AGENCY

Question 1

Two Elements: 1) Consent - manifested through written or spoken words or other conduct; 2) Control - the element of subservience is critical

Answer 1

What are the elements required to create an Agency relationship?

Question 2

Two ways to terminate: by will or by operation of law (e.g. death of either party)

Answer 2

How is an agency relationship terminated?

Question 3

Three options: 1) Actual notice to parties who have dealt with agency; 2) Constructive notice (publication) to those who have not actually relied on manifestation by principle; 3) Apparent Authority - terminates when a third party knows or has reason to know that the principal no longer consents

Answer 3

What are the ways a principal provides notice of termination of an agent’s authority?
(FALLS UNDER TERMINATION BY WILL)

Question 4

The authority that a principal in reality has granted to an agent

Answer 4

** What is actual authority?

Question 5

Express - direction of precise task
Implied - (e.g. sell my house) - also gives “incidental authority” to conduct other transactions (put house on market, etc)

Answer 5

** What are the two types of actual authority?

Question 6

When a principal is liable to a third party if an agency acted on his behalf and the principle either 1) affirmed the conduct or 2) engaged in conduct (such as accepting benefits) demonstrating intent to accept conduct

Answer 6

What is ratification by principal?

Question 7

If the conduct of the principal leads a third party to believe that the agent has authority to act on his behalf

Answer 7

** What is apparent authority?