Agency and the Act of an Uncommissioned Agent (Fodooli) — practice questions

Correct answer: B. Clauses 2/1/2 and 4/3: Agency is basically non-binding, but it becomes binding where it involves the rights of others, e.g. where the mortgagor appoints the mortgagee as agent, or authorises it to seize or sell the mortgaged asset on maturity; such agency is binding on the mortgagor. Agency also becomes binding when it is paid, when the agent has commenced tasks that cannot be discontinued without injury, or when a party undertakes not to revoke for a period. Clause 7/2 adds that such agency survives even the principal’s death.

Correct answer: C. Clauses 2/2/2 and 2/2/3: The form of agency is any act that custom regards as delegation, comprising offer and acceptance with no standard wording; it may be expressed by words, writing, messaging or gesture. In accepting non-paid agency, silence is sufficient acceptance, while a negative response indicates rejection. Agency may be immediate, conditional (e.g. a debtor placing his assets under the creditor’s management on default) or future (effective from a specified date).

Correct answer: A. Clauses 3/1/2 and 3/2/1: A partially capable person such as a discriminating minor may appoint an agent for matters of absolute benefit, such as accepting donations, but not for harmful matters such as making donations. For acts that may be beneficial or harmful, such as buying and selling, the agent’s acts remain pending the approval of the guardian. A discriminating minor may himself act as an agent, provided all contractual commitments are the sole responsibility of the principal.