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Question 3 to 5- Express/Implied/Apparent Authority/Ratification Flashcards Express AuthorityGranted expressly through oral or written communication Apparent AuthorityCircumstances have created a reasonable 3rd-party reliance on the appearance of authority, and the principal has failed to take proper steps to show that there is no authority. Usually happens when an agency is terminated but clients are not notified.Implied Authorityis going to be implied by the position. Not going to ask a question about implied authority unless it is about a manager of a business. If you are a business manager NOT owner, you have implied authority bc of your position to do anything it takes to run the business; hire fire employees, advertise, inventory, etc.Express Authorityis granted expressly Dwight's agency agreement with Michael is an oral agreement with no written record. What kind of agency was created?Express Agency Annie Agent signs a real estate agreement with Peter Principal, the terms of which grant Annie the authority to represent Peter to potential home buyers. Annie Agent holds an open house where a potential buyer slips on hors oeuvres that had fallen on the floor. The injured buyer sues Peter Principal, claiming that he is responsible for Annie Agent's negligence. Peter Principal claims that he is not responsible for Annie's actions at the open house because his contract with Annie does not state that she has authority to host open house and serve refreshments. If the plaintiff claims that Annie did have authority, under which principle would be most likely claim she acted?Implied Authority Implied AuthorityImplied based on the position the person holds. For example, managers of companies may perform most duties necessary for running the business, but may not sell business real estate or the business itself.An agent works with principal for years to help with banking transactions. The principal fires the agent and the agent withdraw money the next week for her own purpose. If the principal sues the bank to get his money back, the bank's best defense is that the agent had?Apparent Authority
Ratification:there never was an authority at all, authority never exists.
This would be a situation when someone says I'm so and so's agent and there is no preexisting third party
relationship there, but the third party says oh okay you are their agent well let's go into this deal, let's make a contract.When there was never authority but the principle says I'm going to ratify this and approve this, because I like it Annie Agent is friend of Peter Principal with a signed agency agreement to sell his real estate. Annie Agent holds
an open house while Peter is away on vacation, hoping to surprise her friend with an offer on his home when he returns from his trip. Under which principle would Annie have the authority to have an open house? Implied Implied Authority
Apparent Authorityreasonably a third party would think that you have apparent authority. Not going to do apparent authority on the test unless its preexisting relationship with a third party, the relations was terminated, the agency was terminated and the principal never notified the third party.Todd had a written agreement with Michael which was terminated by Michael in writing. Michael's secretary, Pam, was flirting with another salesperson and never forwarded Michael's termination letter to Todd's clients after the termination. A court would likely find that Todd sold the paper to his client under what kind of agency?Apparent Agency Annie Agent is a friend of Peter Principal. Annie Agent holds an open house while Peter is away on vacation, hoping to surprise her friend with an offer on his home when he returns from his trip. A potential buyer submits an offer through Annie, which Peter accepts. Under which principle did Annie facilitate the transaction?Ratification RatificationNo authority ever existed, but the principal acquiesces and ratifies the transaction the so-called agent made on their behalf
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