acct 352 ch 32 EXAMPLES

arrange appointments with owners

Example #1:Mary hires Jane, a real estate agent. Jane agrees to locate for Mary a house that fits a description of Mary's dream house. What is Jane authorized to do?

negotiate price (NOT purchase)

Example #2: Mary hires Jane, a real estate agent. Jane agrees to locate for Mary a house that fits a description of Mary's dream house and to negotiate a purchase price. What is Jane authorized to do?

business with a third party

Example #3: Mary hires Jane, a real estate agent. Jane agrees to locate for Mary and buy a house that fits a description of Mary's dream house. Jane is still an agent because she is still doing what?

Example of Implied Agency

Mary hires Jane to manage a designer furniture store that Mary owns. The furniture store is located in Midtown Manhattan and does brisk business with wealthy clientele. Jane hires assistants to help her deal with clients. The agency contract does not spec

NO (explicitly told not to)

what if mary said "you are specifically forbidden to hire employees" and jane hires anyway, does she have implied authority?

Example of Agency by Ratification

Mary hires Jane to manage a designer furniture store that Mary owns. The furniture store is located in Midtown Manhattan. Jane, without Mary's authorization, enters into a contract to purchase a building in Rome, Italy to use as the location of a new furn

Yes (agent under express authority)

Mary hires Jane to manage a designer furniture store that Mary owns. The agency contract authorizes Jane to purchase furniture from suppliers and Jane has done so many times over the years. Mary fires Jane. After she is fired, Jane continues to purchase f

no

mary fires jane and jane continues to purchase stuff. does she have the authority?

no (contract was terminated)

mary fires jane and jane continues to purchase stuff. is she an agent of mary?

tell third party

what is your obligation as an agent after the contract is terminated?

yes (apparent authority)

Is Mary obligated to pay for the furniture Jane purchased AFTER Mary fired Jane?

still apparent bc uninformed

What if the furniture supplier did not know Jane was fired by Mary, but was suspicious about whether Jane was still Mary's agent but nonetheless sold the furniture to Jane?