L3

Question 1

What is the primary role of agents in commerce

Answer 1

To negotiate and conclude contracts on someone elses behalf

Question 2

Give some reasons why agents might be appointed

Answer 2

They might have specific skills or knowledge in the field of the contract and one person has a limited capacity

Question 3

An agent might bring about, modify or terminate legual relations of the principle

Answer 3

True

Question 4

Agency is an exception to the privity of contract

Answer 4

Yes, there are rights and obligations that arise form agency that does not have to be explicitly stated or implied in a contract

Question 5

An agency is the name given to the relationship between what

Answer 5

the principle, the agent and the outside world third parties

Question 6

An agent may have power in some cases without the principles consent

Answer 6

Yes, f.ex agents of necessity

Question 7

What is the definition of a commercial agent

Answer 7

self-employed intermediary who has continuing authority to negotiate and conclude the sale and purchase of goods on behalf of the principal

Question 8

Agents are generally self employed

Answer 8

True, employees are most often not agents

Question 9

The common law includes both direct and indirect representation as agencies, while civil law is less clear

Answer 9

True

Question 10

What is an undisclosed agency

Answer 10

When the third party is not aware that the agent does not act in their own name. Even if the contract is between the agent and the third party the principle may sue on the contract made on their behalf and the third party may sue the principle if they discover their existance

Question 11

An agent can not sell and buy property on behalf of the principle

Answer 11

False

Question 12

UK has ratified the 1983 harmonization attempt convention on Agency in the International Sales of Goods, under UNDROIT

Answer 12

False, they have not ratified the latest harmonization attempt of agency law

Question 13

The latest harmonization attempts have mainly been concerned with international dealings and the relationship between the principle and third parties

Answer 13

True

Question 14

When has the agent the power to bind the principle

Answer 14

If the principle gives consent before or after the action or if the law deems it apropriate such as in the case of agents of necessity. Also if the principles actions indicate that the agent is authorised

Question 15

Actual authority is created by a consentual agreement between just the principle and agent, Expressed or implied

Answer 15

True

Question 16

For commercial agents written terms of the agreement is not required

Answer 16

False

Question 17

Actual authority may be extended by ‘customary authority’ which is considered as an ‘overhead’

Answer 17

True

Question 18

What does the expression that an agent cannot pull themselves up by their own shoelaces mean

Answer 18

That an agent cannot be the source of their authority even in implication, if they have apparent authority the information leading to such conclusions must come form the principle

Question 19

For a third party to keep a contact with an apparent agent they need not make appropriate equerries especially if circumstances are suspicious

Answer 19

False

Question 20

A person leading a lost sheep home is an agent of necessity

Answer 20

True, unless there was a phone number to the owner of the sheep somewhere on its body

Question 21

A principle cannot ratify actions not made in their name

Answer 21

True

Question 22

An unborn lunitic may ratify a contract in the future

Answer 22

yes if they are borne and sane by the time the contract is made and the contract is not void due to illegality

Question 23

Ratification can be done any time

Answer 23

False, it needs to be done within reasonable time of the signing of the contract

Question 24

You can ratify a part of a contract

Answer 24

False, entire act or nothing

Question 25

What is the difference between a bilateral and a unilateral contract

Answer 25

Bilateral=agent promises to make an action, Unilateral= principle promises to reward an action (but agent is not required to do it)

Question 26

The nature of the relationship between principle and agent is fiduciary

Answer 26

Yes, agents owe loyalty to the principle

Question 27

Commercial agents have rights by regulation that cannot be contracted out of

Answer 27

True, by the 1993 council directive

Question 28

Commercial agent rights originate in common law

Answer 28

No, civil law

Question 29

Only the regulation between commercial agents and the principle demands that they act dutifully and in good faith towards eachother

Answer 29

Yes, that exact defenition is only for commercial agents but it can be argued that duty and good faith is synonimous with a fiduciary relationship although for normal agents that can be contracted out of

Question 30

Commercial agents are not a downtrodden race and need not be afforded protection form their principles

Answer 30

While this was delivered in sarcasm by the lord there is some truth to it as independent contractors can be seen to have a power imbalance against their contractor

Question 31

undisclosed commercial agents and temporary agents or commisioning agents are still covered by the 1993 regulation

Answer 31

No

Question 32

What is the main role of a commercial agent

Answer 32

To negotiate contracts for the principle, and they should have the continous authority to do so and be an independent contractor

Question 33

Haggrling about price under a long period is enough to be classified as a commercial agent

Answer 33

They say 'Negotiation is not only about haggling over price' so it is probably included

Question 34

An agent wo markets the comapnies services and generates goodwill can be included as a commercial agent

Answer 34

False

Question 35

Name some non commercial agents

Answer 35

Company officers acting on behalf of their company * Partners acting on behalf of their partnership * Insolvency practitioners * Agents acting on behalf of commodity exchange

Question 36

You cannot get the protections of a commercial agent if you have a main task outside the negotiation of contracts

Answer 36

True

Question 37

What are the three main rights of an agent under common law

Answer 37

The right if remuneration, indemnification and lien

Question 38

A principle owes remuniration if the agent is the effective cause of a contracted event previously rewarded

Answer 38

True

Question 39

What is the right to be indemnified

Answer 39

That the agent has the right to be covered for costs and liabilities for legal actions taken within their authority

Question 40

What is lien

Answer 40

The right to take a principles property untill they have properly rewarded you

Question 41

What is the difference between general and particular lien

Answer 41

Particular lien gives you the right to posess the property related to the liability while general lien gives the right to posess any property of the principle

Question 42

Only Bankers, factors, solicitors and stockbrokers are entitled to a general lien

Answer 42

True

Question 43

Lien is not lost when the agent indivates to wave it and cannot be negotiated out of

Answer 43

False

Question 44

Principles have a duty to inform the agent of information nececary to handle the goods

Answer 44

True

Question 45

If the agent is silent about remuneration they can be assumed to act gratuitusly

Answer 45

False, then custom decides, in the absence of custom maybe if there is no other implication

Question 46

When is the agent to be recompensated

Answer 46

when the agent has executed the transaction, when the principal has executed the transaction according to the agreement signed by the agent or when the third party has executed the transaction

Question 47

What is bonafide

Answer 47

Good faith

Question 48

When may an agent be liable to tort if they are not contractually liable to perform a duty

Answer 48

If they have givent signs that they are to do the duty but then does not and fail to inform the principle and their inaction leads to damages

Question 49

What does it mean that agency is a personal duty

Answer 49

That the actions must be performed by the agent and delegation is not authorised unless it is allowed by the principle

Question 50

If a subagent is authorised priviti is established between the principle and the subagent

Answer 50

True

Question 51

What happens of there are no clear evidence that an agent had the consent to make a sub agent and there is no custom or nececity to make one

Answer 51

The contract will be between the agent and the sub agent where there is privity not between the sub agent and the principle, the agent will have to pay commision and so on. However the sub agent still is liable to the tort of negligence and is a fiduciary to the principle

Question 52

What are the duties of a fiduciary

Answer 52

*Fiduciary must act in good faith * Must not profit out of trust * Must not place himself in position of conflict of interest * Must not act for his own benefit or benefit of a third person without the consent of the principal

Question 53

What is the duty off account of an agent

Answer 53

The duty to keept their and the principles assets separate and to propertly record the contracts made in the name of the principle

Question 54

A principle can retake the commision payed if it is discovered that the agent has been bribed if no harm was done to the interests of the principle

Answer 54

Yes,

Question 55

Bankruptcy of the agent will terminate agency if it makes it makes them unfit for performance

Answer 55

True

Question 56

What happens if only the principle wants to terminate an agency agreement

Answer 56

It might be a breach of contract and the agent have the right to demand compensation