Exam 33: Agency Liability and Termination

Trey, an agent for Uno Music Corporation, executes an unauthorized contract with Variety Recording, Inc., that is highly advantageous to Uno. Variety withdraws from the deal before Uno ratifies the contract. The contract is

Under the doctrine of respondeat superior, an agent is liable for any harm caused to a principal by a third party.

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

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

An agency relationship may be terminated by an act of the parties or by operation of law.

Homer is an officer of Integrity Corporation. With respect to binding Integrity to contracts, Homer's authority

Jaclyn, an agent for Kilpatrick, enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds. Under the equal dignity rule, Jaclyn's authority to enter into this contract

Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary. The next day, Dennis calls Brenda and tells her to buy only fifty notebook computers and nothing else. Brenda shows the written authority to E-Products, Inc., and enters into a contract with E-Products to buy sixty notebook computers and a selection of printers, scanners, and extra storage media. E-Products ships the order to Commodities. Is Commodities liable to E-Products under the contract Is Brenda liable In each case, if so, why If not, why not

Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

A principal who authorizes an agent to commit a tort is not liable to persons or property injured thereby.

A power of attorney confers express authority.

Apparent authority arises from what the principal makes clear to the agent.

Vicarious liability is direct liability.

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

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

Fact Pattern 33-1A Ulani indicates that she is acting as an agent on behalf of an unidentified client—Thoroughbred Stallions, LLC—when she enters into a contract with Shana. -Refer to Fact Pattern 33-1A. Thoroughbred Stallions is

Ratification occurs when a principal accepts responsibility for an agent's unauthorized act.

Meals n' More, Inc., a catering company, requires its customers to pay by check. Lyra, a Meals n' More driver, tells customers that they can pay her with cash. When Meals n' More learns of Lyra's collections, it takes no action to stop it. Lyra steals some of the cash. Meals n' More may suffer the loss under the doctrine of

A principal may be liable for the tort of an agent committed within the scope of the agency or employment.

Cory employs Daily Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is