Agency Creation of the Agency Relationship

Agreement (express or implied)	a. Consensual - may be gratuitous
	b. Contractual - requires all six elements of a contract
	c. Writing	(1). If an employment contract for more than one year (Statute of Frauds)	(2). An agreement to sell real estate for the principal (a listing MD). The real estate rule is applicable in most states.	(3). Power of attorney
Ratification occurs where there is no agency relationship or the agent oversteps his/her scope of authority.	a. No act on the part of the Principal to have the Third Party believe that the agency exists.
	b. Affirms (silence is not ratification unless the alleged Principal accepts the benefits of the agreement) a lawful act done by the alleged Agent on his/her behalf (while Principa; existed and was capable) and therefore the Agent became an Agent retroactive to the time of the act.
	c. Requirements:		1. P must know all of the facts.
			2. Must accept the whole agreements not just the beneficial parts.
			3. Thereafter, will be liable on the agreement as though the agency existed at the time made.
	d. Relates back to the time when the agent acted without authority.
Operation of Law	a. Agency by necessity - a person who is an agent may step beyond the bounds of the scope of authority and bind the principle pal without the consent of the P if a sudden arises and the A tries to minimize the P's possible damage.
	b. Apparent (ostensible) and/or estoppel.
	c. Remember the alleged Principal must do something or fail to do something that causes the Third Party to believe the Agent is acting for the Principal, there must be reliance by the Third Party and loss.