Agency types pt 2

Question 1

Apparent authority is the power held by an agent or other actor to affect

Answer 1

a principals legal relations with third parties when a 3rd party reasonably believes the actor has authoruty to act on behalf of the principal
- and that belief is tracable by the principals manifestations

Question 2

Apparent authority

the person with authority does not have to have an

Answer 2

agency relationship with the principal

Question 3

Apparent authority

it can be an agent or someone who isnt an agent but the 3rd party

Answer 3

reasonably believes has authority based on principals words or conduct

ex: someone who used to be an agent (authority lingers)

Question 4

How the principal communicated apparent authority

Answer 4

1. directly from the principal
2. agents title
3. town gossip has it on good authority/reputation ( a trusted individual for some reason)

Question 5

Apparent authority

communication and culpability

Answer 5

• 3rd party has to learn of the communication/conduct
• principal has to be ultimatelt responsible for the communication/conduct

Question 6

Interpretating apparent authority and evaluating factors

generally, the same approach as actual authority but it is from the viewpoint of the 3rd party

Answer 6

1. what the 3rd party knows or should know
2. 3rd partys prior dealing with the principal
3. 3rd partys understanding of the principals goals
4. 3rd partys understanding of trade terms

Question 7

Relationship between apparent authority and actual authority

apparent authority and actual authority can cover the same thing OR have different limits

Answer 7

1. actual authority considers what the agent knows
2. apparent authority considers what the 3rd party knows

Question 8

An agent acts with actual authority when, at time of taking action that has legal consequences for the principal, the agent

Answer 8

reasonably believes, in accordance with the prinicpals manifestationsm that the principal wishes the agent so to act