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Landon enters into a written contract for the sale of the land with Miriam and does not tell Miriam that Landon is an agent for anyone else on the deal. Isaiah refuses to buy the property from Miriam. Is Landon obligated to perform the contract with Miriam?
Yes, he is because there was an undisclosed principal who failed to perform.
Is a principal under a duty to compensate an agent who works on the principal's behalf?
Yes, if the contract requires compensation.
Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between
a principal and an agent.
Clara is a salesperson in The Corner Store. When Carla makes a sale to Jenny, the sale is
binding on The Corner Store.
Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?
both the agent and the principal
What are the fiduciary duties of an agent to her principal? Choose 3 answers.
loyalty accounting obedience
Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely
terminated by operation of law. [A contract may be terminated by operation of law if the subject matter of the contract becomes illegal or impossible to perform.]
Agency by ____: If a principal (NOT THE AGENT) holds out to a third party that another is authorized to act on the principal's behalf, and the third party deals with the other person accordingly, the principal may not later deny that the other was the principal's agent for purposes of dealing with that third party.
Estoppel
reasonable, detriment
Estoppel: Whether a court finds that an agency relationship exists depends on whether Hadid's belief that an agency agreement existed was ____ and created by Richard Brandt . In addition to this reliance, the third party must act to his or her ____ in reliance on the belief of the agency relationship.
Roland and Alfreeda enter into a written agency agreement in which Alfreeda will represent Roland as his agent to obtain acting jobs for Roland. No termination provisions are included in the written agreement. If Roland wishes to terminate his agreement with Alfreeda:
Roland must do so in writing because the agency agreement is in writing.
What is required to form an agency relationship?
The agent and principal must agree to enter the relationship.
Is a principal liable for the tortious actions of the principal's agent?
Yes, but the agent must reimburse the principal.
How may an agency relationship be formed? Choose 3 answers.
by express oral agreement between agent and principal by express written agreement between agent and principal implied by the conduct of the principal
Who can terminate an agency relationship?
Either the agent or the principal may terminate.
Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?
No, most agency agreements do not have to be in writing to be effective.
How does a principal become liable to third parties on contracts?
The principal's agent has the authority to bind the principal in a contract with a third party.
The territory that Grover is assigned has historically had one of the highest sales records in the state. Ruby is concerned that Grover is not adequately working the territory, so she allows Regina to also sell in that same territory. Does Grover have any grounds on which to file a lawsuit against Ruby?
Yes, Ruby has violated a principal's duty of cooperation and may be liable to Grover for Grover's lost profits.
Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina later contacts Frida to affirm the contract. This is
an agency by ratification. [A confirmation by the principal of an act or contract performed or entered into on his or her behalf by another, who assumed, without authority, to act as his or her agent.]
Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she
crashed into a car at the airport while off duty.
When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers.
if the agent entered into the contract in a personal capacity when the principal is undisclosed when the agent is acting without authority
If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?
negligent hiring
Marlo jumps at the chance to get such a valuable service for free! Because Julianna offered to sell the house for free, Julianna owes Marlo:
no duty to sell the house, but if Julianna does attempt to sell the house, she owes Marlo the duty to use reasonable diligence and skill in performing the task.