Question 1

A power of attorney is often used by a principal to give an agent the power to sign legal documents,such as deeds to real estate,on behalf of the principal.

Accepted Answer

A power of attorney is a legal document that authorizes an agent, also known as an attorney-in-fact, to act on behalf of the principal in a variety of legal matters, including signing documents like deeds to real estate.

Question 2

Powers of attorney must be in writing.

Accepted Answer

Powers of attorney must be in writing to be legally valid. Verbal agreements or promises are not sufficient.

Question 3

Often even an express agency agreement does not provide enough detail to cover contingencies that may arise in the future regarding the performance of the agency.In this case,the agent possesses certain implied authority to act.This implied authority is sometimes referred to as supplemental authority.

Accepted Answer

The answer of Often even an express agency agreement does...

Question 4

A power of attorney is one of the most formal types of implied agency agreements.

Accepted Answer

A power of attorney is a formal legal document that grants someone authority to act on another's behalf, and it is an example of an express agency, not an implied one.

Question 5

An agency can be formed by the conduct of the parties.

Accepted Answer

An agency can be formed by the conduct of the parties, meaning that the actions and behavior of the parties involved can establish an agency relationship, even if it was not expressly agreed upon in a written or oral contract. This is known as implied agency or agency by estoppel.

Question 6

Through agency by ratification,the principal is bound to perform,and the agent is relieved of any liability for misrepresentation.

Accepted Answer

When a principal ratifies the actions of an agent, the principal becomes bound by the actions of the agent and the agent is no longer liable for any misrepresentations made on behalf of the principal.

Question 7

A principal can ratify an agent's act before the agent's act occurs.

Accepted Answer

Ratification can only occur after the agent's act has taken place, as it involves the principal approving an act that has already been performed.

Question 8

In most states,a real estate broker's contract to sell real estate must be in writing.

Accepted Answer

In most states, a real estate broker's contract to sell real estate must be in writing as per the Statute of Frauds.

Question 9

Implied authority is the authority that the third party may reasonably assume the agent possesses.

Accepted Answer

The answer of Implied authority is the authority that the...

Question 10

An agency arrangement must be based on more than the conduct of the parties.

Accepted Answer

The answer of An agency arrangement must be based on...

Question 11

Implied authority cannot conflict with express authority or with stated limitations on express authority.

Accepted Answer

Implied authority is a type of authority that is not explicitly stated but is inferred from the actions and words of the principal. However, this authority cannot go against the express authority, which is the authority explicitly given to the agent by the principal. Additionally, any limitations placed on the express authority must also be respected by the agent's implied authority.

Question 12

With regard to an implied agency,implied authority can be conferred by either industry custom,prior dealing between the parties,the agent's position and acts deemed necessary to carry out the agent's duties,or other factors a court deems relevant.

Accepted Answer

This statement is true. Implied authority can be based on various factors such as custom, prior dealings, agent's positional authority, or other relevant factors as determined by the court.

Question 13

In an express agency,the agent has the authority to contract or otherwise act on the principal's behalf,as stated in the agency agreement.

Accepted Answer

In an express agency, the agent is given the authority to act on behalf of the principal, as stated in the agency agreement. This means that the agent can contract, make decisions, and perform other actions on behalf of the principal, within the scope of their authority as outlined in the agreement.

Question 14

Agency by indemnification occurs when (1)a person misrepresents himself or herself as another's agent when in fact he or she is not and (2)the purported principal ratifies the unauthorized act.

Accepted Answer

Agency by indemnification is not a recognized form of agency. The scenario described is actually agency by ratification, where a principal approves an unauthorized act performed by someone who misrepresented themselves as an agent.

Question 15

If the principal and agent enter into an "exclusive" agency contract,the principal cannot employ any agent other than the exclusive agent.

Accepted Answer

In an exclusive agency contract, the principal agrees not to employ any other agent for the particular task or transaction that is covered by the contract.

Question 16

A durable power of attorney remains effective even though the principal is incapacitated.

Accepted Answer

A durable power of attorney is specifically designed to remain effective even if the principal becomes incapacitated. This allows the designated agent (or attorney-in-fact) to continue making decisions and taking actions on behalf of the principal, even if the principal is no longer able to do so themselves.

Question 17

In a power of attorney relationship,the agent is called the attorney-in-fact even though he or she is not a lawyer.

Accepted Answer

This statement is true. The agent appointed under a power of attorney is commonly referred to as the "attorney-in-fact" even though the agent does not need to be a lawyer. This is because the agent is authorized to act on behalf of the principal just as a lawyer would be authorized to act on behalf of a client.

Question 18

There are two (2)kinds of powers of attorney: 1)the express power of attorney; and 2)the implied power of attorney

Accepted Answer

There are generally two main types of powers of attorney: 1) general power of attorney and 2) durable power of attorney. Express and implied powers of attorney are not standard classifications.

Question 19

A special power of attorney limits the agent to those acts specifically enumerated by the agreement

Accepted Answer

A special power of attorney is limited by the scope of the specific acts listed in the agreement. This means that the agent has no authority beyond what is specifically allowed in the document.

Question 20

A general power of attorney confers broad powers on the agent to act in any matters on the principal's behalf.

Accepted Answer

A general power of attorney gives the agent broad powers to act on behalf of the principal in any matters listed in the document, unless otherwise specified.

Quiz 25: Agency Law