Agency

Question 1

Authority

Answer 1

The principal must communicate revocation and/or limitation of authority to third parties in order to limit or revoke apparent authority.

Question 2

Ratification

Answer 2

The requirements for an enforceable ratification are—the principal must have all the material facts related to the contract and be free from duress and voluntarily accept the benefit of the contract.

Question 3

fiduciary duty

Answer 3

the principal authorized the agent to appoint subagents, which means (but which was not asked in the question) that Blue is responsible for the subagent’s actions. fiduciary duty owed to both agent and princiap

Question 4

undisclosed principal

Answer 4

n some instances, the principal directs the agent not to disclose the existence of the agency (undisclosed principal). In such a case, the agent has exactly the same actual (i.e., express) authority as if the agency were disclosed. However, the broker has no apparent authority (i.e., the appearance of authority resulting from the words or actions of the principal) because the agency is undisclosed. As a result, Easy will be bound by the contract because of the broker’s actual authority, not because of any apparent authority.

Question 5

actual authority

Answer 5

principal grants the power

Question 6

apparent authority

Answer 6

power that a third party reasonably believes an agent has

Question 7

agent acts fraud

Answer 7

if the agent does not maintain these standards,the principal may immediately terminate the agent.The breach of a duty by an agent often results in some form of damage to the principal (usually with gain to the agent), and as such any gain (financial or property) the agent has received is held as a constructive trust for the benefit of the beneficiary, the principal, whether the agent knows it or not. A constructive trust is an equitable device that calls for the agent to be the trustee of the “ill-gotten” goods or income for the benefit of the principal.

Question 8

employees

Answer 8

All employees who deal with third parties are deemed to be agents of the employer.

Question 9

principal duties towards agent

Answer 9

The principal’s duties and obligations owed to an agent include the following:Compensation,Fair dealing and contractual duties,Indemnification: