CHAPTER 26—NATURE AND CREATION OF AN AGENCY
Key
1. Which of the following tasks can be delegated to an agent?
2. Which of the following statements is true of contracts of agency?
3. A(n) _____ is one who receives possession of another’s property for the purpose of
sale on commission.
4. Which of the following statements best defines customary authority?
5. Agency by estoppel arises when:
6. Which of the following statements best defines a power of attorney?
7. Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent?
8. Which of the following is true in the event of a person hiring an independent contractor to perform some
tasks?
9. A contract of agency usually involves at least three parties.
10. The principal in a contract of agency is always a corporation.
11. A general agent may transact business that is outside the scope of his express authority.
12. A special agent is one who is authorized to carry out all of the principal’s business of a particular kind.
13. An attorney in fact is a special agent.
14. Brokers are also known as commission merchants.
15. Limitations upon an agent’s authority can bind a third party who does not know of them.
16. The creation of an agency may be executed through an informal contract.
17. The appointment of an agent to execute a formal contract requires a formal contract of appointment.
18. A contract appointing an agent must be in writing if the agency is created to transfer title to real estate.
19. The laws that an employer must comply with relative to his employees also apply to his contracts with
independent contractors.
20. Can anyone become an agent? Explain the requirements that one needs to become an agent.