Test 4 Review: Chapter 26 Vocabulary & True/False

False

A special agent is one who is authorized to carry out all of the principal's business of a particular kind.

False

An attorney in fact is a special agent.

agency by estoppel

agency arising when one person leads another to believe third party is agent

general agent

agent authorized to carry out particular kind of business or all business at a place

special agent

agent authorized to transact specific act or acts

implied authority

agent's authority to do things in order to carry out express authority

ratification

approval of unauthorized act

apparent authority

authority an agent is believed to have because of principal's behavior

customary authority

authority an agent possesses by custom

express authority

authority of agent stated in agreement creating agency

agency

contract under which one party is authorized to contract for another

power of attorney

writing appointing an agent

True

A contract appointing an agent must be in writing if the agency is created to transfer title to real estate.

True

A contract of agency usually involved at least three parties.

True

A general agent may transact business that is outside the scope of his express authority

factor or commission merchant

bailee seeking to sell property on commission

factor del credere

factor who sells on credit and guarantees price will be paid

attorney in fact

general agent appointed by written authorization

independent contractor

one who contracts to do jobs and is controlled only by contract as to how performed

agent

person appointed to contract on behalf of another

principal

person who appoints another to contract with third parties