Must act with authority (actual, apparent, or inherent)
Actual authority - created by manifestation of a principal's intent:
- Express - oral or written; clear, direct, and definite; or specific instructions or terms. Agent must reasonably believe he is doing what principal wants. Silence from principal can constitute assent, but intent must be communicated to the agent to create actual authority. Terminated by revocation, agreement, change of circumstances, passage of time, principal or agent's death . . .
- Implied - authority to act within accepted business customs or general trade usage. May aslo be formed by principal's acquiescence to agent's actions, by emergency situation, or by authority to delegate.
Apparent authority - derived from principal's manifestations that cause reasonable belief that
third party (not an agent) has actual authority to act.
Factors - past dealings, trade customs, industry standards, principal's written statemetns of authority, transactions not benefiting principal, extraordinary transactions for principal.
Inherent Authority -
examples: employer liable for torts by employee during scope of employment; unauthorized actions that are similar to past authorized actions; and lending of goods with an indicia of ownership (allows agent to sell the goods, and for buyer to take good title)
Ratification: even if no authority, principal will be liable if he has ratified agent's actions. Express or implied, no consideration required.
Elements - Principal ratifies ENTIRE act; principal has legal capacity to raatify at time act occurs; principal's ratification is timely; and principal has knowledge of material facts of the act.
Estoppel - Principal liable for imposter's acts if principal negligently allows the imposter to have appearance of authority and to act on principal's behalf.