When is P liable for contracts entered into by A?
When P authorised the contract
What are the four types of authority?
1. Actual express
2. Actual implied
3. Apparent authority*
What is the scope of actual express authority?
It is narrowly limited to the words expressed
Must express authority be in writing?
Only if the contract to be entered into must be in writing
What are the two ways in which express authority can be revoked?
1. Death or incapacity of P, unless A has durable power of attorney
2. Unilateral act by P or A revoking the authority
What are the three categories of actual implied authority?
3. Prior dealing
What is actual implied authority by necessity?
A has implied authority to do anything necessary to achieve an expressly authorised task
What is actual implied authority by custom?
A has implied authority to do anything customarily done by someone with his title
What is actual implied authority by prior dealings?
A has implied authority to do anything he believes he is authorised to do based on prior acquiescence
What are the two requirements for apparent authority?
1. P cloaks A with appearance of authority
2. Third party reasonably relies upon that appearance of authority
What gives rise to authority by ratification?
P grants authority after a contract is entered into
What are the three requirements for authority by ratification?
1. P knows of all material terms
2. P accepts the benefit
3. Ratification does not alter any term
Are P and A both liable for authorised contracts?
P is, A is not
What does the undisclosed principal exception allow?
It allows a third party to recover from A
One of what two things triggers the undisclosed principal exception?
1. P's identity was concealed
2. The fact there was a P/A relationship at all was not disclosed
What is the one limitation placed on a plaintiff regarding the undisclosed principal exception?
They cannot recover from both P and A, only one