Exam 33: A: Agency Liability and Termination

A principal can ratify an agent's unauthorized act in its entirety or merely in part.

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Treadwell Tire Manufacturing Company employs Suri as an agent.To terminate Suri's authority,Treadwell must notify

Harbor Bay Development hires Guthrie to act as its agent to buy a 100-acre waterfront tract of land from Frankie for $1,000 per acre.Harbor Bay does not want Frankie to know that it is the principal or that Guthrie is its agent.Harbor Bay wants the land for a new marina,and believes that Frankie may not sell the land for that purpose or may demand a premium price.Guthrie makes the purchase,signing only his name on the contract as the buyer and not disclosing to Frankie the agency relationship.Harbor Bay gives Guthrie the amount to pay for the land,but Guthrie absconds with the funds.Frankie soon learns of Harbor Bay's identity.Can Frankie enforce the contract against Harbor Bay? against Guthrie?

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

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

Fact Pattern 33-1B Eppie hires Franz to do some remodeling work in her office.Eppie does not have the right to control the details of Franz's performance. -Refer to Fact Pattern 33-1B.While working,Franz drops a tool on Gibby,Eppie's customer,causing an injury.Eppie is

When an agency relationship is terminated,the principal has a duty to personally notify third parties who knew of its existence.

Without authorization,Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later,Sari tries to rescind the part of the contract re?lat?ing to the exterior.This attempt will be

A principal whose identity is not known by a third party with whom an agent contracts on the principal's behalf is an apparent principal.

Kady,an agent for Lebron,enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds.Kady's authority to enter into this contract is not in writing.Under the equal dignity rule,this contract is

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

If an agent contracts outside the scope of his or her authority,the principal cannot become liable.

Oberon is a salesperson for Precision Instruments,Inc.He tells Quad,a customer,that a device has a certain ca?pability when,as Oberon knows,it does not.In reliance,Quad buys the device.Liable for this misrepresen?ta?tion is

On May 1,Craig retains Dora to act as his authorized agent.On June 1,Craig dies.On June 2,before Dora knows of Craig's death,she enters into a contract on Craig's be?half.The con?tract is

Brad is an employee of Custodial Service,Inc.In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi,a court will not con?sider whether

Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto

A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Marky holds a power of attorney for Nuncio.Marky is