Question

Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s desk. The customer assumes Elaine is a person of authority, and Elaine is knowledgeable enough to help the customer file the contract.
Which response aligns best with this situation?

a) Enforceable via factor agent
b) Enforceable or unenforceable - no agency
c) Enforceable via employee agent
d) Enforceable or unenforceable w/ agency

Answer 1

Answer:

The answer is c:

Enforceable via employee agent

Explanation:

The definition of agency law deals with agent-principal relationships; that is a relationship where one party has the legal authority to act in place of another. Relationships that are commonly associated with agency law include employer-employee, administrator-decedent or executor, and guardian-ward.

Agreements that result in the formation of agency-type relationships can be implied or express, and both the principal and the agent can be an entity (such as partnership or corporation) or individual.

Here in the given situation, since, Elaine is an employee of the business and knowledgeable enough to deal with the contract filing, it is implied that she is acting as an employee agent, that she can help the customer in filing the contract.