Business Law: Ratification and Implied Authority

<p>Opening a bank account for the firm. (B)</p> Signup and view all the answers

<p>It makes the act legally equivalent to having been authorized from the beginning. (D)</p> Signup and view all the answers

<p>When the contract was made explicitly on behalf of the principal. (C)</p> Signup and view all the answers

<p>Section 22 specifies the conditions under which a partner's actions will bind the firm. (C)</p> Signup and view all the answers

<p>Selling a piece of real estate owned by the firm. (A)</p> Signup and view all the answers

<p>They must be identifiable through specific property or similar means. (A)</p> Signup and view all the answers

<p>No, as ratification requires an existing person on whose behalf the act could have been made at the time. (A)</p> Signup and view all the answers

<p>Partners are presumed to have the authority to act on behalf of the firm within normal business operations. (C)</p> Signup and view all the answers

<p>The ratification is void, as it was done after the time limit expired. (D)</p> Signup and view all the answers

<p>Implied authority is derived from the nature of the business while express authority is explicitly granted by the partners. (D)</p> Signup and view all the answers

<p>It establishes the legal framework for implied authority of partners within a firm. (A)</p> Signup and view all the answers

<p>A principal taking advantage of a contract made without their prior authority. (C)</p> Signup and view all the answers

<p>The partner's actions must be in the name of the firm or clearly indicate an intention to bind the firm. (D)</p> Signup and view all the answers

<p>The transaction must not involve any third party's rights or interests. (D)</p> Signup and view all the answers

<p>The vendee does not necessarily receive the benefits of the exchange, even if the principal validates the transaction. (C)</p> Signup and view all the answers

<p>The agent can only act within the specific scope of authority described in the instrument appointing them. (D)</p> Signup and view all the answers

<p>The principal must acknowledge or ratify the actions. (D)</p> Signup and view all the answers

<p>If the principal ratifies the action, even though it was unauthorized. (B)</p> Signup and view all the answers

<p>The principal must formally ratify the agent's actions by accepting the bid and the resulting transfer. (B)</p> Signup and view all the answers

<p>The bank must charge interest on the overdraft and accept repayment of the amount. (A)</p> Signup and view all the answers

<p>Section 196 (C)</p> Signup and view all the answers

<p>It is given by words spoken or written. (D)</p> Signup and view all the answers

<p>By negotiation (A)</p> Signup and view all the answers

<p>The authority to protect the principal from loss. (D)</p> Signup and view all the answers

<p>The impression of greater authority in the agent's actions. (A)</p> Signup and view all the answers

<p>Sell the goods at the current market rate. (A)</p> Signup and view all the answers

<p>The circumstances of the case. (D)</p> Signup and view all the answers

<p>In situations of emergency or necessity. (C)</p> Signup and view all the answers

<p>External pressure from third parties. (C)</p> Signup and view all the answers

<p>The principal may repudiate the transaction. (B)</p> Signup and view all the answers

<p>The principal can sue the third party and claim the secret profit for themselves. (B)</p> Signup and view all the answers

<p>An agreement where an agent agrees to pay a third party to influence the principal's decision. (C)</p> Signup and view all the answers

<p>Deductions for expenses incurred during the agency, plus remuneration and outstanding debts due to agent. (C)</p> Signup and view all the answers

<p>Payment is due upon the completion of the act, unless a special contract specifies otherwise. (B)</p> Signup and view all the answers

<p>The agent has the right to retain funds for expenses incurred, advances made, and remuneration agreed upon. (A)</p> Signup and view all the answers

<p>An agent may detain moneys even if all consigned goods have not been sold or the sale is not complete. (C)</p> Signup and view all the answers

<p>The employer is bound to indemnify the agent for the consequences of all lawful actions. (D)</p> Signup and view all the answers

<p>A person who allows themselves to be represented as a partner, regardless of their actual status, can be held liable for partnership debts. (B)</p> Signup and view all the answers

<p>Through both explicit statements and implicit actions that suggest partnership status. (A)</p> Signup and view all the answers

<p>It means that the person giving credit relied on the representation of partnership to their detriment. (A)</p> Signup and view all the answers

<p>Intent is irrelevant, as long as a reasonable person would believe the person was a partner based on their actions. (B)</p> Signup and view all the answers

<p>Ambiguous actions do not constitute a 'holding out' and cannot create liability. (D)</p> Signup and view all the answers

<p>A person represents themselves as a partner and extends credit to a third party based on that representation. (D)</p> Signup and view all the answers

<p>It implies that even if the representation was unintentional, liability can still arise. (A)</p> Signup and view all the answers

<p>A person's actions and representations can lead to liability, even if they are not a formal partner. (D)</p> Signup and view all the answers

Authority given explicitly through spoken or written words.

Authority inferred from circumstances or conduct rather than explicit words.

Agency created when both parties agree to the relationship voluntarily.

Agency that arises from legal obligations rather than consent.

An agent can act to protect the principal from loss in emergencies.

Agency created when a principal’s words or conduct mislead a third party about an agent's authority.

Legal provision allowing agents to protect principals' interests in emergencies.

Scenario where an agent acts under emergency conditions to minimize loss.

The act of approving actions taken by another person on one's behalf, even if those actions were unauthorized initially.

A person authorized to act on behalf of another (the principal) in business transactions.

Actions taken by an agent without the principal's knowledge or authority which may still be ratified later by the principal.

Situations where ratification is not allowed, such as when a third party's rights or interests are involved.

The right of a party to purchase before others in a transaction, which can be affected by ratification.

The act of placing a bid during an auction, which can be valid even without a proper power of attorney if the principal later accepts it.

A legal document that grants an agent authority to act on behalf of a principal.

An unauthorized loan granted by a bank manager that may be ratified by the principal through conduct or acceptance of interest.

Approval of an act done by an agent without authority, making it binding.

An act performed by an agent on behalf of a principal.

The person for whom an agent acts and whose interests they protect.

Clear and direct approval of an agent's act by the principal.

Approval of an agent's act inferred from the principal's actions or conduct.

The legal ability of a person to validate an act or contract.

The requirement that ratification must occur within a specific time frame.

An agent making a profit from transactions without the principal's knowledge is subject to repudiation by the principal.

A principal may ratify transactions made by an agent, provided there was no conflict of interest at the time.

Agreements placing an agent's interest in conflict with duty are unenforceable unless ratified by the principal.

An agent can keep sums received for their expenses and remuneration before paying the principal.

Agents must pay all sums received on behalf of the principal after deducting their dues.

An agent's payment is due upon the completion of the act, unless goods sold are accounted for.

Employers must indemnify agents for lawful acts performed under their authority.

Agents are protected from legal consequences of actions taken within their authority.

A legal principle preventing a person from denying facts they previously represented.

When someone represents themselves as a partner, influencing others to believe so.

A person can be held liable as a partner if they led others to believe so.

When credit is given based on someone's representation as a partner.

Representation can be direct (express) or suggested (implied) but must be clear.

Acts that are unclear do not count as valid representations.

Broad claims are insufficient unless specifically acted upon by a creditor.

Lack of knowledge does not free a person from liability if they mislead others.

Authority of a partner to bind the firm in usual business activities.

For a partner's act to bind the firm, it must be usual, for the business, and in the firm's name.

A partner cannot submit disputes to arbitration or compromise claims without consent.

Acts commonly performed in the type of business the firm operates.

Outlines how acts must be conducted to bind the firm, specific to context.

The firm is bound by a partner's acts done in usual conduct and firm name.

Implied authority does not mean all acts are valid; many restrictions exist.

Acts must relate to the specific type of business the firm conducts.