Essay 50 Point 1(c) -- actual/implied auth. of agent

Question 1

When does a principal become liable on a contract entered into by the agent?

Answer 1

1) When an agent enters the contract
2) with actual authority to do so

Question 2

When does agent act with actual authority?

Answer 2

1) when agent reasonably believes
2) consistent with P’s manifestations to agent
3) that P wishes agent to so act

Question 3

In what manner is actual authority created?

Answer 3

The same manner the agency is created

Question 4

How is actual authority specifically created?

Answer 4

1) an objective manifestation
by the principal
2) followed by the agent’s reasonable interpretation of that manifestation
3) which leads agent to believe they can act that way for P

Question 5

How is the rule applied in E50?

Answer 5

Neighbor had actual auth. because:
1) Ben, acting on LLC, manifested to agent to act
2) Neighbor, relying on Ben’s auth w/LLC, reasonably believed they were to act in such a away

Question 6

Who does apparent authority affect?

Answer 6

A third party

Question 7

Ho

How is app. auth created?

Answer 7

1) “by written or spoken words or
any other conduct”
2) the principal causes the third person “to believe that the principal consents
3) to have the act done on his behalf by the person purporting to act for him.”

Question 8

What is common english app auth def?

Answer 8

Apparent authority is created by:
1) a person’s manifestation that another has authority to act with legal consequences
2) for the person who makes the manifestation,
3) when a third party reasonably believes the actor to be authorized
4) and the belief is traceable to the manifestation.

Question 9

What is the application of app auth. to E50?

Answer 9

Neighbor did not have AA
1)no indication Adele/ben manifested
2)to the third party store
3)that neighbor had authority to act on behalf of LLC