Blaw 1 Ch. 31, 32 Agency

Front 1

1. Perfomance

Back 1

-to use reasonable diligence and skill in performing work.
-Degree of care is expected under ordinary care unless represented possessing special skills
-Gratuitous agent without payment cannot be liable for breach of contract, as there is no contract but can be subject to tort liability and same standards of care and duty performed as other agents

Front 2

2. Notification

Back 2

-agent required to notify principal of all matters that come to attention concerning subject matter of the agency

Front 3

3. Loyalty

Back 3

-agent has duty to act solely for the benefit of his/her principal, not interest of agent or 3rd party
-cannot represent 2 principals unless both consent to it
-any info acquired through agency relationship is confidential
-breached if disclosed during or after its termination
-can only become purchaser only with principal's approval

Front 4

4. Obedience

Back 4

-duty to follow all lawful and clearly stated instructions
-if emergency situation, agent may deviate from instructions without violating duty
-if not clearly stated, can fulfill by acting in good faith and reasonable manner

Front 5

5. Accounting

Back 5

-unless agree otherwise, has duty to keep and make available to principal an account of all property and funds received/paid on behalf of principal
-must not intermingle accounts of principal's and agent's personal funds
-professional subject to disciplinary proceedings and liable to principal

Front 6

Independent Contractors

Back 6

-are not employees b/c principal has no control over the details of their work performance
-may/not involve in agency relationship
-whose act and omissions the employers are not liable

Front 7

Equal Dignity Rule

Back 7

-in formation of agency relationship
-requires that if contract being excuted is or must be in writing, then the agent's authority must be in writing
-failure can make contract voidable at option of principal
-only an offer
-acceptance of principal must be affirmed in writing
-exception: executive officer or principal in presence or perfunctory

Front 8

Essential elements of an agency relationship

Back 8

1. come about by voluntary consent and agreement between the parties
2. must have contractual capacity to be a principal but not agent
3. created for legal purposes only

Front 9

Agency by Agreement

Back 9

-based on express or implied agreement
-express written contract-created by oral agreement and are not based on a written contract
-implied by conduct- conduct manifests a willingness

Front 10

Agency by Ratification

Back 10

-person not an agent may make a contract on behalf of principal if approves or affirms by word or action of principal
-intent can be expressed by words or conduct

Front 11

Agency by Estoppel

Back 11

-principal causes 3rd person to believe that another person is principal's agent and 3rd person acts on that belief
-principal's actions created an appraent authority
-3rd person must prove reasonably believe that relationship exist
-acts/declarating of purported agent in does not create agency

Front 12

Agency by Operation of Law

Back 12

-agency relationship in absence of formal agreement
-family relationships
-emergency situations, when agent's failure to act outside of scope would cause principal substantial loss
-if unable to contact principal, court grants emergency power

Front 13

Express Authority

Back 13

-clear, direct and definitive terms
-orally or in writting
-equal dignity rule may apply