Agency

Question 1

Creation of agency

Answer 1

Agency relationship is created when one person manifest an intent that another person act on his behalf and both parties consent.

Question 2

Binding of principal

Answer 2

Principal is contractually bound by act of agent of agent had actual or apparent authority

Question 3

Actual authority

Answer 3

Actual authority arises when agent reasonably thinks he possesses authority based on principals dealings with agent. Can be express or implied.

Question 4

Apparent authority

Answer 4

Arises when 3rd party reasonably believes agent has authority to act on behalf of principal based on principal conduct.

Question 5

Estoppel

Answer 5

A principal creates an appearance of employee/employer relationship that a 3rd party then relies on