Deck 6: Agency and Employment

Question 1

Discuss the extent of an agent's authority to bind a principal in dealings with a third party.

Answer 1

This question simply requires students to display an understanding of the various aspects of an agent's authority to act.They should show that they understand that the actual authority of an agent may be expressed or implied from the job he has been given.In addition to that,the agent may also have apparent authority that is based on the principle of estoppel.Here,the principal does something to hold up the agent as having authority,such as placing him in a job where people would expect the agent to have that kind of authority or specifically telling the third party that the agent has authority without informing that third party of the limitations that have actually been placed on the agent.Good students should be able to explain the difference between apparent authority and implied authority.The implied authority comes about where the agent has been placed in a position where people would understand that the agent would have this kind of authority and where there has been no instruction to the contrary,that is,about what authority the agent has been given.But with apparent authority,even where the principal has specifically instructed the agent that he doesn't have that specific authority,he can still bind the principal because of estoppel.You can't imply authority where there has been direct instruction to the contrary,but there still can be apparent authority where the principal can't deny the agent has the authority that the principal has led others to believe that agent has.Students may also go on to discuss the power of the principal to ratify.This is not needed in response to the question but does complete the discussion of the circumstances under which the conduct of the agent will bind the principal.

Question 2

With respect to duties owed by an agent to his or her principal,which of the following statements is false with regard to agency law?

A)Failure of an agent to obey his or her principal and to act within the authority given him allows the principal to sue the agent for breach of contract.
B)When an agent enters a contract on behalf of his principal but does so in breach of his or her duties to the principal,the contract is void and cannot bind the principal.
C)An agent must use reasonable care,skill,and diligence in the performance of his or her duties as agent.
D)Generally,an agent may not delegate his or her authority without the authorization of his or her principal.
E)Failure of an agent to perform his or her duties personally may allow his or her principal to sue the agent for breach of contract.

Answer 2

B

Question 3

An agent cannot bind the principal in a contract with a third party unless there is an agency contract between the principal and the agent.

Answer 3

False

Question 4

Grant got a job with Ace Computers Co.(Ace)as a salesman.He was given a course in sales by Ace,business cards,and several of the company's order forms and brochures,and he was assigned an area in which he would sell computers door to door on behalf of Ace.Grant would be paid on a commission basis.At his first house,he was so excited by the interest shown that he forgot the explicit instructions he had received-only cash sales permitted.As an agent for Ace,he sold a computer on time to a 70-year-old woman.She was to pay $25 per month for eight years because that was all she could afford.When Brown,Ace's sales manager,heard of the deal,he fired Grant and said Ace would not go through with the contract.However,the old woman liked the computer very much and insisted that Ace provide her with one within the week as required by the contract.Which of the following accurately describes the legal position of the parties?

A)Ace would not be bound because Grant failed to follow the exact instructions he had received.
B)Ace is not bound by the contract because no representations of authority were made by it to the old woman.
C)Ace would be bound because Grant acted within his apparent authority.
D)Brown is personally liable to the old woman because he is the employee of the company who decided not to honour the contract.
E)Grant had implied authority to sell computers on time; selling computers necessitates selling on time,despite the prohibition.

Question 5

Explain under what circumstances the third party can be sued by the principal in the event of default.

Question 6

How is an agency relationship created?

Question 7

Where Joe was given authority to do "anything necessarily incidental" to carrying out his agency function of selling vacuum cleaners for the principal,this gave Joe the authority to borrow money to purchase a car to be used in the business.

Question 8

Miss Kachur is a training consultant who owns her own business and offers services to public and private organizations.Fortunately,as a result of her effective work,Sigma Corporation contracted with her to develop and provide training at its facilities throughout Canada.What began as a short-term consulting contract was extended for a period of years.Which of the following statements is true?

A)Due to her ongoing relationship with Sigma Corporation,Miss Kachur would likely be considered an employee of the corporation.
B)Because Miss Kachur operates her own business,she is likely an independent contractor in relation to Sigma Corporation.
C)Miss Kachur would be considered an agent of Sigma Corporation.
D)Although Miss Kachur operates her own business,she is likely a dependent contractor in relation to Sigma Corporation.
E)If Sigma Corporation decided to terminate the contract with Miss Kachur,she would be entitled to employment insurance benefits.

Question 9

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf.Which of the following is true?

A)If Joe acts outside express,implied,and apparent authority,Sam is not bound by the contract,even if he ratifies the contract.
B)If Joe acts within his apparent authority,but outside his express or implied authority,Sam will be bound by the contract.
C)If Joe acts outside his express authority and negotiates and signs the contract with Ken,Sam may not be a party to that contract.
D)If Joe acts outside his express,implied,and apparent authority,he could be sued by Sam,but not by Ken,because he has no contractual relationship with Ken.
E)If Joe acts outside his implied and express authority,Sam will owe him for his services.

Question 10

Distinguish between an employee and an independent contractor.

Question 11

In certain cases,a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his or her principal and even though his or her principal elected not to ratify the contract made by the agent.The third party can enforce the contract because of:

A)the reasonable agent theory.
B)the agent's apparent authority.
C)agency by express agreement.
D)fiduciary duty.
E)the failure of the principal to register the agency agreement.

Question 12

Distinguish between an agent and an employee.

Question 13

In the process of assembling land for Ace Construction Ltd.to build a supermarket,Joe entered into a contract with the seller Sam.In which of the following situations would Sam be able to sue the principal,Ace?

A)Sam would be able to sue Ace where Joe exceeded his apparent and actual authority.
B)Sam would be able to sue Ace where Joe revealed that he was acting as an agent,but did not disclose that he was acting for Ace in particular,and exceeded both his apparent and actual authority.Ace did not ratify the contract.
C)Sam would be able to sue Ace where Joe was acting outside his authority and did not disclose that he was acting for Ace.Sam was aware of Joe acting independently at the time he entered into the contract.
D)Sam would be able to sue Ace where Joe exceeded his actual authority but where Ace had led Sam to believe that Joe had the authority.
E)Sam would be able to sue Ace where Joe disclosed that he was acting for Ace but made the contract "subject to ratification."

Question 14

Apparent authority is determined by the representation of the agent.

Question 15

When an agent acts beyond the specific authority given by the principal,that action will not be binding on the principal.

Question 16

An agent owes a fiduciary duty to the third party to act in that third party's best interest.

Question 17

An agency relationship can be created by:

A)apparent authority.
B)estoppel.
C)ratification.
D)actual authority.
E)all of the above.

Question 18

A principal is bound in contract with the third party with whom the agent dealt if the agent is:

A)within his or her implied authority.
B)within his or her express authority.
C)within his or her apparent authority.
D)outside his or her authority but the principal ratified it.
E)all of the above

Question 19

Distinguish between the actual authority and the apparent authority of an agent.

Question 20

Which of the following is an example of an agent as opposed to an employee?

A)Joe worked as a delivery driver for Smith Textiles Ltd.
B)Joe worked as the purchasing agent for Smith Textiles Ltd.
C)Joe worked in the mailroom of Smith Textiles Ltd.,sorting mail.
D)Joe worked as a janitor for Smith Textiles Ltd.
E)Joe worked as a mechanic for Smith Used Cars Ltd.

Question 21

A principal is not bound in contract with the third party with whom the agent dealt if the agent is:

A)outside his or her authority but the principal ratified it.
B)within his or her express authority.
C)outside his or her actual and apparent authority.
D)within his or her implied authority.
E)within his or her apparent authority.

Question 22

If a third party relies on the principal's representation that the agent has the authority to act,which of the following is true?

A)The principal can claim the agent had no authority.
B)The principal cannot claim the agent had no authority.
C)The principal can claim estoppel.
D)The agent is solely liable for the conduct if it results in injury to the third party.
E)The agent can sue the principal for breach of contract.

Question 23

What restrictions are there on a principal's right to ratify?

Question 24

Explain how the principle of estoppel can be important in an agency relationship.

Question 25

With respect to the formation of agency by estoppel,which of the following statements is true?

A)If the principal tells an agent specifically not to sell something and the agent,in disobedience of those instructions,sells it anyway,the principal may be bound by the contract because of estoppel.
B)The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority.
C)When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt,that party will be liable on a contract made for it by that "fired" agent.
D)When a third party suspects that the agent it deals with has no authority,there is no obligation on it to question the agent's alleged authority.
E)When a party represents,by words or conduct,that someone is its agent,that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed.

Question 26

In which of the following situations will Smith be responsible for the tortious conduct of Jones?

A)Jones is a salesperson at Watson's Warehouse visiting Smith's grocery store.
B)Jones is a computer programmer working for Ace Computer Ltd.and installing new software for Smith's department store.
C)Jones is a self-employed vacuum cleaner salesman and Smith manufactures one of the lines he carries.
D)Jones is a secretary working in Smith's office.
E)Jones is an independent contractor installing drywall for Smith's grocery store.

Question 27

The president of Acme Co.introduces Bob to a third party as his vice-president of marketing and sales.In reality,however,Acme Co.'s president makes it clear to Bob that he is only the vice-president of marketing and has no authority to make sales.If Bob now enters into a contract for the sale of Acme Co.'s goods to the third party,as between Acme Co.and the third party:

A)there is no contract because Bob does not have express authority over sales.
B)there is no contract because Bob can only deal with matters of marketing.
C)there is a contract because Bob had apparent authority to enter into it.
D)there is no contract because it was not ratified by Acme Co.
E)there is a contract because Bob has express authority.

Question 28

Which of the following statements is false with regard to ratification in agency law?

A)A principal cannot ratify a contract if he did not have the capacity to contract at the time the contract was made.
B)A principal can ratify a contract inadvertently.
C)If an agent exceeds her express authority,ratification is the only means by which the principal would be bound to honour the unauthorized contract.
D)Ratification gives the agent authority retroactive to the time of contract.
E)A principal cannot ratify a contract if at the time of the ratification he could not have entered into the contract.

Question 29

A chauffeur,going against specific instructions,purchases a new car on behalf of his employer.The employer has done nothing to lead the seller to believe that the chauffeur has authority but is persuaded by the chauffeur to go for a drive before returning the vehicle.Explain the legal position of the parties.

Question 30

Joe was a salesman,newly hired by Radio Hut.On his first day on the job,he was left in charge of the store while the manager and the other salesmen went to lunch.They specifically told him not to sell anything over $50 but to tell customers to come back in an hour when they would have returned from lunch.While they were at lunch,a customer came in and decided to purchase a new stereo TV set and several accessories.The total sales price was $1600,and the customer couldn't wait.Joe sold her the merchandise at a $400 discount.When the customer returned the next day to pick up the goods,the manager refused to go through with the deal.Explain the manager's legal obligations in these circumstances.

Question 31

Why is the distinction between employment and an independent contract important?

A)An employee can bind the employer in a contract he enters into on behalf of the employer.
B)An independent contractor cannot be sure that she will be paid.
C)Employees can withdraw their services.
D)An employer may be held responsible for torts committed by the employee.
E)An employee has the right to wages.

Question 32

Describe what is meant by an agent's apparent authority.

Question 33

Joe is a salesman for Harry's Fine Cars Ltd.He had been told specifically that he had no authority to make any sale,take a trade-in,or otherwise deal with the vehicles without the manager's express approval of every deal.Sam,a customer,came in wanting to buy a used Cadillac and agreed to pay the $16 000 asking price.Unfortunately,the manager had left the lot,and so Joe took it upon himself to write up the agreement.When the manager returned,he liked the deal and realized that the customer might change his mind when he realized that the salesman didn't have the authority to bind the seller in contract.Under these circumstances,what could the manager of the car lot do?

Question 34

Jonathan waa used-car enthusiast.He entered into an agency agreement with Andrea.She owned a used car lot.The agency agreement limited Jonathan's authority to purchase used vehicles for under $25 000 and to ship them by flatbed to Andrea's lot.When passing through Toronto one Saturday morning,Jonathan stopped at an auto auction and saw a 1985 Jaguar that he wanted to bid on for Andrea.He was successful and purchased the vehicle for $24 000.However,he had no flatbed trailer and as such decided to drive the vehicle to Andrea's lot in London.He immediately arranged for automobile insurance on her behalf but without her authority.Near Kitchener he was involved in an automobile accident which resulted in the Jaguar being a total write-off.No one was injured.He contacted Andrea and informed her of the situation.She immediately contacted the insurance company to ratify the insurance contract.In these circumstances:

A)so long as the initial call made by the agent was prior to the accident,the insurance contract can be ratified.
B)given that there was no personal injury,the insurance contract can be ratified.
C)Andrea was unable to ratify the contract because at the time she attempted to do so,the accident had already occurred.
D)because Jonathan had apparent authority to enter into the insurance contract,it is binding on Andrea.
E)a principal can only ratify an agreement entered into by an agent if his or her name has not been used.

Question 35

A contract entered into by an agent cannot be ratified inadvertently by the principal.

Question 36

Which of the following is true with respect to the agency relationship?

A)An agent acting gratuitously can never bind the principal.
B)When a principal has specifically limited the authority of the agent,that agent can never bind the principal in a contract,even if the agent acts outside his or her authority.
C)Actual authority is the authority the principal has implied in conversations with a third party.
D)An agent's authority is limited to whatever authority the principal specifically gives the agent.
E)An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.

Question 37

Although Jason had participated in the flower auction for the last nine years as an agent for Thos.Holt's Ltd.(Holt),with the authority to buy whatever he felt the store needed,on this day he was given express instructions to buy only cut flowers.When flats of young camellia bushes with a rare gold flower were being sold,Jason bought them on behalf of the company.Which of the following is true?

A)Holt is not bound by the contract,because Jason's authority was expressly restricted.
B)Holt is estopped from denying Jason's authority.
C)The key to determining whether or not Holt is bound by the contract is this: in the circumstances,should the auctioneer have confirmed with Holt the extent of Jason's authority?
D)Holt is not bound by the contract,because Jason is in breach of his agency agreement.
E)Holt is not bound since Holt didn't ratify the contract.

Question 38

Discuss the concept of vicarious liability as it relates to employment and agency law.

Question 39

Which of the following is correct with respect to the ratification of an agent's contracts?

A)A principal can ratify a contract where the agent has gone beyond both his or her actual and apparent authority.
B)A contract can only be ratified if the principal was not able to enter into the contract himself at the time of ratification.
C)Ratification is always an intentional act and must be performed by the principal.
D)When a contract entered into by an agent is ratified by a principal,it commences at the time the principal ratifies the contract.
E)A principal can only ratify an agreement entered into by an agent if his or her name has not been used.

Question 40

Discuss the principle of ratification.In your discussion,consider limitations on its availability.

Question 41

If an employee were performing some act that he or she was not required to do as part of the job function,the employer would not be vicariously liable for the torts committed while performing that act.

Question 42

An employer is responsible for all torts committed by his or her employee.

Question 43

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

A)The seller could sue the principal for breach of warranty of authority.
B)The principal would have to pay for the computer because the agent was an agent for that principal.
C)The agent could be sued by the seller of the computer for breach of his warranty of authority.
D)The seller of the computer could sue the agent for breach of contract for saying he was an agent.
E)A third party cannot sue an agent even under these circumstances.

Question 44

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

A)The employer is always liable for the wrongful conduct of his or her employee.
B)Any employee can bind an employer in contract.
C)All employees are agents of the employer.
D)An employer is only liable for the wrongful conduct of his or her employee that takes place during the course of the employment.
E)If a person is injured by an employee acting in the course of the job,that person must sue the employer,not the employee.

Question 45

An employer is vicariously liable for the torts committed on the job by employees and independent contractors.

Question 46

Explain under what circumstances an agent can be liable for his or her conduct rather than the principal being liable.

Question 47

An employer is responsible for only those torts committed by an employee that take place while the employee is doing what he was employed to do.

Question 48

Stu hires Jan to negotiate and sign a contract with Ken on Stu's behalf.Which of the following is false?

A)If Jan acts outside express,implied,and apparent authority,Stu could still approve the contract and be bound by it.
B)If Jan acts within her apparent authority,but outside her express or implied authority,Stu will be bound by the contract but may sue Jan for breach of her agency contract.
C)If Jan acts within her implied authority,Stu will owe her for her services.
D)If Jan contracts with Ken on behalf of Stu but acts outside her express,implied,and apparent authority,Ken could not sue her for breach of contract because Ken has no contract with her.
E)If Jan acts within her express authority and negotiates and signs the contract with Ken,Jan is not a party to that contract.

Question 49

When a principal is undisclosed,the third party is restricted to suing the agent.

Question 50

Where an agent has been guilty of fraudulent misrepresentation,the agent must sue the principal.

Question 51

Only employers are responsible for torts committed by their employees during the course of the employment.

Question 52

Joe was an employee of Sam and was using his own car to deliver manufactured goods to a client.Since the client was in North Vancouver,the same area where Joe's girlfriend lived,Joe took time out to visit her for lunch.As he approached her house,he was involved in an automobile accident with George.George sued both Joe and his employer.Explain the likely outcome.

Question 53

Explain what is meant by an undisclosed principal and the significance of such a relationship.

Question 54

The only situation in which an agent can be sued by a third party is where he or she has gone beyond his or her apparent and actual authority.

Question 55

Explain when an employer can be held liable for the wrongful acts of an employee.

Question 56

A salesman in a men's clothing store has heard rumours that the store is going out of business.The boss is out of the store when a customer who has heard the same rumour comes in and offers to purchase the store's entire stock,the display cases,and the fixtures.The salesman accepts on behalf of the employer.Discuss the legal position of the parties.

Question 57

Explain under what circumstances a principal who is not an employer will be held responsible for the wrongful acts of its agent.

Question 58

"Joe was working for Sam,using his own car to deliver manufactured parts for Sam's business to a client.In the process,Joe was involved in an automobile accident,causing injury to George,a stranger.In these circumstances,George's only recourse is against the employer." Discuss the accuracy of this statement.

Question 59

Mr.Snarey devised and conducted a fraudulent scheme while working as an agent of Mutual Life.What would the likely result be?

A)Neither the agent nor the company could be liable,because Snarey was only an agent,and the company had no actual knowledge.
B)Only the agent was liable,because the action taken was dishonest and therefore outside the scope of the agency relationship.
C)Since Snarey was an agent with authority to enter into this general type of transaction,the company was vicariously liable for his conduct.
D)The company could be liable only if it were shown Snarey was an employee acting under the direction of a superior.
E)The doctrine of caveat emptor was applied.

Question 60

When an agent has been dealing with a third party for an undisclosed principal and there is a default,what rights are available to the third party?

Question 61

Which of the following statements related to an agent's fiduciary duty is correct?

A)Despite a recent Supreme Court of Canada decision,it is likely that agents will continue to have a fiduciary duty to their principals,where an agent has agreed to act in the principal's best interest,but only if this agreement is in writing.
B)Despite a recent Supreme Court of Canada decision,it is likely that agents will continue to have a fiduciary duty to their principals,where an agent has agreed to act in the principal's best interest.
C)As a result of a recent Supreme Court of Canada decision,agents no longer have a fiduciary duty to their principals except in matters involving monetary transactions.
D)As a result of a recent Supreme Court of Canada decision,only agents who are also employees have a fiduciary duty to their principals.
E)As a result of a recent Supreme Court of Canada decision,only agents who are employees or dependent contractors have a fiduciary duty to their principals.

Question 62

If you hire Gnowsky to act as your agent,which of the following is true with regard to the duties he owes to you?

A)Gnowsky need not tell you everything relevant to his task that a reasonable person would consider might affect your decision making.
B)Gnowsky need not use reasonable care,skill,and diligence in his service to you.
C)An agent may delegate his or her authority without the authorization of his or her principal.
D)Even when Gnowsky is acting as your agent,he need not put your interest above his own.
E)Gnowsky's failure to obey you and to act within the authority given him would allow you to sue him for breach of contract.

Question 63

Chris was a systems analyst hired to determine the best system for a retail china shop.After a careful analysis of the shop's needs and the available software,Chris presented a written report,which was approved by the owner of the business.Chris was paid his fee and was asked by the owner of the shop if he would act as agent in purchasing the hardware and software recommended in his report.The purchase was not to exceed $40 000 and the commission was to be $1000.Chris agreed.Read each of the following separately and indicate which is true.

A)The agreement to act as agent fails to be a valid agency contract because it is not in writing.
B)If Chris buys the hardware and software himself for $36 000 and sells it to the owner for $39 000,he is entitled to his commission because the price to the owner is still less than the price allowed.
C)Chris will not be in breach of his fiduciary duty if he buys the recommended system from a firm in which he has an interest,even if he does not mention that fact to the owner.
D)Chris is entitled to accept a commission from both the seller and the purchaser,as long as the total price paid by the purchaser is less than $40 000 and the hardware and software is comparable to that recommended in the report.
E)Chris could be in breach of his duties if he delegated the task to someone else.

Question 64

An agent owes a fiduciary duty to act in the best interests of the principal and the third party.

Question 65

Which of the following statements is true with regard to an agent's duties?

A)A real estate agent may buy property from a third party if it is at a good price and then sell the property to his or her principal at a higher price.
B)An agent must always scrupulously account for money coming into his or her hands on behalf of his principal.
C)An agent need not disclose all relevant information to the principal.
D)An agent is not entitled to the agreed-upon commission and reasonable expenses undertaken on behalf of his or her principal in carrying out his or her duties.
E)An agent cannot act for two principals even with the knowledge and consent of those principals.

Question 66

Which of the following is an example of an agent's breach of fiduciary duty to his or her principal?

A)An agent for the vendor makes a profit on the transaction he negotiated for his or her vendor above his or her commission and doesn't tell the principal/vendor.
B)An agent negotiates a higher price than the highest sale price reasonably possible at that time.
C)The agent takes presents from the third party and passes them on to the principal.
D)An agent for the vendor collects a commission from the purchaser but told his or her principal and obtained the principal's consent.
E)An agent discloses to his principal/vendor that he or she is giving some of his or her commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.

Question 67

Discuss the extent of the obligations of the agent to the principal based on his or her fiduciary duty.

Question 68

If Matt is an agent for Art,which of the following is false?

A)Matt cannot act as an agent for Art and for the person Art is dealing with at the same time without the permission of both.
B)Matt owes a fiduciary duty to Art.
C)Matt could act as an agent for Art even if he were not paid to do so.
D)Even when Matt is acting as an agent,he need not put the interest of Art above his own.
E)Matt must use reasonable care,skill,and diligence in his service to Art.

Question 69

List three duties that an agent has to the principal.

Question 70

Identify the true statement concerning the law of principal and agent.

A)An agent with no express authority can never bind his or her principal into a contract with a third party.
B)An agent who puts himself in a position where the agent's interests conflict with those of the principal is in breach of his or her duties even though no actual harm comes to the principal.
C)Agency is only created by way of a contract.
D)The principal and his or her agent owe each other the same duties.
E)An agent can never be liable to the third party himself or herself while the principal will bear no such liability.

Question 71

Which of the following is a true statement about the employer-employee relationship?

A)An employer cannot impose a duty of confidentiality on an employee,as this is a violation of the Charter of Rights and Freedoms.
B)An employee for a company could not also be an agent at the same time for the company.
C)The critical factor in this relationship is control; the employer tells the employee not only what to do but also how to do it.
D)If an employer contracts to paint Mr.Shore's barn and sends an employee to do the painting,if the employee is not paid he can sue his or her employer or Mr.Shore for the wages.
E)One responsibility of an employer is to provide the employee with lifetime work availability.

Question 72

Generally,a third party is bound to the principal only when it knows that the agent is acting for that principal.

Question 73

"An agent is free to withhold information from the principal as long as it doesn't hurt the principal." Discuss the accuracy of this statement.

Question 74

Which of the following is correct with respect to an agent's performance of his or her duties?

A)The agent must never compete with the principal.
B)The agent must never take advantage of the third party.
C)The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.
D)When an agent fails to act in the best interest of the principal and is an independent contractor,this is just cause for constructive dismissal.
E)The agent may profit at the expense of the principal if the agent acquires some previously unknown information.

Question 75

A real estate agent,without disclosing the fact to his client,purchases the house the client is selling for himself.Discuss the legal position of the parties.

Question 76

Joe is in the process of assembling land for Ace Contractors Ltd.to build a supermarket.He entered into a contract with the seller,Sam.Joe did not disclose that he was acting for someone else when he entered into the contract.Explain Sam's rights when the contract is breached and he learns that Joe was acting for Ace.

Question 77

Explain what is meant by an agent's fiduciary duty.Give three examples of how that fiduciary duty can be breached.

Question 78

The fiduciary duty of an agent refers to his or her obligations to act within the limits of his or her actual or apparent authority.

Question 79

Information that comes to the agent because of his or her position as agent must be passed on to the principal.

Question 80

Although enduring powers of attorney are sometimes abused,there appears to be little interest on the part of governments to address the issue and limit the abuse.