Business Law Principles and Practices

An agent's implied authority is set out in the agency agreement.

A principal who ratifies an unauthorized contract is bound by its terms.

Express authority must be in writing to be effective.

A power of attorney is an example of express authority.

An agent has implied authority to perform any act necessary to carry out the principal's business.

The principal usually lists in writing all of the agent's duties.

A principal is liable only for acts the agent is authorized to perform.

A principal is liable for all torts committed by an agent.

An agent is never liable on contracts entered into for the principal.

An agent is liable if he or she acts for an undisclosed principal.

Even if he or she neglects to sign the principal's name on a contract, an agent is not liable on the contract.

A principal may ask an agent to assume equal liability on a contract.

A person who pretends to be an agent is not liable on any contract.

An agent is liable on a contract if the agent signs the principal's name.

A principal is not generally liable for an agent's crimes.

If a principal authorizes an agent to buy a tractor for $10,000, this is an example of

A power of attorney is an example of

An agent's scope of authority generally includes

If an agent has apparent authority, any contracts made are

The authority that an agent has because the principal leads third parties to believe that the agent has it is called