Liability

Question 1

types of authority

Answer 1

1. actual
2. apparent
3. ratified

Question 2

actual authority

Answer 2

authority A reasonably believes they possess according to Ps dealings with them and a reasonable person would believe that the A has such authority

Question 3

express actual authority

Answer 3

authority conveyed in words (oral or written)

and effective even if granted mistakenly

its an all or nothing issue so either have the authority or dont

Question 4

implied actual authority

Answer 4

autuhority that A reasonably believes they have as a result of Ps words or actions

Question 5

termination of actual authority

Answer 5

1. certain event happens specified in P-A agreement that would term authority
2. lapse of reasonable time if termination not specified
3. change in circumstances ie destruction of subject matter
4. A’s breach of fiduciary duty
5. either party’s unilateral termination - unless irrevocable
6. operation of law - ie death

Question 6

apparent authority

Answer 6

P holds out another as possessing authority to act on behalf of P and based on this hold, 3rd party reasonably led to believe the authority exists and can exist even when actual authority does not!!

IOW: reasonable belief of 3rd party

Question 7

actual vs apparent

Answer 7

actual: how P’s manifestations affect a reasonable A
apparent: how P’s manifestations affect a reasonable 3rd party

Question 8

types of apparent authority

Answer 8

1. Agent exceeds actual authority and P still bound
   
   1. prior act
   2. power of position - A’s position created reasonable belief in 3rd party
2. Agent has no actual authority
   
   1. unilateral agent representations - agent represents themselves as having authority instead of P
   2. impostors - P negligently permits an imposter to appear to have agency
   3. lingering apparent authority - app auth can linger after actual authority ends
   4. no notice given to 3rd parties
   5. A’s actual authority ends but 3rd parties rely on written authority of A and A’s app auth isnt considered ended

Question 9

ratification

Answer 9

A acts as if they have authority but dont actually have it → P validates the a’s act and P becomes bound

Question 10

ways to ratify

hint: think. of P’s conduct

Answer 10

express or implied through P’s conduct

express - usually written or oral

implied - usually P accepts benefits of a K

Question 11

requirements for ratification

Answer 11

1. have knowledge of all material facts regarding the K
2. accept the entire transaction and
3. have capacity

Question 12

what can P not ratify

Answer 12

1. illegal conduct
2. 3rd party has withdrawn
3. material change in circumstances

Question 13

liability 3rd party vs P

Answer 13

P liable if A had authority to act

Question 14

liability 3rd party vs A

Answer 14

if P unidentified and undisclosed either P or A can be liable if A had authority

Question 15

3rd party liability and P is disclosed

Answer 15

only P can enforce agreement against 3rd party