Agency law

Question 1

Agency is a _____ relationship between the ____ and the ______.

Answer 1

fiduciary
agent
principal

Question 2

The agent owes ____ duties to the ______.

Answer 2

fiduciary

principals

Question 3

A fiduciary is _____ who acts in the ________ of ______.

Answer 3

someone
interest
another

Question 4

Fiduciary duties requires the _____ to act in ____ ___ with the appropriate level of ____.

Answer 4

agent
good faith
care

Question 5

The fiduciary relationship arises when the ______ manifests assent to the _____ that the agent shall act on the principal’s behalf and subject to the principal’s ____ and the agent ____ to act.
[R3d §1.01]

Answer 5

principal
agent
control
consents

Question 6

A ________ is bound to the acts of their agent if the agent has the ______ to act on its behalf.

Answer 6

principal

authority

Question 7

An agent has _____ authority when the agent _____ _____ that the principals wishes the agent to act and the act is in _____ with the _____ manifestations.
[R3d §2.01]

Answer 7

actual
reasonably believes
accordance
principal’s

Question 8

T/F: Actual authority can be express or implied

Answer 8

TRUE

Question 9

The power held by an agent to affect a ______ legal relations with a ____ ___ when the third party _____ _____ that the agent has authority to act on ____ of the principal and that _____ is traceable to the principal’s ________. [Apparent authority; §2.03]

Answer 9

Principal's 
third party
reasonable belives
behalf 
belief
manifestations

Question 10

Apparent authority is created by the principal’s _____ to a 3P that the ____ has authority to act for the principal. [§3.03]

Answer 10

manifestations

agent

Question 11

Apparent authority by ____ is the power of the agent to bind the _____ based on their ______.

Answer 11

position
principal
relationship

Question 12

Ratification is the ______ of a prior act done which has the effect as if the ____ was acting with ____ authority.
[R3d §4.01]

Answer 12

affirmance
agent
actual

Question 13

The principal ratifies an act by _____ ______ that the act shall affect the person’s ______ relations.

Answer 13

manifesting assent

legal

Question 14

The principal ratifies an act by _____ that _____ a reasonable assumption that the principal so _____.

Answer 14

conduct
justifies
consents

Question 15

Ratification requires _____ to affirm the ____ so the ____ must be aware of the contract!

Answer 15

intent
contract
principal

Question 16

An agent for a ______ principal is not bound to a contract when acting with _____ or _____ authority in making a contract on behalf of a the principal and the _____ and the ____ are parties to the contract.

Answer 16

disclosed
actual 
apparent 
principal 
3P

Question 17

An agent for a disclosed principal simply means …

Answer 17

the 3P knows who the P is which makes them both parties to the K