Agency Flashcards
Who are the 3 “players” in an agency?
- principal
- agent
- Third party
What are the 3 types of authority?
- Actual
- Apparent
- Inherent
Agency is a ____ relationship
Fiduciary
T/F:
A contract is needed to create a relationship of agency
False
A deal by an agent with a third party will bind the principal if the agent has_____ to bind the principal
authority
An agent acts with ____ authority when, at the time of taking action that has legal consequences for the principal, the agent reasonably believes, in accordance with the principal’s manifestations to the agent that the principal wishes the agent to act.
actual
If an agent acts w/o authority, the principal can still be bound if she ____ the transaction
ratifies
Under ____ authority, there is a reasonable belief in accordance with the principal’s manifestations to the agent that the P wishes A to act on P’s behalf
Actual
Under ___ authority, an agent holds the power to take on P’s legal relations with 3rd parties when the 3rd party reasonably believes that A has authority to act and that belief is also held by the P
Apparent
Depending on the position, ___ authority can arise within that position to affect P’s relations
Inherent
Ratification is the ____ of a prior act done by another resulting in the act being carried out as if done by the ____ acting with ____ authority
affirmation
agent
actual
Actual authority is created by ____’s manifestation to _____
principal to agent
Apparent authority is created by ____’s manisfestation from the ___ to the _____
agent
principal
3rd party
Inherent authority is created by ____’s manifestation to _____
principal to agent
When does ratification apply?
When an agent makes a decision w/o authority and the principal approves the decision after the fact
“ex post facto” approval
What are the two types of actual authority?
Express and Implied
What are the 3 key factors under apparent authority?
- P’s manifestation of assent
- Communication of that assent to a 3rd party
- 3rd party has reason to believe that A is really the agent of P
When A acts with actual or apparent authority to make a K on behalf of a disclosed principal, who are parties to the K?
P and 3rd. party
T/F
An agent is a party to a K made under actual or apparent authority to a disclosed principal
False,
A is not a party to the K unless A and 3rd party agree
When A is acting with actual authority makes a contract on behalf of an undisclosed principal, who are parties to the K?
A,P, and 3rd party are all parties to the K
T/F
When A is acting with actual authority makes a contract on behalf of an undisclosed principal, the P and 3rd party do not have the same rights, liabilities, and defenses against each other
False,
it should be looked at as P made the K personally
An agent can be held personally liable for any breach of an agreement when the A does not have ____ of the ____ that P is a party to the K
consent
3rd party
An ____ or _____ _____principal is one who the 3rd party has no notice of their identity
unidentified
partially disclosed
When the 3rd party has notice that the agent is or may be acting for P, but has no notice of P’s identity, who are parties to the K?
A and 3rd party unless the parties agree otherwise
An apparent authority arises when the principal ___ the agent out to a __ __ as having certain authority or powers
holds
third party
