Agency & Partnership

Question 1

How are agency relationships created?

Answer 1

Mutual assent or estoppel.

Question 2

What are the elements of an agency relationship?

Answer 2

Mutual assent and control.

Question 3

When does an agent have actual authority?

Answer 3

When the agent reasonably believes s/he is working for the principal.

Question 4

When does an agent have apparent authority?

Answer 4

1. third party reasonably believes actor has authority

2. belief traceable to principal’s manifestations

Question 5

When does an agent have implied authority?

Answer 5

If a principal’s manifestations make an agent reasonably believe the principal intended for the agent to have the powers necessary to carry out the duties delegated.

Question 6

When is an act done by another ratified by the principal?

Answer 6

If the principal accepts the results of the act with intent to ratify and complete understanding of the material circumstances (Botticello).

Question 7

When is the principal liable for the agent’s torts?

Answer 7

If the tort was caused by an agent’s response to conduct interfere with her ability to do her job (Grimsley).

Question 8

What does a business need to operate?

Answer 8

Relationships with third parties and between people and property.