Exam 37: Agency

An agency may arise by appointment,conduct,ratification,or operation of law.

The burden of proving the existence of an agency relationship rests on the person who seeks to benefit by such proof.

John's son was not his agent but contracted to purchase a computer in the name of John.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:

An agent is authorized to make contracts for,and is under the control of,the principal.

For an agency to be terminated by operation of law because of the principal's death,the agent must be notified of the death.

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:

The Uniform Durable Power of Attorney Act (UDPAA)changes the general rule that insanity of a principal terminates an agent's authority to act for the principal.

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

If a principal terminates an agency without giving notice of the termination to third persons,the agent may retain the power to make contracts that will bind the principal and third persons.

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.

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 third person who deals with a person claiming to be an agent:

An agent has implied __________ authority to do any act that usually accompanies the transaction for which the agent is authorized to act.

By virtue of an agency,one person can make contracts at numerous places with many different parties at the same time.

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

A written authorization of agency is called a power of attorney.

Ames,an agent for Baker Antiques,had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece.Ames bought a 19th-century French desk for $3,000 from Carter.Baker was furious when she saw the desk,and she fired Ames.Nevertheless,she put the desk on display in the shop with a $5,000 price tag.When the best offer she got for the desk was $2,500,Baker returned the desk to Carter.Baker told Carter that Ames had exceeded his authority in purchasing the desk,and she demanded that Carter refund the $3,000 that Ames had paid for the desk.Will Carter have to do so?

Initially,ratification is a question of:

When a person 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,that person is a __________ agent.

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