StudyingSQE

Switch exam

EAA qualifying examinations

SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying Examination

EAQE Law of agency, contract and negligence question: nephew sign tenancy agreements

EAA EAQELaw of agency, contract and negligence

For years Mr Ng let his nephew sign tenancy agreements for his flats and accepted the rents. After a quarrel he secretly revokes the nephew's authority, but the nephew signs another tenancy with Ms Tam, who knows nothing of this. Is Mr Ng bound?

A No, because he had already revoked the nephew's authority in secret
B Only if Ms Tam paid a deposit to Mr Ng directly
C Only if the EAA licensed the nephew
D Yes, by apparent authority (estoppel)

Show the answer and explanation

Answer: D. Yes, by apparent authority (estoppel)

Answer: Yes, by apparent authority (estoppel). Why not the others: - Authority revoked: Secret revocation does not affect a third party who relies on the principal's earlier holding out. - Deposit paid to Mr Ng: Not a requirement for estoppel. - EAA licensing: Irrelevant to the agency question between principal and third party. Rule: Where a principal represents, by words or conduct, that a person has authority, and a third party relies on it, the principal is estopped from denying the authority, even if actual authority has ended. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 3 (agency by estoppel); as at Oct 2026

Common mistake

Thinking secret revocation protects the principal.

Practise more EAQE Law of agency, contract and negligence questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Law of agency, contract and negligence EAQE practice questions and mock exams

Related EAQE questions

Which of the following statements about contractual remedies are correct?A vendor says 'the flat has never had water seepage', knowing it has. The buyer relies on this and buys. What type of misrepresentation is it?An agency's property brochure states: 'All information is for reference only and we accept no responsibility for any error.' A buyer relies on a wrong saleable area in it. Does the disclaimer protect the agency?

Build a daily practice habit : a few exam-style questions a day, with worked answers. Free to start.

Start practising →

An original question written to the published EAQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.