Agency

Question 1

What are rules of agency law?

Answer 1

Principal needs capacity, not agent
No contract required
No consideration required
Must be consent
No need to be in writing unless fall under Statute of Frauds

Question 2

What is a fully disclosed principal?

Answer 2

3rd party know identity of principal

Principal liable, not agent

Question 3

What is a partially disclosed principal?

Answer 3

3rd party knows agent is acting for another, but not identity
Principal and agent jointly and severally liable

Question 4

What is an undisclosed principal?

Answer 4

3rd party believes agent is acting for themselves

Either principal or agent liable

Question 5

How is an agency terminated?

Answer 5

Agreement
Unilateral
Operation of law - death, insanity, or bankruptcy of principal, subject matter illegal or impossible

Question 6

What can the agent recover for a breach by the principal?

Answer 6

Recovery for past services
Recovery for future damages
Authority to withhold further performance
Not specific performance

Question 7

What is required for a principal to ratify a contract?

Answer 7

Meet all 3:
Must have been fully or partially disclosed
Understand the contract
Act to ratify before 3rd party discovers agent acted without authority
Must ratify contract in its entirety