Exam 26: Agency Liability to Third Parties and Termination

Clark hires Dimitri to act as his agent to purchase Expo Sports Arena,Inc.Clark tells Dimitri to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is.Clark is

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

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

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort.The agency will terminate

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

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 delivery,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 pedestrian.Is Rush's liable to Tanya for her injuries Is Sigfried liable to Tanya Why or why not

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo.Evelyn does not ratify the contract.The deal with Farouk is

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

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet.Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party,without telling Ngoc's seller who that third party is.Linus 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.

Under the doctrine of respondeat superior,a principal may be liable for any harm that his or her agent causes to a third party.

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

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.

An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation.

Lena is a salesperson for Musical Instruments,Inc.She tells Nayda,a customer,that an instrument has a certain quality when,as Lena knows,it does not.In reliance,Nayda buys the instrument.Liable for this misrepresentation is

A principal cannot be estopped from denying that an agent has authority.

When the parties terminate an agency,it is the principal's duty to notify any third parties who know of the existence of the agency that it has been terminated.

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.

An undisclosed principal is not liable to a third party for a contract made by an agent.

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 behalf.The contract is