Ch26 Nature and Creation of an Agency

Question 0

Agent

Answer 0

Nature of Agency

Question 1

Principal

Answer 1

Nature of Agency

Question 2

Principal appointing agent results in contract of agency.

Answer 2

Nature of Agency

Question 3

Person who appoints another to contract with third parties.

Answer 3

Principal

Question 4

Person appointed to contract on behalf of another.

Answer 4

Agent

Question 5

Agents are delegated by business owners for the important details of business transactions.

Answer 5

Importance of Agency

Question 6

Agents are necessary in order to bring one person into a business contractual relationship with other people.

Answer 6

Importance of Agency

Question 7

An agent has all the powers the person who appointed them has.

Answer 7

What Powers May Be Delegated to an Agent?

Question 8

Courts will not permit certain acts of a personal nature delegated to agents.

Answer 8

What Powers May Be Delegated to an Agent?

Question 9

Agents cannot be authorized to act out against the law.

Answer 9

What Powers May Be Delegated to an Agent?

Question 10

All people legally competent to act for themselves can act through an agent.

Answer 10

Who May Appoint an Agent?

Question 11

A contract between a minor and an agent is voidable. Some states find this contract void.

Answer 11

Who May Appoint an Agent?

Question 12

Any person with sufficient intelligence to carry out the principal’s order may act as an agent.

Answer 12

Who May Act as an Agent?

Question 13

Corporations and partnerships may act as agents.

Answer 13

Who May Act as an Agent?

Question 14

An agent may require certain requirements for some types of transactions.

Answer 14

Who May Act as an Agent?

Question 15

Failure to meet these requirements disqualifies an agent in performing his duties of those transactions.

Answer 15

Who May Act as an Agent?

Question 16

Agent authorized to carry out particular kind of business or all business at a place.

Answer 16

General agents

Question 17

Agent authorized to transact specific act or acts.

Answer 17

Special agent

Question 18

Bailee seeking to sell property on commission.

Answer 18

Factors

Question 19

Factor who sells on credit and guarantees price will be paid.

Answer 19

Factors del credere

Question 20

Agent with job of bringing two contracting parties together.

Answer 20

Brokers

Question 21

General agent appointed by written authorization.

Answer 21

Attorneys in fact

Question 22

Extent of Authority: Acts clearly within the scope of the express authority.

Answer 22

A general agent has authority to transact several classes of acts.

Question 23

Extent of Authority: Acts customarily within such an agent’s authority.

Answer 23

A general agent has authority to transact several classes of acts.

Question 24

Extent of Authority: Acts outside of express authority but appear to third parties to be within the scope of the agent’s authority.

Answer 24

A general agent has authority to transact several classes of acts.

Question 25

Authority of agent stated in agreement creating agency.

Answer 25

Express authority

Question 26

Agent’s authority to do things in order to carry out express authority.

Answer 26

Implied authority

Question 27

Authority an agent possesses by custom.

Answer 27

Customary authority

Question 28

Authority an agent is believed to have because of principal’s behavior.

Answer 28

Apparent authority

Question 29

Appointment

Answer 29

Creation of an Agency

Question 30

Ratification

Answer 30

Creation of an Agency

Question 31

Estoppel

Answer 31

Creation of an Agency

Question 32

Necessity

Answer 32

Creation of an Agency

Question 33

Common way to create an agency; principal makes a statement to the agent.

Answer 33

Appointment

Question 34

Contract may be written or oral, formal or informal.

Answer 34

Appointment

Question 35

Power of attorney: writing appointment of agent.

Answer 35

Appointment

Question 36

Approval by one person of the unauthorized act of another done in the former’s name.

Answer 36

Ratification

Question 37

Requirements for ratification:

Answer 37

Ratification

Question 38

The one who assumed the authority of an agent must have made it known to the third party that he or she was acting on behalf of the party who attempts to ratify the act.

Answer 38

Requirements for ratification

Question 39

The one attempting to ratify must have been capable of authorizing the act at the time the act was done. Some jurisdictions apply this rule to corporations so that a corporation formed subsequent to the time of the act cannot ratify an act of a promoter. Other states have ignored this requirement in regard to ratification to ratification of the acts of corporation promoters.

Answer 39

Requirements for ratification

Question 40

The one attempting to ratify must be capable of authorizing the act at the time the approval of the act is given.

Answer 40

Requirements for ratification

Question 41

The one attempting to ratify must have knowledge of all material facts.

Answer 41

Requirements for ratification

Question 42

The one attempting to ratify must approve the entire act.

Answer 42

Requirements for ratification

Question 43

The ratified act must be legal, although the person whose name was forged may ratify a forgery on commercial paper.

Answer 43

Requirements for ratification

Question 44

The ratification must be made before the third party has withdrawn from the transaction.

Answer 44

Requirements for ratification

Question 45

Agency arising when one person leads another to believe third party is an agent.

Answer 45

Estoppel

Question 46

The principal is bound to the extent of the representations made.

Answer 46

Estoppel

Question 47

Relationship of agency may be created by necessity for one.

Answer 47

Necessity

Question 48

Agency of necessity may also arise from an unforeseen emergency.

Answer 48

Necessity

Question 49

One who contracts to do jobs and is controlled only by contract as to how performed.

Answer 49

Independent Contractor

Question 50

Employee works for an employer.

Answer 50

Employer and Employee

Question 51

Employer controls what work employee is to do and in what manner.

Answer 51

Employer and Employee

Question 52

Crossword Question: These three words represent a general agent who has been appointed by a written authorization.

Answer 52

Attorney in Fact

Question 53

Crossword Question: ___________ and partnerships, as well as individuals, may appoint agents.

Answer 53

Corporations

Question 54

Crossword Question: The principal may have behaved in a way or made a statement that caused the third person to believe that the agent has authority.

Answer 54

Apparent

Question 55

Crossword Question: This authority specifically delegated to the agent by the agreement creating the agency.

Answer 55

Express

Question 56

Crossword Question: The appointed person.

Answer 56

Agent

Question 57

Crossword Question: This acronym stands for a written instrument indicating the appointment of an agent. Many times we think of these when someone gets ill and we have to have them to act on their behalf.

Answer 57

POA

Question 58

Crossword Question: This person is a commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid by the purchaser or by the factor. (Three words).

Answer 58

Factor Del Credere

Question 59

Crossword Question: A person who appoints another to contract with third parties.

Answer 59

Principal

Question 60

Crossword Question: A special agent whose task is to bring the two contracting parties together.

Answer 60

Broker

Question 61

Crossword Question: These two words represent the person that may sell in the name of the principal.

Answer 61

Commission Merchants

Question 62

Crossword Question: This is the approval by one person of the unauthorized act of another done in the former's name.

Answer 62

Ratification

Question 63

Crossword Question: This agent is authorized by a principal to transact some specific act or acts.

Answer 63

Special

Question 64

Crossword Question: This authority allows an agent to carry out orders without them being specifically enumerated in the agreement.

Answer 64

Implied

Question 65

Crossword Question: A ______is one who receives possession of another's for the purpose of sale on commission.

Answer 65

Factor

Question 66

Crossword Question: This agent is authorized to carry out all of the principal's business of a particular kind....

Answer 66

General

Question 67

Cengage Learning: Contract under which one party is authorized to contract for another.

Answer 67

Agency

Question 68

Cengage Learning: Agency arising when person leads another to believe third party is agent

Answer 68

Agency by Estoppel

Question 69

Cengage Learning: Person appointed to contract on behalf of another

Answer 69

Agent

Question 70

Cengage Learning: Authority agent believed to have because of principal’s behavior

Answer 70

Apparent Authority

Question 71

Cengage Learning: General agent appointed by written authorization

Answer 71

Attorney in Fact

Question 72

Cengage Learning: Agent with job of bringing two contracting parties together

Answer 72

Broker

Question 73

Cengage Learning: Authority agent possesses by custom

Answer 73

Customary Authority

Question 74

Cengage Learning: Authority of agent stated in agreement creating agency

Answer 74

Express Authority

Question 75

Cengage Learning: Bailee seeking to sell property on commission

Answer 75

Factor

Question 76

Cengage Learning: Factor who sells on credit and guarantees price will be paid

Answer 76

Factor del Credere

Question 77

Cengage Learning: Agent authorized to carry out particular kind of business or all business at a place

Answer 77

General Agent

Question 78

Cengage Learning: Agent’s authority to do things in order to carry out express authority

Answer 78

Implied Authority

Question 79

Cengage Learning: One who contracts to do jobs and is controlled only by contract as to how performed

Answer 79

Independent Contractor

Question 80

Cengage Learning: Writing appointing an agent

Answer 80

Power of Attorney

Question 81

Cengage Learning: Person who appoints another to contract with third parties

Answer 81

Principal

Question 82

Cengage Learning: Approval of unauthorized act

Answer 82

Ratification

Question 83

Cengage Learning: Agent authorized to transact specific act or acts

Answer 83

Special Agent

Question 84

1. Every agency relationship involves at least three parties.

Answer 84

True

Question 85

2. Most businesses can operate without the use of agency.

Answer 85

False

Question 86

3. A partnership can act as an agent.

Answer 86

True

Question 87

4. A person can delegate anything to an agent.

Answer 87

False

Question 88

5. A special agent is one authorized to carry out the principal's business.

Answer 88

False

Question 89

6. A commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid is called a factor del credere.

Answer 89

True

Question 90

7. A/n ________ is one who contracts to perform some tasks for a fixed fee.

Answer 90

Independent contractor

Question 91

8. When the principal behaves in a way or makes statements that mislead a third party into mistakenly believing that the agent has authority, this authority is called ________ authority.

Answer 91

Apparent

Question 92

9. A general agent has authority that one in his or her position usually possesses. This authority is known as ________ authority.

Answer 92

Customary

Question 93

10. Agents may be classified as ________.

Answer 93

General and special

Question 94

11. A person who appoints another to enter into contracts with third parties is called a ________.

Answer 94

Principal

Question 95

12. bailee who seeks to sell the bailed property on commission is a/n ________.

Answer 95

Factor

Question 96

13. An agency which arises when a person leads another to believe a third party is an agent is an agency by ________.

Answer 96

Estoppel

Question 97

14. The approval by one person of the unauthorized act of another done in the former's name is called ________.

Answer 97

Ratification