Agency

Question 1

Who are the 3 “players” in an agency?

Answer 1

1. principal
2. agent
3. Third party

Question 2

What are the 3 types of authority?

Answer 2

1. Actual
2. Apparent
3. Inherent

Question 3

Agency is a ____ relationship

Answer 3

Fiduciary

Question 4

T/F:

A contract is needed to create a relationship of agency

Answer 4

False

Question 5

A deal by an agent with a third party will bind the principal if the agent has_____ to bind the principal

Answer 5

authority

Question 6

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.

Answer 6

actual

Question 7

If an agent acts w/o authority, the principal can still be bound if she ____ the transaction

Answer 7

ratifies

Question 8

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

Answer 8

Actual

Question 9

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

Answer 9

Apparent

Question 10

Depending on the position, ___ authority can arise within that position to affect P’s relations

Answer 10

Inherent

Question 11

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

Answer 11

affirmation
agent
actual

Question 12

Actual authority is created by ____’s manifestation to _____

Answer 12

principal to agent

Question 13

Apparent authority is created by ____’s manisfestation from the ___ to the _____

Answer 13

agent
principal
3rd party

Question 14

Inherent authority is created by ____’s manifestation to _____

Answer 14

principal to agent

Question 15

When does ratification apply?

Answer 15

When an agent makes a decision w/o authority and the principal approves the decision after the fact

“ex post facto” approval

Question 16

What are the two types of actual authority?

Answer 16

Express and Implied

Question 17

What are the 3 key factors under apparent authority?

Answer 17

1. P’s manifestation of assent
2. Communication of that assent to a 3rd party
3. 3rd party has reason to believe that A is really the agent of P

Question 18

When A acts with actual or apparent authority to make a K on behalf of a disclosed principal, who are parties to the K?

Answer 18

P and 3rd. party

Question 19

T/F

An agent is a party to a K made under actual or apparent authority to a disclosed principal

Answer 19

False,

A is not a party to the K unless A and 3rd party agree

Question 20

When A is acting with actual authority makes a contract on behalf of an undisclosed principal, who are parties to the K?

Answer 20

A,P, and 3rd party are all parties to the K

Question 21

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

Answer 21

False,

it should be looked at as P made the K personally

Question 22

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

Answer 22

consent

3rd party

Question 23

An ____ or _____ _____principal is one who the 3rd party has no notice of their identity

Answer 23

unidentified

partially disclosed

Question 24

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?

Answer 24

A and 3rd party unless the parties agree otherwise

Question 25

An apparent authority arises when the principal ___ the agent out to a __ __ as having certain authority or powers

Answer 25

holds

third party