Agency

Question 1

A principal subsequently ratifies the K signed and entered into by someone claiming to be his lawful agent when:

Answer 1

1. Principal KNOWS MAT’L TERMS of the K or is AWARE OF HIS LACK OF KNOWLEDGE of the specific terms.
2. Principal takes NO ACTION to REPUDIATE OR DISPUTE the K. (Silence may be RATIFICATION where a person would be expected to speak)

Question 2

When does an agent act with APPARENT authority?

Answer 2

When a 3rd party RSN’Y BELIEVES, based on MANIFESTATIONS OF THE PRINCIPAL, that the agent is authorized.

Question 3

When an employer is found liable for EE under RESPONDEAT SUPERIOR, can he then recover in a lawsuit against the EE?

Answer 3

Yes, he has INDEMNIFICATION claim.

Question 4

In order to bind a principal in K, what must the agent act with?

Answer 4

1. Either ACTUAL or APPARENT authority, or

2. Principal subsequently RATIFIES the K.

Question 5

Elements/characteristics of ACTUAL AUTHORITY?

Answer 5

Can be either EXPRESS or IMPLIED.

Based on Pr’s communications w/ the agent and AGENT’S RSN BELIEF that he is authorized.

Question 6

Elements/characteristics of APPARENT authority

Answer 6

Where 3rd party RSN’Y believes, based on MANIFESTATIONS OF PR, that Ag is authorized.

Arises out of Pr holding out the Ag as AUTHORIZED.

Question 7

Req’ts for RATIFICATION

Answer 7

Pr must know the MAT’L TERMS of K, or be aware of his lack of knowledge.

SILENCE may constitute ratification where a person would be expected to speak.

Question 8

What are the factors when determining when person is EE or Ind/K’or?

Answer 8

1. Selection & Engagement
2. Payment of Compensation
3. Power of Dismissal
4. Power to control the work of the Ind’l

Question 9

What are the 2 most important factors in determining whether someone is an EE or I/K’or?

Answer 9

Whether ER controlled MANNER and MEANS by which job is performed.