Agency & Partnership

Question 1

Agency Relationship

Answer 1

(“Agency is the fiduciary relationship that arises when
one person (a “principal”) manifests assent to another person (an “agent”) that the agent shall act on the principal’s behalf. .”). As Hanson’s agent, Taster had actual authority to “take action
designated or implied in [Hanson’s] manifestations to [Taster] and acts necessary or incidental to achieving [Hanson’s] objectives.

Question 2

Apparent Authority

Answer 2

An agent has apparent authority to act on behalf of a principal when “a third party reasonably believes the actor has authority to act on behalf of the principal and that belief is traceable to the
principal’s manifestations.” RESTATEMENT (THIRD) OF AGENCY § 2.03. Apparent authority can co-exist with actual authority; it can also exist in the absence of any actual authority