Exam (elaborations)
LEGL 4400 Test 3 questions and answers verified 2024
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Exam of 18 pages for the course LEGL 4400 at LEGL 4400 (LEGL 4400 Test 3)
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LEGL 4400 Test 3Formation of Agency - correct answer ✔formed by consent - agent agrees,
principal agrees; doesn't have to have contract doesn't have to be money; one
party agrees to do another party's bidding
Gratuitous Agency - correct answer ✔An agency that exists even without
consideration
What needs to be in writing in agency? - correct answer ✔Items that fall
under the statute of frauds
Power of Attorney - correct answer ✔a legal document authorizing someone
to act on your behalf
Durable Power of Attorney - correct answer ✔a legal agreement that allows
an agent to continue to represent an agent should they become incompetent
Springing Power of Attorney - correct answer ✔An agent is appointed on the
occurrence of an event
Agency by Estoppel - correct answer ✔is an agency relationship that is
created because the principal's action caused a third party to believe that an
agency relationship exists.
Agency - correct answer ✔consensual relationship authorizing one party (the
agent) to act on behalf of the other party (the principal) subject to the
principal's control
,Scope of Agency - correct answer ✔whatever business activity a person may
accomplish personally he generally may do through an agent
Scope of Agency Exceptions - correct answer ✔- Personal service contracts
- Subcontracting*
Duties of an Agent - correct answer ✔1. Obedience
2. Good COnduct
3. Diligence
4. Inform
5. Account
6. Fiduciary Duty( conflict of interest, self dealing, no compete,
misappropriation, confidential information, account for financial benefits)
Duties of the Principal - correct answer ✔1. Compensation
2. Indemnification
3. Reimbursement
4. Safety
5. Good faith
Indemnification - correct answer ✔Must pay for the losses incurred by the
agent while acting under the direction of the principal
Reimbursement - correct answer ✔The principal must pay back to the agent
authorized payments the agent has made on the principal's behalf
Termination of Agency - correct answer ✔1. Lapse of Time
, 2. Mutual Agreement
3. Revocation of authority by the principal
4. Renunciation by the agent
5. Death, Incapacity, Change in Circumstances
Irrevocable Powers - correct answer ✔a power given as security - including
an agency coupled with an interest - is irrevocable
Types of Principal - correct answer ✔1. Disclosed
2. Unidentified
3. Undisclosed
Actual Express Authority - correct answer ✔actual authority derived from
written or spoken words of the principal communicated to the agent
Actual Implied Authority - correct answer ✔actual authority inferred from
words or conduct manifested to the agent by the principal (based on prior
experience)
Apparent Authority - correct answer ✔The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
Principal liability - correct answer ✔- Direct liability for authorized acts of the
agent or unauthorized acts (if failed to exercise reasonable care when hiring)
- Indirect liability for occurances within scope of employment (not for frolic and
detour), if the agent acts with apparent authority, Independent contracts
(reasonable care and believed to be an employee)
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