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Is P liable for A's contracts?
Only if P authorized A to eneter K.
Four types of Authority
1. Actual Express
2. Actual Implied
3. Apparent
4. Ratification
1. Actual Express Authority
Formation:
- P used words to express authority
-- can be oral and private
Generally:
-- narrow -- limited to words within it
Exception:
- if underlying K must be in writing, then authorization must be in writing
---- e.g., sale of land, interest in land lasting more than 1 yr.
Revocation of Actual Express Authority
Revocation:
1. unilateral act of either P or A
2. death of P.... UNLESS P gives Power of Attorney -- written expression of authtority
Incapacity -- terminates with P's incapacity unless PoA that specifically deals with issue
2. Actual Implied Authority
-- through conduct or circumstance
Methods:
1. Necessity -- needed to carry out expressly authorized tasks
2. Custom -- generally performed by agents
3. Prior dealings between P and A -- agent believes he has authority
3. Apparent Authority
Two Part Test:
1. P "cloaked" A with appearance of authroity
2. TP reasonably relies on appearance
Authority can be granted after K is formed if:
1. P has knowledge of all material facts, and
2. P accepts benefits
3. NY Exception: ratification does not alter terms
Agent Liability on K?
Generally NOT
Excpetion:
-- the undisclosed principal case -- then A is liable at elecetion of other party
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