Essay
In relation to each of the following statements,identify the way in which the agency relationship has been established.
a.X consigned his automobile to Z with instructions to sell same immediately.Z was a mercantile agent.Z used the vehicle as security for a loan from Y,who knew nothing about X or his instructions to Z.
b.Z,a common carrier,transported perishable goods for X.The goods started to spoil,and Z was unable to contact X,who had left the country on an extended vacation.Z sold the goods to Y and received a reasonable price with regard to the condition of the goods.
c.X executes a power of attorney in favour of Z,authorizing Z to sell specific land described in the power of attorney.
d.X,without the authority of Z,sells certain of Z's furniture at a garage sale.Shortly after the sale,Z learns of it and approves of X's actions.
Correct Answer:

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In statement (a),the agency was created ...View Answer
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