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MEE One Sheet Rules Questions and Correct
Answers/ Latest Update / Already Graded
Consent and Control
Ans: Must be present to find an agency relationship
Requirements for an agency relationship
Ans: (1) consent by both the principal and the agent that the agent will act for
the principal's benefit and (2) that the agent is subject to the principal's control.
Even if an agency relationship exists...
Ans: it can terminate.
How to terminate an agency relationship
Ans: Several ways, including the principal manifesting a desire to the agent to
discontinue the relationship.
Generally, partners in a general partnership have...
Ans: actual and apparent authority to bind the partnership in contracts entered
into in the ordinary course of business.
What is a principal bound to if an agent enters into a contract?
Ans: A principal is bound on a contract entered into by an agent if the agent had
authority to enter into the contract.
Actual authority: Two Kinds
Ans: Express and implied authority.
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Actual Authority: Express
Ans: When an agent is expressly given authority to act for the principal.
Actual Authority: Implied
Ans: This authority is present when the principal's conduct leads the agent to
believe it has authority.
How to determine if there is implied actual authority
Ans: It can be implied by custom, past course of conduct by the principal,
necessity, or an emergency circumstance.
Termination of implied actual authority
Ans: Terminates after a reasonable time or following a change in circumstances,
death, or incapacity of the principal, etc.
Apparent Authority
Ans: (1) the person dealing with the agent must do so with a reasonable belief
in the agent's authority and (2) the belief must be generated by some act or
neglect on the part of the principal.
Ratification: When does it occur?
Ans: Occurs in situations where even though the agent did not have authority
to enter into a transaction, the principal becomes liable by accepting it.
Ratification
Ans: If a principal ratifies the acts (and thus becomes liable) by expressly or
impliedly affirming or accepting the benefits of the act, so long as the principal
knew the material facts and had capacity.
© 2025/ 2026 | ® All rights reserved
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Agent Becoming Bound
Ans: The agent is bound to a third party on a contract he enters into with the
third party if the agent had no actual or apparent authority to enter into the
contract. The agent is also liable if the principal is undisclosed or if the principal is
"partially disclosed." The agent is bound to the principal for breach of contract if
the agent acts beyond his authority.
Principal: Vicarious Liability
Ans: A principal can be vicariously liable, or directly liable, for the torts
committed by his agent. The agent is always liable for his own torts.
Vicarious Liability of Employer: Respondeat Superior (Remember "SMI")
Ans: An employer is liable in tort for the acts of an agent or employee if the
agent or employee was acting in the scope of employment, made a minor
deviation (a detour) from employment (rather than a frolic), or committed an
intentional tort for the principal's benefit, because the principal authorized it, or
one that arose naturally due to the nature of employment.
Indemnification
Ans: The principal can recover against the agent for indemnification if the agent
acts beyond their authority.
Direct Liability of Principal
Ans: The principal is directly liable for his own negligence if he negligently hired
the agent, failed to fire the agent, or failed to properly supervise the agent.
Agent's Duties to the Principal
© 2025/ 2026 | ® All rights reserved
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Ans: The agent owes a duty of care and a duty of loyalty (not to engage in self-
dealing, not to profit without disclosure, and a duty to follow instructions). The
principal may recover losses from and profits made by the breaching agent.
Start of partnership essay
Ans: A partnership is the association of two or more persons to carry on as co-
owners, a business for profit . . . whether or not the persons intended to form
the partnership.
Partnership: Profit Sharing
Ans: Profit-sharing creates a presumption that a person is a partner unless the
profits were received in payment of a debt, rent to a landlord, wages, etc.
General Partnership
Ans: Can be formed without a writing or filing certificate. General partnership is
the default form; sometimes a general partnership is formed because a limited
partnership was improperly formed.
Partners in a Partnership
Ans: They are agents and co-managers of the partnership.
Partners: Co-Managing Ordinary Affairs
Ans: Partners have equal rights to co-manage with regard to ordinary affairs. A
majority vote wins if there is a disagreement.
Partners: Co-Managing Extraordinary Measures
Ans: Extraordinary matters require a unanimous vote (such as admitting a new
partner or selling land).
© 2025/ 2026 | ® All rights reserved
MEE One Sheet Rules Questions and Correct
Answers/ Latest Update / Already Graded
Consent and Control
Ans: Must be present to find an agency relationship
Requirements for an agency relationship
Ans: (1) consent by both the principal and the agent that the agent will act for
the principal's benefit and (2) that the agent is subject to the principal's control.
Even if an agency relationship exists...
Ans: it can terminate.
How to terminate an agency relationship
Ans: Several ways, including the principal manifesting a desire to the agent to
discontinue the relationship.
Generally, partners in a general partnership have...
Ans: actual and apparent authority to bind the partnership in contracts entered
into in the ordinary course of business.
What is a principal bound to if an agent enters into a contract?
Ans: A principal is bound on a contract entered into by an agent if the agent had
authority to enter into the contract.
Actual authority: Two Kinds
Ans: Express and implied authority.
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Actual Authority: Express
Ans: When an agent is expressly given authority to act for the principal.
Actual Authority: Implied
Ans: This authority is present when the principal's conduct leads the agent to
believe it has authority.
How to determine if there is implied actual authority
Ans: It can be implied by custom, past course of conduct by the principal,
necessity, or an emergency circumstance.
Termination of implied actual authority
Ans: Terminates after a reasonable time or following a change in circumstances,
death, or incapacity of the principal, etc.
Apparent Authority
Ans: (1) the person dealing with the agent must do so with a reasonable belief
in the agent's authority and (2) the belief must be generated by some act or
neglect on the part of the principal.
Ratification: When does it occur?
Ans: Occurs in situations where even though the agent did not have authority
to enter into a transaction, the principal becomes liable by accepting it.
Ratification
Ans: If a principal ratifies the acts (and thus becomes liable) by expressly or
impliedly affirming or accepting the benefits of the act, so long as the principal
knew the material facts and had capacity.
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Agent Becoming Bound
Ans: The agent is bound to a third party on a contract he enters into with the
third party if the agent had no actual or apparent authority to enter into the
contract. The agent is also liable if the principal is undisclosed or if the principal is
"partially disclosed." The agent is bound to the principal for breach of contract if
the agent acts beyond his authority.
Principal: Vicarious Liability
Ans: A principal can be vicariously liable, or directly liable, for the torts
committed by his agent. The agent is always liable for his own torts.
Vicarious Liability of Employer: Respondeat Superior (Remember "SMI")
Ans: An employer is liable in tort for the acts of an agent or employee if the
agent or employee was acting in the scope of employment, made a minor
deviation (a detour) from employment (rather than a frolic), or committed an
intentional tort for the principal's benefit, because the principal authorized it, or
one that arose naturally due to the nature of employment.
Indemnification
Ans: The principal can recover against the agent for indemnification if the agent
acts beyond their authority.
Direct Liability of Principal
Ans: The principal is directly liable for his own negligence if he negligently hired
the agent, failed to fire the agent, or failed to properly supervise the agent.
Agent's Duties to the Principal
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: The agent owes a duty of care and a duty of loyalty (not to engage in self-
dealing, not to profit without disclosure, and a duty to follow instructions). The
principal may recover losses from and profits made by the breaching agent.
Start of partnership essay
Ans: A partnership is the association of two or more persons to carry on as co-
owners, a business for profit . . . whether or not the persons intended to form
the partnership.
Partnership: Profit Sharing
Ans: Profit-sharing creates a presumption that a person is a partner unless the
profits were received in payment of a debt, rent to a landlord, wages, etc.
General Partnership
Ans: Can be formed without a writing or filing certificate. General partnership is
the default form; sometimes a general partnership is formed because a limited
partnership was improperly formed.
Partners in a Partnership
Ans: They are agents and co-managers of the partnership.
Partners: Co-Managing Ordinary Affairs
Ans: Partners have equal rights to co-manage with regard to ordinary affairs. A
majority vote wins if there is a disagreement.
Partners: Co-Managing Extraordinary Measures
Ans: Extraordinary matters require a unanimous vote (such as admitting a new
partner or selling land).
© 2025/ 2026 | ® All rights reserved
