Law 3220 Chapter 14
You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize.
you can accept the deal by express or implied ratification
Agency by estoppel means:
actions by the principal lead a person to believe that the presumed agent has authority to act on the principal's behalf
The authority given by the principal to agent, conferring on the agent the power and right to change the principal's legal status
actual authority
The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses:
actual or apparent authority
When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is:
an agency through operation of law
Special agent
an agent with authority to represent the principal only for specific transactions, usually for a limited time
A key element of an agency relationship is:
an agent's ability to transact business for the principal
The principal's duty to indemnify the agent means the principal must
insure the agent against losses suffered during the course of authorized transactions
You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they actually sell the house. This person is most likely:
special agent
Persons appointed by an agent delegated some authority
subagents
Implied ratification usually occurs when:
the agent accepts the benefits of the agreement
For an agency to be valid in most states:
the agent must be subject to the principal's control
To ratify an agreement a principal must know:
the important facts of the agreement
Agency through operation of law is established:
when an emergency exists and the "agent's" actions are in the public interest
Implied authority consists of
the power to do whatever is reasonable and customary to carry out the agency purpose
To establish an agency relationship
the principal and agent must agree to form an agency
A principal's ratification is:
the principal's acceptance of responsibility for an agent's activities
Express authority consist's of the agents
written or oral instructions from principal to agent
In which of the following situations can an agency relationship be created?
X hires Y to buy some property on X's behalf, X makes an oral agreement that Y will work for X's company's general manager, X and Y enter into a written agreement that Y will work for X as the general manger of X's company
To carry out their duties, universal agents are typically granted
a general power of attorney
General agent
a person authorized to execute all regular transactions connected with a business
An agent is trying to sell a house for 100,000 for her principal. The principal will sell her house for as little as 80,000. If the agent tells her cousin to offer 81,000, the agents actions are
a violation go the duty of loyalty
Subagents owe duties to
both the agent and the principal
Express ratification creating an agency by the principal occurs when the principal:
by action shows a clear intent to bound by unauthorized acts of the agent
An agency is couples with an interest is created:
by an agent who has paid for the right to exercise authority with regard to a business
Duties of principal to an agent
cooperating with agent, paying agent for service rendered, reimbursing agent for any reasonable expense, identifying the agent for liability incurred in completing the purpose of the agency
Scott is an agent for Lee and his duties require him to fly to Chicago from Cleveland. Scott gets up late and misses his flight to Chicago so he has to buy a second plane ticket. As principal, Lee:
does not have the duty to reimburse Scott for the second plane ticket because it was Scott's fault
Advantage of an agent
expand business opportunities and access to expertise of agents
Implied ratification of an agency occurs when the principal:
fails to object to unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third part
A manager who runs all aspects of a hotel is most likely what kind of agent?
general agent
Agents covered
gratuitous, special, universal, general
Lyle is Thelma's agent. Thelma has made it clear to Lyle that she does not want him to sign the contracts that he negotiates; she retains that power. If, despite Thelma's instructions, Lyle negotiates and signs a contract with Tom committing Thelma to spend thousands of dollars, what will the consequences of Lyle's actions be?
if Tom is justified in presuming Lyle had authority to sign the contract, Thelma will be responsible 2
Duty owed by agent
loyalty, reasonable care, accounting, notification
For an agent to be a fiduciary means to:
occupy a position of trust, honesty, and confidence with respect to the principal
Agency is establish by
operation of law, doctrine estoppel, ratification, written agreement, oral agreement
Universal agent
person designated by a principal to do all acts that can be legally delegated to an agent
A legal document that establishes some agency relationships
power of attorney
An agency is created when an agent agrees to act for, or in place of, the
principal
Through an agency relationship, the agent becomes a representative of the:
principal
Determines scope of authority
principal's conduct, statement of principal, trade customs in business
In an agency, the principal
provides the agent with authority
Principal's duty to cooperate
providing a safe work environment, warning the agent of any unreasonable risk associated with the agency, not furnishing goods of inferior quality to the agent
Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the office, he made a deal to produce a movie for another company. When problems developed and the company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC:
ratified Clark's actions and so became liable for his actions
Many states require agencies for ? to be established in writing
sale of land
