Business and Personal Law

Chapter 13: Agency and Employment

Self Check Answers

Section 13.1

1. a relationship in which one person represents another person in a business transaction; agent, principal, and third party
2. An agent acts under the authority and on behalf of the principal. An independent contractor performs a particular task for a proprietor.
3. when a principal accepts or approves an unauthorized act by an agent after the fact

Section 13.2

1. express authority explicitly gives an agent authority; implied authority allows an agent to perform reasonable acts necessary to carry out the express authority
2. a formal document granting someone authority to act as an agent
3. Subagent: lawfully appointed by another agent with principal's authorization; agent's agent: appointed by another agent without the principal's authority.