II. Actual Authority

Question 4

Actual Authority: Creation of Actual Authority

Answer 4

1. EXPRESS CREATION: principal tells agent to act on his behalf
2. IMPLIED CREATION: Principal conduct leads agent to believe he has authority

Question 5

Termination of Actual Authority

Answer 5

Actual Authority must exist at the time the agent enters a contract.

These can end actual authority:

1. after a SEPCIFICED TIME/EVENT or a REASONABLE time
2. by CHANGE of circumstnaces (subject matter for which the agnecy was created was destroyed)
3. if agent acquires ADVERSE INTEREST
4. when AGENT SAYS SO
5. when PRINCIPAL SAYS so unless the power is COUPLED WITH AN INTEREST
6. by DEATH/INCAPACITY/BANKRUPTCY unless coupld by an interest

merely saying it is irrevocable is not enough

Fee or commission upon sale is not an interest in the agency

Question 6

Delegation of Actual Authority

Answer 6

Okay with principals express or implied consent,