chapter 15 - law of agency

Question 1

principal

Answer 1

a person on whose behalf an agent acts

Question 2

agent

Answer 2

a person appointed to act for another, usually in contract matters (by definition, a person who is employed to act on behalf of another)

Question 3

most common use of an agent

Answer 3

to bind the principal in contract with a third party

Question 4

how of agency has roots in what

Answer 4

law relating to tort, contract, quasi-contract, and equity

Question 5

agency by express agreement

Answer 5

an agency relationship established by an express oral or written agreement

Question 6

agency by conduct

Answer 6

an agency relationship inferred from the actions of a principal

Question 7

agency by estoppel

Answer 7

a representation by words or conduct that a person is an agent cannot be later denied if a third party relies on the representation

Question 8

the agent must act

Answer 8

in the best interest of the principal

Question 9

who does an agent have a duty to: principal, third party?

Answer 9

only the the principal, not to any third party

Question 10

estoppel

Answer 10

a rule whereby a person may not evade a promise or deny the truth of a statement of fact made by him or her when another person has relied and acted upon the promise or statement

Question 11

apparent authority

Answer 11

the ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent
a principal is bound by the actions of an agent, even if the agent lacks actual authority, if a third party reasonably believes the agent has the authority based on the principal’s conduct.

Question 12

agency by operation of law

Answer 12

agency that may arise in certain circumstances out of necessity where it is not possible to obtain the authority of the principal to act