Blaw 2301 exam 3 ch: 28-31 & 41 With 100% Verified
Solutions
1. principal in an agency relationship, the person for whom an agent is acting
2. agent in an agency relationship, the person who is acting on behalf of a principal
3. equal dignities if an agent is empowered to enter into a contract that must be in writing, then the
rule appointment of the agent must also be written
4. gratuitous agent someone not paid for gratuitous duties
5. duty of care an agent has a duty to act with reasonable care
6. control principals are liable for an agents acts because they exercise control over that
person
7. fiduciary rela- a trustee acts for the benefit of the beneficiary, always putting the interests of the
tionship beneficiary before his own
8. elements that -written agreement (oral understanding is valid)
are NOT required -formal agreement (principal and agent do not need to agree formally that they
for an agency re- have a relationship)
lationship -compensation (an agnecy relationship need not meet all the standards of con-
tract law)
9. duty of loyalty an agent has a fiduciary duty to act loyally for the principal's benefit in all matters
connected with the agency relationship
10. outside benefits an agent may not recieve profits unless the principal knows and approves
11. competition with agents are not allowed to compete with their principal in any matter within the
the principal scope of the agency business
12. duty to indemni- a principal must indemnify an agent for any expenses they have reaasonably
fy incurred
13. principals have a duty to cooperate with their agent
, Blaw 2301 exam 3 ch: 28-31 & 41 With 100% Verified
Solutions
duty to cooper-
ate
14. 2 possibilities to term agreement (specific time)
terminate a prin- agency at will (no specified time)
cipal-agent rela-
tionship
15. wrongful termi- a parties departure from the agency violates the agreement and causes harm to
nation the other party
16. principals liability the principal is liable for the acts and statements of his agent if the agent had
for contracts authority, or the principal ratified the acts of the agent
17. authority a principal is bound by the acts of an agent if the agent had authority
18. express authority the principal grants express authority by words or conduct that, reasonably in-
terpreted, cause the agent to believe the principal desires her to acts on the
principals account
19. implied authority unless otherwise agreed, authority to conduct a transaction includes authority to
do acts that are reasonably necessary to accomplish it
20. apparent author- a principal can be liable for the acts of an agent who is not, in fact, acting with
ity authority if the principals conduct causes a third party reasonably to believe that
the agent is authorized
21. ratification if a person accepts the benefit of an unauthorized transaction or fails to repudiate
it, then he is as bound by the act as if he had riginally authorized it
22. requirements for -the agent indicates to the third party that she is acting for a principal
a principal to be -the principal knows all the material facts of the transaction
bound -the principal accepts the benefits of the whole transaction, not just part
-the third party does not withdraw from the contract before ratification
Solutions
1. principal in an agency relationship, the person for whom an agent is acting
2. agent in an agency relationship, the person who is acting on behalf of a principal
3. equal dignities if an agent is empowered to enter into a contract that must be in writing, then the
rule appointment of the agent must also be written
4. gratuitous agent someone not paid for gratuitous duties
5. duty of care an agent has a duty to act with reasonable care
6. control principals are liable for an agents acts because they exercise control over that
person
7. fiduciary rela- a trustee acts for the benefit of the beneficiary, always putting the interests of the
tionship beneficiary before his own
8. elements that -written agreement (oral understanding is valid)
are NOT required -formal agreement (principal and agent do not need to agree formally that they
for an agency re- have a relationship)
lationship -compensation (an agnecy relationship need not meet all the standards of con-
tract law)
9. duty of loyalty an agent has a fiduciary duty to act loyally for the principal's benefit in all matters
connected with the agency relationship
10. outside benefits an agent may not recieve profits unless the principal knows and approves
11. competition with agents are not allowed to compete with their principal in any matter within the
the principal scope of the agency business
12. duty to indemni- a principal must indemnify an agent for any expenses they have reaasonably
fy incurred
13. principals have a duty to cooperate with their agent
, Blaw 2301 exam 3 ch: 28-31 & 41 With 100% Verified
Solutions
duty to cooper-
ate
14. 2 possibilities to term agreement (specific time)
terminate a prin- agency at will (no specified time)
cipal-agent rela-
tionship
15. wrongful termi- a parties departure from the agency violates the agreement and causes harm to
nation the other party
16. principals liability the principal is liable for the acts and statements of his agent if the agent had
for contracts authority, or the principal ratified the acts of the agent
17. authority a principal is bound by the acts of an agent if the agent had authority
18. express authority the principal grants express authority by words or conduct that, reasonably in-
terpreted, cause the agent to believe the principal desires her to acts on the
principals account
19. implied authority unless otherwise agreed, authority to conduct a transaction includes authority to
do acts that are reasonably necessary to accomplish it
20. apparent author- a principal can be liable for the acts of an agent who is not, in fact, acting with
ity authority if the principals conduct causes a third party reasonably to believe that
the agent is authorized
21. ratification if a person accepts the benefit of an unauthorized transaction or fails to repudiate
it, then he is as bound by the act as if he had riginally authorized it
22. requirements for -the agent indicates to the third party that she is acting for a principal
a principal to be -the principal knows all the material facts of the transaction
bound -the principal accepts the benefits of the whole transaction, not just part
-the third party does not withdraw from the contract before ratification
