Exam 29: Agency Formation and Termination

An agent given a power of attorney is known as an attorney-in-fact.

Canton has listed his house for sale but cannot be present for the sale because he needs to go out of town. He intends to give his brother Stratham the power of attorney to make decisions regarding the selling of his house while he is gone. What kind of power of attorney should Canton execute?

Minors can appoint an agent without court approval.

Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from them. He is not allowed to seal a deal without Marcus' consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the repairs. What is the nature of the agency that Dean used to fix the problem in the house?

Agency law is a mixture of tort law and contract law.

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

What is an agent's duty to account?

A principal can authorize an independent contractor to enter into contracts.

An agency that occurs when a principal and an agent do not expressly create an agency but is inferred from the conduct of the parties is known as a(n) ________.

Which of the following is true of a direct notice of termination?

A(n) ________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer and finalize a deal above a stipulated price. Wilhelm contracts Chris, a real estate broker, and instructs him to only find a potential buyer and send them over to Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house. ReNowait completes its work and Martin pays them. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. Who performs the role of the agent in this land sale transaction?

Which of the following qualifies as the termination of an agency by impossibility of performance?

Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been looking for in an antique store. Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract, "Frank Hannigan, agent for Scott Kristoff." But because Frank is not Scott's agent, Scott is not bound by the contract. If Scott decides to accept the contract, what kind of agency would be created?

A principal owes a duty to indemnify an agent for any losses the agent suffers because of the principal's conduct.

Wrongful termination refers to the termination of an agency contract in violation of the terms of the agency contract.

The insanity of either a principal or an agent cannot terminate an agency.

A principal who signs a contract with a third party is obligated to perform that contract.

A party who employs another person to act on his or her behalf is known as a(n) ________.

Which of the following is true of a principal-independent contractor relationship?