MULTIPLE CHOICE QUESTIONS
1. Who is a principal in the context of agency law?
a) The person who acts on behalf of another
b) The person for whom the agent acts
c) A third party involved in the agency relationship
d) The government authority overseeing agency agreements
2. In a bailment, the person who delivers the goods is known as the:
a) Bailor
b) Bailee
c) Trustee
d) Holder
3. What is the meaning of “specific lien” in lien law?
a) A lien that applies to all the assets of the debtor
b) A lien that arises due to a judgment by the court
c) A lien that applies only to a particular property or asset
d) A lien that is applicable only in certain Indian states
4. Which type of agency arises when the agent has authority to represent the principal in specific, predefined matters?
a) Express agency
b) Implied agency
c) Apparent agency
d) Gratuitous agency
5. In agency law, ostensible authority refers to:
a) The actual authority explicitly given by the principal to the agent.
b) The authority that arises from the conduct of the principal and the agent.
c) The authority given to the agent by a third party.
d) The authority that exists only in emergencies or unforeseen situations.
6. Which type of bailment involves a reward or payment for the bailee’s services?
a) Gratuitous bailment
b) Bailment for hire
c) Bailment by necessity
d) Pledge
7. What distinguishes a possessory lien from a non-possessory lien?
a) Possessory lien does not require a court order to be effective.
b) Non-possessory lien grants the right to possess the debtor’s property.
c) Possessory lien arises only in cases of mortgages.
d) Non-possessory lien is applicable only to tangible assets.
8. When an agent exceeds their authority and the principal ratifies the unauthorized act, it becomes:
a) An implied agency
b) An undisclosed agency
c) An agency by estoppel
d) A gratuitous agency
9. A bank holding a lien on a property until the mortgage is fully paid is an example of:
a) Particular lien
b) General lien
c) Equitable lien
d) Statutory lien
10. Which of the following is a way in which agency relationships can be created?
a) Novation
b) Waiver
c) Ratification
d) Covenant
Answers
- b
- a
- c
- a
- a
- b
- b
- c
- a
- c
Source: Lawctopus
