Flashcards in Part IV: Agency Deck (11):
when one party designates another to act on his/her behalf
party who hires agent
party who acts on behalf of principal
Is a written agreement necessary to create an express agency relationship?
1. the contract being entered into falls under the Statute of Frauds.
2. OR, if the agency relationship cannot reasonable be completed w/in 1 yr.
capacity & agency relationship
An agency relationship terminates as soon as either of the agent or principal is adjudicated incompetent.
Does an agency relationship require consideration?
principal ratification w/out express or implied authoity
The principal is required to ratify the contract before it is binding.
comes from how the agent is viewed by 3rd parties when the principal does nothing to correct the appearance of authority.
principal ratification when agent enters contract w/principal's identity undisclosed
1. principal is not known does not have to ratify the contract to be held liable.
2. The principal can only be sued if his/her identity is discovered. Otherwise, only the agent can be sued.
principal ratification when agent enters contract w/out authority on behalf of a principal
the principal must know all material facts in order to ratify the contract