Agency Law

Question 1

Authority can come in 3 forms

Answer 1

1) Actual Authority
2) Apparent Authority
3) Ratification

Question 2

Actual Authority

Answer 2

Authority agent reasonably believes that they have based upon the manifestations of the principal. Can be express or implied.

Question 3

Apparent Authority

Answer 3

Authority that a third party reasonably believes that the agent possesses based upon the manifestations of the principal

Question 4

Agent

Answer 4

A person or entity that act on behalf of another

Question 5

In order for an agency relationship to exist there must be:

Answer 5

• Assent by the agent to the relationship and duties
• Agent must act for the benefit of the principal
• Principal must control agent’s actions on its behalf

Question 6

Actual Express Authority

Answer 6

Authority that is expressly given to the agent by the principal for some particular task.

Question 7

Actual Implied Authority

Answer 7

• That authority which is necessary to carry out its expressly authorized actions and in fact was implied from that authorization.
• Or authority that comes with virtue of the position the agent has with respect to the principal and the duties associated with this position.