Agency and Partnerships

Question 1

Ratification

Answer 1

For ratification to occur, the principal must (i) know or have reason to know all material facts (ii) accept the entire transaction and (iii) have capacity.

Question 2

Third-Party Liability to Principal and Agent

Answer 2

When the principal is disclosed, only the principal may enforce the contract and hold the third-party liable. v When the principal is unidentified or undisclosed, either the principal or agent may enforce the contract and the hold the third-party liable.

Question 3

Factors to determine right to control

Answer 3

Characterization by the parties
Whether the business is distinct
The customs of the locality
Degree of skill required
Whose tools or facilities are used
Period of time
Basis of compensation
Agreement of the parties
Whether furthering the principal's business