Exam 25: Agency Law

The principal and the agent are each personally liable for their own tortious conduct.

Apparent agency is also known as agency by estoppel.

As a general rule,an agent is liable for contracts negotiated on behalf of a partially- disclosed principal.

Where an apparent agency is established,the principal is estopped from denying the agency relationship and is bound to contracts entered into by the apparent agent while acting within the scope of the apparent agency.

Pedro hires Andrea to negotiate the purchase of a sailboat for Pedro.Andrea decides to buy a sailboat from Sally that meets Pedro's specifications.Andrea tells Sally that the purchase is really being made by Pedro,and Andrea and Sally sign a written contract,with Andrea signing on Pedro's behalf.Based on this situation:

Which of the following is not true regarding notification of agency termination?

The degree to which an agent discloses the agency relationship affects the contract liability of:

In an agency,the agent acts on behalf of the third party.

An agency arrangement must be based on more than the conduct of the parties.

Anne was hired by Peter to sell a condominium in San Francisco.The asking price for the modest two-bedroom unit was $2,300,000.Peter told Anne he would sell the home for as low as $2,100,000,but that she should try to obtain the highest possible price,without disclosing the fact that he was willing to accept $2,100,000.A good friend of Anne's was in the market for a two-bedroom condominium in San Francisco.In fact,this friend had come to Anne to help her find a place and negotiate for it.Anne's friend said that she could afford to spend no more than $2,000,000.When Peter hired Anne to sell his condominium,Anne told her friend about it and the asking price.Anne told her friend,"Don't even bother.He won't go below $2,100,000; that's his bottom price." Anne then proposed to her friend that they "pool their resources," with Anne fronting some money through her friend,but not having Anne's name on the contract as a purchaser.Before they could finalize the details,Anne's friend received a raise and decided to buy the condominium.Anne negotiated a price of $2,100,000 on Peter's behalf.Peter later found out that Anne had told her friend about his bottom price,and about the plan for Anne to help buy the house.What claims,if any,does Peter have?

Implied authority cannot conflict with express authority or with stated limitations on express authority.

Why is it legally permissible for a plaintiff to hold an agent liable on a contract when the existence of the agency arrangement was not disclosed?

The term respondeat superior means "let the master answer."

Implied authority is the authority that the third party may reasonably assume the agent possesses.

Which of the following is not a duty that the principal owes to the agent in an agency relationship?

Principals cannot avoid liability for ________ activities that they assign to independent contractors.

Which of the following is not a type of agency?

A(n)________ power of attorney remains effective even though the principal is incapacitated.

The duty of loyalty is generally a duty of:

Agency by indemnification occurs when (1)a person misrepresents himself or herself as another's agent when in fact he or she is not and (2)the purported principal ratifies the unauthorized act.