Agency Part 3

Question 1

The rule is that a _________ is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 1

principal

Question 2

The rule is that a _______ is _________ from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 2

principal is estopped

Question 3

The rule is that a _______ ____ _______ ____ ________ an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 3

principal is estopped from denying

Question 4

The rule is that a _______ ____ ____ _____ ______ _____ _____ ________ when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 4

principal is estopped from denying an agency relationship

Question 5

The rule is that a principal is estopped from denying an agency relationship when a
______ _______ is _______ _________ to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 5

third party is justifiably induced

Question 6

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to _____ ____ _______ ____ ____ ______ because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 6

make a detrimental change in position

Question 7

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
_______ ____ ________ with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 7

believed a transaction

Question 8

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a ________ ______ was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 8

purported agent

Question 9

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the ________ ________ and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 9

principal’s behalf

Question 10

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the ________ _________ either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 10

purported principal

Question 11

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either ________ ____ ________ caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 11

intentionally or carelessly

Question 12

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either _______ ___ ______ _____ ____ ______ or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 12

intentionally or carelessly caused such belief

Question 13

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the _______ _____ ____ ____ ____ ____ _____ ______ ______, knew that the belief might induce others to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 13

purported principal had notice of the third party’s belief

Question 14

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the _______ might _____ ______ to change their position but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 14

belief

induce others

Question 15

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to _____ ____ _____ but did not take reasonable steps to notify the third party of the facts. Restatement (Third) of Agency § 2.05.

Answer 15

change their position

Question 16

The rule is that a principal is estopped from denying an agency relationship when a
third party is justifiably induced to make a detrimental change in position because they
believed a transaction with a purported agent was on the principal’s behalf and the purported principal either intentionally or carelessly caused such belief or the purported principle had notice of the third party’s belief, knew that the belief might induce others to change their position but did not take _______ _______ to ______ the ____ _______ of the _______. Restatement (Third) of Agency § 2.05.

Answer 16

reasonable steps

notify

third party

facts

Question 17

+ Case: Hoddenson v. Koos Bros case (Furniture Store)

You have to stand in the shoes of the person who has been injured and say what would they think.

Koos Bros did not act with ordinary prudence.

Question of Fact!

!!

Answer 17

!!

Question 18

Where a _______ of a ______ ___ ______ by his dereliction of duty (failure to fulfill obligations) enable one who is not his agent conspicuously to act as such and ostensibly to transact the proprietor’s business with a patron in the establishment, the appearances being of such a character as to lead a person of ordinary prudence and circumspection to believe that the impostor was in truth the proprietor’s agent, in such circumstances the law will not permit the proprietor defensively to avail himself of the impostor’s lack of authority and thus escape liability for the consequential loss thereby sustained by the customer.

Answer 18

proprietor

place of business

Question 19

Where a proprietor of a place of business by his ______ ____ _____ (failure to fulfill obligations) enable one who is not his agent conspicuously to act as such and ostensibly to transact the proprietor’s business with a patron in the establishment, the appearances being of such a character as to lead a person of ordinary prudence and circumspection to believe that the impostor was in truth the proprietor’s agent, in such circumstances the law will not permit the proprietor defensively to avail himself of the impostor’s lack of authority and thus escape liability for the consequential loss thereby sustained by the customer.

Answer 19

dereliction of duty

Question 20

Where a proprietor of a place of business by his dereliction of duty (failure to fulfill obligations) enable one who is not his agent conspicuously to act as such and ostensibly to transact the proprietor’s business with a patron in the establishment, the appearances being of such a character as to lead a person of _____ _______ ____ _______ to believe that the impostor was in truth the proprietor’s agent, in such circumstances the law will not permit the proprietor defensively to avail himself of the impostor’s lack of authority and thus escape liability for the consequential loss thereby sustained by the customer.

Answer 20

ordinary prudence and circumspection

Question 21

A _______ _________ may ratify a prior act done by another, whereby the act is given effect as if done by an agent acting with actual authority. Restatement (Third) of Agency § 4.01(1).

Answer 21

purported principal

Question 22

A purported principal _____ ______ a prior act done by another, whereby the act is given effect as if done by an agent acting with actual authority. Restatement (Third) of Agency § 4.01(1).

Answer 22

may ratify

Question 23

A purported principal may ratify a _____ ____ ____ ____ _____, whereby the act is given effect as if done by an agent acting with actual authority. Restatement (Third) of Agency § 4.01(1).

Answer 23

prior act done by another

Question 24

A purported principal may ratify a prior act done by another, whereby the ___ ____ ___ ______ as if done by an agent acting with actual authority. Restatement (Third) of Agency § 4.01(1).

Answer 24

act is given effect

Question 25

A purported principal may ratify a prior act done by another, whereby the act is given effect as if done by an _____ _____ ____ ____ ______. Restatement (Third) of Agency § 4.01(1).

Answer 25

agent acting with actual authority

Question 26

A _______ ratifies a prior act when they have knowledge of the material facts and demonstrate an assent to be bound. See Lemley v. Lemley

Answer 26

principal

Question 27

A principal ______ __ ____ _____ when they have knowledge of the material facts and demonstrate an assent to be bound. See Lemley v. Lemley

Answer 27

ratifies a prior act

Question 28

A principal ratifies a prior act when they _____ ______ of the ______ ______ and demonstrate an assent to be bound. See Lemley v. Lemley

Answer 28

have knowledge of the material facts

Question 29

A principal ratifies a prior act when they have knowledge of the material facts and _______ ___ _____ ___ ____ _______ See Lemley v. Lemley

Answer 29

demonstrate an assent to be bound.

Question 30

A principal ratifies a prior act when they
1.
2.

Answer 30

1. have knowledge of the material facts
2. demonstrate an assent to be bound

Question 31

Facts are “_______” when they concern the existence or extent of the obligations created by the transaction.

Answer 31

material

Question 32

Facts are “material” when they ______ the ________ or _______ of the obligations created by the transaction.

Answer 32

concern

existence or extent

Question 33

_______ are “material” when they concern the existence or extent of the obligations created by the transaction.

Answer 33

Facts

Question 34

Facts are “material” when they concern the existence or extent of the ________ created by the ________.

Answer 34

obligations

transaction

Question 35

A _______ demonstrates assent to be bound when they either accept the benefits of the act or fail to repudiate the act. Lemley

Answer 35

principal

Question 36

A principal demonstrates _____ ___ ___ _____ when they either accept the benefits of the act or fail to repudiate the act. Lemley

Answer 36

assent to be bound

Question 37

A principal demonstrates assent to be bound when they either ____ ___ _____ of the ______ or fail to repudiate the act. Lemley

Answer 37

accept the benefits of the act

Question 38

A principal demonstrates assent to be bound when they either accept the benefits of the act or _____ ___ _____ ___ _____ Lemley

Answer 38

fail to repudiate the act

Question 39

A principal demonstrates assent to be bound when they either
1.
2.
Lemley

Answer 39

1. accept the benefits of the act or
2. fail to repudiate the act.

Question 40

A _______ is subject to direct liability to a third party harmed by an agent’s acts when the principal has ratified the agent’s conduct. Restatement (Third) of Agency § 7.03(1)(a).

Answer 40

principal

Question 41

A principal is subject to _____ ______ to a _____ _____ harmed by an agent’s acts when the principal has ratified the agent’s conduct. Restatement (Third) of Agency § 7.03(1)(a).

Answer 41

direct liability to a third party

Question 42

A principal is subject to direct liability to a third party harmed by an ______ _____ when the _______ has ratified the agent’s conduct. Restatement (Third) of Agency § 7.03(1)(a).

Answer 42

agent’s acts

principal

Question 43

A principal is subject to direct liability to a third party harmed by an agent’s acts when the principal has _______ the agent’s conduct. Restatement (Third) of Agency § 7.03(1)(a).

Answer 43

ratified

Question 44

A principal is subject to direct liability to a third party harmed by an agent’s acts when the principal has ratified the _______ ________. Restatement (Third) of Agency § 7.03(1)(a).

Answer 44

agent’s conduct

Question 45

+ Case: Lemley v. Lemley (Ratification of Contracts)
Different place of delivery – knew the material facts.
Just like in Lemley where the Contract said to deliver it to A, and she said to deliver it to B that showed knowledge of the material facts. Here, that is the same thing because they are saying things that makes it seem like they know the material facts.
!!

Answer 45

!!

Question 46

A ______ ___ _____ if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal and has notice of the principal’s identity

Answer 46

Principal is disclosed

Question 47

A principal is disclosed if, when an _____ and a _____ _______ interact, the third party has notice that the agent is acting for a principal and has notice of the principal’s identity.

Answer 47

agent

third party

Question 48

A principal is disclosed if, when an agent and a third party interact, the _____ ______ has notice that the ______ is acting for a _______ and has notice of the principal’s identity.

Answer 48

third party

agent

principal

Question 49

A principal is disclosed if, when an agent and a third party interact, the third party has ______ that the agent is acting for a principal and has _______ of the ______ _______.

Answer 49

notice

notice of the principal’s identity

Question 50

Who is liable if a principal is disclosed?

Answer 50

Principal is liable.

Agent is not liable by default.

Third-Party is liable.

Question 51

If you disclose that you are acting for a principal and say who it is, then the agent is off the hook.

When?

Answer 51

Principal disclosed

Question 52

A ______ ____ _______ if, when an agent and a third party interact, the third party has no notice that the agent is acting for a principal.

Answer 52

principal is undisclosed

Question 53

A principal is undisclosed if, when an ______ and a _____ ________ interact, the ______ _____ has no notice that the agent is acting for a principal.

Answer 53

agent

third party

third party

Question 54

A principal is undisclosed if, when an agent and a third party interact, the third party has _____ ______ that the ______ ___ ______ for a ________.

Answer 54

no notice

agent is acting

principal

Question 55

Who is liable if a principal is undisclosed?

Answer 55

Principal is liable.

Agent is liable.

Third-party is liable

Question 56

A ________ ____ _______ if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal but does not have notice of the principal’s identity.

Answer 56

principal is unidentified

Question 57

A principal is unidentified if, when an ______ and a _____ ______, the third party has notice that the agent is acting for a principal but does not have notice of the principal’s identity.

Answer 57

agent

third party

Question 58

A principal is unidentified if, when an agent and a third party interact, the ______ ____ ______ ____ that the agent is acting for a principal but does not have notice of the principal’s identity.

Answer 58

third party has notice

Question 59

A principal is unidentified if, when an agent and a third party interact, the third party has notice that the _____ ____ _____ for a _______ but does not have notice of the principal’s identity.

Answer 59

agent is acting for a principal

Question 60

A principal is unidentified if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal but ____ _____ ___ _______ of the ______ _______.

Answer 60

does not have notice of the principal’s identity.

Question 61

Who is liable when the principal is unidentified?

Answer 61

Principal is liable.

Agent is liable.

Third-party is liable.

Question 62

Agency relationship ends with the
1. ?
2.
3.
4.
of the agency relationship.

Answer 62

1. agent’s death or incapacitation

Question 63

Agency relationship ends with the
1.
2. ?
3.
4.
of the agency relationship.

Answer 63

2. principal’s death or incapacitation

Question 64

Agency relationship ends with the
1.
2.
3. ?
4.
of the agency relationship.

Answer 64

purpose of the agency is completed

Question 65

Agency relationship ends with the
1.
2.
3.
4. ?
of the agency relationship.

Answer 65

4. revocation or renunciation

Question 66

__________ of actual authority does not necessarily end an agent’s apparent authority unless communicated to the third party. Apparent agency ends when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 66

Termination

Question 67

Termination of _____ ________ does not necessarily end an agent’s apparent authority unless communicated to the third party. Apparent agency ends when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 67

actual authority

Question 68

Termination of actual authority ____ ______ necessarily end an agent’s apparent authority unless communicated to the third party. Apparent agency ends when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 68

does not

Question 69

Termination of actual authority does not necessarily end an _____ _____ ______ unless communicated to the third party. Apparent agency ends when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 69

agent’s apparent authority

Question 70

Termination of actual authority does not necessarily end an agent’s apparent authority _____ ______ to the _____ _____. Apparent agency ends when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 70

unless communicated to the third party

Question 71

Termination of actual authority does not necessarily end an agent’s apparent authority unless communicated to the third party. ______ ______ ______ when it is no longer reasonable for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 71

apparent agency ends

Question 72

Termination of actual authority does not necessarily end an agent’s apparent authority unless communicated to the third party. Apparent agency ends when it is no longer _________ for the third party with whom an agent deals to believe that the agent continues to act with actual authority. Restatement (Third) of Agency § 3.11(2).

Answer 72

reasonable

Question 73

Termination of actual authority does not necessarily end an agent’s apparent authority unless communicated to the third party. Apparent agency ends when it is no longer reasonable for the _____ _____ with whom an ______ deals to believe that the ______ continues to act with _______ ________. Restatement (Third) of Agency § 3.11(2).

Answer 73

third party

agent

agent

actual authority

Question 74

Agency law does not create independent, freestanding causes of action for third parties against a principal. It is through vicarious liability. !!

Answer 74

!!

Question 75

Agency law does not attribute freestanding legal consequences to a principal, independent of other doctrines. There are other legal doctrines such as contract law and tort law. !!

Answer 75

!!