CONTRACT LAW REVIEW NOTES
AGENCY
1. Agency is a legal relationship where one party (principal) allows
another party (agent) to act on their behalf in business transactions.
2. Types of agencies include:
a. Actual Agency: Agent has express or implied authority to act on
behalf of the principal.
b. Apparent Agency: Principal leads third parties to believe an
individual is acting as their agent, when in fact they are not.
c. Ratification: Principal approves actions of an agent who did not
have prior authorization.
d. Agency by Necessity: Agency formed in emergent situations
where principal cannot act.
Formation of Agency Relationship
1. An agency relationship can be created through:
a. Express agreement between principal and agent.
b. Implied agreement based on actions and conduct of parties.
c. Estoppel, where third parties rely on agent representing
themselves as authorized.
d. Operation of law in certain circumstances.
AGENCY
1. Agency is a legal relationship where one party (principal) allows
another party (agent) to act on their behalf in business transactions.
2. Types of agencies include:
a. Actual Agency: Agent has express or implied authority to act on
behalf of the principal.
b. Apparent Agency: Principal leads third parties to believe an
individual is acting as their agent, when in fact they are not.
c. Ratification: Principal approves actions of an agent who did not
have prior authorization.
d. Agency by Necessity: Agency formed in emergent situations
where principal cannot act.
Formation of Agency Relationship
1. An agency relationship can be created through:
a. Express agreement between principal and agent.
b. Implied agreement based on actions and conduct of parties.
c. Estoppel, where third parties rely on agent representing
themselves as authorized.
d. Operation of law in certain circumstances.
