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South Texas College of Law Houston
Ricks, Val D.

I. Agency
* Course about legal fictions, no real existence, but law talks about them as if they do. If strip away the entities, it is just about 2 people disputing over money. (almost always about money)
* TP: the agent- an intermediary
* Read through the facts and ask self who should win teaches about the justice of each’s position.
·        actual authority. 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. “Actual authority is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess.”.
·        apparent authority. 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. — Also termed ostensible authority; authority by estoppel. “The term ‘apparent authority’ means that a legal power is vested in the agent in the absence of any intention by the principal that it should exist, or even in spite of his intention that it should not exist. The operative facts causing this power to exist are acts of the principal which, considered along with surrounding facts, induce the third person with whom the agent deals to believe reasonably that the principal intended the power to exist. The power is real and not merely apparent. The agent is indeed a wrongdoer in exercising the power. He possesses the power but not the legal privilege of using it. Likewise, the authority (meaning the action of the principal creating the agent’s power) is real. It is only the intention of the principal to create such a power that is merely apparent (i.e., non-existent)” ‘Apparent authority’ of an insurance agent means such authority as an insurer knowingly permits the agent to assume, or which it holds him out as possessing, that is, such authority as he appears to have by reason of actual authority or such authority as a reasonably prudent man would suppose the agent to possess
·        authority coupled with an interest. Authority given to an agent for valuable consideration. • This authority cannot be unilaterally terminated by the principal.
·        constructive authority. Authority that is inferred because of an earlier grant of authority.
·        express authority. Authority given to the agent by explicit agreement, either orally or in writing. — Also termed stipulated authority.
·        general authority. A general agent’s authority, intended to apply to all matters arising in the course of business.
·        implied authority. Authority intention

y off this.
CREATED: 1) Consent By person that another shall act on his Behalf & subject to his control, & 2) consent by the other so to act. a) express agr, b) Inference from acts of Ag & P (implied from conduct) 
Characteristics of Agency:1) Ag’s power to alter the legal relations of P, 2) Ag’s duty to act primarily for the benefit of P, 3) P’s right to control the Agent
GREEN TEST/factors of agenCY: 1) Some manifestation by the P that the Agent act on his behalf and subject to his control. 2) Manifestation of consent by the Agent so to act and the 3 factors will be considered, but not essential (talk about them). (EXAM: say why this test superior or vice versa)
aDDITIONal AttribUTES: 1) Fid Duty, 2) Some degree of ControlHOW MUCH CONTROL: the Ag must be subject to the P’s control over the result or ultimate objectives of the Ag relationship. The level of control may be very attenuated w/ respect to the details. However the P must have ultimate responsibility to control the end result of the Ag’s action (Must be subject to…) * Ex of acting on behalf but no control: Congress people, Teacher, INdep K- not serv/master relationship.