Agency & Partnership Professor Donald J. Kochan. Class 12. Today’s Materials. Pages 271-320 AUTHORITY and Contractual Powers of Agents: Express Authority Implied Authority Apparent Authority Estoppel Inherent Agency Power. Review of Preliminaries.
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Legal Effectiveness or Enforcement?Why Not?
“Unless otherwise agreed [or disallowed] authority to conduct a transaction includes authority to do acts which are incidental to it, usually accompany it, or are reasonably necessary to accomplish it.”
”The information received by the third person may come directly from the principal by letter or word of mouth, from authorized statements of the agent, from documents or other indicia of authority given by the principal to the agent, or from third persons who have heard of the agent's authority through authorized or permitted channels of communication. Likewise, as in the case of [actual] authority, apparent authority can be created by appointing a person to a position, such as that of manager or treasurer, which carries with it generally recognized duties; to those who know of the appointment there is apparent authority to do the things ordinarily entrusted to one occupying such a position, regardless of unknown limitations which are imposed upon the particular agent.”
When can a principal rescind on a promise made by an agent?
Section 2.05 Estoppel to Deny Existence of An Agency Relationship
“A person who has not made a manifestation that an actor has authority as an agent and who is not otherwise liable as a party to a transaction purportedly done by the actor on that person’s account is subject to liability to a third party who justifiably is induced to make a detrimental change in position because the transaction is believed to be on the person’s account, if: (1) the person intentionally or carelessly cause such belief, or (2) having notice of such belief and that it might induce others to change their positions, the person did not take reasonable steps to notify them of the facts.”