Agency 1 Basic Def

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CTTADDT C CREATION MMCWCP M

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Mutual Consent: manifestation by the principal to the agent that the agent may act on the principal account, and consent by the agent to so act./ a relationship in which a person has the legal authority to act for another.

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CTTADDT C CREATION MMCWCP An agent must act on behalf of the principal

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A true agency imposes a fiduciary duty upon the agent to forego his own interests and act primarily on behalf of the principal.

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CTTADDT C CREATION MMCWCP C

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Control: The principal has the right to control the conduct of the agent with respect to matters entrusted to him.

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CTTADDT C CREATION MMCWCP W

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Writing: is not required to create an agency
Equal dignity rule: SOF in contracts required writing

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CTTADDT C CREATION MMCWCP C

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Capacity: basic requirement of agency the amount of capacity is greater for the principal than an agent (see rules)

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CTTADDT CREATION MMCWCP P

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Proper Purpose: a principal may appoint an agent for any legal purpose and to perform any act, except the nature of the act, public policy or contract requires personal performance by the principal.

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CTTADDT T TYPES OF AGENTS GSCDSA G

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General Agent: conducts a continuous series of transactions for the principal, and the principal is bound by all the usual and customary transactions of the agent

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CTTADDT TYPES OF AGENTS GSCDSA S

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Special Agent: conducts a single or small series of transactions for the principal and principal is bound

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CTTADDT TYPES OF AGENT GSCDSA-CA

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Co Agent: a principal may delegate authority to as many agents as he wishes to transact business, and when two or more agents are authorized they are known as Co agents.

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CTTADDT TYPES OF AGENT GSCDSA D

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Dual Agent: whenever an agent simultaneously represents two or more principals that are dealing at arms length

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CTTADDT T GSCDSA S

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Subagent: a Subagent is appointed by an agent, with the authorization of the principal to assist the agent in the principals affairs and to act on the principals behalf.

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CTTADDT T GSCDSA A

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Agents Agent: a person appointed by an agent to perform functions for the agent and not for the principal, subject to the control of the agent alone.

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Disclosed Principal: notice to other party that the agent is acting for a Principal and knows of the principal identity.

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CTTADDT TT DPUN P

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Partially Disclosed Principal: other party notice that agent is or may be acting for a Principal and his existence but no notice of identity.

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CTTADDT TT DPUN UN

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Undisclosed principal: other party has no notice that the agent is acting for a Principal.
Nonexistent principal: term results from a purported agency that does not exist.

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CTTADDT A AAI

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ACTUAL AUTHORITY: creates both the right and the power in the agent to bind the principal

a. EXPRESS ACTUAL auth.: created either by express written or verbal grant of authority to agent.

b. IMPLIED AUTH.: created by implication of the principals words or actions toward the agent

APPARENT AUTHORITY: results from the appearance of actual authority in the agent, created by some word or act on the part of the principal toward a third party.

APPARENT AUTHORITY BY EMPLOYMENT OR APPOINTMENT TO A POSITION: When a principal places any person in a position of authority, that person will have the apparent authority to fulfill the duties of that position.

INHERENT AUTHORITY: impose liability on someone who put a potential agent in position to harm third parties, even though the agent does not have actual or apparent authority.

ESTOPPEL: principal intentionally or negligently caused such belief or principal failed to take reasonable steps to notify them.

RATIFICATION: an agreement to adopt an act performed by another for us.

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DUTIES OF AGENT pt 1

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1. Obedience: R2ss377 a person who makes a contract with another to perform services as a agent for him is subject to the duty to act in accordance with that promise.

2. Loyalty: duty to his principal to act solely for the benefit of the principal in all matters connected with his agency, unless the parties agree otherwise/ no conflicts: under affirmative duty to protect principals interests(adverse party-not to compete/secret profits: an agent who makes a profit is under a duty to give such profit to the principal, unless the parties agreed otherwise.

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DUTIES OF PRINCIPALS ICPC

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1. Duty to Idemnify/reimburse: the principal has a duty to Idemnify the agent for all expenses and losses that occur while fulfilling agency duties.

2. Duty to compensate: principal has a duty to compensate the agent for the agency services rendered unless the agency is gratuitous.

3. Duty to protect: an agency relationship does not change the general duty of care owed by everyone.-avoidance of Negligence

4. Duty to cooperate: the principal has a duty not to act in a manner that will impair the agents performance or make the subject matter of the agency impossible.

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TERMINATION AAOI

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Termination: An agency may generally be terminated by the acts of the parties, automatically due to the effect of a condition, or by operation of law.

1. Acts of parties: Since the agency relationship is based on the mutual consent of the parties, a principal may terminate agency at any time, even if this breaches an agency contract.

2. Automatic termination: an agency may be created that is subject to the effect of the condition, which will terminate the authority of the agent.

3. Termination by operation of law: At common law the death, insanity, or bankruptcy of either the principal or the agent would automatically terminate the agency. Also agency purpose illegal will terminate the agency.

4. Irrevocable agencies: an agency coupled with the interest occurs when the agency is created to vest the agent with a legal interest in property that is the subject matter of the agency.