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AGENCY AND PARTNERSHIP, Apparent - Coggle Diagram
AGENCY AND PARTNERSHIP
Authority
Actual
2R: Actual authority exists when the principal by written or spoken words or other conduct "causes" the agent to believe that the principal desires...[the agent] to act on the principal's account."
3R: "[an] agent acts with actual authority when, at the time of taking action that has legal consequences for the principal, the agent reasonable believes, in accordance with the principal's manifestations to the agent, that the principal wishes the agent so to act."
BLACK'S: Authority that a principal intentionally confers on an agent or authority that the agent reasonably believes he or she has as a result of the agent's dealings with the principal. Actual authority can be either express or implied.
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Ratification
3R: When the principal ratifies the act of an agent, the principal is liable on the contract just as if the agent had acted with actual authority.
Ratification occurs if the principal's conduct "justifies a reasonable assumption that" the principal consents to the act performed on the principal's behalf.
Apparent
2R: Apparent authority is created with respect to a third person when "by written or spoken words or any other conduct" the principal causes the third person "to believe that the principal consents to have the act done on his behalf by the person purporting to act for him."
3R: "[a]pparrent authority...is created by a person's manifestation that another has authority to act with legal consequences for the person who makes the manifestation, when a third person reasonably believes the actor to be authorized and belief is traceable to the manifestation."
BLACK'S: Authority that a third party reasonably believes an agent has, based on the third party's dealings with the principal, even though the principal did not confer or intend to confer the authority. Apparent authority can be created by law even when no actual authority has been conferred.
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