Prescribed estate agency forms

Question 1

An estate agency agreement is signed for a property. A newly joined administrator filing the paperwork notices that the form names the firm at the top but that the only signatures on it are those of the client and of the salesperson who took the instruction. She had assumed the agreement operated between those two, since they are the two who signed it and the two who have dealt with each other throughout the marketing, and she asks her supervisor whether the firm's name at the top of the page is simply letterhead.

Which statement is correct?

1. A. It operates between the estate agent and the client; the salesperson is not a party to it.
2. B. It operates between the salesperson and the client, the salesperson having taken the instruction.
3. C. It operates between the salesperson and the estate agent, the client being a third party.
4. D. It operates between all three, each having an interest in the outcome.

Question 2

Madam Lee signs a prescribed sale agreement that leaves her free to appoint other agents as well. Mr Tan signs a prescribed agreement of the other kind, under which he may engage no one else while it runs. In each case the salesperson who took the instruction signs the form beside the client, and the firm's name is printed across the top.

Consider the following statements.

1. (i) Madam Lee's form is a non-exclusive one and Mr Tan's an exclusive one.
2. (ii) Madam Lee may engage other agents while her appointment runs.
3. (iii) Mr Tan is confined to the one appointed agent for the term of his.
4. (iv) Each agreement is made between the client and the salesperson who signed it.

1. A. (i), (ii) and (iv) only
2. B. (i), (ii), (iii) and (iv)
3. C. (ii), (iii) and (iv) only
4. D. (i), (ii) and (iii) only