Which of the following statements is NOT correct, with regards to the law of agency? Select one: a. A principal is bound by the actions of an agent done with actual authority. b. A principal is bound by the actions of an agent under all circumstances. c. A principal can be bound by the actions of an agent even if the agent exceeds their actual authority. d. A principal is bound by the actions of an agent done with apparent authority.

Which amongst the following options is true, regarding apparent authority? Select one: a. The agent has acted beyond the scope of their actual authority, but the agent appears to have authority to act on behalf of the principal in the circumstances because of the conduct of the principal. b. The principal has given the authority to the agent, but the agent appears to have no authority to act on behalf of the principal. c. The principal will never be bound by the actions of an agent who has done the wrong thing by exceeding their actual authority. d. The principal is not bound by the actions of an agent done with apparent authority unless the principal ratifies the transaction.

In Agency theory, the following are true except:" The principal delegates decision-making authority to an agent. Both parties are utility maximisers. The agent always acts in the interest of the principal. The agent has a legal and fiduciary duty to act in the best intrests of the principal.

Which one of the following is not necessarily a characteristic of an agent–principal relationship?The agent's authority may be general, or it may be restricted in some way.The agent has a duty to fairly represent the principal and to act in the best interests of the principal.Any third party with whom the agent deals has the right to rely on the agent's authority and to hold the principal legally responsible for its dealings with the agent.The agent is an employee of the principal.

Which of the following is correct regarding a special power of attorney?Multiple choice question.It grants the agent express authority over specifically outlined acts.It allows the agent to conduct all business for the principal.It seldom terminates on the principal's death.It specifies that the agent's authority is intended to continue beyond the principal's incapacitation.

Who is liable to a third party if an agent exceeds his or her authority to act on behalf of the principal?Multiple choice question.Neither the agent nor the principalThe principalThe agentAny incidental beneficiary