R8 - Agency

Question 1

What is the difference between a principal and agent in terms of capacity for an agency?

Answer 1

Principal must have capacity but the agent need not have capacity (may be a minor/incompetent)

Question 2

What is the difference between actual and apparent authority in terms of agency?

Answer 2

Actual authority is given by the principal and is the authority the agent reasonably believes they have; apparent authority is the power a third party reasonably believes the agent has due to position or title

Question 3

In which 2 instances is an agency agreement required to be in writing?

Answer 3

Purchase of land or cannot be completed within one year

Question 4

What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?

Answer 4

Respondeat superior