Question

5. The essential elements of a contract include all of the following EXCEPT

A. Offer and Acceptance                                                             C. Consideration

B. Competent Parties                                                                    D. Notarized Power of Attorney

6. An agent of an agent is best described as:

A. Subagent

B. Undisclosed dual agency

C. Special agent

D. Subagent

7. When an authorization and consent is given between an agent and their client, a special relationship of trust and confidence is established. This is known as:

A. Fiduciary relationship

B. Subagent relationship

C. Common law agency relationship

D. Designated agency relationship

8. The law that define the rights and duties of the principal and the agent is:

A. State law                                                                       C. Law of limited agency

B. Law of agency                                                             D. Law of fiduciary duties

                                                                                                                                                                                                                                                                                                               

9. A third party or a non-represented consumer for whom some level of service is provided and who is entitled to fairness and honest is known as:

A. Client

B. Principal

C. Customer

D. Agent

10. The fiduciary relationship between the principal and the agent is:

A. Fiduciary

B. Client

C. Principal

D. Agency

11. An individual who hires the agent and delegates to him or her the responsibility of representing the principal’s interest is:

A. The principal

B. The client

C. The Customer

D. The agent

Answer 1

1) D. Notarized Power of Attorney

The requisite elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation; (5) competency and capacity; and, in certain circumstances, (6) a written instrument.

2) A) Sub agent.

3) C) Common Law Agency relationship

The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party

3) B) Law of agency

An Agent is defined as a relationship between two parties called PRINCIPAL and AGENT, whereby, the function of the agent is to create a contract/s between the principal and third parties( or to act as the representative of the principal in other ways

Agency is the relationship that subsists between the principal and the agent, who has been authorized to act for him or represent him in dealing with others. Thus, in an agency, there is in effect two contracts i.e.

a) Made between the principal and the agent from which the agent derives his authority to act for and on behalf of the principal; and

b) Made between the principal and the third party through the work of the agent