Exam 36: Agency

Initially, ratification is a question of: ______.

A(n) ______ is bound by a contract to produce a certain result, with performance of the work controlled by the ______.

An agent's implied authority to perform any act reasonably necessary to execute express authority is called __________ authority.

Notification to a principal may be implied when the principal does not object to a contract and accepts its benefits.

An agent is under a duty to obey: ______.

When a principal dies, the agency is not terminated until the agent is notified of the principal's death.

A principal may ratify an action taken by an agent that the principal would not have been capable of authorizing at the time that the action was taken.

John's son was not his agent but contracted to purchase a computer in John's name. When John learned of this, John sternly rebuked his son but continued to use the computer for several weeks. After losing interest in the computer, John offered to return it, saying that the purchase was unauthorized. John:

For a principal to ratify the actions of an agent, all that is necessary is that the principal express the intention to ratify.

Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing. Morgan appoints Barnes as his manager for the duration of the development program. During the course of the construction, Barnes decides to use funds specified for the subdivision for an office space project that Barnes alone has been interested in completing. Morgan is very angry on learning of Barnes' actions and terminates the agency. Barnes insists that the agency cannot be terminated in this manner. Is Barnes correct?

When an unauthorized act is ratified, the effect is the same as though the act had been originally authorized.

A(n) _______ gives an agent an interest in the property with which she is dealing.

If a store owner places Joe as manager and gives him a special nametag, customers may assume that Joe has ______ for the owner in that respect.

An agent appointed by a power of attorney is referred to as an: ______.

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

A third person who deals with a person claiming to be an agent has the right to rely on the statements made by the agent concerning the extent of the agent's authority.

The "right to control" test determines whether an individual is an agent, an employee, or an independent contractor.

An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.

The most common method of creating an agency is by: ______.

An agent has incidental authority to perform any act reasonably necessary to execute the express authority given to the agent.