List the different substitutes for actual authority agency.
SUBSTITUTES FOR ACTUAL AUTHORITY
- Apparent Authority - arises from
- reasonable belief of 3rd parties created by P (not A alone) that induces 3rd party to rely on such authority
Ratification - retroactive; even if A had no authority, P can ratify by expressly affirming contract, accepting benefit from contract, or suing 3rd party on it as long as (1) P knows all material facts, (2) P accepts entire transaction, (3) P must have capacity at time of ratification and at time of original contract.
Adoption - not retroactive; a corporation can always adopt something as its own after formation; promoter not automatically relieved of liability