Exam 29: Agency Formation and Termination

The principal is obliged to perform the contract made with a third-party.

A general power of attorney limits the agent to those acts enumerated by the agreement.

Helga owns a piece of real estate.She goes to Stranton Lace Bank to obtain a loan against the property.The bank makes the loan but requires Helga to sign a mortgage pledging the property as collateral for the loan.The mortgage agreement appoints the bank as Helga's agent.If Helga defaults on her payments, the agreement permits the bank to sell the property and recover the amount of the loan from the sale proceeds.What kind of agency exists between Helga and the bank?

Ronald, the purchasing manager of Tellys Supermarket in Georgia, was asked to buy an order of the latest videogame console, FunCase, to keep in the supermarket.However, due to a truckers' strike, he had to make a trip to the FunCase warehouse, which was in Florida.Ronald paid for the trip himself, went to the warehouse, procured the shipment, and returned.After he got back, Tellys Supermarket paid Ronald for the trip he made to Florida.What duty of the principal did Tellys Supermarket perform here when they paid Ronald for the trip to Florida?

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer, and finalize a deal above a stipulated price.Wilhelm contracts Chris, a real estate broker, and intends him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house.ReNowait completes their work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services. -Who performs the role of the agent in this land sale transaction?

Marcus employs a real estate broker, Dean, to sell his house.Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house.He is not allowed to seal a deal without Marcus' consent.Marcus goes away on a month-long trip where he cannot be contacted.During this time, a short circuit in the house causes a power outage.Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house.Marcus then comes back and pays Dean for the electricity repair.What is the nature of the agency that Dean used to fix the electricity problem in the house?

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as a(n)________.

Which of the following is true of an apparent agency?

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to start of the agency.

Which of the following qualifies as termination of an agency by impossibility of performance?

What is an implied agency?

What's an agent's duty to account?

An agent by ratification happens when a principal ratifies an authorized act.

An agency coupled with an interest is a special type of agency relationship that is created specifically to benefit the principal.

Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been looking for in an antique store.Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract, "Frank Hannigan, agent for Scott Kristoff." But because Frank is not Scott's agent, Scott is not bound by the contract.If Scott decides to accept the contract, what kind of agency would be created?

Which of the following is true about a durable power of attorney?

An orally agreed upon power of attorney is acceptable in court.

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

A principal is not bound to contracts made by an apparent agency.

What role does Chris perform?