Practice question bank 363
Question 21
Charles saw a sign advertising vacancies at a local building site. He contacted the foreman and was told
that he would be required but that, because work depended on the weather conditions, he would not be
given an employment contract – he would be accountable for his own income tax and National Insurance.
The foreman added that he would be provided with tools and that at the beginning of each day he would
be told which site he would work on that day. Lateness or theft of materials would lead to his dismissal.
Nick commences employment under a three-year contract with Equis Ltd on 1 August 20X6. On 30 June
20X9 he is given notice that the contract is not to be renewed.
Required
(a) State whether Charles is an employee (2 marks)
(b) Explain which claims Nick may be able to bring against Equis Ltd. (4 marks)
(Total = 6 marks)
Question 22
'Holding out' is a key element of which form of agency?
A Agency by estoppel
B Agency by necessity
C Agency by implied agreement (1 mark)
Question 23
What is the extent of an agent's ostensible authority?
A What is usual in the circumstances only
B What is implied from the agency relationship only
C What the principal gives the agent expressly only
D What is usual in the circumstances and what the principal gives them expressly or impliedly
(2 marks)
Question 24
In the context of partnership law, a partner's actual authority to bind the partnership in a contract is
determined by which of the following?
A What is agreed between the partners
B The perception third parties have of the purpose of the partnership
C The actual purpose of the partnership (1 mark)
Question 25
To wind up a Limited Liability Partnership (LLP), which of the following is required?
A An order from the Registrar of Companies
B It must be formally wound-up
C A deed signed by the partners
D A court order (2 marks)