent's act. IV) Ostensible authority as a result of the agent's position and title within the principal's organization."

II and III

At law, the general rule is that the agent ____________.

Is not liable to his principal or the third party so long as he acts with the scope of authority conferred by the principal.

An agent has a duty to use reasonable care and skill in the discharge of his duties. This means that an agent ____________.

Must discharge his duties with such skills and care which a reasonable person would expect from an agent in that field of activity.

An agent can possess implied authority. Which of the following best describes implied authority?

The agent's power to do all acts which are reasonably incidental to the discharge of his duties as agent

One situation where an agency can be created by operation of law is through an agency of necessity. Which of the follow sets out the rationale for this concept?

The law recognizes that in an emergency, a person should be conferred with authority to act on another's behalf.

The general rule is that so long as the agent acts within his authority or the principal has ratified the agent's acts, ____________.

The principal is bound even if the agent had acted fraudulently to the detriment of the principal.

Every agency involves ____________ parties whereby ____________.

Three; the agent deals with the third party on behalf of the principal.

In some situations, the law will terminate an agency regardless of the intention of the parties. Which one of the following is not such a situation?

When the principal enters into another agency agreement with a different agent with respect to a different subject matter.