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REG Section - CPA Exam > R8 - Agency > Flashcards

Flashcards in R8 - Agency Deck (4)
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1
Q

What is the difference between a principal and agent in terms of capacity for an agency?

A

Principal must have capacity but the agent need not have capacity (may be a minor/incompetent)

2
Q

What is the difference between actual and apparent authority in terms of agency?

A

Actual authority is given by the principal and is the authority the agent reasonably believes they have; apparent authority is the power a third party reasonably believes the agent has due to position or title

3
Q

In which 2 instances is an agency agreement required to be in writing?

A

Purchase of land or cannot be completed within one year

4
Q

What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?

A

Respondeat superior