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UGBA 175 Ch 19-20 Questions and Correct Answers/ Latest Update / Already Graded

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Q: What is agency? Ans: A: A consensual relationship in which one person (agent) acts on behalf of another (principal) and is subject to the principal's control. Q: What acts may a principal delegate to an agent? Ans: A: Any act the principal could lawfully perform personally. Q: What acts may NOT be delegated to an agent? Ans: A: Illegal acts Crimes Purely personal services (e.g., painting a portrait) Q: Are all employees agents? Ans: A: Yes. Page | 2

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UGBA 175 Ch 19-20
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UGBA 175 Ch 19-20

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UGBA 175 Ch 19-20 Questions and Correct
Answers/ Latest Update / Already Graded
Q: What is agency?

Ans: A: A consensual relationship in which one person (agent)
acts on behalf of another (principal) and is subject to the
principal's control.


Q: What acts may a principal delegate to an agent?

Ans: A: Any act the principal could lawfully perform personally.


Q: What acts may NOT be delegated to an agent?

Ans: A:


Illegal acts
Crimes
Purely personal services (e.g., painting a portrait)


Q: Are all employees agents?

Ans: A: Yes.




All rights reserved © 2025/ 2026 |

, Page |2

Q: Are all agents employees?

Ans: A: No.


Q: Does an unpaid agent have authority equal to a paid agent?

Ans: A: Yes — unpaid agents can bind principals and create
liability.


Q: What is agency by estoppel?

Ans: A: Liability imposed when a principal creates the
appearance of authority for an agent and a third party
reasonably relies on it.


Q: Elements of agency by estoppel (EXAM LIST)?

Ans: A:


Principal causes belief of authority (intentionally or carelessly)
Principal knows or should know and fails to correct
Third party reasonably and in good faith relies
Third party changes position detrimentally


Q: Liability consequence if agency by estoppel exists?


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Institution
UGBA 175 Ch 19-20
Course
UGBA 175 Ch 19-20

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Written in
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  • ugba 175 ch 19 20 questions and correct answers
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