Agency

Question 1

Express Actual Authority

Answer 1

Agent and principal in contract created by written words, clear, direct, and definite language, or detailed terms and instructions

Question 2

Implied Actual Authoirty

Answer 2

Allows agent to take whatever actions necessary to achieve principal’s objectives, based on agent’s reasonable understanding of objectives of principal (BASED ON PRINCIPAL’S ACTIONS)

Question 3

Apparent Authority

Answer 3

Principal causes a third party to reasonable believe the agent has authority to act. If third party reasonably believe then principal is bound to contract

Question 4

Ratification

Answer 4

A principal can ratify an act by an agent, even if agent didn’t have authority to act, and therefore be bound in a contract with a third party

Principal must:
1) ratify entire contract
2) do so while having capacity
3) in timely matter
4) with knowledge of material facts

Question 5

Principal direct liability

Answer 5

Principal is directly liable if principal authorized or ratified conduct, negligent hiring/supervising, or delegated a non-delegable duty to the agent

Question 6

General partnership

Answer 6

Defined as an association of two or more persons who carry on as co-owners a business for profit

Question 7

Limited liability partnership

Answer 7

Needs to file a statement of qualification with the SOS

Question 8

Members

Answer 8

Owners of an LLC