Exam 14: Agency and the Employment Relationship

Adam enters into an oral agreement with Tushar that Tushar will sell Adam's house for him. A week later, the house burns down. Adam and Tushar's agency is now:

If an agent or employee commits an unauthorized tort outside the scope of employment:

A key element of an agency relationship is:

A general power of attorney is usually given to a universal agent.

Ratification is an affirmation by the principal of an unauthorized agreement by a person acting as an agent with a third party.

Principals are presumed to have a duty to cooperate with their agents.

Ratification of an agreement that is required by law to be in writing:

Lyle is Thelma's agent. Thelma has made it clear to Lyle that she does not want him to sign the contracts that he negotiates; she retains that power. If, despite Thelma's instructions, Lyle negotiates and signs a contract with Tom committing Thelma to spend thousands of dollars, what will the consequences of Lyle's actions be?

An undisclosed principle is:

An agency that is for the sale of land usually must be evidenced by a written contract.

The principal may hold the third party to a contract, in an undisclosed principal situation, except when the:

____ is a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking.

In Yim v. J's Fashion Accessories, Inc., where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise, Inc which also did business under the name Ho Tae, the courts held that:

Which of the following is part of the principal's duty to cooperate:

A real estate agent who sells a house on commission is an agent, not an employee of the home owner.

Power of attorney is given to an agent called an attorney-in-fact.

In Bearden v. Wardley Corp., where Gritton's real estate agent cheated her in a deal, the court held that Wardley, Gritton's employer, violated its ____ to Bearden:

An agent has a ____ the funds and property of his principal that have been entrusted to him or have come into his possession.

Under the common law doctrine of ____, employers are free to discharge employees for any reason at any time, and employees are free to quit their jobs for any reason at any time.

In Bearden v. Wardley Corp., where real estate agent Gritton cheated Bearden on a house deal, the court held that his employer, Wardley, was not liable because it had no way to know of his actions.