Exam 17: Agency Relationships in Business

Emery is a corporate officer of Frakking Mining Corporation. With respect to binding Frakking Mining to contracts, Emery is

Refer to Fact Pattern 17-1. With respect to third parties, Nadya is Purified's

A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties.

Yoshi contracts with Zach to buy a certain pub, Aficionado's, for Yoshi, who asks Zach not to reveal her identity. Zach makes a deal with Burcet, the owner of the pub, and makes a down payment. Yoshi fails to pay the rest of the price, and does not pay Zach for his services. Does Zach have any recourse against Yoshi? If so, on what basis and to what extent?

An agent's deviation from the lawful, clearly stated instructions of the principal is a violation of the duty of obedience.

An agency coupled with an interest is a relationship created for the benefit of the principal.

Implied authority is authority declared in clear, direct, definite terms.

Refer to Fact Pattern 17-2. In most states, liability to Désean for nonperformance of the contract may be imposed on

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between

Mountain States Distribution Inc. hires Norris to work on Mountain States's shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to Mountain States, Norris is most likely

If an agent has no authority but nevertheless contracts with a third party, the principal can be held liable on the contract even if the principal does not ratify the contract.

A person must have contractual capacity to enter into an agency contract as a principal.

If a principal is disclosed, the agent may be liable to a third party for the principal's nonperformance of a contract.

Watercraft, Inc., employs Vladimir as a sales agent for a trial period. At the end of the period, Watercraft and Vladimir disagree on the amount of the commissions Vladimir is due for sales that he made. Watercraft, Inc. may demand

Ronda holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of

An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

Reynaldo is a delivery driver for Southeast Asian Noodle Company. Reynaldo follows detailed instructions of the company in carrying out his work. Reynaldo is

Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is