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18 Cards in this Set
- Front
- Back
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agency |
relationship between two parties created by an implied or an express agreement or by law |
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principal |
the person who so empowers another to enter into legal relationships in his or her behalf |
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agent |
the person who so empowers |
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warranty of the principal's capacity |
assumption of the law that the agent promises the third party that the principal has capacity |
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scope of authority |
the range of acts authorized by the principal |
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express authority |
agency authority directly communicated by the principal to the agent |
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power of attorney |
any writing that appoints someone as the agent |
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implied authority |
the power to do anything that is reasonably necessary or customary to carry out the duties expressly authorized |
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apparent authority |
the authority that the principal, with knowledge or through negligence, permits the agent to assume, or which the principal's words or conduct |
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ratification |
the approval of a previously unauthorized act, or an act outside the agent's scope of authority |
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fiduciary duties |
legal requirements for certain categories of persons, such as agents, to subordinate their personal interest in order to act for the benefit of another person |
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duty of loyalty |
the agent may not secretly benefit from the agency transaction |
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duty of obedience |
the agent must carefully obey the instructions of the principal |
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duty of reasonable care and skill |
requires employee to perform job tasks with competence |
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duty of confidentiality |
requires agent to treat information about the principal very carefully |
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duty of accounting |
requires agent to account to the principal for all money and property of the principal that comes into the agent's possession |
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commingling |
mixing the funds or property or a fiduciary such as an agent with those of the person to whom the fiduciary duty is owed such as her or his client |
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undisclosed principal |
a person who uses an agent for negotiations with a third party who has no knowledge of the identity of the agent's principal |
