4.9 Assessment Questions

4.9 ASSESSMENT QUESTIONS

1. “The approval by act, word or conduct of that which was attempt of accomplishment, but was improperly or unauthorized performed in the first instance”.

The statement above indicate an agency is created by ________.

A. By the doctrine of estoppels B. By ratification by the principal C. By implied appointment by the principal D. By express appointment by the principal

2. Which one of the following is NOT the condition of an agency by necessity may be created.

A. The agent of necessity must have acted in good faith. B. The agent of necessity must have acted in good will. C. It is impossible for the agent to get the principal’s instruction. D. The agent’s action is necessary in circumstances, in order to prevent loss to the principal with respect to the interest committed to his charge.

3. Choose the BEST statements below describes the difference between express appointment and implied appointment.

A. Express appointment involves the actual consent of principal, while implied appointment involves the implied consent of principal. B. Express appointment refers as the principal appoints the agent expressly either in written or in oral form, while implied appointment refers when a person by his word or conduct holds another person having authority to act for him. C. Express appointment may be in a written or oral form, while implied appointment derived from the words and conduct of parties. D. Express appointment refers as the principal appoints the agent expressly either in written or in oral form, while implied appointment refers each partner is an implied agent to the firm.

4. Sam asked Jaya to deliver to Kedah a quantity of tomatoes from Cameron Highlands. Jaya was late in delivering the tomatoes as the lorry was trapped in a flood in Pahang. Most of the tomatoes become unfit for human consumption before reaching Kedah. In order to save what was left, Jaya sold the remaining tomatoes in Perak without communicating to Sam. Decide.

A. Jaya has the authority to sell the tomatoes as agent of necessity because he tried to avoid loss to his principal. B. Jaya has no authority to sell the tomatoes as he could not prove that it was practically impossible to obtain Sam’s prior instructions. C. Jaya has authority to sell the tomatoes as agent by ratification.

D. Jaya has authority to sell the tomatoes as an agent who has implied authority.

5. The agency can be terminated by _________________ when the principal is dead.

A. Operation of law B. Mutual agreement C. Renunciation by agent D. Revocation by principal

6. The agency is contract between which subsist between _______________.

A. Principal and worker B. Agent and principal C. Principal and third party D. Agent and third party

7. An agency can be created by all the following ways EXCEPT

A. Necessity B. Express appointment C. Ratification D. Undue influence

8. The maxim ‘delegates non potest delegare’ due to duties of an agent is

A. Obey principal instructions B. Not to delegate his authority C. Render proper accounts when required D. Pay to the principal all sums received on his behalf

9. An agent’s authority may be classified into TWO (2) categories:

A. Actual and good authority B. Special and implied authority C. Actual and apparent authority D. Ratification and special authority

10. Agency by ratification exists in the following cases EXCEPT:

A. Person who enter into partnership business B. An agent who was duly appointed has exceeded his authority C. Principal later accepts and confirms a contract made by his agent without authority D. An agent who has no authority to act for the principal has acted as if has the authority

11. En. Akim is planning to set up a job agency firm in Shah Alam. He would like to know how an agency may rise or be created in Malaysia. Explain to En. Akim about agency by ratification.

12. En. Faizal Hussin just has been appointed to be agent for En. Rosyam. Briefly explain to him FIVE (5) the duties of agent to his principal.

13. Advise to En. Aiman the differences between express appointment and implied appointment.

14. List down THREE (3) conditions that should apply in creation of agency by necessity.

15. Mr Leong was instructed by his principal, Mr Ragu to find a double storey house in Seremban for a price not more than RM500,000. Mr Leong found a single storey bungalow of RM700,000 in Nilai and without informing Mr Ragu, Mr Leong agreed to buy the bungalow from Mr Chin. Mr Leong had pay a deposit of RM1,000.

i. List an issue arises in the situation. ii. Explain the relevant provision of the Contract Act 1950. iii. Illustrate Mr Ramu’s rights to the contract in the above situation. iv. Interpret your conclusion of the above issue.