21.When a person, by his words and conduct, allows a third party to believe that the particular person is his agent even when he is not, and the third party relies on it to the detriment of the third party, he will be stopped or precluded from denying the existence of that person's authority to act on his behalf. This is the circumstances that the law recognized as the appointment of agent by:-

a. express appointment.

b. appointment by necessity.

c. appointment by ratification.

d.appointment by the doctrine of estoppels or 'holding out'.

22. Illustrations(a)to Section 150states that:

"A, without authority, buys goods for B. Afterwards B sells them to C on his own account; B's conduct implies a ratification of the purchase made for him by A."

This illustration represent the principle that -Ratification may be expressed or may be implied in the conduct of the person on whose behalf the acts are done.

1. True
2. False

23. Illustration(b)to Section 142states that.

"A consigns provisions to B at Taiping, with directions to send them immediately toCatParitBuntar. B may sell the provisions at Taiping, if they will not bear the journey toParitBuntarwithout spoiling."

This illustration represent the principle that-An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances- in cases involving appointment of an agent by:

a. express appointment.

b. appointment by necessity.

c. appointment by ratification.

d.appointment by the doctrine of estoppels or 'holding out'.

24.The present of this three (3) elements:-

1. There is a representation made by or on behalf of the principal to the 3rdparty concerning the authority of the agent;
2. Reliance by the 3rdparty on the representation made by the principal to the 3rdparty;
3. The 3rdparty must rely on the principal's representation and alter his or her legal position on the strength of the representation.

arenecessary to constitute:

a. express appointment.

b.appointment by necessity.

c. appointment by ratification.

d. appointment by the doctrine of estoppels or 'holding out'.

25. The authority of an agent can be:-

a. express and/or implied authority

b. actual and/or apparent authority

c. express and/or ostensible authority

d. implied and/or ostensible authority

26.isan authority conferred expressly upon the Agent either by oral or written agreement. It may also be implied from the following:-

1. Express authority given by the Principal

2. Custom and trade usage

3. Circumstances of the case

4. Conduct of the parties

a. express authority

b.implied authority

c. apparent and/or ostensible authority

d. actual authority

27.isestablished when a person without actual authority acts as an Agent and contracts with a third party in the Principal's knowledge. The Principal is aware of it but does not stop him. Later, the Principal is precluded from denying the agents authority. The principle would be liable for the contract with the third party.

a. express authority

b.implied authority

c.apparent and/or ostensible authority

d.actual authority

28.authoritymay arise in2situations:

1.When the Principal by his words or conduct leads another party to believe that the Agent has authority to make contract on behalf of him.

2. Where the Agent previously had authority to act but it has been terminated by the Principal without any notice to third party. Third party can claim that the Agent has apparent authority and binds the Principal to the contract.

a. express authority

b.implied authority

c.apparent and/or ostensible authority

d.actual authority

29.Inthese 4 circumstances:-

1. If the Agent agrees with third party to accept personal liability.
2. Where the Agent executes a deed and negotiable instrument in his own name.
3. Where the Agent exceeds authority and the Principal does not ratify.
4. Where the custom of trade made the Agent liable.

1. thethird party maynotsue the Agent if there is any breach of contract.
2. thethird partycannotsue the Agent if there is any breach of contract.
3. thethird party may sue the Agent if there is any breach of contract.
4. thethird party may sue the Agent if there isnobreach of contract.

30. It is a situation when the Agent contracted as an Agent and the identity of the Principal is disclosed to the third party. Where a Principal is named, a clear agency relationship exists between Agent and Principal.

1. thethird party may sue the Agent if there is any breach of contractand the Agent is responsible.
2. thethird party may not sue the Agent if there is any breach of contractand the Agent is not responsible.
3. thethird party may sue the principal if there is any breach of contract and the principal is responsible.
4. thethird party maynotsue theprincipalif there isnobreach of contractand the principal is not responsible.

31. If the Agent exceeds authority or acting outside authority and the existence of the Principal is not disclosed, the principal cannot ratify the contract.

a. Nonetheless, the principal still has right and liability under the contract.

b. Nonetheless, the principal still has right but no liability under the contract.

c.The principal has no right and liability under the contract.

d. The principal has no right but still liable under the contract.

32. An Agent, acting for undisclosed Principal and exceed his authority which cannot be ratify by the principal:-

a.maynotsue on the contract if there is a breach because he can treat it as his own name for thecontract.

b.may sue on the contract if there is a breach because he cannottreat it as his own name for thecontract.

c. may sue on the contract if there is a breach because he can treat it as his own name for the contract.

d.may sue on the contract if there is a breach because he can treat it as hisprincipalname for the contract.

33.A "sub-agent" is:-

a.a personnotemployed by, and acting under the control of, the original agent in the business of agency.

b.a person employed by, andnotacting under the control of, the original agent in the business of agency.

c.a person employed by, and actingnotunder the control of, the original agent in the business of agency.

d. a person employed by, and acting under the control of, the original agent in the business of the agency.

34. An agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform:-

a. together

b. seperately

c. lawfully

d.personally

35. An agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform:-

a. together, unless by the ordinary custom of trade a sub-agent may, or, from the nature of the agency, a sub-agent must, be employed.

b. seperately, unless by the ordinary custom of trade a sub-agent may, or, from the nature of the agency, a sub-agent must, be employed.

c. lawfully, unless by the ordinary custom of trade a sub-agent may, or, from the nature of the agency, a sub-agent must, be employed.

d. personally, unless by the ordinary custom of trade a sub-agent may, or, from the nature of the agency, a sub-agent must, be employed.

36. Where a sub-agent is properly appointed, the principal is, so far as regards third persons,

a.represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal.

b.represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal.

c.represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal.

d.represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal.

37.Aliemploys Bobas a bricklayer in building a house. Aliputs upallthe scaffoldingaround the construction areahimself.The scaffolding is unskillfully put upand part of collapsed to the groundandinjuringBobinthe process.In this case:-

1. The principal mustnotmake compensation to his agent in respect of injury caused to the agent by the principal's neglect or want of skill.
2. The principal must make compensation to his agent in respect of injury caused to the agent by the principal's neglect or want of skill.
3. The principal must make compensation to his agent in respect of injury caused to the agent by the principal'snotneglect or want of skill.
4. The principal must make compensation to his agent in respect of injurynotcaused to the agent by the principal's neglect or want of skill.

38.Aliemploys Bobto beat Charles, and agrees to indemnifyBobagainst all consequences of the act.Bob relying on Ali's promisebeats C, andconsequentlyhas to pay damages to Charlesforhis injury.The principle of law is:

1. Where one person employs another to make an act which is criminal, the employer is liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of that act.
2. Where one person employs another to create an act which is criminal, the employer is not liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of that act.
3. Where one person employs another to create an act which is criminal, the employer is liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of thatunlawfulact.
4. Where one person employs another to create an act which is criminal, the employer is not liable to the agent, either upon an express or an implied promise, to indemnify himand the principalagainst the consequences of that act.

39.Bob, at Kelang, under instructions from Ali, of Taiping, contracts with Charlesto deliver certain goods to him.Alidoes not send the goods to Bob, and Charlessues Bobfor breach of contract.Bobinforms Aliof the suit, and Aliauthorizes him to defend the suit. Bobdefends the suite, and is compelled to pay damages, costs and expenses.What is the position of Ali under thelaw:

a.The employer of an agent isnotbound to indemnify him against the consequence of all lawful acts done by the agent in exercise of the authority conferred upon him.

b. The employer of an agent is bound to indemnify him against the consequence of all lawful acts done by the agent in exercise of the authority conferred upon him.

c.The employer of an agent is bound to indemnify him against the consequence of allunlawful acts done by the agent in exercise of the authority conferred upon him.

d.The employer of an agent is bound to indemnify him against the consequence of all lawful acts done by theprincipalin exercise of the authority conferred upon him.

40.The followings are the principal's duty towards the agent:-

i.toindemnify the agent against consequences of lawful acts

ii.toindemnify the agent against consequences of acts done in good faith

iii.topay compensation to agent for injury caused by principal's neglect

iv. No liability of employer of agent to create a criminal act

1. i, ii and iii
2. ii, iii and iv
3. i, ii, iii and iv
4. iii and iv

41. Section 164 of the Contract Act provides that "An agent is bound to conduct the business of his principal according to the directions given by the principal or, in the absence of any such directions,:-

a.according to the custom which prevails in doing business of the same kind at the place where the agent conducts the business".

b. according to the instructions which prevails in doing business of the same kind at the place where theagent conducts the business".

c. according to the instructions which prevails in doing business of the same kind in Malaysia".

d. according to the custom which prevails in doing business of the same kind in Malaysia".

42. Section 164 provides that "An agent is bound to conduct the business of his principal according to the directions given by the principal,......". Therefore, failure of an agent to obey the principal instructionwill result in:

a.breach of contract and the agent will be liable for any loss suffered by the principal.

b. breach of contract and the agent willnotbe liable for any loss suffered by the principal.

c.nobreach of contract and the agent will be liable for any loss suffered by the principal.

d. breach of contract and the agent will be liable for any loss suffered by thethird party.

43. "A, an agent for the sale of goods, having authority to sell on credit, sells to B on credit, without making the proper and usual enquiries as to the solvency of B. B, at the time of the sale, is insolvent, A must make compensation to his principal in respect of any loss thereby sustained".

This illustration represent the principle of law that:

1. To exercise care and diligence in carrying out his work and to use such skill as he possess.
2. Not to make any secret profit out of the performance of his duty
3. To communicate with the principal.
4. Not to make any secret profit out of the performance of his duty.

44."A directs B to sell A's estate.B, on looking over the estate before selling it, finds a mine on the estate which is unknown to A.B informs A that he wishes to buy the estate for himself, but conceals the discovery of the mine.A allows B to buy, in ignorance of the existence of the mine A, on discovering that B knew of the mine at the time he bought the estate, may either repudiate or adopt the sale at his option".

This illustration represent the principle of law that:

1. To exercise care and diligence in carrying out his work and to use such skill as he possess.
2. Not to let his interest conflict with his duty
3. To communicate with the principal.
4. Not to make any secret profit out of the performance of his duty.

45."AdirectsB, his agent, to buy a certain house for him.BtellsAit cannot be bought, and buys the house for himself.Amay, on discovering thatBhas bought the house, compel him to sell it toAat the price he gave for it".

This illustration represent the principle of law that:

1. To exercise care and diligence in carrying out his work and to use such skill as he possess.
2. To communicate with the principal.
3. Not to make any secret profit out of the performance of his duty.
4. Not to let his interest conflict with his duty

46. "An agent may retain, out of any sums received on account of the principal in the business of the agency, all moneys due to himself in respect of advances made or expenses properly incurred by him in conducting such business, and also such remuneration as may be payable to him for acting as agent."

This is the provision of Section:

1. Section 168 of the Contract Act 1950
2. Section 169of the Contract Act 1950
3. Section 170of the Contract Act 1950
4. Section171of the Contract Act 1950

47.Besidethe statutory duties of an gent towards the principal as provided for under the Contract Act 1950 (Section 164 to Section 171), there are also duties provided under the common law, they are:-

i. Duty not to disclose confidential information or documents entrusted to him by his principal.

ii. Duty not to delegate his authority.

iii.Dutyto exercise care and diligence in carrying out his work and to use such skill as he possess.

iv. Duty not to let his interest conflict with his duty.

1. i, ii and iii
2. ii, iii and iv
3. i, ii, iii and iv
4. iand ii

48. The followings are the method of terminating the contract of agency as provided for by Section 154 of the Contract Act 1950:-

i.bythe principal revoking the agent's authority

ii.bythe agent renouncing the business of agency

iii. by the business of agency being completed

iv. by the principal or agent dying or becoming of unsound mind

v.bythe principal being adjudicated or declared a bankrupt or an insolvent

1. i, ii and iii
2. ii, iii and iv
3. i, ii, iii, iv and v
4. iii and iv

49."A directs B to sell goods for him, and agrees to give B 5 per cent commission on the price fetched by the goods.A afterwards, by letter, revokes B's authority. B, after the letter is sent, but before he receives it, sells the goods for RM100.The sale is binding on A, and B is entitled to RM5 as his commission".

This illustration represent the principle of law that:

1. The termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.
2. The termination of the authority of an agent does, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.
3. The termination of the authority of aprincipaldoes not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons,beforeit becomes known to them.
4. The termination of the authority of aprincipalagent does, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

50. The termination of the authority of an agent causes the termination (subject to the rules herein contained regarding the termination of an agent's authority) of the authority of all

a. sub-agent's appointed by him.

b. principalappointed by him.

c.sub-principalappointed by him.

d. principal employeesappointed by him.