BAR EXAM RULES & LEGAL PRINCIPLES |
COMPLETE STUDY GUIDE FOR MBE, MEE &
ESSAY SUCCESS QUESTION AND VERIFIED
SOLUTIONS (2026/2027) EDITION LATEST!!
What are the three requirements to create an agency relationship?
(1) Consent
(2) control
(3) acting on behalf of the principal.
What are the three methods of creating actual agency authority/relationship
(1) Agreement (writing not required)
(2) apparent authority
(3) ratification.
How can an agency relationship terminate by the parties?
By:
(1) desire (mutual or unilateral)
(2) expiration
(3) purpose fulfilled.
,How can an agency relationship terminate by operation of law?
By:
(1) death
(2) incapacity
(3) breach of fiduciary duty.
What are an agent's fiduciary duties to the principal?
(1) Loyalty (no adverse interest; must disclose)
(2) reasonable care
(3) obedience.
What are the principal's non-fiduciary duties to the agent?
(1) Reasonable compensation (unless gratuitous)
(2) reimbursement
(3) cooperation.
What is actual authority?
Acts the agent reasonably believes the principal wishes him to do, based on their
dealings.
What is the difference between expressed and implied actual authority?
, Expressed = granted via words (writing or oral)
implied = acts the agent reasonably believes he has authority to do based on the
principal's conduct (incidental acts reasonably necessary).
What are the elements of apparent authority?
(1) Principal holds out the agent as having authority to a third party
(2) the third party reasonably believes and relies on that.
What counts as 'holding out' for apparent authority?
An affirmative act
or a failure to act.
What are the elements of ratification authority?
(1) An unauthorized act taken for the principal
(2) the principal has knowledge of all material facts
(3) the principal affirms the conduct (expressly, or impliedly by accepting the
benefit without rejecting it).
If an agent had authority, who is liable to and can enforce a contract against the
third party?
COMPLETE STUDY GUIDE FOR MBE, MEE &
ESSAY SUCCESS QUESTION AND VERIFIED
SOLUTIONS (2026/2027) EDITION LATEST!!
What are the three requirements to create an agency relationship?
(1) Consent
(2) control
(3) acting on behalf of the principal.
What are the three methods of creating actual agency authority/relationship
(1) Agreement (writing not required)
(2) apparent authority
(3) ratification.
How can an agency relationship terminate by the parties?
By:
(1) desire (mutual or unilateral)
(2) expiration
(3) purpose fulfilled.
,How can an agency relationship terminate by operation of law?
By:
(1) death
(2) incapacity
(3) breach of fiduciary duty.
What are an agent's fiduciary duties to the principal?
(1) Loyalty (no adverse interest; must disclose)
(2) reasonable care
(3) obedience.
What are the principal's non-fiduciary duties to the agent?
(1) Reasonable compensation (unless gratuitous)
(2) reimbursement
(3) cooperation.
What is actual authority?
Acts the agent reasonably believes the principal wishes him to do, based on their
dealings.
What is the difference between expressed and implied actual authority?
, Expressed = granted via words (writing or oral)
implied = acts the agent reasonably believes he has authority to do based on the
principal's conduct (incidental acts reasonably necessary).
What are the elements of apparent authority?
(1) Principal holds out the agent as having authority to a third party
(2) the third party reasonably believes and relies on that.
What counts as 'holding out' for apparent authority?
An affirmative act
or a failure to act.
What are the elements of ratification authority?
(1) An unauthorized act taken for the principal
(2) the principal has knowledge of all material facts
(3) the principal affirms the conduct (expressly, or impliedly by accepting the
benefit without rejecting it).
If an agent had authority, who is liable to and can enforce a contract against the
third party?
