Agency

Question 1

What the relationship of Principal and Agent is based on?

Answer 1

it is based upon the consent of both parties, also involving a meeting of the minds.

Question 2

To whom a subagent owe a fiduciary?

Answer 2

Subagent owes a fiduciary duty to both the Agent and the Principal.

Question 3

When generally may ratify a contract that was agreed to by his/her agent without authority from the principal?

Answer 3

When the third party is aware that there is a principal, that principal, fully disclosed or partially disclosed.

Question 4

When ratification is not possible?

Answer 4

When the third party would not know of the existence of an undisclosed principal.

Question 5

Who owes a fiduciary duty in agency relationship?

Answer 5

The agent owes a fiduciary duty to the principal but the principal does not owe a fiduciary duty to the agent. No requirement of contract is need in agency relationship.

Question 6

What happens when the principal is undisclosed in an agency relationship?

Answer 6

The agent generally has the same authority as if the principal were disclosed.

Question 7

When an agency is terminated?

Answer 7

By operation of law if the subject agreement becomes:

• Illegal
• impossible
• The principal or agent dies or became insane
• The principal becomes bankrupt