LAW 3220 CLEMSON EXAM 4 ASSESSMENT
PACK 2026 SOLUTIONS VERIFIED APLUS
◉ Case: Bearden v. Wardley Corp.
Answer: Real Estate Agent ended up buying a property that was one
of his listings. He unrightfully transferred the deed and ended up
defaulting on payments. Real Estate Company had to pay charges
because they had fiduciary duties to seller.
◉ Case: Cove Management v. Aflac.
Answer: Galgano signed a lease under Aflac's associated agreement
but then defaulted on payments. Cove tried to sue Aflac but Galgano
actually did not have authority to rent any office space so Aflac was
not liable. Cove Management did not do any research to see if
Galgano actually had the apparent authority to sign.
◉ Actual Authority.
Answer: Principal sends signals to the agent to do something with a
third party.
◉ Express Authority.
Answer: Oral or written instructions create the authority
, ◉ Implied Authority.
Answer: Principal's conduct or trade customs create authority
◉ Apparent Authority.
Answer: Principal sends signals to the third party that what the
agent does binds the principal. There is appearance of authority that
a third party could reasonably conclude
◉ Principal's Duties to Agent.
Answer: Cooperation, compensation, reimbursement, working
conditions, and indemnify (payback)
◉ Agent's Duties to Principal.
Answer: Loyalty, obedience and performance, reasonable care and
skill, account, notify/ inform
◉ Termination of an agency.
Answer: Either party may terminate (unilateral termination).
Specific date set for agency to end. Purpose of agency is fulfilled.
Notice of termination must be made to 3rd parties to end an agent's
apparent authority
◉ At Will Employment.
Answer: Employers: can hire and fire who they want
PACK 2026 SOLUTIONS VERIFIED APLUS
◉ Case: Bearden v. Wardley Corp.
Answer: Real Estate Agent ended up buying a property that was one
of his listings. He unrightfully transferred the deed and ended up
defaulting on payments. Real Estate Company had to pay charges
because they had fiduciary duties to seller.
◉ Case: Cove Management v. Aflac.
Answer: Galgano signed a lease under Aflac's associated agreement
but then defaulted on payments. Cove tried to sue Aflac but Galgano
actually did not have authority to rent any office space so Aflac was
not liable. Cove Management did not do any research to see if
Galgano actually had the apparent authority to sign.
◉ Actual Authority.
Answer: Principal sends signals to the agent to do something with a
third party.
◉ Express Authority.
Answer: Oral or written instructions create the authority
, ◉ Implied Authority.
Answer: Principal's conduct or trade customs create authority
◉ Apparent Authority.
Answer: Principal sends signals to the third party that what the
agent does binds the principal. There is appearance of authority that
a third party could reasonably conclude
◉ Principal's Duties to Agent.
Answer: Cooperation, compensation, reimbursement, working
conditions, and indemnify (payback)
◉ Agent's Duties to Principal.
Answer: Loyalty, obedience and performance, reasonable care and
skill, account, notify/ inform
◉ Termination of an agency.
Answer: Either party may terminate (unilateral termination).
Specific date set for agency to end. Purpose of agency is fulfilled.
Notice of termination must be made to 3rd parties to end an agent's
apparent authority
◉ At Will Employment.
Answer: Employers: can hire and fire who they want
