Power and Authority of Agents

Question 1

When does Agent have power to bind the Principal?

Answer 1

Agent’s acts bind Principal if done within the scope of power authorized by the agency relationship.

Question 2

Actual Authority

Answer 2

Express = authorization by Principal’s oral or written words.

Implied = Authority to conduct transaction reasonably necessary to carry out Agent’s express authority.

Question 3

How does a Principal ratify an Agent’s unauthorized act?

Answer 3

Principal ratifies an unauthorized transaction entered into by Agent if Principal has knowledge of all material facts and:

+ manifests assent to the transaction

OR

+ performs some conduct indicating Principal consents to the transaction