MindTap: Worksheet 19.3: Agent's Authority
When a third party reasonably believes a person has authority to act on another's behalf, even if that person does not have such authority, the situation is known as
apparent authority
Match the words on the left to their appropriate definitions on the right.
Ratification: The act of accepting and giving legal force to an obligation that previously was not enforceable. Implied authority: Authority that is created not by an explicit oral or written agreement but by implication. In agency law, implied authority (of the agent) can be conferred by custom, inferred from the position the agent occupies, or implied by virtue of being reasonably necessary to carry out express authority. Apparent authority: Authority that is only apparent, not real. In agency law, a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed when, in fact, it did not.
Match the words on the left to their appropriate definitions on the right.
Express authority: a written document authorizing another to act as one's agent. This may be special, permitting the agent to do specified acts only, or general, permitting the agent to transact all business for the principal. Equal dignity rule: In most states, a rule stating that authority given to an agent must be in writing if the contract to be made on behalf of the principal is also required to be in writing. Notary public: A public official authorized to attest to the authenticity of signatures. Power of attorney: Power given by one party to another in clear and definite terms to act on the person's behalf.
Apparent authority usually comes into existence through a principal's pattern of conduct over time.
True
Generally, the liability of the principal will depend on whether the agent was authorized to form a contract.
True
An ordinary power of attorney ends when:
the person giving the power dies or becomes incapacitated.
Before a principal ratifies an unauthorized contract, the third-party can:
revoke the offer without liability.
An agent's implied authority can be inferred by
the position the agent occupies
An agent will have emergency powers:
to protect the principal's property and rights when the agent is unable to communicate with the principal.
A court can apply the doctrine of _____ when a principal has given a third-party reason to believe that an agent has authority to act.
agency of estoppel
An agent's authority to act for a principal:
may be actual or apparent.
