BL Ch.17 T/F – Flashcards
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If an agent has no authority but nevertheless contracts with a third party, the principal can be held liable on the contract
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False
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An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.
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True
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A principal's ratification of an agent's unauthorized act must be express.
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false
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An agent is authorized to act on behalf and instead of a principal in doing business with third parties.
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true
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Through agents, a principal can conduct only one business operation at a time.
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false
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The relationship between a principal and an independent contractor cannot involve an agency relationship.
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false
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If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.
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false
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An agency can terminate once its purpose is achieved.
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true
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A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties.
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true
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Employment laws apply only to the employer-employee relationship.
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true?
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A person must have contractual capacity to be an agent.
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false
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A principal does not have the right to control an agent's conduct in matters entrusted to the agent.
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true
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Vicarious liability is direct liability.
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false
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A power of attorney can permit an agent to transact all business for a principal.
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true
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Agency relationships normally are consensual.
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true
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If a principal does not ratify an unauthorized contract, the principal is not bound.
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true
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The agent has the right to be compensated, and to be reimbursed and indemnified.
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true
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An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on the principal's behalf.
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true
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A familiar example of an agent is the owner of a corporation.
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true
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An agency coupled with interest is a relationship created for the benefit of the principal.
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true
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Normally, employees who deal with third parties are not deemed to be agents.
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true
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An agent has the implied authority to do what is reasonably necessary to carry out express authority.
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true
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Independent contractors have no control over the details of their work performance.
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false
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For an agent's implied authority to be effective, a principal must confirm it in writing.
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false
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Implied authority is authority declared in clear, direct, definite terms.
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false
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If a principal is disclosed, the agent may be liable to a third party for the principal's nonperformance of a contract.
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false?
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An agency agreement can be created by an oral agreement.
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true
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Agency relationships only exist between employers and employees.
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false?
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An agent's deviation from the lawful, clearly stated instructions of the principal is a violation of the duty of obedience.
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true
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If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract
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true
