Exam 36: Agency

For ratification to occur, the agent must have purported to act on behalf of, or as agent for, the identified principal.

The scope of an agent's authority may be determined from all of the following except: ______.

A party working for and under the control of another and authorized to enter into contracts for that other person or entity is called an: ______.

An agency coupled with an interest is not terminated by the death of the principal.

An agent is distinguished from an ordinary employee in that employees are always hired to represent the employer in dealings with third persons.

The third person who desires to bind the principal because of the act of an alleged agent has the burden of proving that the latter person was in fact the authorized agent of the principal and possessed the authority to do the act in question.

A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.

The term apparent authority is used when an appearance of authority has been created by a principal, but actual authority does not exist.

In performing agency duties, the agent must exercise the care that a reasonably prudent person would exercise under the same circumstances.

Placing property in the possession of another gives that person apparent authority to sell the property.

A special agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

If the principal terminates the agency: ______.