BOrgs agency

Question 1

Dual agency is permissible if both of the principals….

Answer 1

Waive any potential conflict of interest.

Question 2

T/F) Only the principal needs to be competent for an agency relationship to be effective

Answer 2

True

Question 3

T/F) For a valid agency arrangement, an agent may be incompetent or even a minor, but the principal must be a competent adult.

Answer 3

True

Question 4

An agent is liable on all contracts with third parties when?

Answer 4

1. Unidentified principal
2. Undisclosed principal

Question 5

T/F) If an agent acting within the scope of his agency relationship enters into a contract with a third party on behalf of an undisclosed principal, both the agent and the undisclosed principal are parties to the contract and may enforce the contract.

Answer 5

True - Winer v. Valentino

Question 6

When does agency relationship terminate?

Answer 6

Upon breach of fiduciary duties

Question 7

Does death of principal revoke actual authority of agent?

Answer 7

Only when agent has notice of the death

Question 8

When may a principal/agent revoke agency relationship?

Answer 8

A principal or agent may revoke most agency relationships at any time, unless any agency agreement provides otherwise.

Question 9

T/F) If an agent disclosed the existence but not the identity of the principal, then the agent is also a party to the contract.

Answer 9

True

Question 10

Principal’s incapacity ends the agent’s actual authority when?

Answer 10

When notice received