Chapter 19 - Agency

Question 1

Statue of fraud (RO)

Answer 1

• agreement not be in writing except:
  
  • real estate
  • over one year

Question 2

Apparent Authority

Answer 2

• principal creates impression that agent has authority
  
  • good faith 3rd party reasonably assumes you have
    
    • past performance
    • hires agent to posistion that customarily has authority

Question 3

Unauthorized action (authority)

Answer 3

• not liable unless ratify:
  
  • ratification - principal gives agent authority after contract is made
    
    • prinicpal must be fully or partially disclosed
    • must know details of contract
    • must ratify before 3rd party withdraws

Question 4

Fully disclosed

Answer 4

• 3rd party knows identity of principal
• principle liable- agent not

Question 5

partially disclosed

Answer 5

• 3rd party knows agent is acting for another but doesnt know identity
• principal and agent jointly and severally liable

Question 6

Undisclosed

Answer 6

• 3rd believes agent is acting alone
• 3rd may hold either liable
• agent required to perform under contract
• when principal is undisclosed, agent cannot have apparent authority
• 3rd not entitled to disclosure of principal.

Question 7

Termination of agency

Answer 7

• can be done in following ways:
  
  • agreement - mutually or time passed
  • unilateral - principal dimiss or agent quits
    
    • agency coupled with interest - agent has some legals rights to subject matter
      
      • principal cannot terminate
  • Operaiont of law
    
    • death of principal or agent
    • insanity of principal
    • subject agreement becomes illegal or destroyed
    • principal bankrupt

Question 8

Notice to 3rd parties for termination

Answer 8

• needed for agreement and unilateral termination
  
  • two kinds are needed:
    
    • actual notice - 3rd party directly notified
    • constructive (public notice)

Question 9

Breach by principal

Answer 9

• agent may be entitled to:
  
  • recovery for past services
  • recovery for future damages
  • authority to withhold further performance for principal.