Agency Law Flashcards
once the third party learns the identity of an undisclosed principal,
the third party may elect to hold either the agent or the principal liable on the contract.
Under the agent’s duty to account, which of the following acts must a gratuitous agent perform?
account for the principal property
agency coupled with an interest
arises when an agent acquires from the principal an interest in the subject matter of the agency
In the absence of a contractual provision relating to the term of the agency,
he authority of the agent (Astor) is irrevocable by the principal (Pell). If there is no time period specified for the agency, then the agent (Astor) may terminate at any time without liability, regardless of the type of agency.
Contract Termination by operation of law
- If subject of agreement becomes illegal or impossible
- Death, insanity, or court determined incompetence of either party
- Bankruptcy of principal terminates the relationship
- If terminated by operation of law, no notice need be given
Ratification
approval after the fact of an unauthorized act done by an agent or one not yet an agent
Ratification occurs when
there is a subsequent approval by the principal of an agent’s unauthorized action. In order for ratification to take place, the principal must have knowledge of all material facts regarding the contract.
if an agent acts without authority,
neither the principal nor the third party is bound to perform the contract
- However, if Lux ratified Wallace’s unauthorized act before Doolittle withdrew from the contract, Doolittle would be bound by the agreement.
Ritz hired West for 6 months as an assistant sales manager at $4,000 a month plus 3% of sales.
Which of the following is correct?
West must disclose any interests he has which are adverse to Ritz in matters concerning Ritz’s business
