L10: Law of Agency

Question 1

State the 3 ways an agent obtain the authority to bind his principal

Answer 1

1. Actual Authority
2. Apparent Authority
3. Agency by Ratification

Question 2

State the 2 Agency by Estoppel

Answer 2

1. Representation by P to T that A is authorized

2. T relies on the representation in contracting with A

Question 3

State the 3 conditions for effective ratification

Answer 3

1. Agent must disclose he is acting on behalf of principal.
2. Principal must exist as the time the agent made the unauthorized contract.
3. Ratification must be done within a reasonable time

Question 4

State the 5 duties of an agent

Answer 4

1. Follow P instruction
2. Avoid bribery
3. Avoid conflict of interest
4. Account for money/goods received on P’s behalf
5. Act with care and skill

Question 5

State 3 rights of an agent

Answer 5

1. Right to remuneration
2. Right to be reimbursed for expenses and liabilities
3. Right of Lien

Question 6

State the 3 ways to terminate an agency

Answer 6

1. Agreement of both parties
2. By revocation
3. By death/insanity or bankruptcy of P or A