Dispute over Apparent Authority and Termination of Agency

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What is the legal nature of an agency?

It is a fiduciary relationship. (correct)

It is a unilateral agreement.

It is a contractual relationship.

It is a partnership agreement.

In the context of agency, who is considered an agent?

A person who acts as a witness in legal transactions for the principal.

The person who holds the power of attorney for the principal.

A person who establishes legal relationships with third parties on behalf of the principal. (correct)

Any individual involved in the business dealings of the principal.

What happens if an agent acts within their authority in an agency relationship?

The agent is not liable to either the principal or the third party. (correct)

The agent is personally liable to both the principal and the third party.

Only the principal is bound by the resulting contract.

The agent's actions are considered void in legal terms.

How can actual authority be granted to an agent?

By express (written words) or implied (circumstances) methods. Signup and view all the answers

What is ostensible or apparent authority in an agency relationship?

When a principal's conduct leads third parties to believe the agent has authority. Signup and view all the answers

What is one of the duties of an agent towards the principal in maintaining a fiduciary relationship?

Providing full disclosure and avoiding conflicts of interest Signup and view all the answers

What is one of the remedies available to a principal when an agent makes a secret profit from a third party?

Rescinding the contract and refusing to pay the agent's commission Signup and view all the answers

Under what circumstances can an agent claim a commission for services rendered?

Only after performing all obligations fully Signup and view all the answers

In a relationship between an agent and a third party, when is the agent personally liable under the contract?

When acting within authority but committing a tort Signup and view all the answers

What is one of the exceptions to the general rule where an agent is not personally liable to a third party?

Agent acting within authority but breaching warranty of authority Signup and view all the answers

What is one of the approaches adopted to prevent third parties from arguing apparent authority?

Placing public notices in newspapers advertising the termination of the agency Signup and view all the answers

In the context of ratification, what does the principal have a choice to do when an agent exceeded their authority?

Reject or confirm the unauthorized contract Signup and view all the answers

What are the conditions for ratification to be valid according to the text?

The principal must be aware of all material facts and ratify within a reasonable time Signup and view all the answers

What must be proved for an agency of necessity to exist according to the text?

The agent must act honestly and reasonably in the interest of the principal Signup and view all the answers

What is an implied duty for agents in all agency relationships according to the text?

Duty to exercise reasonable care and skill Signup and view all the answers

What must be one of the conditions for apparent authority to be applied successfully?

The principal must have the capacity to enter into the contract Signup and view all the answers

In which case did a third party remain under the impression that the agent was still in an agency with his principal?

Summers V Solomon Signup and view all the answers

What happens when a principal has not made it clear to a third party that the agency has been terminated?

The third party may still think the agent has authority Signup and view all the answers

Who can make a representation about an agent's authority for it to be considered for apparent authority?

The principal or persons with actual authority Signup and view all the answers

Why might company officers and directors have apparent authority even when their principal disagrees?

Because their principal allows them to represent the company Signup and view all the answers