In commercial law, agency relationships create distinct rights, obligations, and legal boundaries. Match each commercial scenario described below with the corresponding type of agency creation, authority, or agent classification it illustrates.
- A ship master sells perishable goods at a reduced price during a maritime emergency after failing to reach the cargo owner.Agency by necessity
- A principal appoints a manager for a commercial store, allowing them to buy stock according to standard trade practices even without written authorization for every purchase.Implied authority
- A mercantile agent agrees to sell agricultural produce on behalf of a seller and guarantees to pay the seller even if the ultimate buyer defaults.Del credere agency
- An individual grants an attorney unrestricted legal power to execute any lawful business transaction on their behalf without limitation.Universal agent
Answer
The correct pairings match each scenario to its legal concept: the ship master scenario illustrates agency by necessity; the store manager purchasing stock illustrates implied authority; the agent guaranteeing buyer payment illustrates del credere agency; and the attorney given unrestricted power illustrates a universal agent.
Each scenario corresponds to a foundational principle of agency: emergency preservation of property corresponds to agency by necessity; standard operational purchasing authority corresponds to implied authority; assuming financial liability for buyer default corresponds to del credere agency; and delegating total legal power corresponds to a universal agent.
Step-by-Step Solution
Key Concept
Law of Agency: Creation, Authority, and Types of Agents
Estimated Time:1m 30s