Exam 32: Liability to Third Parties and Termination

Elin, an agent for First Credit Corporation (FC), enters into an unau?thorized contract with Great Expectations, Inc. (GE), purportedly on FC's behalf. This contract will be enforceable if it is ratified by

Pete's Pizza employs Quincy as a delivery driver. Pete'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, Quincy is caught in a traffic jam. To deliver the pizza within the thirty-minute time limit, Quincy drives onto a sidewalk and hits Ruth, a pedes?trian. Is Pete's li?able to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?

A principal's liability in a contract with a third party may arise from the authority given to the agent to enter into the contract.

Express authority is authority declared in clear, direct, definite terms.

Marky holds a power of attorney for Nuncio. Marky is

Neighborly Insurance Company and Ollie put their agency agreement into a written document that describes the rights and duties of both parties. Ollie, as the agent, has

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

BizOnline.com uses an electronic agent, or e-agent, to perform certain tasks in e-commerce. With respect to the e-agent's actions, BizOnline.com is bound by

A power of attorney can be given only to an actual attorney.

An agent's authority must be express for the agent's act to bind a principal.

Even after an agency relationship has terminated, there are circum?stances under which a principal may be bound by his or her agent's act.

A disclosed principal is not liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

Wrongful termination of an agency relationship can subject the cancel?ing party to a suit for damages.

A principal is not liable for an agent's fraud unless the agent has the apparent authority to commit torts.

Kady, an agent for Lebron, enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds. Kady's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is

Hu is an officer of International Corporation. With respect to binding International to contracts, Hu's authority

On May 1, Craig retains Dora to act as his authorized agent. On June 1, a court declares Craig mentally incompetent. On June 2, before Dora knows of the court's declaration, she enters into a contract on Craig's be?half. The con?tract is

When an agent enters into a contract on behalf of a principal, the princi?pal must ratify the contract to be bound to it.

Fact Pattern 32-1B Eppie hires Franz to do some remodeling work in her office. -Refer to Fact Pattern 32-1B. While working, Franz drops a tool on Gibby, Eppie's customer, causing an injury. Eppie is

An agency can terminate once its purpose is achieved.