Chapter 14 Blaw 3310 UPDATED ACTUAL Questions and CORRECT Answers
0 view 0 purchase
Course
BLAW 3310
Institution
BLAW 3310
Chapter 14 Blaw 3310 UPDATED ACTUAL
Questions and CORRECT Answers
Agency Relationship - CORRECT ANSWER - An employment of an agent for the
purpose of representation in establishing relations between a principal and third parties.
Used to expand business opportunities and use expertise of agen...
Chapter 14 Blaw 3310 UPDATED ACTUAL
Questions and CORRECT Answers
Agency Relationship - CORRECT ANSWER - An employment of an agent for the
purpose of representation in establishing relations between a principal and third parties.
Used to expand business opportunities and use expertise of agents.
Agent - CORRECT ANSWER - Agrees to act for another person or business.
May negotiate and legally bind a principal to contracts with third parties as long he acts
according to authority given.
Principal - CORRECT ANSWER - Provides the agent authority to act on their behalf.
Agency coupled with an interest - CORRECT ANSWER - When an agent pays for the
right to have authority for a business. Example you lend money to someone to buy house to put
up for rent. The borrower is the agent and agrees that the rent money be paid to you to pay off
loan
Creating Agency - CORRECT ANSWER - Most agencies are created without formal
statements such as "I will represent you".
But can be based on written agreement:
Agreement of the parties
Ratification of the agent's activities by the principal
Application of the doctrine of estoppel
Operation of law
Agency by Agreement of the Parties - CORRECT ANSWER - Agent acts for the benefit
of the principal and is subject to the principal's control.
One legal documentation that establishes an agency is the power of attorney, which authorizes a
person to act as an agent for a principal.
, Implied or Express Ratification by the Principle - CORRECT ANSWER - Agency may be
created by a principals ratification (acceptance of responsibility) of an agents activities.
Person who is not agent or agent who is acting beyond his powers enters into a contract on behalf
of principal, In such circumstances Principal is not bound by the persons actions. Unless he
Ratifies the agreement making him bound to contract. EXP. Roommate advertises your car while
your away for $9000, buyer offers $8500 you come back and decide to accept offer.
Express Ratification - CORRECT ANSWER - Principal's clear signal to be bound to the
otherwise unauthorized agreement.
Implied Ratification - CORRECT ANSWER - When the principal behaves as if he has the
intent of ratifying an unauthorized agreement.
Agency by Estoppel - CORRECT ANSWER - Similar to implied ratification.
Agency is created by the actions of principal which may lead one to reasonably believe that the
presumed agent has authority to act for principal. Principal is bounded by agents decision to
enter contract with third party.
Agency by Operation of Law - CORRECT ANSWER - Courts may impose an agency
relationship when an emergency exists. EXP employee buys $500 worth of plywood to protect
business windows from a hurricane. Employee can't reach Boss. The agent is given the authority
to do so in emergencies through an agency by operation of law.
Authority Granted to Agent - CORRECT ANSWER - May be determined by statements
by the principal,the principal's conduct, or trade customs in business.
Actual Authority - CORRECT ANSWER - Can come from express or implied authority
Express Authority - CORRECT ANSWER - Is based on oral or written instructions given
by the principal to an agent.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
