Specific liability of principals to third parties Flashcards
1
Q
When is a principal liable for contracts that agent enters on their behalf? Two requirements
A
1) when principle authorized agent to enter into K and
2) agent acted with legal authority
2
Q
Four types of legal authority
A
1) actual express authority
2) actual implied authority
3) apparent authority
4) ratification
3
Q
Difference between actual authority and apparent authority?
A
ACTUAL: principal communicates with agent
APPARENT: principal communicates with third party