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3-01 Creation and Termination of Agency

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TITLE 3AGENCYCHAPTER 3-01CREATION AND TERMINATION OF AGENCY3-01-01. Definition. Agency is the relationship which results when one person, calledthe principal, authorizes another, called the agent, to act for the principal in dealing with third<br>persons.3-01-02.General and special agent defined.An agent for a particular act ortransaction is called a special agent. All others are general agents.3-01-03.Actual and ostensible agency defined.An agency is either actual orostensible. It is actual when the agent really is employed by the principal. It is ostensible when<br>the principal intentionally or by want of ordinary care causes a third person to believe another to<br>be the principal's agent, who really is not employed by the principal.3-01-04.Who may appoint an agent - Who may be agent.Any person havingcapacity to contract may appoint an agent and any person may be an agent.3-01-05. Authorization to agent. An agent may be authorized to do any acts which theagent's principal might do, except those to which the principal is bound to give personal attention.3-01-06. How agency created. An agency may be created and an authority may beconferred by a prior authorization or a subsequent ratification.3-01-07. No consideration necessary. The relationship of principal and agent can becreated although neither party receives consideration.3-01-08. Ratification of agency - How made - Extent. A ratification can be made onlyin the manner that would have been necessary to confer an original authority for the act ratified<br>or, when an oral authorization would suffice, by accepting or retaining the benefit of the act with<br>notice thereof. A ratification is not valid unless at the time of ratifying the act done the principal<br>has power to confer authority for such an act and ratification of part of an indivisible transaction is<br>a ratification of the whole.3-01-09.Retroactive ratification limited.No unauthorized act can be made validretroactively to the prejudice of third persons without their consent.3-01-10. Rescission of ratification. A ratification may be rescinded when made withoutsuch consent as is required in a contract or with an imperfect knowledge of the material facts of<br>the transaction ratified, but not otherwise.3-01-11. Termination of agency.1.An agency is terminated as to every person having notice thereof by:a.Expiration of its term;b.Extinction of its subject;c.Death of the agent;d.Renunciation by the agent; ore.Incapacity of the agent to act as such.Page No. 12.Unless the power of an agent is coupled with an interest in the subject of the agency,<br>it is terminated as to every person having notice thereof by:a.Its revocation by the principal;b.Death of the principal; orc.Incapacity of the principal to contract.Page No. 2Document Outlinechapter 3-01 creation and termination of agency