14 Questions
In agency relationships, who is an agent?
A person with authority to establish legal relationships on behalf of the principal
What is the legal nature of a Power of Attorney in the creation of agency?
It is a formal way of appointing an agent by deed
Which type of authority arises from occupation in the creation of agency?
Implied authority
What happens when an agent acts within their authority in agency relationships?
Agent is not liable to either the principal or the third party
What type of authority is implied by taking into account the overall circumstances of the situation?
Implied authority
Which legal concept involves a situation where an agent doesn't have actual authority but appears to have it due to the principal's conduct?
Apparent/Ostensible Authority
What makes a Power of Attorney a formal way of appointing an agent?
It is granted by deed
In which situation can apparent authority be effectively applied?
When there is a representation of authority and the third party relies on it to enter into a contract
What approach is used to dispel the application of apparent authority in different situations?
Placing public notices in newspapers advertising the termination of the agency
What condition must be met for ratification of an unauthorized contract to be valid?
The ratification must occur within a reasonable time
In the case of Freeman & Lockyer v Buckhurst Park Properties, who may have apparent authority based on the text?
The company officers and directors
What action does ratification involve according to the text?
Granting retrospective authority to the agent
What induces a third party to enter into a contract based on apparent authority?
The belief that the agent has authority based on a representation by the principal
What must the principal possess for ratification of an unauthorized contract?
Awareness of all material facts
Test your knowledge on the creation and legal nature of an agency, including topics such as agreement and consent, ostensible authority, apparent authority resulting in an estoppel, ratification, and the definition and nature of an agency relationship.
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