21-1 21-2

Front 1

Agency

Back 1

a relationship between 2 parties created by an implied or an express agreement or by law that empowers one of the parties by word or action to legally bind the other.

Front 2

Principal

Back 2

One who authorizes another to enter into legal relationships in his or her behalf.

Front 3

Agent

Back 3

one who is empowered to alter the legal relations of another.

Front 4

Warranty of principles capacity

Back 4

assumption of the law that the agent promises the 3rd party that the principal has capacity.

Front 5

Scope of authority

Back 5

employment law, range of contractual acts an organization has authorized an employee to do.

Front 6

express authority

Back 6

agency authority directly communicated by the principle to the agent.

Front 7

Power of authority

Back 7

any writing that appoints someone as an agent.

Front 8

implied authority

Back 8

agency authority that is implied from the grant of express authority

Front 9

Apperent authority

Back 9

authority that the principal with knowledge or through negligence permits the agent s to assume or which the principal holds the agent out as possessing

Front 10

Ratification

Back 10

Action toward the contracts as though on intends to be bound by it.

Front 11

fiduciary duties

Back 11

legal requirement for certain categories of persons, such as agents, to subordinate their personal interest in order to act for the benefit of another person

Front 12

Duty of loyalty

Back 12

Agent may not secretly benefit from the agency transaction

Front 13

Duty of obedience

Back 13

Requires to follow the reasonable orders and rules of the employer

Front 14

Duty of reasonable care and skills

Back 14

requires agent to exercise the degree of care and skill any reasonably prudent person would use in a similar situation.

Front 15

Duty of confidentiality

Back 15

Requires agent to treat information about the principal very carefully

Front 16

Duty of accounting

Back 16

requires agent to account to the principal of all money and property of the principal that come into an agent position

Front 17

commingling

Back 17

mixing the money of the agent and the principal together

Front 18

undisclosed principal

Back 18

Principal whose its identity is kept secret from the third party by the agent