Agency: Formation and Termination

Question 1

Forming of the agency relationship

Answer 1

requires that both principal and agent consent to the relationship or “Meeting of the minds”

Question 2

Consent of the relationship

Answer 2

Can be expressed or implied

Question 3

The agreement

Answer 3

does not have to be supported by consideration

Question 4

Reasons for Termination of the relationship

Answer 4

Principal Death
Principal Incapacity
Agent’s failure to have a necessary license

Question 5

In situations of an agency coupled with interest

Answer 5

Only the Agent can terminate the relationship

Question 6

Actual Authority

Answer 6

is what is created when ratification occurs