In commercial law, agency relationships are formed through specific legal mechanisms, and agents operate under distinct categories of legal authority and risk. Match each agency concept or agent type on the left with the legal condition or commercial scenario on the right that accurately exemplifies it.
- Special AgentAn agent commissioned for a single, specific transaction whose authority automatically terminates upon completion of that assignment.
- Del Credere AgentA mercantile agent who receives an extra commission to guarantee buyer solvency and indemnify the principal against default on credit sales.
- Agency by EstoppelA legal binding created when a principal's representation prevents them from denying an agency relationship relied upon by a third party.
- Agency by NecessityAn urgent situation where a custodian sells perishable goods without prior consent because contacting the owner is impossible.
Answer
Special Agent matches with the description of an agent commissioned for a single specific transaction; Del Credere Agent matches with the mercantile agent guaranteeing buyer payment for extra commission; Agency by Estoppel matches with the relationship created when a principal's conduct prevents them from denying authority; Agency by Necessity matches with the emergency sale of perishable goods when the owner cannot be reached.
Each agent type and mode of creation is accurately paired with its legal foundation: special agents are restricted to isolated tasks, del credere agents guarantee financial solvency for extra compensation, agency by estoppel rests on principal holding-out conduct, and agency by necessity depends on emergency preservation of property when communication is impossible.
Step-by-Step Solution
Key Concept
Creation of Agency and Classifications of Commercial Agents
Estimated Time:2m 0s