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18 Cards in this Set
- Front
- Back
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agency |
relationship between 2 parties created by law that empowers 1 of the parties by word of action to legally blind the other. |
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principal |
person who empowers another to enter into legal relationships in his/her behalf |
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agent |
party empowered |
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warranty of the principals capacity |
law assumes that the agent promised the third party that the principal had capacity |
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scope of authority |
range of acts authorized by the principal |
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express authority |
communicated through oral or written directly by the principal to the agent |
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power of attorney |
any writing that appoints someone as an agent |
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implied authority |
power to do anything that is reasonable necessary or customary to carry out the duties authorized |
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apparent authority |
authority to permit the agent to assume, or which the principal holds the agent out as possessing |
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ratification |
approval of a peviously unauthorized act, or act outside the agents scope of authority |
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fiduciary duties |
to subordinate their personal interests in order to act for the benefit of another person |
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duty of loyalty |
agent may not secretly benefit from the agency transaction |
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duty of obedience |
agent must carefully obey the instructions of the principal |
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duty of reasonable care and skill |
requires the agent to exercise the degree of care and skill |
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duty of confidentiality |
requires the agent to treat information about the principal with great caution |
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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 agents possesion |
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commingling |
mixing the funds or property of a fiduciary |
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undisclosed principal |
agent is liable on a contract entered into under such circumstances |
