11. Section 140 of the Contracts Act provides that agency by implied appointment by the principal may fall into one of this three categories:-

i.by authority inferred from the circumstances of the case

ii. by authority inferred from things spoken or written

iii. by authority inferred from the ordinary course of dealing

iv. by authority inferred from announcing a person's name

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.i, iii and iv

12. The law would normally presumed that there exists the implied agency relationship between husband and wife. This implied agency is however limited to the followings fact:-

i.it only applies when a husband and wife are living together.

ii.it only limited to the wife pledging the husband's credit for "necessaries".

iii.by authority inferred from the ordinary course of dealing.

iv.by authority inferred from announcing of the wife's name.

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.i and ii

13. The husband may rebut the presumption that he has agreed that the wife is to be his agent under the following circumstances:-

i.if the husband warns tradesman not to supply goods on his account to the wife's order.

ii. if the husband forbids his wife to pledge his credit in this way.

iii. if the goods are not necessaries and not needed by his wife.

iv. if the husband go and work outstation without informing the wife.

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.i and ii

14. Ilustration in Section 140 of the Contracts Act 1950, reads:

"A owns a shop in Kajang,living himself in Kuala Lumpur, and visiting the shop occasionally. The shop is managed by B, and he is in the habit of ordering goods from C in the name of A for the purpose of the shop, and of paying for them out of A's funds with A's knowledge. B has an implied authority from A to order goods from C in the name of A for the purpose of the shop."

This illustration represent the principle that:-

a.an authority of a principal is said to be implied when it is to be inferred from the circumstances of the case.

b.an authority of an agent is said to be expressed when it is to be inferred from the circumstances of the case.

c.an authority of a third party is said to be implied when it is to be inferred from the circumstances of the case.

d.an authority of an agent is said to be implied when it is to be inferred from the circumstances of the case.

15. The Partnership Act 1961provides thatPartners are each other's Agents by implied appointment when contracting in the course of the partnership business.

a. True

b. False

16. In Mercantile Credit Co. Ltd. v Garrod (1962)Garrod and his partner entered intoa partnership agreement for a business which lets garages and repaired cars, however, their business does not involve the buying and selling of cars. Despite this, his partnersold a car to a finance company and credit the sales money into the partnership account without the consent of partner Garrod. His partner later disappeared. The finance company took action against the Garrod as a partner to the partnership when they found out that there was fraud in the sales.

The court held that:-

a.the finance company was not entitled to recover the money from Garrod because his partner acted as a partner and therefore an agent to the partnership .

b.the finance company was entitled to recover the money from Garrod because his partner is not acted as a partner and therefore an agent to the partnership .

c.the finance company was entitled to recover the money from Garrod because his partner acted as a partner and therefore not an agent to the partnership .

d.the finance company was entitled to recover the money from Garrod because his partner acted as a partner and therefore an agent to the partnership .

17. Agency by ratification arises in any one of the following situations:-

i.where a person is giving a monthly salary by the principal.

ii. where the agent is out of jurisdiction when his appointment is made by the principal.

iii.where an agent who was duly appointed as agent has exceeded his authority.

iv. where a person who has no authority to act for the principal but has acted as if he has the authority.

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.iii and iv

18. Section 149 of the Contract Act 1950 provides that:

a. Where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or to disown the acts. If he ratifies them, the same effect will follow as if they have been perform by his authority.

b. Where acts are done by one person on behalf of another but with his knowledge or authority, he may elect to ratify or to disown the acts. If he ratifies them, the same effect will follow as if they have been perform by his authority.

c. Where acts are done by one person on behalf of another but without his knowledge or authority, he may not elect to ratify or to disown the acts. If he ratifies them, the same effect will follow as if they have been perform by his authority.

d. Where acts are done by one person on behalf of another but without his knowledge or authority, he may not elect to ratify or to disown the acts. If he ratifies them, the same effect will follow as if they have been perform not by his authority.

19. The effect of ratification by the principal of the agent/person'sact are as follows:-

i.The principal may sue or be sued by the third party.

ii. The agent no longer has any liability to the third party.

iii. The agent no longer liable for exceeding his authority.

iv. The principal is liable to pay the agent reasonable remuneration.

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.iii and iv

20. An agency by necessity may be created if the following conditions are met:-

i.The principal may sue or be sued by the third party

ii. It is impossible for an agent to obtain the principal's instructions

iii. The agent's action is necessary to prevent loss to the principal with respect to the interest committed to his charge

iv. The agent must have acted in good faith

a.i, ii and iii

b.ii, iii and iv

c.i, ii, iii and iv

d.iii and iv