Agency formation and termination

In the context of authority, ratification refers to:

agreeing to be bound to a contract entered into by an agent that exceeded that agent's authority at the time the agent entered into it

Bob enlists the help of his son to buy a new car. He says" i'm leaving the entire decision to you but don't spend more than 20k". Later the son returns to the dealership and negotiates for a car 21k. what type of authority is this?

apparent

Where an employer makes use of a job title in an employment situation, which kind of authority can arise in the employee based on the job title?

apparent authority

Assuming that any minor was involved is old enough to understand the terms of this transaction which of the following is generally true in order to create a contract that cannot be this disaffirmed?

A minor can act as an agent on behalf of an adult

Which is true but agency agreements?

A minor may generally be agent

Someone authorized to act on behalf of another is generally known as

Agent

An agency always requires

And 10th by both the principal and agent to be in the arrangement

Express agency requires

And oral or written agreement between the principal and agent

Where the principal makes representation to a third party about the role that an agent is to play, which kind of authority can be created?

Apparent authority

Charlie goes to Kim, a local travel agent, and buys airline ticket on Barter. In this transaction:

Bartair is the principal and Kim is its agent

The primary function of an agent in The principal agent relationship is to

Conduct business on behalf of the principal

Which of the following is not one of the common types of an agent authority?

Dependent

An agent negotiates a contract with a third party, for which the agent did not have express authority. Which of the following is true?

Either implied or apparent authority might cause the principal to be liable on the contract.

An agency agreement may exist for infinite period of time.

F

An agency coupled with an interest this terminated by the death or incapacity of either the principle or agent.

F

An agent assumes the financial responsibility for all expenses within the scope of agency.

F

An agent may continue to represent the principal even after the agency relationship is terminated.

F

An agent who was negligently failed to perform as for the agency contract is liable only for the breach of the contract.

F

Any money or other benefits received by the agent in the course of the agency belongs to the agent.

F

But agency is not terminated by the loss of a required qualifications.

F

And I'm express agency called the power of attorney the principle is the attorney in fact.

False

Even if an employee cannot enter into contracts the principal agent relationship is formed by virtue of employment relationship itself.

False

Relationships are not necessary to the operation of a partnership.

False

Agency arrangement based on the conduct of the two parties is what type of agency?

Implied

Incidental authority is what kind of authority

Implied authority

Compared to an employee and independent contractor is characterized by

More freedom to do her work in the manner she determines

Expressing Jesse arrangement can be formed with which types of agreements?

Oral or written

The express written agency agreement that is often used to give an age in the power of the sign legal documents on behalf of the principle is known as

Power of attorney

Which of the following is true?

Some employees or agents and some independent contractors are agents

What is the effect of an agency terminating a fixed term agency prior to expiration of the stated period of time?

The agency is terminated but the agent might be liable for the damages to the principal

Which of the following is true about determining whether someone working for another is an independent contractor for an employee?

The classification of the person doing the work depends on a number of factors with the degree of control over the persons work by the person who is paying for the work being the most important factor.

Which of the following is generally true but a relationship where one party works for another?

The party simultaneously be an employee and an agent and a party can simultaneously be an independent contractor and an agent.

Apparent authority can be best described as a situation where

The principal has made representations to third-party that someone is to act as her agent

Implied authority can be best described as a situation where

The principal has made representations to third-party that someone is to act as her agent and the agent has made representations to third-party that he is acting as an agent for another

John is hired at min wage in a fast food restaurant. John works at the counter taking customer orders, accepting payment and giving orders to customer. John works in the accordance with detailed procedures manual. John is:

an employee as well as an agent

The death of which parties will cause an agency to terminate?

either the principal or the agent

You have contracted orally with patty to buy some real estate on her behalf. the only limitations are that she wants a vacant lot in a residential area for less than 100k. If you find such a residential lot costing 85k what type of authority do you have to enter into this transaction of Patty's behalf ?

express

In an agency of a fixed term, such as 1 year, prior to the end of the stated period, the agent:

has the power but not the right to terminate the arrangement

What is the significance of an agency coupled with an interest?

the agency cannot be terminated unilaterally by the principal

If the law changes such as the action called for an agency arrangement become illegal after the agency has been carried on legally for some period of time, what is consequence?

the agency is terminated effective upon the law change taking effect.

An agency coupled with interest typically arises in which situation?

the principal gives the agent authority to sell collateral owned by the principal in the event that the principal defaults on a loan payable to the agent.

The bankruptcy of which parties will cause an agency to terminate?

the principal only

Attorney is an agent when he represents a client.

True

Corporation must conduct all of its business affairs through agents.

True

Agency agreement may terminate after certain event happens.

T

Generally an Agency situations the principal and agent must both have contractual capacity

False

The principal agent relationship exist when an employer hires an employee to perform some formal the physical service.

False

The principal who lacks contractual capacity can appoint an agent

False

The principal hires an agent to manage his restaurant. as a result, the agent hires two people to serve as a waitstaff. the hiring of the wait staff is an example of what type of authority?

Implied

A principal gives an agent authority to "get his car running right" The authority the agent has to enter into the contracts for the purchase of the auto parts is:

Implied authority

Susan Marie works as a receptionist for a computer software company. Susan Marie works from 8 to 5 mon-thur, and from 8 to noon on Friday. Susan Marie is paid $15 per hour and is told how to do her job and what she should be working on at any particular time. The software company and Susan Marie have executed an "independent contractor agreement" in which the terms of this arrangement are specified. which of the following is true?

Susan Marie would be treated as an employee because of the control exercised by the software company over her work and because of the manner she is paid.

An agency may be terminated of the principle is the clear bankrupt.

T

Or principal must compensate an agent of the completion of the agency or some other agreed-upon time.

T

The principal has a duty to cooperate with agent in the performance of his or her duties.

T

When an agency agreement terminates direct notice of the termination must be given to all persons who dealt with the agent.

T

An express agency is one that happens when the principal and agent expressively agreed to enter into an agency agreement with each other.

True

Jack hires Frankie, who is 13 yrs old, to buy a computer on Jack's behalf. Which of the following is true?

This is a valid agency relationship even though Frankie is a minor, and Jack would be bound by authorized contacts entered into on Jack's behalf.

A person who is not an employee who is employed by a principal to perform a certain task on his behalf is an independent contractor.

True

Agency relationship is created by the mutual consent of the principal and the agent.

True

An agency is a fiduciary relationship.

True

An agency may be created even if the person miss represents himself or herself as being another agent when he or she really is not of the principal except the unauthorized.

True

Which of the following would not terminate an agency by operation law?

a principal hires another with similar duties

An agency arrangement can be terminated by:

a- achievement of the agency's purpose b- mutual agreement c- occurrence of a specified event