Agency: Authority of Agents and Principals

Question 1

Normally An agent

Answer 1

is not held liable for a contract

Question 2

A Partially disclosed principal

Answer 2

a party who’s existence (not specifically) is known to the 3rd party

Question 3

In Most states when a principal is partially disclosed

Answer 3

the agent is treated as a party to the contract.

The 3rd party can hold the principal and the agent liable.

Question 4

If there is no contract

Answer 4

agency is considered an agreement

Question 5

The principal owes the agent if

Answer 5

the agent completes their side of the agreement

1) Compensation (past services)
2) reimbursed expenses
3) indemnification from legal actions (reimbursed expenses)

Question 6

If the principal violates the duty

Answer 6

they can not withhold further performance from the agent

Question 7

If the Agent fraudulently breaches fiduciary duty to the prinicipal

Answer 7

Agency Terminates

Constructive Trust

Question 8

Respondeat Superior

Answer 8

employer is liable to 3rd parties for an employee’s actions

Question 9

An agent has the authority

Answer 9

to fulfill the purpose of the agency “in the ordinary course of business”

Question 10

A power of attorney

Answer 10

May be specific or limited in scope
Must be signed by only the principal
It has indefinite time (unless specified)
Will not be effective after death

Question 11

In the case of an undisclosed principal

Answer 11

the agent has the same actual authority as the principal.

There is no apparent authority because “no principal”