Agency

Front 1

What are the 3 requirements in forming an Agency Relationship?

Back 1

1) Mutual Agreement
2) Agent must be acting on behalf of Principal
3) Agent must be subject to Principal's control

Front 2

What are the 4 types of authority?

Back 2

1) actual express authority
2) actual implied authority
3) apparent authority
4) inherent authority

Front 3

If agent is acting with no authority, how may the Principal still be liable for agent's acts?

Back 3

If the Principal, either expressly or impliedly, ratifies those actions.

Front 4

What is the RULE for Express Actual Authority?

Back 4

There is express actual authority if a reasonable person the agent's position would interpret the principal's communication (by actually telling or knowingly aquiescing) to encompass a certain act.

Front 5

What is the RULE for Implied Actual Authority?

Back 5

There is implied actual authority when P does not expressly confer authority but P's words or conduct, reasonably interpreted, cause the agent to believe he has authority.

Front 6

What is the RULE for Apparent Authority?

Back 6

An agent has apparent authority in dealing with a 3rd person when P’s words or conduct, “reasonably interpreted, caused the third person to believe” that the agent has authority

Front 7

What are the 3 ways to create Apparent Authority?

Back 7

1) P actually telling 3rd party agent has authority.
2) Through prior acts or course of dealings.
3) By power of position.

Front 8

What is the RULE for inherent authority?

Back 8

An agent has inherent authority when acting on the principal's account and actions are incidental to transactions which the agent is authorized to conduct. 3rd party must reasonably believe agent has authority and has no notice that agent is not authorized.