Agency Partnership Essay

Question 1

Agency Essay

Authority to Act

Answer 1

Authority may be actual or apparent
* actual authority can be expressed or implied

Express:
* is authority oral or written communication form the agent

Implied
* is authority that the agent reasonably believes he has as a result of action of principal

Apparent Authority
* if the agent lacks authority, the principal can still be liable if the third party can show the agent had apparent authority to act.

Ratification
* if a principal ratifies an unauthorized transaction by an agent, the principal because bound by the contract.

Question 2

Essay (Agency)

Principle- Agent Relationship

Answer 2

Principle- Agent Relationship is created through consent of both parties, provided they have capacity.
* no writing or consideration required.

Breach:
* an agent has a duty of loyalty and obedience to the principal

Remedies:

• An action for secret profits.
• The principal may recover actual lost profits held by agent where or not agent caused any loss.

Question 3

Essay (Agency)

Contract Liability- Authority of Agent

Answer 3

A principal is liable to a 3rd party for the action of an agent who acted with authority.
* authority can be actual or apparent

Actual:
* IS authority that an agent reasonably believed he possessed the basses on the principal dealing with him.

Apparent

• is where the 3rd party reasonably believes the agent has given authority based on 3rd party dealing with the principal.
• If an agent actual authority has been terminated, the agent will have apparent authority until 3rd party receives actual or constructive notice.

Question 4

Essay (Agent)

Respondiat Superior
Estoppel

Answer 4

Provides that a principal is liable in tort for the act of an agent performed within the scope of employment.

Act of Agent
* Normally a Tort Plaintiff is not in the position to rely on apparent authority of an agent, unless estoppel.

• estoppel
  
  • May be asserted to prevent the principal from denying an employee employer relationship, if principal created appearance of such relationship to to a third party .