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The agency extends to receiving notice on behalf of his principal of whatever is material to be stated in the course of the proceedings. For this rule to operate:
I. the agent must be under a duty to communicate
II. the information must be material
III. it must have been obtained in the course of business for which the agent has been engaged
IV. the agent is not privy to a fraud on the principal
I. the agent must be under a duty to communicate
II. the information must be material
III. it must have been obtained in the course of business for which the agent has been engaged
IV. the agent is not privy to a fraud on the principal
- a)I, II
- b)II, IV
- c)Ill, IV
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
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The agency extends to receiving notice on behalf of his principal of w...
Understanding the Rule of Agency in Legal Proceedings
In agency law, certain conditions must be met for an agent to effectively receive notice on behalf of their principal. Each of the provided statements contributes to the validity of the agent's authority to receive material information during proceedings.
Key Conditions for Agency Notice
Conclusion
All four conditions are essential for the rule to operate effectively. They ensure that the agent's role is valid, trustworthy, and aligned with the interests of the principal. Thus, the correct answer is option 'D', as all the statements (I, II, III, IV) must be satisfied for the agent to receive notice on behalf of the principal.
In agency law, certain conditions must be met for an agent to effectively receive notice on behalf of their principal. Each of the provided statements contributes to the validity of the agent's authority to receive material information during proceedings.
Key Conditions for Agency Notice
- I. The agent must be under a duty to communicate: The agent has a responsibility to relay pertinent information to the principal. If this duty exists, the principal can trust that the agent will fulfill this role effectively.
- II. The information must be material: The information received must be relevant and significant to the matter at hand. Material information can influence the proceedings and should be communicated to the principal.
- III. It must have been obtained in the course of business for which the agent has been engaged: The information must arise from the agent's activities related to the principal's business. This ensures that the agent's authority encompasses the context in which the information was acquired.
- IV. The agent is not privy to a fraud on the principal: If the agent is aware of fraudulent activity, they cannot rightfully represent the principal's interests. This condition protects the integrity of the agency relationship.
Conclusion
All four conditions are essential for the rule to operate effectively. They ensure that the agent's role is valid, trustworthy, and aligned with the interests of the principal. Thus, the correct answer is option 'D', as all the statements (I, II, III, IV) must be satisfied for the agent to receive notice on behalf of the principal.
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The agency extends to receiving notice on behalf of his principal of w...
Explanation:
- Duty to communicate: The agent must be under a duty to communicate any material information to the principal. This ensures that the agent is responsible for passing on important information relevant to the proceedings.
- Material information: The information that the agent is required to communicate must be material, meaning it is significant and relevant to the proceedings at hand. This ensures that only important information is shared with the principal.
- Obtained in the course of business: The information must have been obtained in the course of the business for which the agent has been engaged. This ensures that the information is directly related to the business activities being conducted by the agent on behalf of the principal.
- No fraud on the principal: The agent must not be privy to any fraud being committed against the principal. This ensures that the agent is acting in good faith and is not misleading or deceiving the principal in any way.
By following these rules, the agency can effectively receive notice on behalf of the principal and ensure that important information is communicated in a transparent and trustworthy manner.
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The agency extends to receiving notice on behalf of his principal of whatever is material to be stated in the course of the proceedings. For this rule to operate:I. the agent must be under a duty to communicateII. the information must be materialIII. it must have been obtained in the course of business for which the agent has been engagedIV. the agent is not privy to a fraud on the principala)I, IIb)II, IVc)Ill, IVd)All of themCorrect answer is option 'D'. Can you explain this answer?
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The agency extends to receiving notice on behalf of his principal of whatever is material to be stated in the course of the proceedings. For this rule to operate:I. the agent must be under a duty to communicateII. the information must be materialIII. it must have been obtained in the course of business for which the agent has been engagedIV. the agent is not privy to a fraud on the principala)I, IIb)II, IVc)Ill, IVd)All of themCorrect answer is option 'D'. 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 The agency extends to receiving notice on behalf of his principal of whatever is material to be stated in the course of the proceedings. For this rule to operate:I. the agent must be under a duty to communicateII. the information must be materialIII. it must have been obtained in the course of business for which the agent has been engagedIV. the agent is not privy to a fraud on the principala)I, IIb)II, IVc)Ill, IVd)All of themCorrect answer is option 'D'. 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 The agency extends to receiving notice on behalf of his principal of whatever is material to be stated in the course of the proceedings. For this rule to operate:I. the agent must be under a duty to communicateII. the information must be materialIII. it must have been obtained in the course of business for which the agent has been engagedIV. the agent is not privy to a fraud on the principala)I, IIb)II, IVc)Ill, IVd)All of themCorrect answer is option 'D'. Can you explain this answer?.
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