Which of the following is true? B. The agent is expected to carry out an agency although its execution would manifestly result in loss or damage to the principal. D. Agency is presumed to be for a compensation, unless there is proof to the contrary. A. The contract of agency is extinguished by the insanity of the agent but not of the principal. C. Two persons authorizing an agent to sell a property on their behalf are liable jointly to the agent.

Which of the following is true? B. The agent is expected to carry out an agency although its execution would manifestly result in loss or damage to the principal. D. Agency is presumed to be for a compensation, unless there is proof to the contrary. A. The contract of agency is extinguished by the insanity of the agent but not of the principal. C. Two persons authorizing an agent to sell a property on their behalf are liable jointly to the agent.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 7CYBK

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Statement I: If an agent acts in his name, the principal shall have a right of action against the persons with whom the agent has contracted. Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even if the principal is insolvent. Only Statement I is true. Only Statement II is true. Both statements are true. Both statements are false.
S1: Negotiorium gestio refers to the voluntary administration of the property, business, or affairs of another with his consent or authority. S2: Solutio indebiti refers to payment by mistake of an obligation which was due and demandable. a. Only S2 is true b. Both statements are true c. Only S1 is true d. Both statements are false
92. Which of the following is not a mode of extinguishment of contract of sale? Group of answer choices a. Redemption, whether legal redemption or conventional redemption b. Fulfilment of suspensive condition on sale of a determinate thing whose acquisition of ownership by the seller depends upon a contingency c. Resale of the goods by the unpaid seller d. Cancellation of sale of personal property in instalments by the seller in case the buyer defaulted in at least two instalments
Which type of agent is not liable for a breach of contract by his principal: a. undisclosed agent b. partially disclosed agent c. fully disclosed agent d. all of the above
In order to say that the buyer is insolvent in order for the seller to exercise his right to stoppage in transitu, such insolvency should be judicially declared. True or False
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No gain or loss is recognized on the sale of property between related parties. True or false
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If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party, a.The disallowed loss is lost forever. b.The disallowed loss may be used if there is a further loss on the subsequent sale. c.The unrelated party may claim the loss previously disallowed. d.An amended return may be filed to claim the loss previously disallowed. e.The disallowed loss may be used to offset gain on the subsequent sale.
The proper remedy for the following cases is reformation of the instrument, except for one. Which is it? * If the true intention of the contracting parties is not expressed in the instrument purporting to embody the agreement by reason of mistake, fraud, inequitable conduct or accident. If the mutual mistake of the parties causes the failure of the instrument to disclose their real agreement. If mistake, fraud, inequitable conduct or accident has prevented the meeting of the minds of the contracting parties. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention.
Determine whether the statement is legally correct (true) or not (false). 1. The sale of an undivided interest in a property and the sale of an undivided share in a mass are not perfected contracts of sale. 2. For auction sales, the seller may bid for as long as the right is reserved, without need for notice.
This transfer of financial asset does not result to derecognition. A. The transferred asset has been isolated from the transferor (put beyond reach of the transferor and its creditors) B. The transferees have obtained the right to pledge or exchange either the transferred assets or beneficial interests in the transferred assets C. The transferor is obliged to repurchase the transferred financial asset D.The transferor does not maintain effective control over the transferred assets through an agreement to repurchase or redeem them before their maturity