. What kind of authority did he have? What were his limitations? Was the principle disclosed? Is there a question of interpretation? Is the principal bound by the agent's statements? Test –1. An agency is a relationship based on an express or implied agreement under which 1 person, the agent, is authorized to act under the control of or for another, the principle, in negotiating and concluding contracts with third parties. 2. A general agent is authorized by P to transact all business in relation to a particular type of business/trade.3. The usual method of creating an agency is by express authorization, that is, a person is appointed to act for or on behalf of another person.**Most states, by law, require that the appointment of an agent be in writing when an agency is created to acquire/dispose of any interest in the land4. An A. has implied authority to do any act reasonably necessary to carry out the express authority given to the A.**Third persons should recognize that a contract made with an officer of a private body. cannot be binding unless ratified by P.5. When the A makes known the identity of the P. and the fact that the A is acting on behalf of that P., the P is revealed.6. To avoid any question of interpretation, an A should execute an instrument by signing the name of the P and By: or Per: and the name of the agent7. A P. is bound by a declaration made by an A. while transacting business within the authority. This means that the P cannot subsequently contradict an A's statement and prove that it is not true. Application: Alexander Sumner Company buys and sells real estate and has subsidiaries that act as intermediaries bringing together commercial owners with companies that need to rent commercial space. One of these subsidiaries is the Alexander Sumner Industrial Company which is a corporation. James Hanson works as a vice president for that company. As Vice President Hanson negotiated and contracted with companies to lease commercial space, for the AS Company. He had previously been an agent of the company in many of these situations and therefore had the authority as agent to make arrangements with Ms. Rogers. Now, when the arrangements were made, Hanson told Mrs Rogers that a current tenant of a building had a floor area of ​​over 40,000 square metres..