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23 Cards in this Set
- Front
- Back
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what is an Agency Relationship? |
one party designates another to act on his or her behalf |
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principal |
party who delegates authority to another in order to accomplish a task or consummate a transaction |
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agent |
one who acts on a principal's behalf to accomplish a task or consummate a transaction for the principal |
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5 types of agents |
1. special 2. general 3. universal 4. power of attorney 5. independent contractor |
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Special Agent |
one authorized to conduct a single transaction, or series of related transactions |
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General Agent |
one authorized to conduct all necessary personal or business transactions for the principal |
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Universal Agent |
one authorized to do all acts that can be legally delegated i.e. soldier's sister is his agent while he is abroad |
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Power of Attorney |
formal written creation of an agency relationship that lists the authority granted -must be signed by principal (not agent) -ends when someone dies |
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Independent Contractor Agent |
one who acts on behalf of the principal but that principal doesn't control the agent's day-to-day activities -scope of contractor is limited |
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what is an Express Agency Relationship? |
principal orally or in writing delegates authority to another -cannot be reasonably completed within 1 year |
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what is a Gratuitous Agency Relationship? |
relationship where consideration is given -an agent who serves without consideration can quit anytime |
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what is an Apparent Agency? |
relationship where agent doesn't have express agreement but still has authority to act as an agent for the principal because of the appearance of having that authority |
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what is a Lingering Apparent Agency? |
exists when principal fires an agent but agent continues to act -continues until properly terminated |
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what is Agency by Estoppel or Ostensible Authority? |
apparent authority relationship |
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what agency relationships must be in writing? |
those involving Real Property |
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Liability of principal and agent to third parties depends on what two factors? |
1. type of authority agent has 2. whether principal was disclosed |
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describe a Disclosed Principal with Actual Authority |
-can be express or implied -only principal is liable |
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describe a Disclosed Principal with Apparent Authority |
-only principal is liable to third party -agent is liable to principal for acting without actual authority |
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how can an Actual Authority be terminated? |
principal must end relationship |
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how is Apparent Authority terminated? |
1. principal gives direct notice to all of agent's regular customers 2. principal notifies all potential clients (constructive notice) by publishing an ad |
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what is a Partially Disclosed Principal? |
agent acknowledges they are acting under actual authority but principal isn't identified -both principal and agent are liable to third party |
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what is an Undisclosed Principal? |
third party believes the agent is acting on their own behalf -both principal and agent are liable to third party |
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Vicarious Liability |
even if principal doesn't personally do anything wrong, he may be vicariously liable under "respondeat superior" |
