CA Foundation Exam > CA Foundation Questions > Which one of the following statements is inco...
Start Learning for Free
Which one of the following statements is incorrect?
- a)An agency relationship may be created through necessity.
- b)An agency relationship may be created through estoppel.
- c)All agents are entitled to be paid for their services.
- d)An agent creates a legal relationship between a third party and a principal.
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Which one of the following statements is incorrect?a)An agency relatio...
Incorrect Statement: All agents are entitled to be paid for their services.
Explanation:
An agency relationship is a legal relationship where one person, known as the agent, acts on behalf of another person, known as the principal. The agent is authorized to perform certain tasks and make decisions on behalf of the principal. This relationship is governed by the law of agency.
Agency Relationship:
There are several ways in which an agency relationship can be created. Some of the common ways include:
1. Express Agreement: An agency relationship can be created through an express agreement between the principal and the agent. This agreement can be in writing or oral.
2. Implication: An agency relationship can also be created by implication, where the conduct of the principal and the agent indicates that they intended to create such a relationship.
3. Necessity: An agency relationship may be created through necessity. This means that in certain circumstances, where it is not possible or practical for the principal to act on their own behalf, an agent may be appointed to act on their behalf. For example, if a person falls ill or is unable to attend a meeting, they may appoint an agent to represent them.
4. Estoppel: An agency relationship may be created through estoppel. Estoppel is a legal principle that prevents a person from denying or asserting something contrary to what they have previously stated or accepted as true. If a person acts as though someone is their agent, they may be estopped from denying that agency relationship.
Payment for Services:
While it is common for agents to be paid for their services, it is not a requirement for an agency relationship. In some cases, agents may work on a voluntary basis or may be compensated through other means, such as commission or a share of the profits. Therefore, the statement that all agents are entitled to be paid for their services is incorrect.
Conclusion:
In summary, the incorrect statement is that all agents are entitled to be paid for their services. While it is common for agents to be paid, it is not a requirement for an agency relationship. An agency relationship can be created through various means, including express agreement, implication, necessity, and estoppel.
Explanation:
An agency relationship is a legal relationship where one person, known as the agent, acts on behalf of another person, known as the principal. The agent is authorized to perform certain tasks and make decisions on behalf of the principal. This relationship is governed by the law of agency.
Agency Relationship:
There are several ways in which an agency relationship can be created. Some of the common ways include:
1. Express Agreement: An agency relationship can be created through an express agreement between the principal and the agent. This agreement can be in writing or oral.
2. Implication: An agency relationship can also be created by implication, where the conduct of the principal and the agent indicates that they intended to create such a relationship.
3. Necessity: An agency relationship may be created through necessity. This means that in certain circumstances, where it is not possible or practical for the principal to act on their own behalf, an agent may be appointed to act on their behalf. For example, if a person falls ill or is unable to attend a meeting, they may appoint an agent to represent them.
4. Estoppel: An agency relationship may be created through estoppel. Estoppel is a legal principle that prevents a person from denying or asserting something contrary to what they have previously stated or accepted as true. If a person acts as though someone is their agent, they may be estopped from denying that agency relationship.
Payment for Services:
While it is common for agents to be paid for their services, it is not a requirement for an agency relationship. In some cases, agents may work on a voluntary basis or may be compensated through other means, such as commission or a share of the profits. Therefore, the statement that all agents are entitled to be paid for their services is incorrect.
Conclusion:
In summary, the incorrect statement is that all agents are entitled to be paid for their services. While it is common for agents to be paid, it is not a requirement for an agency relationship. An agency relationship can be created through various means, including express agreement, implication, necessity, and estoppel.
Free Test
FREE
| Start Free Test |
Community Answer
Which one of the following statements is incorrect?a)An agency relatio...
Normally, Agents are entitled to be paid for their services, But, in certain circumstances, a gratuitous agent i.e. someone who is not paid for their service, may also be an Agent.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer?
Question Description
Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer?.
Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which one of the following statements is incorrect?a)An agency relationship may be created through necessity.b)An agency relationship may be created through estoppel.c)All agents are entitled to be paid for their services.d)An agent creates a legal relationship between a third party and a principal.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup