Agency

Question 1

What is necessary to create an agency?

Answer 1

consent and a principal with capacity. in writting is NOT REQ’d

Question 2

Power of attorney

Answer 2

-written authorization of an agency

Question 3

What is POA and whats required

Answer 3

• poa is attorney in fact
• agent has power to act on behalf of principal
• agent authority usually limited to certain transactions

Question 4

Who is required to sign the POA

Answer 4

only the principal is required to sign the poa

Question 5

Principal’s remedies to agent breaching duties owed to principal

Answer 5

Can recover damages (money)
1 tort damages
2 contract damages
3 recover od secret profits
4 withhold compensation

Question 6

Principal remedy: tort damages

Answer 6

P can recover tort damages from agent if agent negligently or intentionally breached a duty owed to principal

wrongful act

Question 7

P remedy: Contract Damages

Answer 7

if A was compensated, P can collect contract damages if A was not, P cant

Question 8

If A obtained a secret profit, P can recover the secret profit, usually by imposing…

Answer 8

a constructive trust on the profit

Question 9

P remedy: Withhold Compensation

Answer 9

If A committed INTENTIONAL tort or intentionally breached duty to P, P may refuse payment

Question 10

A wrongful termindation is considered

Answer 10

a breach of contract

Question 11

What is an agency coupled with interest

Answer 11

arises when agent has interest in the subject matter of agency, such as where the agency power is given as security

Question 12

who can terminate an agency coupled with an iterest

Answer 12

only the agent, not principal can terminate

Question 13

True false: death, incapacity, or bankruptcy of P will end an agency coupled with interest

Answer 13

false

Question 14

this exacmple is what type of angency: paul borrows 20k from Alex promising to pay alex within a year and appointing alex agent to sell blackare if paul failts to pay

Answer 14

agency coupled with interest. so only A can terminate. P cant. A got a credit.

Question 15

A’s power to bind P can arise through:

Answer 15

1. grant of actual authority (poer n right)
2. apparent authority or estoppel (power but no right)
3. ratification (power but no right)

Question 16

Actual authority can be…

Answer 16

express or implied

Question 17

What is it called if P terminates agency?

Answer 17

a Revocation

Question 18

What is it called if A terminates agency?

Answer 18

a Renunciation

Question 19

What events would make agenecy automatically terminated by operation of law

Answer 19

1. death of P or A
2. incapacity of P
3. discharge in bankruptsy of P
4. failure to acquire necessary license
5. destruction of subjext matter
6. subsequent illegality

Question 20

When p issues secret instructions to A what happens to A’s authority

Answer 20

THIS LIMITS a’S actual authority but not apparent authority. if A does something out of his actual aythoruty, P still has to pay but can hold A liable for loss that results

Question 21

If P terminates an agents actual authority, what notices are required and why?

Answer 21

notices are required bc A still has apparent authority

1. old customers= actual notice
2. potential customers= constructive notice (eg. ad in news paper)

Question 22

If an agency is terminated by operation of law, what notices are required?

Answer 22

none.

Question 23

What is ratification

Answer 23

allows P to choose to become bound by a previously aunauthorized act of A

Question 24

what are the requirements for P ratification?

Answer 24

1. A must have indicated they were acting on behalf of P (have apparent authority)- if they did not, no ratification
2. all material facts must be discolsed to P
3. P must ratify the entire transaction- no partial transactions
4. Not require consideration. p need not notify third party of ratification

Question 25

Can P ratify part of a transaction if he doesnt like the full transaction

Answer 25

no. has to be entire transaction

Question 26

How can P ratify something

Answer 26

expressly or impliedly (accept benefits of contract instead of reject)

Question 27

What can be ratified

Answer 27

any act unless performance illegal or if third party withdraws prior to ratification or there has been a material change of circumstance so that it would not be fair to hold the third party liable

Question 28

can an undisclosed P ratify?

Answer 28

no. only a disclosed p may ratify

Question 29

Who can the third party hold liable if the P was undisclosed or partially disclosed?

Answer 29

Either A or P, but not both. Must choose one.

Question 30

if P is undisclosed, what affect does that have on A's authority

Answer 30

No apparent authority, but still has actual authority

Question 31

Who can hold third party liable to contract?

Answer 31

Only P, not A, regardless if existence was disclosed or not

Question 32

True False: an agreement between employer n employee that employer will not be liable for employee torts prevents third party from holding employer liable

Answer 32

false. they are still liable .but employer can seek reimbursement from employee

Question 33

what is the doctrine under which a corp can b liable for employee torts within scope of employment?

Answer 33

respondeat superior

Question 34

with is ultra vires doctrine

Answer 34

limits a corps power to act outside the sscope of the corps stated purposes or statutory power