CHAPTER 10

Question 1

Agent

Answer 1

A person who is employed on behalf of others , or represents other in dealings with third party.

Question 2

Principal

Answer 2

The person for whom such acts are done who is so represented is called principal.

Question 3

Examples of agent

Answer 3

A person engaged another person to sell moveable or immoveable property on his behalf.
A person authorized another person to collect rent from tenants of his property.
A person employed another person to manage his shop.

Question 4

Who can be agent

Answer 4

Any person can become agent. If agent is a minor or person of unsound mind he will not be liable in case of breach of duties i.e in case of negligence or if he exceeds authority

Question 5

Who can appoint agent

Answer 5

Only a person with age of majority and who is of sound mind can appoint agent.

Question 6

Authorities of agent

Answer 6

Actual authority (express + implied authority )
Authority in emergency
Authority in ostensible / Apparent authority

Question 7

Express authority

Answer 7

Authority expressively given by principal to agent either orally or in writing

Question 8

Implied authority

Answer 8

authority which is necessary to complete a duty. derived from circumstances of case.

Question 9

Authority in emergency

Answer 9

real emergency
unable to contact principal
agent act in best interest of principal.

Question 10

Ostensible / apparent / by estoppel

Answer 10

principal gives representation to third party that agent has authority , third party make agreement on such representation

Question 11

When is agent liable

Answer 11

If an agent exceeds his authority , he is liable to compensate loss , unless emergency situation or principal ratifies it