Agency Partnership Essay Flashcards

1
Q

Agency Essay

Authority to Act

A

Authority may be actual or apparent
* actual authority can be expressed or implied

Express:
* is authority oral or written communication form the agent

Implied
* is authority that the agent reasonably believes he has as a result of action of principal

Apparent Authority
* if the agent lacks authority, the principal can still be liable if the third party can show the agent had apparent authority to act.

Ratification
* if a principal ratifies an unauthorized transaction by an agent, the principal because bound by the contract.

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2
Q

Essay (Agency)

Principle- Agent Relationship

A

Principle- Agent Relationship is created through consent of both parties, provided they have capacity.
* no writing or consideration required.

Breach:
* an agent has a duty of loyalty and obedience to the principal

Remedies:

  • An action for secret profits.
  • The principal may recover actual lost profits held by agent where or not agent caused any loss.
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3
Q

Essay (Agency)

Contract Liability- Authority of Agent

A

A principal is liable to a 3rd party for the action of an agent who acted with authority.
* authority can be actual or apparent

Actual:
* IS authority that an agent reasonably believed he possessed the basses on the principal dealing with him.

Apparent

  • is where the 3rd party reasonably believes the agent has given authority based on 3rd party dealing with the principal.
  • If an agent actual authority has been terminated, the agent will have apparent authority until 3rd party receives actual or constructive notice.
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4
Q

Essay (Agent)

Respondiat Superior
Estoppel

A

Provides that a principal is liable in tort for the act of an agent performed within the scope of employment.

Act of Agent
* Normally a Tort Plaintiff is not in the position to rely on apparent authority of an agent, unless estoppel.

  • estoppel
    • May be asserted to prevent the principal from denying an employee employer relationship, if principal created appearance of such relationship to to a third party .
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