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29 Cards in this Set
- Front
- Back
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Agency Law = Contract + Tort law
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Th large body of common law that governs agency; a mixture of contract law and tort law
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Agency
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THe principal agent relationship; the fiduciary relationsh "which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control and consent by the other so to act
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Principal
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A party who employes another person to act on his or her behalf
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Agent
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A party who agrees to act on behalf of another
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Anyone with contractual capacity can appoint an agent
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true
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Principal-Agent Relationship
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A relationship formed when an employer hires an employee an gives that employee authority to act and enter into contracts on his behalf
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Employer-Employee Relationship
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A relationship that results when an employer hires an employe to perform some task or service tbut the employee has not been authorized to enter into contracts on behalf of his employer
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Independent Contractor
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A person or business that is not an employee but is employed by a principal to perform a certain task on behalf of the principal
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Express Agency
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An agency that occurs when a principal and an agent expressly agree to enter into an agency agreement with each other.
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Exclusive agency contract
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A contract a principal and agent enter into that says the principal cannot employ any agent other than the exclusive agent
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Power of Attorney
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An express agency agreement that is often used to give an agent the power to sign legal documents on behalf of the principal
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Implied Agency
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An agency that occurs when a principal and an agent do not expressly create an agency, but it is <b>inferred from the conduct of the parties</b>
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Agency by ratification
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An agency that occurs when:
A person misrepresents him or herself as another's agent when in face they are not and the purported principal ratifies the unauthorized act |
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Apparent Agency
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Agency that arises when a principal creates the appearance of an agency that in actuality does not exist
created by the PRINCIPAL'S actions NOT the agent's |
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estoppel
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stopped
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Duty to Compensate
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A duty that a principal owes to pay an agreed upon amount to the agent either upon the completion of teh agency or at some other mutually/agreeable time
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Duty to Perform
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An agent's duty to a principal that includes
performing the lawful duties expressed in the contract and meeting the standards of reasonable car, skill, and diligence implicit in all contracts |
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Imputed Knowledge
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Information that is learned by an agent that is attributred to the principal
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Duty to Account
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Aduty that an agent owes to maintain an accurate accounting of all transactions undertaken on the principal's behalf.
Duty of accountability |
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Agency coupled with an Interest
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A special type of agency that is created for the agent's benefit and that the principal cannot revoke
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Wrongful Termination
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The termination of an agency contract in violation of the terms of the agency contract. The non-breaching party may recover damages from the breaching party
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Lecture
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-
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Review EXAMPLES along with definitions in text!
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True!
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Agency Relationships
common law--Agency--under common law we dont really differenciate between employee and independent contractors (in real life we view them as being pretty different) |
Agency is a fiduciary relationship based on trust and confidence
Employee and independent contractors can BOTH be agents (make a distinction mainly bc of tax reasons) Examples: |
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Employer (Principal) ex Me
Employer (Principal) ex. trucking company |
Independent contractor (Agent) ex. Accountant, my lawyer, etc.
Independent Contractor (Agent) ex. Insurance Agency |
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Formation of Agencies
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Most basic is = <b>Express Agency</b> ("You're hired") Orally or written agreement
<b>Implied Agency</b> = in real life people don't actually make literal agreements/contracts. So look at conduct of parties <b>Agency by ratification</b>: something that happened after the fact before there was actually an agency relationship <b>Apparent Agency</b>: looks at AGENT and 3rd party. Here to protect customer--you think the cashier at maceys is an Agent of the store (fair assumption). Macey's can't say nope we're not liable that was some random bum. |
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Duties of Agents
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Perform
-reasonable diligence and skill Notification to P Accounting |
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Principal's Duties
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Compensate (express or implied)
Reimbursement (to agent) and Indemnification (to make whole--put back how were) Cooperation |
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Termination
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Mutual Agreement
-Principal must notify 3rd parties Unilateral termination -Principal must notify 3rd parties Lapse of time Purpose Achieved Occurrence of Specific event |
