Question 1

A real estate salesperson,without disclosing the fact to her client,purchases the house the client is selling for herself.Discuss the legal position of the parties.

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Question 2

A chauffeur,going against specific instructions,purchases a new car on behalf of his employer.The employer has done nothing to lead the seller to believe the chauffeur has authority but is persuaded by the chauffeur to go for a drive before returning the vehicle.Explain the legal position of the parties.

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Question 3

Joe is in the process of assembling land for Ace contractors Ltd.to build a supermarket.He entered into a contract with the seller Sam.He did not disclose that he was acting for someone else when he entered into the contract.Explain Sam's rights when the contract is breached and he learns that Joe was acting for Ace.

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Question 4

"A principal can ratify an agent's contract that was done without authority as long as the agent makes it clear that they are entering into the contract 'subject the principal's ratification.'" Discuss the accuracy of this statement.

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Question 5

Joe sold Harry his barber shop for $100 000.He was paid $20 000 in cash,the other $80 000 to be paid by Harry,giving Joe 20 percent of the profits of the business until the amount was paid off.Unfortunately,a customer,Sam,was injured by Harry,who managed to cut off Sam's right ear while shaving him.Sam sued both Harry and Joe.Explain his likelihood of success.

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Question 6

A salesperson in a men's clothing store has heard rumours that the store is going out of business.The boss is out of the store when a customer who has heard the same thing comes in and offers to purchase the entire stock,the display cases,and the fixtures.The salesperson accepts on behalf of the employer.Discuss the legal position of the parties.

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Question 7

What are the advantages and disadvantages of being a sole proprietor?

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Question 8

What is limited liability?

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Question 9

When an agent has been dealing with a third party for an undisclosed principal and there is a default,what rights are available to the third party?

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Question 10

Explain under what circumstances the third party can be sued by the principal in the event of default.

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Question 11

Explain what is meant by an agent's "fiduciary duty." Give three examples of how that fiduciary duty can be breached.

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Question 12

Joe was a lawyer and agreed to pay Sam,a banker,25 percent of any fees that he received as a result of mortgage referral business directed his way by Sam.Because of Joe's carelessness,one of the customers referred to him by Sam lost his property.The customer sued both Joe and Sam.Explain the likelihood of his success.

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Question 13

"For a partnership to exist,the parties must have consented to its creation." Comment on the accuracy of this statement.

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Question 14

Explain under what circumstances a principal will be responsible for the wrongful acts of an agent who's not an employee.

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Question 15

Distinguish between a partnership and a corporation.

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Question 16

Explain what is meant by an "undisclosed principal" and the significance of such a relationship.

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Question 17

Explain how the authority of an agent may be terminated.

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Question 18

When two people enter into a partnership by agreement but neglect to set out the terms of such agreement,or where the parties becomes partners inadvertently,the terms and arrangements of that partnership are set out where?

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Question 19

Distinguish between a sole proprietorship and a corporation.

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Question 20

"An agent is free to withhold information from the principal as long as it doesn't hurt the principal." Discuss the accuracy of this statement.

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Quiz 11: Agency and Partnership