Agency Law

Question 1

A.B.C

FORMATION OF AN AGENCY RELATIONSHIP

Answer 1

1) Assent to enter into a relationship
2) Benefit for the Principal
3) Control by the Principal

Question 2

Types of Agency relationship

Answer 2

1. Actual
2. Apparent
3. Ratification

Question 3

What is Actual Authority

Answer 3

1) Implied- the principals actions makes the agent believe that they have agency, the is based off of past performance, custom, necessity, or emergency

2) Express- explicit permission or consent from the principal

Question 4

Apparent Authority

Answer 4

• the person dealing with the agent must have a reasonable belief that the agent has authority.
• this belief must be based on act or neglect on the part of the principal.

Question 5

when is the agent bound or responsible for the contracts entered into on behalf of the principal?

Answer 5

• when there principal is undisclosed or partially disclosed.
• they had no apparent or actual authority.
• or they exceed their authority.

Question 6

SMI

Vicarious Liabilty

Answer 6

• agent of the employee or principal
• working within the **scope of their employment **
• minor deviation (detour) from their employment
• the agent commited an intentional tort.

Question 7

What does the agent owe the principal

Answer 7

Duty of Loyality (not to engage in self dealing, not to profit without disclosure and duty to follow instructions)

Duty of Care

may recover profits/ losses from breaching agent.