LEGL test 3 Review Questions and answers/ rated A+| LATEST EXAM UPDATES| 2024/25 |

LEGL test 3 Review Questions and answers/ rated A+ Why do we care about Agency? - --it is essential to how businesses operate -delegation (because many people do things through others) Nature of Agency - -consensual relationship in which one person (the agent) acts as a representative of or otherwise acts on behalf of another person (the principal) with power to affect the legal rights and duties of the principal Third Party - -the person/party that is dealing with the agent but really dealing with the principal through the agent Real Estate Example of Agency - --Principal is the seller -Agent is the real estate agent -Third Party is the buyer Scope of Agency - -pretty much anything a person/party can do on their own, they can do through an agent (must be lawful) What are exceptions to scope of Agency? - --personal services contracts (Ex. if I hire you to play music at my wedding, you can't send an agent to play) -incompetence or capacity of a minor -tips and tricks: when you are doing contracts in the real world, don't allow subcontracting or at least require notice and approval (Ex. using a general contractor for construction) Law of Agency - --Internal -External Internal Aspects - -Formation: -objective intent -consensual but not contractual -Agency by estoppel (apparent authority) -little in ways of formalities -generally don't need writing but some circumstances require writing (Ex. longer than a year, selling land, etc.) -Power of Attorney (written form sometimes required) Does there need to be consideration for the formation of Agency? - -no Gratuitous Agency - --same power as paid agent -same responsibilities as paid agent Durable Power of Attorney - -I am appointing you as my agent and when I become incompetent, this power of attorney continues to exist (it is durable) Springing Power of Attorney - --springs to life when something happens -most typical is incompetence -Ex. a grandma says she doesn't want to give you power of attorney yet- springing says when she becomes incompetent then the power of attorney kicks in Question 19-1 -Parker, the owner of certain unimproved real estate in Chicago, employed Adams, a real estate agent, to sell the property for a price of $250,000 or more and agreed to pay Adams a commission of 6 percent for making a sale -Adams negotiated with Turner, who was interested in the property and willing to pay as much as $280,000 for it -Adams made an agreement with Turner that if Adams could obtain Parker's signature to a contract to sell the property to Turner for $250,000, Turner would pay Adams a bonus of $10,000 -Adams prepared and Parker and Turner signed a contract for the sale of the property to Turner for $250,000 -Turner refuses to pay Adams the $10,000 as promised -Parker refuses to pay Adams the 6 percent commission In an action by Adams against Parker and Turner, what is the judgment? - --The decision goes against Adams on both actions because he did not fulfill his duty of utmost loyalty and good faith to Parker, his principal (Adams broke his fiduciary duty