Question

What are the four ways in which an agency relationship can be created? Give details

subject-legal aspects of transportation management

Answer 1

1. Agreement Between the Parties------agreement basically just means contract. This relationship between the parties can be in writing, can be verbal, or it can be from the conduct of the parties. This is similar to the Express/Implied-in-fact contracts. The subject matter involved something that falls within the statutes of fraud, it needs to be in writing.

2. Ratification----this is somewhat of an approval of a matter done for another and thus retroactively forms a relationship. An example to explain, if someone does a favor for another with the other's knowledge and the other accepts, he has accepted and retroactively made a relationship.

3. Agency by Estoppel-------this is when the principal creates a scenario that makes it look like you are his agent, even though you are not, and others would perceive you as his agent, you are estopped from denying this agency relationship.

4. By operation of the law-----this is when the law recognizes/imposes an agency relationship. Parents are legally given the right to act as agents for their children, simply because the law says so. Sometimes, spouses also have that relationship, as given by the law. Sometimes, the law changes that relationship in times of emergency. For example, the fired department doesn't need to sow ID to get into a building since it is an emergency.