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18 Cards in this Set
- Front
- Back
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Agency |
A relationship between two 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. |
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Principal |
One who authorizes another to enter into legal relationships in his or her behalf. |
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Agent |
One who is empowered to alter the legal relations of another. |
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Warranty of the principals capacity |
Assumption of the law that the agent promises the third party that the principals has capacity. |
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Scope of authority |
In employment law,range of contractual acts an organization has authorized an employee to do :in agency ,range of contractual acts authorized by the principal.
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Express authority |
Communicated 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 |
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,or which the principal holds the agent out as possessing. |
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Ratification |
Acting toward the contract as though one intends to be bound by it. |
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Fiduciary duties |
Legal requirement for certain categories of persons,such as agents,to subordinate their personal interests in orders to acts 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 obediance |
Requires employee to follow the reasonable orders and rules of the employer;requires agent to carefully obey the instructions of the principal. |
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Duty of reasonable care and skull |
Requires agent to exercise the degree of care and skill any reasonably prudent person would use in a similar situation. |
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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 agents possession.
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Commingling |
Mixing the money of the agent and the principal together. |
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Undisclosed Principal |
Principal whose identity is kept secret from the third party by the agent. |
