Apparent authority and ratification

Question 1

Which parties must communicate for apparent authority?

Answer 1

PRINCIPAL and THIRD PARTY

Question 2

How is apparent authority created?

Answer 2

When principal uses written or spoken words that cause third party to REASONABLY BELIEVE that principal CONSENTS to having acts done by AGENT

Question 3

How to assess if third party’s belief in apparent authority is reasonable?

Answer 3

look to past transactions or customs

Question 4

Which parties must communicate for legal authority by ratification

Answer 4

NONE

principal does not need to communicate with agent or third party

Question 5

Conditions for ratification

Answer 5

1) principal has KNOWLEDGE of material terms of K

2) principal ACCEPTS benefits of K (can reject if not satisfied)

Question 6

If principal is liable, may agent also be liable for tort?

Answer 6

YES, both may be liable