Power Of Agent To Bind Principal Flashcards
What is actual authority?
A person possesses actual authority to act on a principal behalf if the principles words or conduct would lead a reasonable person in the agents position to believe that the principal had authorized him to act on his behalf
What are the two main theories of authority that an act of an agent may find a principal?
An agent maybe find a principal to a contract if the agent is acting within his ACTUAL or APPARENT authority or some substitute (ie estopple inherent authority)
How is actual authority created?
Actual authority is created by written or spoken words or other conduct of the principal which reasonably interpreted causes the agent to believe that the principal desires him to act on the principal account.
What’s incidental authority?
Incidental authority is implied actual authority. It is the authority to conduct a transaction include including authority to do acts which are incidental to it, usually accompany, it or are reasonably necessary to accomplish it
Hey principal might become liable to a third-party if:
The agent purported to act on the principles behalf and the principal with knowledge of the material facts either 1. affirmed the agents conduct by manifesting the intent to treat the conduct is authorize; or 2. Engaged in conduct that is only justifiable if he had such an intention
In Maryland a principal made voluntarily ratify an agent’s conduct only if the principle is completely aware of it. Verification generally is not inferred from the principles receipt of bit benefits unless there is full knowledge of the facts of an agents transaction. An agent’s knowledge may be imputed to have principal in certain limited circumstances
In Maryland a principal made voluntarily ratify an agent’s conduct only if the principle is completely aware of it. Verification generally is not inferred from the principles receipt of bit benefits unless there is full knowledge of the facts of an agents transaction. An agent’s knowledge may be imputed to have principal in certain limited circumstances
What are the requirements for repudiation?
A principal must make a timely repudiation in a positive definite and unequivocal way.
How may the principal ratify agent action?
By 1. accepting and retaining a benefit that the principal would not have received but for the previously unauthorized act, and 2. failing to repudiate the unauthorized act
May a principal repudiate fraudulent transactions?
Yes. A principal can make efforts to repute he eight rather than ratify a fraudulent transaction such is by returning goods or funds received as a result of the transaction and or refusing to make payment for those goods.
What happens when an agent says that he’s acting on behalf of a principle but lacks authority?
An agent purporting to act on behalf of a principal but liking the authority becomes liable on the contract for breaching his implied warranty of authority.
What is in agency by estoppel?
And agency by estoppel occurs if a principal silently stands by and permits an agent to act on his behalf; the principle is estopped from denying the agent’s apparent authority
What is the inherent agency power doctrine?
Inherent Agency Power is the power of an agent that is derived not from authority, apparent authority, or estopple, but solely from the agency relation and exists for the protection of persons harmed by or dealing with a servant or other agent
