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Questions and Answers
In the scenario, what legal principle would prevent Ben from denying an agency relationship with Jennifer after allowing her to show his house to potential buyers?
In the scenario, what legal principle would prevent Ben from denying an agency relationship with Jennifer after allowing her to show his house to potential buyers?
- Vicarious liability
- Ostensible agency (correct)
- Respondeat superior
- Agency by ratification
Which of the following best describes the concept of ostensible agency?
Which of the following best describes the concept of ostensible agency?
- An agency relationship established after the fact through confirmation.
- An agency relationship that arises when a principal misleads a third party into believing an agency exists. (correct)
- An agency relationship created through formal written agreement.
- An agency relationship where the principal is liable for the actions of their agent, and vice versa.
If Ben had explicitly told Jennifer she could show his home to the prospective buyers before entering into a listing agreement and then tried to later deny the agency, which principle would be most relevant?
If Ben had explicitly told Jennifer she could show his home to the prospective buyers before entering into a listing agreement and then tried to later deny the agency, which principle would be most relevant?
- Respondeat superior
- Ostensible agency (correct)
- Agency by ratification
- Vicarious liability
What is the primary difference between ostensible agency and agency by ratification?
What is the primary difference between ostensible agency and agency by ratification?
Which of the following scenarios would best exemplify the legal concept of respondeat superior?
Which of the following scenarios would best exemplify the legal concept of respondeat superior?
Flashcards
Ostensible Agency
Ostensible Agency
A legal principle that prevents someone from denying an agency relationship if they led a third party to believe one existed, even if there was no formal agreement.
Agency by Ratification
Agency by Ratification
A legal principle where a principal approves of an agent's actions after the fact, creating an agency relationship.
Respondeat Superior
Respondeat Superior
A legal principle where an employer is held responsible for the actions of their employees, even if they didn't directly authorize them.
Vicarious Liability
Vicarious Liability
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Study Notes
Agency Relationship
- Ben, a homeowner, and Jennifer, a broker, meet at a party.
- Ben tells Jennifer he's thinking of selling his home.
- The next morning, Jennifer takes a married couple to Ben's home.
- Jennifer introduces them as potential buyers and asks to show them the house.
- No listing agreement exists between them.
- Ben doesn't object when Jennifer brings in the couple and allows them to view the house.
Ostensible Agency
- Ostensible agency (also called "agency by estoppel") prevents someone from denying an agency relationship if they mislead a third party into believing such a relationship existed.
- Ben's silence and allowing Jennifer to show the house to the couple creates a belief that Jennifer is his agent. This misleading action creates an ostensible agency, preventing Ben from denying a relationship existed at that time.
Incorrect Options Explained
- Agency by ratification: Ratification occurs after the agency action, not during it. This isn't the principle relevant to the situation described.
- Respondeat superior/Vicarious liability: These legal principles involve liability of the principal for agent's actions. They aren't directly related to preventing denial of an agency relationship in this specific case.
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