Podcast
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?
Which of the following best describes the concept of ostensible agency?
Which of the following best describes the concept of ostensible agency?
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?
What is the primary difference between ostensible agency and agency by ratification?
What is the primary difference between ostensible agency and agency by ratification?
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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?
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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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Description
Test your understanding of agency relationships and ostensible agency through real-life scenarios. This quiz covers key concepts and terms related to what creates agency and the implications of misleading actions. Ensure you grasp the differences between various types of agency.
