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Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?
- a)No, Cute has provided no Consideration and therefore there is no agency agreement.
- b)No, Govind is a gratuitous agent and has no duty to follow instructions.
- c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.
- d)Yes, provided he pays Govind for being an agent.
Correct answer is option 'C'. Can you explain this answer?
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Cute appoints Govind, to act as his agent for two weeks. Govind agrees...
An unpaid (gratuitous) agent will have no duty to act as no Consideration has been provided by the principal, but if he does act, he must do so in accordance with the instructions set out by the principal.
In this case, Cute has provided no Consideration. But Consideration is not essential to create an agency agreement. So, a valid agency is created.
Even though Govind is a gratuitous agent, he must do in accordance with instructions set out by the principal. So, Cute can take action against Govind for breach of his agency duties?
In this case, Cute has provided no Consideration. But Consideration is not essential to create an agency agreement. So, a valid agency is created.
Even though Govind is a gratuitous agent, he must do in accordance with instructions set out by the principal. So, Cute can take action against Govind for breach of his agency duties?
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Cute appoints Govind, to act as his agent for two weeks. Govind agrees...
Understanding Agency Duties
In this scenario, Govind is appointed as a gratuitous agent for Cute, meaning he is acting without any payment. However, even as a gratuitous agent, he still has certain duties toward his principal.
Key Duties of an Agent
- Follow Instructions: An agent must act according to the instructions given by the principal. In this case, Govind was instructed to collect rent and deposit it into the bank.
- Exercise Reasonable Care: An agent is expected to exercise a reasonable level of care while performing their duties, regardless of whether they are being paid or not.
Govind's Breach of Duty
- Failure to Deposit Rent: Govind collected the rent but failed to follow through with the instruction to deposit it into the bank. This constitutes a breach of his agency duties.
- Negligence in Care: Leaving the rent on the bus indicates a lack of reasonable care in safeguarding the money, further emphasizing the breach.
Legal Standing for Cute
- Gratuitous Agent Liability: Even though Govind is a gratuitous agent, he can still be held liable for failing to act according to the principal's instructions. The law recognizes that agents, regardless of compensation, have responsibilities towards their principals.
- Conclusion: Therefore, Cute can indeed take action against Govind for breach of his agency duties despite the lack of payment, as Govind did not fulfill his obligation to act in accordance with Cute's instructions.
In summary, the correct answer is option 'C' because it highlights the essential responsibilities of an agent, which are maintained even in the absence of compensation.
In this scenario, Govind is appointed as a gratuitous agent for Cute, meaning he is acting without any payment. However, even as a gratuitous agent, he still has certain duties toward his principal.
Key Duties of an Agent
- Follow Instructions: An agent must act according to the instructions given by the principal. In this case, Govind was instructed to collect rent and deposit it into the bank.
- Exercise Reasonable Care: An agent is expected to exercise a reasonable level of care while performing their duties, regardless of whether they are being paid or not.
Govind's Breach of Duty
- Failure to Deposit Rent: Govind collected the rent but failed to follow through with the instruction to deposit it into the bank. This constitutes a breach of his agency duties.
- Negligence in Care: Leaving the rent on the bus indicates a lack of reasonable care in safeguarding the money, further emphasizing the breach.
Legal Standing for Cute
- Gratuitous Agent Liability: Even though Govind is a gratuitous agent, he can still be held liable for failing to act according to the principal's instructions. The law recognizes that agents, regardless of compensation, have responsibilities towards their principals.
- Conclusion: Therefore, Cute can indeed take action against Govind for breach of his agency duties despite the lack of payment, as Govind did not fulfill his obligation to act in accordance with Cute's instructions.
In summary, the correct answer is option 'C' because it highlights the essential responsibilities of an agent, which are maintained even in the absence of compensation.
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Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer?
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Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.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 Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.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 Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer?.
Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.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 Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.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 Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Cute appoints Govind, to act as his agent for two weeks. Govind agrees to act without payment. Cute instructs Govind to collect rent each Friday morning from his tenants and pay the rent into the bank next door. In the second week, Govind collects the rent but fails to bank it. On the way home he leaves it on the bus and it is never recovered. Can Cute take action against Govind for breach of his agency duties?a)No, Cute has provided no Consideration and therefore there is no agency agreement.b)No, Govind is a gratuitous agent and has no duty to follow instructions.c)Yes, even though Govind is a gratuitous agent if he must do in accordance with instructions set out by the principal.d)Yes, provided he pays Govind for being an agent.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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