Illusory & Agency

Question 1

Duties of loyalty, honesty, good faith and fair dealing.

Answer 1

Fiduciary

Question 2

the fiduciary relation which results from

the manifestation of consent by one person [the principal]

to another [the agent]

that the other [the agent]

shall act on his [the principal’s] behalf and subject to his [the principal’s] control, and

consent by the other [the agent] so to act.

Answer 2

Agency is

Question 3

Under the objective standard, in the eyes of the law, two parties can be agent and principal even though one of them had no subjective desire to create the legal relationship.

Answer 3

The Objective Standard determines consent.

Question 4

a third party
reasonably believes
the actor (the “agent”)
has authority to act on behalf of the principal
and that belief is traceable to the principal’s manifestations.

Answer 4

Apparent authority arises when

Question 5

________ authority is still authority with all of the consequences of authority.

Answer 5

Apparent

Question 6

-At the time of taking action that has legal consequences for the principal,

-the agent
reasonably believes,
in accordance with the principal’s manifestations to the agent,
that the principal wishes the agent so to act.

Answer 6

Actual authority arises when

Question 7

A promise in the alternative may be made because each of the alternative performances is the object of desire to the promisee.
Or the promisee may desire one performance only, but the promisor may reserve an alternative which he may deem advantageous.

Answer 7

Illusory promises

Question 8

In either type of case the promise is consideration if it cannot be kept without some action or forbearance which would be consideration if it alone were bargained for.

Answer 8

Illusory promises

Question 9

But if the promisor has an unfettered choice of alternatives, and one alternative would not have been consideration if separately bargained for, the promise in the alternative is not consideration.

Answer 9

Illusory promises

Question 10

A promise may give the promisee a right to choose one of several stated performances.

Or the selection among alternative performances may be left to events not within the control of either party.

In such cases the promise, if bargained for, is consideration if any one of the alternatives would have been, unless the promisor knows that all such alternatives are subject to conditions which cannot exist or occur.

Similarly, the promise may be consideration even though a conditional power of choice is left to the promisor.

For example, the promisor may reserve an option to terminate only after he has rendered performance which would be consideration, or only in a contingency which may never occur, or only on a condition of forbearance by him which would have been consideration.

Answer 10

Illusory promises

Question 11

3rd party reasonably believes A has authority to act on behalf of P

Answer 11

Apparent Authority

Question 12

3rd party’s belief is traceable to the principal’s manifestations

Answer 12

Apparent Authority