Agency

Question 1

An agency relationship is created by

Answer 1

Assent, benefit and control.

Question 2

An agent requires ____ capacity.

Answer 2

Minimal.

Question 3

Do you need a writing or consideration to form an agency relationship?

Answer 3

No.

Question 4

A principal is liable to third parties for contracts of the agent if there is (types of authority)

Answer 4

Authority: actual (express or implied) or apparent Or Ratification.

Question 5

A principal is liable for an agent’s torts if?

Answer 5

Within the scope of agency and employer/employee relationship

Question 6

An agent can be liable as a party to a contract if:

Answer 6

The identity of the principal is not disclosed.

Question 7

Agents have what duties?

Answer 7

Duty of care and lyoalty.

Question 8

Principals have what duties?

Answer 8

Duty not to interfere and duty to indemnify A for losses in scope of agency.

Question 9

Conduct within the scope of employment is…

Answer 9

Acts that the employee is employed to perform - OR - that were intended to profit or benefit the employer.

Careful instructions directed to the employee do not insulate the employer from liability—even when the employee acts counter to the instructions—if the employee is acting within the scope of employment.

Question 10

How does a principal ratify an agent’s action?

Answer 10

(i) the principal must ratify the entire contract;
(ii) the principal and the third party must have legal capacity to enter into the contract;
(iii) the ratification must occur before the third party withdraws from the contract;
and (iv) the principal must know the material facts of the transaction.