Business Associations- Agency/Partnerships

Question 1

Agency- Nature

Answer 1

1) Mutual assent 2) on behalf of principal for its benefit 3) control of agent by principal

Question 2

Agency- control

Answer 2

Principal simply has right to control ultimate objectives of agent’s work, not entire scope

Question 3

Agency- assent

Answer 3

Principal need have contract capacity, while agent only need have mental capacity; minor can be agent but not principal

Question 4

Formation-Appointment

Answer 4

Usually need not have a written contract, or consideration in a gratuitious agency

Question 5

Formation- equal dignity rule

Answer 5

If agent signs a contract that requires a writing, agency agreement itself must be in writing (e.g. deed)

Question 6

Equal Dignity Rule- Defense

Answer 6

This is principal’s defense, cannot be raised by agent or principal in an action

Question 7

Formation- Other metods

Answer 7

by estoppel or by statute

Question 8

Roles- Individuals/entrepeneurs

Answer 8

need have contract/mental capacity

Question 9

Roles- corporations

Answer 9

cannot be future corp witout legal existence to be principal