Liability to Third Parties and Termination - Chapter 32
Terms
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- Power of Attorney
- Confers express authority upon the agent. Written document, that is notarized. Special or General. Terminates on incapacity/death.
- AA through Pattern of Conduct
- Principal's actions over time lead third party to believe that an agency relationship exists, agency by estoppel (principal estopped from denying the agent had authority).
- Emergency Powers
- Unforeseen emergency demands action by the agent to protect or preserve the property and rights of the principal, agent is unable to communicate with the principle, agent has emergency power.
- Requirements for Ratification
- Identified principal who ratifies. Act affirmed in its entirety. Affirmance before withdrawal. Principal has capacity at time of K formation and affirmance. Principal knows all material facts.
- Apparent Authority
- Principal, by word or deed, causes a third party reasonably to believe that the agent has authority to act, without express or implied authority.
- AA through Possession of Property
- Apparent authority based on possession/ownership of property. Principal cannot cancel sale or agreement. Principal has 'clothed the agent' with possession and ownership.
- Implied Authority
- Conferred by custom, inferred, or implied as reasonably necessary to carry out express authority.
- Express Authority
- Occurs when the principal affirms an unauthorized act by agent. Express or Implied. If not ratified than unaccepted offer.
- Ratification
- Occurs when the principal affirms an unauthorized act by agent. Express or Implied. If not ratified than unaccepted offer.
- Express Authority
- embodied in which the principal has engaged the agent to do. (orally or in writing).
- Equal Dignity Rule
- If contract is or must be in writing, agents authority must also be in writing. Failure to do so makes contract voidable at the option of the principal.