Multiple choice

A directs B who is a solicitor to sell his estate by auction and to employ an auctioneer for this purpose. B names C, an auctioneer, to conduct the sale. The status of C for the sale is

  1. C is an agent of A

  2. C is a sub-agent of A

  3. C is an agent of B

  4. C is neither an agent of A nor of B
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

C is an agent of A, the principal. When A authorizes B (the solicitor) to appoint an auctioneer, B is acting within actual authority to create an agency relationship between A and the auctioneer C. C is not a sub-agent but a direct agent of A because B had authority to bind A in this appointment. The solicitor acts as A's representative in engaging the auctioneer.

Keep practicing — related questions