Creation of agency and the authority of the agent Flashcards
What are the four ways an agency relationship can be created
- expressed or implied agreement between principle and agent, 2. under the doctrine of apparent authority, 3. by operation of law, 4. by the ratification of an unauthorized agents acts by the principle
Mutural consent is all that is required for an agency to be, no contract required
True
Commercial agents have to be created using a contract in wrighting
No, but a contract must be formed and they have to have their terms in wrighting although the agreement may be oral
When does an agent have actual authority
When there is a consentual agreement between the principle and agent alone
What is ostensible authority
The authority expected of a title, if a board appoints a director but limits his authority the company will still be liable to acts done by the director with parties that do not know his limitations (although such actions might be a breach of contract between the director and the board)
How may implied actual authority arise
By being apointed to a position that usually has that authority without being expressively given such, By being in a market or place where such actions are common for people of such position (usual authority) and (custom authority) or by the conduct of other parties
An agent can bind a principle to their action if they act in their own interest or fradulently
No, not ususally at least if there are reasons to belive that the third parties may have noticed it, however the principle may still be boud to contracts made if the third party has no idea
What four conditions must a contractor fufill to claim the enforcement of a contract with an agent with no actual authority
That a representation of such authority was made to the contractor, that such a representation was made by someone with actual authority, that such a representation was relied upon to make the decision and that the company was not deprived of the right to enter into a contact with the contractor
is apparent authority considered to be actual authority
Not realy so the principle cannot sue or be sued on the basis of the contract
An agent has apparent authority to claim his own authority
No the claim of authority must come form the principle or an intermediate agent who has apparent authority, unless the agent usually has had such authority which is temporarily suspended
Can the subsequent conduct legitimise the actions of an unauthorised agent
Yes, if it apears that the principle does not complain and play alnog it will be interpreted as consent
If an agent is not known to be an agent and is instructed not to let it be known by the principle is the principle liable for the contracts made by the agent
No
What is an agency of nececity
When one parties property is in danger another person can take the role of an agent to protect their property if the owner is not present by making contracts and disposing of property. They have a deffence if sued by the principle and may seek reembursment for their actions
What are the five conditions of a true agent of nececity
- Taking contact with the principle is impossible, 2. the actions are neccecary for the benefit of the principle, 3. the agent acts in the interest of the principle, 4. the actions taken by the agent are reasonable and 5. the principle has not forbid the action in advance
Silence is aproval
it depends, its not an automatic yes but it is not a no either so it depends on where things lean at the moment
