Exam 33: Agency Liability and Termination

Lakeside Resort hires Micheline to act as its agent to buy a 1,000-acre waterfront tract of land from Nabil for $1,000 per acre. Lakeside does not want Nabil to know that it is the principal or that Micheline is its agent. Lakeside wants the land for a new marina, and believes that Nabil may not sell the land for that purpose or may demand a premium price. Micheline makes the purchase, signing only her name on the contract as the buyer and not disclosing to Nabil the agency relationship. Lakeside gives Micheline the amount to pay for the land, but she absconds with the funds. Nabil soon learns of Lakeside's identity. Can Nabil enforce the contract against Lakeside? Against Micheline?

A principal is always directly responsible for an agent's misrepresentation made within the scope of the agent's authority.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Rush's Pasta & Pizza employs Sigfried as a delivery driver. Rush's guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a de?livery, Sigfried is caught in a traffic jam. To deliver the order within the thirty-minute time limit, Sigfried drives onto a sidewalk and hits Tanya, a pedes?trian. Is Rush's li?able to Tanya for her injuries? Is Sigfried liable to Tanya? Why or why not?

A principal or employer normally is not liable for an agent's crime even if the crime was committed within the scope of authority or employment.

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

Nuncio serves in a representative capacity for Obadiah. With respect to binding Obadiah to contracts, Nuncio's authority

Trucking Dispatch Company and Ucello put their agency agreement into a written document that describes the rights and duties of both parties. Ucello, as the agent, has

An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's be?half. The con?tract is

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

A principal whose identity is totally known by a third party with whom an agent contracts on the principal's behalf is an undisclosed principal.

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm

Fact Pattern 33-1B (Questions B14-B15 apply) Barney hires Clean Air, Inc., to install a new air conditioning system in his Dental Clinic, LLP. Barney does not have the right to control the details of Clean Air's performance. -Refer to Fact Pattern 33-1B. While working, Elton, a Clean Air worker, drops a tool on Francine, Barney's patient, causing an injury. Barney is

An agent's authority to act on behalf of a principal must be apparent to be real.

If either the principal or the agent petitions for bankruptcy, the agency is not usually terminated.

The equal dignity rule requires that if a contract entered into by an agent is in writing, the principal, must honor it.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred