Agency

Question 1

Define Agency

Answer 1

The fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.

Question 2

3 Elements of an Agency Relationship

Answer 2

1. Consent by the principal and the agent
2. Action by the agent on behalf of the principal.
3. Control by the principal.

Question 3

Fiduciary

Answer 3

A relationship of trust and confidence where one party has a higher duty due to their special knowledge or expertise.

Question 4

Respondeat Superior

Answer 4

The master in a master/servant relationship is liable for torts committed by a servant within the scope of his employment.

Question 5

A principal will be liable on a contract between the agent and a third party when…

Answer 5

the agent acts with actual authority, apparent authority, or inherent authority.

Question 6

Actual Authority

Answer 6

Arises from the manifestation of a principal to an agent that the agent has power to deal with others as a representative of the principal.

Question 7

Apparent Authority

Answer 7

Arises from the manifestation of a principal to a third party that another person is authorized to act as an agent or the principal.

Question 8

In an undisclosed principle situation, there can be no…

Answer 8

apparent authority

Question 9

Inherent Authority

Answer 9

The power of an agent which is derived solely from the agency relation and exists for the protection of persons harmed by or dealing with a servant or other agent.

Question 10

Inherent Authority arises when…

Answer 10

An agent commits an act forbidden by the principal, accompanying or incidental to transactions which the agent is authorized to conduct.

Question 11

Estoppel

Answer 11

applies when the principal has not made any manifestations of authority to the third party, instead, the principal is held responsible under this doctrine because the principal contributed to the third party’s beliefs or failed to dispel it.

Question 12

Express ratification

Answer 12

the agent purports to act on their principal’s behalf and the principle affirmatively treats the agents act as authorized

Question 13

Implied ratification

Answer 13

the agent purports to act on their principal’s behalf and the principal engages in conduct that is justifiable only if the principal is treating the agents act as authorized.

Question 14

Fiduciary Duty of an agent

Answer 14

Loyalty: agent must act solely for the benefit of the principal and not himself or someone else
Carefulness: it duty to act with the care, confidence, and diligence normally exercised by agents in similar circumstances.