Question 1
An agency relationship can be created by:
◦ ratification.
◦ estoppel.
◦ apparent authority.
◦ actual authority.
◦ all of the above.
Question 2
In the process of assembling land for Ace Construction Ltd. to build a supermarket, Joe entered into a contract with the seller Sam. In which of the following situations would Sam be able to sue the principal, Ace?
◦ Sam would be able to sue Ace where Joe exceeded his apparent and actual authority.
◦ Sam would be able to sue Ace where Joe exceeded his actual authority but where Ace had led Sam to believe that Joe had the authority.
◦ Sam would be able to sue Ace where Joe disclosed that he was acting for Ace but made the contract "subject to ratification."
◦ Sam would be able to sue Ace where Joe was acting outside his authority and did not disclose that he was acting for Ace. Sam was aware of Joe acting independently at the time he entered into the contract.
◦ Sam would be able to sue Ace where Joe revealed that he was acting as an agent, but did not disclose that he was acting for Ace in particular, and exceeded both his apparent and actual authority. Ace did not ratify the contract.
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