Master of Professional Finance (MPF) Program

Department of Finance
University of Dhaka
Class Test 2, Marks-10, Time-00:40 hour
Course Code and Name: PF-502; Legal Environment of Business
Semester: July – December 2017

Q. 1
The contract which creates relationship between ‘Principal’ and ‘Agent’ is called----.
Complete the sentence with a word.
Q. 2
What is the difference between an ‘Agent’ and an ‘IndependentContractor’? Just mention
one which is most important.

Q.3
Give an example of ‘Agency by estoppel’.

Q. 4
Where the carrier of the goods acting as a bailee,does anything to protect or preserve the
goods, in an emergency, does it fall under the act of agency? If so, what type of agency is it?
Q. 5
If any unauthorised act done by an agent is ratified by the principal, since when it will come
into effect?

Q. 6
A ratification to be effective it must be made within----. Complete the sentence to make a
sense.
Q. 7
Give an example of ostensible authority an agent can exercise to bind his principal.

Q. 8 Just mention a situation where delegation of agency by an agent is said to be proper

and lawful.

Q. 9
When is an agent bound to communicate with his principal for his instruction?

Q. 10
Who will be responsible either principal or agent at the event the agent does not disclose
his principal in dealing with the third?