The Agency Relationship

Question 1

Agency Relationship (Definition)

Answer 1

A fiduciary relationship that arises when:

(1) one person manifests assent to another person that
(2) the agent shall act on the principal’s behalf and
(3) subject to the principal’s control and
(4) the agent manifests assent or otherwise consents to the act

Question 2

Implied Authority

Answer 2

The granting of authority and consent to act may be implied from the parties’ conduct, circumstances, words, etc. Acquiescence to past conduce may provide implied authority.

Question 3

Dual Agency Rule

Answer 3

An agent cannot act on behalf of the adverse party to a transaction connected with their agency without the permission of both parties.

(1) if both parties are unaware of the double agency, the transaction is voidable
(2) if there is a dual agency but no actual conflict, both relationships might be able to exist,
(3) courts will often side with the more sympathetic character