LEGL 217 Chapter Notes - Chapter 33: Notary Public, W. M. Keck Observatory, Transact
17 Jan 2019
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The liability of a principal to third parties with whom an agent contracts depends on if the agent had the authority to enter into legally binding contracts on the principal"s behalf. Express authority : authority declared in clear, direct, and definite terms (orally or in writing) Requires that if the contract being executed must be in writing (or already is), so must the agent"s authority. Otherwise, it is a mere offer which can be accepted in writing. Failure to comply makes the contract voidable at the option of the principal. An executive officer of a corporation may conduct ordinary business without obtaining written authority. The equal dignity rules does not apply when the agent acts in the presence of the principal. When the agent"s signature is a mere formality, authority in writing is not required. One holding power of attorney is called an attorney-in-fact. Requires the formation of a written document and a notary public.
