Agency Relationships, Authority, and Termination

This chapter covers how agency relationships are formed and how they bind principals, agents, and third parties. Agency questions are often resolved by identifying who had authority, what representation was made, and whether the relationship had ended.

In This Chapter

• Agency Formation and Relationship Types explains how agency arises and the common relationship forms.
• Actual, Apparent, and Ratified Agent Authority covers the authority concepts most often tested.
• Agent and Principal Duties, Liability, and Remedies explains what each party owes and when liability attaches.
• Agency Termination, Notice, and Third-Party Effects shows how ending the relationship affects ongoing authority and exposure.

How to Use This Chapter

• Read this chapter when business-law questions turn on whether someone had power to bind another party.
• Focus on the source of authority and whether third parties had reason to rely on it.
• Revisit these sections when comparing actual authority, apparent authority, and ratification.

In this section

• Agency Formation and Relationship Types
  How agency relationships arise and which types of agency matter for REG fact patterns.
• Actual, Apparent, and Ratified Agent Authority
  How actual authority, apparent authority, and ratification bind principals in agency law.
• Agent and Principal Duties, Liability, and Remedies
  Fiduciary duties, liability exposure, and remedies within principal-agent relationships.
• Agency Termination, Notice, and Third-Party Effects
  How agency ends and how notice affects third-party reliance and lingering liability.