Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
|
Agency: big picture questions
|
- How was it formed?
- Rights & liabilities of principals & agents - Termination |
|
|
Definition of agency relationship
|
Principal authorizes or appoints an agent to act on his behalf
|
|
|
How is an agency relationship formed?
|
- agreement express or implied
- estoppel / apparent authority (principal held them out) |
|
|
types of authority
|
- actual authority
- apparent authority - inherent authority |
|
|
inherent authority
|
- agent only slightly exceeds his authority
- principal later ratifies (can be implicit) |
|
|
duties of agent to principal
|
- perform
- loyalty - obedience - reasonable care - notify |
|
|
Is it assumed that the principal knows what the agent knows?
|
YES - unless agent is acting in her own interest or against the principal
|
|
|
Sub-agent liable to principal?
|
Only if agent has authority from principal to appoint a sub-agent
|
|
|
Agent breach of duty: theories of liability
|
- breach of contract
- tort liability Remedies: - return funds - withhold compensation |
|
|
duties of principal to agent
|
- HONOR terms of contract
- COMPENSATE & reimburse - COOPERATE & not interfere with agent's performance |
|
|
Principal breach of duty: theories of liability
|
- breach of contract (must mitigate)
Remedy: claim or lien against principal's property (unless K provides otherwise) |
|
|
agent contracts with third party: liability of principal, agent, and third party
|
+ principal is liable if agent acted with P's authority
+ agent is liable IF: - pretended she had authority - all parties intended that agent be treated as party to the K - principal's identity is disclosed/unknown +agent is liable to principal (unless agent fraudulently concealed principal's identity) |
|
|
termination of agency relationship
|
Agency ends when agent is no longer AUTHORIZED to act as the principal's agent:
- either may terminate at will - destruction of subject matter - major change in business conditions or laws - bankruptcy, incapacity or death of either - dissolution of corporation/partnership - breach of agent's fiduciary duty - occurrence of special event - vote of other partners - court order - partner's bankruptcy - appointment of a receiver - termination of business entity that is a partner |
|
|
agent contracts with third party: liability of principal
|
principal is liable if agent acted with P's authority
|
|
|
agent contracts with third party: liability of agent to third party
|
agent is liable IF:
- PRETENDED she had authority - all parties INTENDED that agent be treated as party to the K - principal's IDENTITY is undisclosed/unknown |
|
|
agent contracts with third party: is agent liable to principal?
|
agent is liable to principal (unless agent fraudulently concealed principal's identity)
|
|
|
agent breach of duty: possible remedies
|
- return funds
- withhold compensation |
|
|
principal breach of duty: possible remedies
|
- claim or lien against principal's property (unless K provides otherwise)
|
