Hanson

1103 Words3 Pages

. What kind of authority did he have? What were his limitations? Was the principle disclosed? Is there a question of interpretation? Is the principal bound by the agents statements? Tests – 1. An agency is a relationship based on an express or implied agreement by which 1 person, the agent, is authorized to act under the control of or for another, the principle, in negotiating and making contracts with third persons. 2. A general agent is authorized by the P to transact all affairs in connection with a particular kind of business/ trade. 3. The usual method of creating an agency is by express authorization, that is a person is appointed to act for, or on behalf of another. **A majority of states, by statute, require the appointment of an agent to be in writing when the agency is created to acquire/dispose of any interest in land 4. An A. has implied incidental authority to perform any act reasonably necessary to execute the express authority given to the A. **3rd persons should recognize that a contract made with an officer of a private corp. may not be binding unless ratified by the P. 5. When the A, makes know the identity of the P. and the fact that the A is acting on behalf of that P., the P is disclosed. 6. To avoid any question of interpretation, an A should execute an instrument by signing the P’s name and either By: or Per: and the agents name 7. A P. is bound by a statement made by an A. while transacting business within the scope of authority. This means that the P cant later contradict the statement of an A and show that it is not true. Application – The Alexander Sumner Company is one that buys and sells real estate and has subsidiaries that act as brokers bringing together commercial landlords with businesses that need to rent commercial space. One of those subsidiaries is the Alexander Sumner Industrial Company which is a corporation. James Hanson works as VP for that corporation. As VP Hanson negotiated and made contracts with businesses to rent commercial space, for the AS Company. He was an agent for the company in many of these situations before, and so he did have the authority as an agent to make arrangements with Ms. Rogers. Now, when the arrangements were being made, Hanson told Ms. Rogers that a current tenant of a building had over 40,000 sq.

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