Agency Relationship Questions/Examples

Question 1

Smitten with equal amounts of love and timidity, Miles Standish manages a face-to-face conversation with his friend John Alden, in which Standish asks Alden to speak to Priscilla on Standish’s behalf. Alden agrees.

Is there an agency relationship?

Answer 1

Yes, between Alden (agent) and Standish (principal).

Question 2

Disappointed to learn that Jane, her favorite guide, will be unavailable when she visits Alaska, Naomi sends her the following email: “Very disappointed. Will you locate and hire for me someone of comparable quality and price ranger for the dates I sent you?” Jane hits the reply button and types, “Sure.” She promptly receives an automated “out of office” response, indicating Naomi is gone for the weekend.

Does a principal-agent exist?

Answer 2

Yes, it is irrelevant that the principal is yet unaware of the agent’s manifestation.

Question 3

Jane contacts Dennis, explains the situation, and determines that Dennis is willing and available for the time Naomi wants. Jane then emails Naomi a description of Dennis’s qualifications and rate. Namoi replies, “Fine. Go ahead.” Jane tells Dennis, “The job is yours.” Dennis replies, “Great.”

Does a principal-agent relationship exist?

Answer 3

Yes, Naomi and Dennis are now principal and agent. The principal’s manifestation of consent was communicated indirectly but nonetheless effectively.

Question 4

Rachel, the owner of Blackacre, writes to Sam: “Please act as my broker to sell Blackacre.” Sam puts a “For Sale” sign on Blackacre.

Does a principal-agent relationship exist?

Answer 4

Yes, an agency relationship exists. By beginning the requested task, Sam has given the necessary manifestation of consent.