Term
| Agents sometimes have liability to third parties for their actions taken for and on behalf of the principal. An agent will not be personally liable in which circumstances? |
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Definition
| If he makes a contract which he had no authority to make but which the principal ratifies. |
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Term
| Ratification occurs when there is a subsequent approval by the principal of an agent's unauthorized action. In order for ratification to take place, the principal |
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Definition
| must have knowledge of all material facts regarding the contract. |
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Term
| What are the types of authority of an agent that a third party can expect to encounter? |
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Definition
| Ostensible, Express, Implied |
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Term
Which of the following principals may normally ratify an unauthorized contract made by an agent?
I. Fully disclosed principal
II. Partially disclosed principal
III. Undisclosed principal
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Definition
| Fully disclosed principal and partially disclosed principal |
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Term
Under the agent's duty to account, which of the following acts must a gratuitous agent perform?
Commingle funds or Account for the principal's property. |
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Definition
| Account for the principal's property |
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