Kaplan Agency pgs 4-32

Question 1

Is knowledge of an agent imputed to the principal?

Answer 1

Yes

Question 2

Can an incompetent person act as a principal?

Answer 2

No

Question 3

Can a minor act as a principal?

Answer 3

Only if he’s contracting for necessaries

Question 4

What is the standard for who can be an agent?

Answer 4

Anyone with minimum mental capacity, so both minors and incompetence can be agents. They are endowed with the same capacity as the principal

Question 5

Is it possible to serve as an agent for two adverse parties to a transaction question

Answer 5

Only if they are both fully advised and give their consent

Question 6

Can statements of an alleged agent that are made out of court be admissible to prove agency?

Answer 6

Generally no, but they can be admissible after a prima facie proof of the agency has been made

Question 7

What is the Family Purpose Doctrine and does California follow it?

Answer 7

This imposes vicarious liability on the owner of a motor vehicle for the negligence or wilful misconduct of an immediate family member that comes from their permissive use of a motor vehicle. California does not follow this

Question 8

What is a power of attorney?

Answer 8

Written documentation of an agency relationship that authorize one person to act on behalf of another

Question 9

What is an attorney in fact?

Answer 9

An agent acting under the authority granted by a power of attorney

Question 10

What is a springing power of attorney?

Answer 10

A power of attorney that only takes affect upon some puncture event or contingencies

Question 11

What is durable power of attorney?

Answer 11

The authority of the agent to make decisions for the principal continues to be affected even if the principal becomes incapacitated

Question 12

What is the difference between general power of attorney and special power of attorney?

Answer 12

– General: this grant the agency authority to do all acts that a principal could ordinarily do
– special: grants an agent limited authority to do certain acts that are specified. I.e.: a health-care power of attorney allows the attorney in fact to make healthcare decisions for the principal

Question 13

If someone authorizes more than one person to serve as his attorney in fact, how does that work?

Answer 13

Each attorney in fact can act independently of the other, unless the document that gave them powers said otherwise

Question 14

Generally a principal’s death or incapacity terminates an agency relationship, but this doesn’t happen until what occurs?

Answer 14

The attorney in fact receives actual knowledge of the change in circumstances. Until then, if his act is done in good faith, it binds the principal and the principal‘s estate

Question 15

What is a special agent?

Answer 15

Someone who has authority to bind the principle only for one transaction, and no authority to bind him beyond the terms of that specific authority. I.e.: a home seller engages a real estate agent to sell his home, but to do nothing else.

Question 16

What are examples of special agents?

Answer 16

– Real estate agents: can only sell your real property
– sales people: can only sell and warrant goods
– auctioneers: can only sell goods to the highest bitter

Question 17

What is a sub agent?

Answer 17

Someone that is entitled to do the work for the original agent which creates a new agency relationship where the original agent becomes a principal to the sub agent. The sub agent has the same responsibilities that the original agent has

Question 18

Where does liability follow with regard to sub agents?

Answer 18

The original agent is liable to the principal for any breach of duty of the sub agent, but the original agent is not responsible to third persons for the acts of the sub agent

Question 19

If a sub agent is appointed without the principles authority, is there a relationship between the principal and the sub agent question

Answer 19

No

Question 20

If a property owner hired a contractor to build a new building, and the contractor hires a plumbing company to do the pipes, what is the relationship between the plumbing company and the contractor and the property owner?

Answer 20

The plumbing company is a sub agent so they are the agent of the contractor, but they are not an agent of the principal

Question 21

What is a creek gratuitous agent?

Answer 21

Someone who agrees to perform all the duties without compensation

Question 22

What are the duties of a principal to his agent?

Answer 22

– compensate for services rendered
– reimbursed for expenses incurred
– indemnify and exonerate for liability in a good faith performance of duties
– cooperate with the agent
– due care toward the agent

Question 23

What are the remedies of an agent if a principal breaches?

Answer 23

– Contract remedies for breach of contract
– lien on the principles property that the agent has lawful possession of
– set off of any money that is owed to him against money that was collected on his behalf

Question 24

What are the defences that a principal can use against his agent?

Answer 24

Dash SOF
– illegality
– the agent disobedience
– the agents contributory negligence

Question 25

What are the things involved in an agents duty of care?

Answer 25

Dash to perform his duties with reasonable care
– to obey all reasonable directions
Just to act within the scope of his actual authority
– to act with care, competence, and diligence, and if he has higher levels of skills, to exercise those higher levels
– to indemnify the principal against lost cause because of his wrongful behaviour

Question 26

What are the fiduciary duties that an agent Oso his principal question

Answer 26

Duty of loyalty, good faith, and honesty, duty of care, confidential Aliti, to avoid self dealing, not to compete, dutyto account, duty of candor,

Question 27

What is example of usurpation of a business opportunity question

Answer 27

If your law firm sent you to look for new office space, and you find a cheap wonderful space that would be good for the business that your wife is starting, and you arrange for your wife to use the space, that is super usurpation of a business opportunity

Question 28

What is involved in the duty of confidentiality for agents?

Answer 28

You cannot use confidential information that you’ve got from the principal against the principal, and this continues even after the agency relationship is terminated

Question 29

How are noncompetition agreement treated in California?

Answer 29

They are rarely enforceable. Broad covenant not to compete or void in California unless they involve:
– the person selling the goodwill of a business
– a person agreeing not to compete in anticipation of dissolution of a partnership
– if it is necessary to protect trade secrets

Question 30

What is involved in the agents duty to account?

Answer 30

He must account for money or property that he got for the principal and he must keep those assets separate from his own

Question 31

If an agent ask for more than one principal in negotiations between multiple principles, and one of the principles did not know about the dual representation, what happens question

Answer 31

The transaction is voidable by that principle

Question 32

What are the remedies that a principal can get if an agent reaches his fiduciary duties?

Answer 32

– The agent is liable for damages
– the principal can void transactions that resulted from the breach
– the agent must discord any profit that he made from his disloyalty and his liable for the profits of third parties if others have benefited
– if the agent intentionally breached his fiduciary duty, the principal can withhold compensation

Question 33

If an agent enters a contract on behalf of an undisclosed or partially disclosed principal, who is liable on the contract?

Answer 33

The agent

Question 34

What is the smart way for an agent to avoid assuming personal liability on contracts?

Answer 34

He said sign any documents with his own name and the principles name and make a notation that he is acting as an agent

Question 35

In what circumstances an agent have the power to disobey his principles instructions?

Answer 35

If it is clearly for the interest of his principal and there is no time to communicate with the principal

Question 36

Usually ratification is effective as if the act were originally done by the agent with actual authority, but what is the timing for effectiveness if a principal did not have capacity when the transaction took place?

Answer 36

Then it only affected from the date of ratification

Question 37

Is it possible for a principal to ratify just part of an act question

Answer 37

No, if you ratified any part that is deemed to be a ratification of the whole

Question 38

What are the conditions that are necessary for ratification to be effective question

Answer 38

– The act must’ve been valid at the time it was performed
– principal had to have been in existence when the act was performed and was legally competent when he tries to ratify
– the act had to have been performed for the principal
– ratification needs the same formalities that would’ve been required for an initial authorization
– at the time of ratification, the principle must know all material facts about the transaction

Question 39

Who can hold a third-party liable and enforce a contract depending on whether the principle is disclosed, underscores, or partially disclose?

Answer 39

That’s disclosed: only the principal can enforce the contract
– underscores and partially disclosed: either the principal or the agent can enforce the contract

Question 40

Does respond yet superior make the employer the only person that is liable?

Answer 40

No, the liability of the employer is in addition to come at night instead of, the employees liability. Usually the employer and employee are jointly and severally liable

Question 41

How do you determine if an act of an employee was committed during the scope of his employment?

Answer 41

– The act was required by the employer
– it was incidental to the employees duties
– it was reasonably foreseeable by the employer

Question 42

What is the difference between frolic and detour with regard to respond yet superior?

Answer 42

That frolic is a substantial deviation from the scope of employment and it will not result in vicarious liability for the employer
– detour: is a slight deviation from the scope of employment and it will result in vicariously ability

Question 43

What is an example of frolic with relation to respond yet superior?

Answer 43

If a mechanic employee picked up a vehicle for repairs instead of driving it to the garage, got an accident while he was going to opposite way to his home for breakfast

Question 44

When will an employer be liable for an employee’s intentional tort question

Answer 44

Only if it had a causal nexus to the employees work. This means that the injury causing act must be a generally foreseeable consequence of the employers enterprise

Question 45

How is knowledge imputed between a principal and an agent?

Answer 45

The principle is deemed to have notice of whatever knowledge that his agent has noticed of, but knowledge is not imputed from the principal to the agent

Question 46

What is the college of the agent is not imputed to the principal?

Answer 46

If the agent was acting adversely to the principal and for his own or someone else’s benefit

Question 47

Generally agency relationships are terminated voluntarily at will at any time, but in what two situations can agency not be terminated?

Answer 47

• if it is coupled with an interest

– if the agent has power given for security

Question 48

Generally in order for termination of an agency relationship to be effective, what must happen?

Answer 48

Notice must be given unless the agency naturally expires at the end of a time or after an action