REG 8 AGENCY BK Flashcards
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What does it indicate when an agent does not disclose a principal?
It means that the agent intends his act to be on behalf of a principal, but does not avow it.
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Is a principal liable for the torts committed by his agent?
GR: No. Exception: Employer can be liable for an employee’s torts committed within the scope of employment. However, if the tort was unexptected (ie cocaine use), employer will not be liable.
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When can an agent be held personally liable to 3rd parties?
Only if the principal is partially disclosed or undisclosed.
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Who can ratify in an agency relationship?
Only a disclosed principal. Because if you intend to act for a principal as an agent but do not avow it, then he who ratifies as principal may be an impostor.
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When can actual authority be terminated by operation of law?
Death of principal or agent, Discharge in BK, Destruction of subject matter, Failure to acquire a license, Incapacity of the principal, and Subsequent illegality. “DDD FIS” is good stuff lol.
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What notice must be given to terminate apparent authority?
Notice to old and new customers.
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When actual authority is terminated, does apparent authority continue?
Yes, until notice is given.
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Are limiting instructions by a principal adequate to limit agent’s apparent authority? Provide an example.
No. They can limit actual authority, but not apparent authority. Skinney tells Combs that he can’t buy PS2 games that cost more than $50. Combs has apparent authority to buy $70 games, but not actual authority to do so.
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Example of apparent authority?
You say in front of Jeter that you’re his agent and he says nada. It could be implied that you have authority, hence “apparent authority.”
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Can minors be agents?
Yes.
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What are the duties of the agent to the principal?
Duty of loyalty, duty of obedience, duty to account (ie the agent cannot commingle his funds with those of the principal), duty of reasonable care. “LOAR” is my bee-yatch.
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How can agency power arise?
Actual authority, apparent authority, and ratification.
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When is the principal bound?
If the agent had authority. Does not matter if principal was disclosed, undisclosed, etc.
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What is ratification with regard to agency relationships?
The principal chooses to become bound by a previously unauthorized act of his agent.
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When does apparent authority end after a principal terminates an agent’s actual authority?
It ends when the principal notifies 3rd parties who might have known of the agency (ie old and new customers).
