Question

Difficulty: EasyLaw of Agency: Creation, Authority, and Types of Agents

Match each legal concept relating to the creation and authority of agency under commercial law with its correct definition.

  • Express AuthorityAuthority directly and explicitly conferred on an agent by the principal through written or spoken words.
  • Agency by NecessityAgency created in an urgent emergency to preserve property when communicating with the owner is impossible.
  • Agency by EstoppelAgency arising when a principal's conduct leads a third party to reasonably believe an agency relationship exists.
  • Agency by RatificationAgency established when a principal retroactively approves an unauthorized act done on their behalf.

Answer

Express Authority matches with authority directly and explicitly conferred through written or spoken words; Agency by Necessity matches with agency created in an urgent emergency to preserve property when communicating with the owner is impossible; Agency by Estoppel matches with agency arising when a principal's conduct leads a third party to reasonably believe an agency relationship exists; Agency by Ratification matches with agency established when a principal retroactively approves an unauthorized act done on their behalf.
Each creation method and authority type strictly corresponds to its recognized legal definition under commercial agency law.

Step-by-Step Solution

1
Identify the definition of Express Authority
Matches the definition of authority explicitly stated orally or in writing.
Express terms in legal contracts are explicitly articulated.
2
Identify the definition of Agency by Necessity
Matches the concept of emergency creation of agency to prevent loss of property.
Necessity requires an urgent emergency and inability to obtain instructions from the owner.
3
Identify the definition of Agency by Estoppel
Matches the creation of agency through representation by conduct that misleads a third party.
Estoppel legally stops a principal from denying an authority they held out to exist.
4
Identify the definition of Agency by Ratification
Matches retroactive legal approval of a previously unauthorized transaction.
Ratifying an act gives retroactive legal validity to acts performed without prior authority.

Key Concept

Methods of Creation and Types of Authority under the Law of Agency
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