Indian Contract Act includes Special contracts like Indemnity, Guarantee, Contract of Agency etc.. We have discussed MCQ’s on Indian Contract Act already. Hence, here we are discussing MCQ’s on Contract of Agency in Business Law with answers.
When people do business, they often deal with each other directly Buyer and Seller However, sometimes they deal with each other using a “middleman” (or representative or intermediary). The legal relationship between the middleman and the businessperson is governed by the law of agency. Hence Contract of Agency forms an important part in Indian Contract Act.
For this reason we have discussed MCQ’s on Contract of Agency in Business Law with answers. In case you are someone who is preparing for competitive exam or a student of UG or PG undoubtedly you will be benefited by this MCQ’s on Contract of Agency in Business Law.
MCQ’s on Contract of Agency
1. The contract between the agent and principal can be appropriately said as
A. Contract of services
B. Contract for services
C. Service Contract
D. service by contract
View Answer
Answer: B Contract for services
2. Any one can become an ____________
A. Agent
B. Principal
C. Contractor
D. Party to the contract
View Answer
A. Agent
MCQ’s on Power of Attorney
3. A _____________ authorizes the agent to do all acts on behalf of principal
A. Special power of attorney
B. Particular Power of attorney
C. General power of attorney
D. All of the above
View Answer
C. General power of attorney
4. The power of attorney is an example of agency by ________________________
A. Express Agreement
B. Implied agreement
C. Ratification
D. special agreements
View Answer
A. Express Agreement
Formation of Agency in Contract Act
5. Incase of ratification the principal must ratify __________
A. Part transaction based on necessity
B. the agreement of agency
C. whole transaction
D. the third party about agency
View Answer
C. whole transaction
6. _______ means to give full consent or approval to an act which was originally done without authority
A. Estoppel
B. Ratification
C. Holding out
D. Express agency
View Answer
B. Ratification
7. The consideration in case of Contract of Agency ______________
A. can be past, present, future
B. Need not be adequate
C. Need to be real
D. Not Mandatory
View Answer
D. Not Mandatory
Types of Agent in Business Law
8. An agent who is appointed to sell a house is ___________
A. General agent
B. Special agent
C. Mercantile agent
D. Non mercantile Agent
View Answer
B. Special agent
9. Advocates are classified as ______________
A. General agent
B. Special agent
C. Mercantile agent
D. Non mercantile Agent
View Answer
D. Non mercantile Agent
Termination of Agency in Business Law
10. In case of war between the principal’s and agent’s countries then the Contract of agency will be
A. Holding out
B. Terminated by agreement between parties
C. Termination by operation of Law
D. continued as anybody can become an agent.
View Answer
C. Termination by operation of Law
11. Irrevocable agency will be terminated when
A. death of agent/principal
B. Principal becomes incapable
C. Time lapses
D. agent’s obligations are performed
View Answer
D. agent’s obligations are performed
12. Which of the following is the agency terminated by Operation of Law
A. Lapse of time
B. Death of Agent or principal
C. Occurrence of a specified event
D. Purpose achieved
View Answer
B. Death of agent or principal
Besides the above given MCQ’s on Contract of Agency in business law you can find other MCQ’s on various topics of Business Law here