Match each mode of agency creation under commercial law with its corresponding legal definition.
- Express AgencyCreated through explicit oral or written agreement between the principal and the agent.
- Agency by RatificationArises when an unauthorized act performed on behalf of a principal is subsequently approved and accepted by the principal.
- Agency by NecessityCreated during emergency situations to protect a principal's property when communication is impossible.
- Agency by EstoppelArises when the principal's conduct leads a third party to reasonably believe that an agency relationship exists.
Answer
The correct matches pair Express Agency with explicit agreement, Agency by Ratification with subsequent approval of unauthorized acts, Agency by Necessity with emergency protection of property, and Agency by Estoppel with representation based on principal conduct.
Each mode of creating agency has a distinct legal origin under commercial law: Express agency is formed through clear spoken or written words; Agency by Ratification retroactively validates unauthorized acts; Agency by Necessity protects property during emergencies when the principal cannot be contacted; and Agency by Estoppel prevents a principal from denying an agency relationship established through their own past conduct.
Step-by-Step Solution
Key Concept
Modes of Creation of Agency
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