Agency 1-7 Flashcards
When does an Agency Relationship exist?
If there is:
Assent;
Benefit; AND
Control.
Priority: Medium
What is an Agent?
An agent is a person or entity that acts on behalf of another – the principal.
Priority: Medium
When does Express Actual Authority exist?
When the principal has explicitly told the agent that
he is entitled to act (either orally or in writing).
Priority: HIGH
When does Implied Actual Authority exist?
When either:
The agent believes he is entitled to act to carry out his express authorized duties;
The agent has acted similarly in prior dealings; OR
It is customary for agents in that position to act in that way.
Priority: HIGH
When does Apparent Authority exist?
When:
The principal holds out another as having authority;
AND
A third-party reasonably relies on that authority.
Priority: HIGH
How does a principal hold out an agent as having authority?
When he:
Gives the agent a position/title indicating such authority;
Has previously held the agent out as having authority and has not published a revocation; OR
Has cloaked the agent with the appearance of authority.
Priority: HIGH
When does Ratification occur?
When the principal:
Has knowledge of all material facts or contract terms;
AND
Thereafter manifests assent (approval) of the same through words or conduct.
Priority: Medium
