Exam 24: Principal-Agent Relationship

The principal continues to be bound by an agent's actions until the principal notifies third parties that the agency has terminated.

Charles gave Halston authority to sell several household items for her for $175 in a garage sale. Halston sold the items for $200 and kept the additional $25 for herself. May Charles recover the $25?

An agent has a duty to follow all lawful instructions of the principal.

Of the following acts, the one that an agent could not perform for the principal would be

An agent's actual authority ends when

An example of a situation that would terminate an agency by operation of law would be

All of the following may legally be appointed as agents except

The major difference between an agent who is paid and a gratuitous agent is the

Approval by a principal of an unauthorized act of an agent is called ____________________.

An independent contractor and an agent are basically the same.

A special agent is limited in the type of transactions he or she can perform for the principal.

A(n) ____________________ is a formal written document appointing an agent.

Collins appointed Rubin to sell his car, which needed repairs. Rubin agreed to pay for the repairs and to be repaid from the proceeds of the sale. Two weeks later, Collins changed his mind about selling the car. Is the agency terminated?

An agency is automatically terminated upon the death of the agent.

A person can be both an agent and an employee at the same time.

A person hired to add an extra room to your house would be a(n)

The only type of principal-agent relationship that may not be revoked by the principal is a(n)

A relationship of trust and confidence is a(n) ____________________.

A person hired to sell one's car would be considered a

Bennett hired Ace Plumbing to check the plumbing in his apartment for leaks once a week. If an Ace employee injures a guest in Bennett's house, is Bennett liable?