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;
42 Cards in this Set
- Front
- Back
|
agency law
|
the large body of common law that governs agency. A mixture of contract law and tort law.
|
|
|
principal
|
a party who employs another person to act on his or her behalf
|
|
|
agent
|
a party who agrees to act on behalf of another
|
|
|
the refercnce source for all rules of agency
|
the restatement (second) of agency
|
|
|
agency
|
the principal agent relationship; the fiduciary relationship "which results from the manifestation of consent by one person to antoher that the other shall act in his behalf and subject to his control, and comsent by the other so to act
|
|
|
persons who lack contractual capacity
|
insane persons, and minors
|
|
|
principal agent relationship
|
is when an emplyer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf
|
|
|
employer employee relationship
|
a relationship that resutls when an employer hires an employee to perform some form of physical service
|
|
|
an employee is not an agent unless
|
he is specifically empowered to enter into contracts on the pricipal employer's behalf
|
|
|
type of relationship when the agent has authority to act on behalf of the principal as authorized by the pricipal and implied from the agency.
|
principal agent
|
|
|
the emplyer has the right to control the physical conduct of the employee
|
employer-employee
|
|
|
a person or business that is not an employee but is emplyed by a principal to perform a certain task on his behalf
|
independent contractor
|
|
|
an independent contractor who is a professional is called
|
a professional agent
|
|
|
Agency can arise in one of four ways
|
express agency
implied agency apparent agency agency by ratification |
|
|
express agency
|
an agency that occurs when a principal and an agent expressly agree to enter into an agency agreement with each other
|
|
|
exclusive agency contract
|
a contract a principal and gaent enter into that says the principal cannot employ any agent other than the exclusive agent
|
|
|
power of attorney
|
an express agency agreement that is often used to gie an agent the power to sign legal documents on behalf of the principal
|
|
|
inplied agency
|
an agency that occurs when a principal and an agent do not expressly create an agency but it is inferred from teh conduct of the parties
|
|
|
apparant agency
|
agency that arises when a principal creates the appearance of an agency that in actuality does not exist
|
|
|
exclusive agency contract
|
the principal cannot emply any agent other thanthe exclusive agent
|
|
|
two kinds of powers of attorney
|
general
special |
|
|
broad powers on the agent to act in any matters on the principals behalf
|
general power of attorney
|
|
|
which limits the agent to those acts specifially enumerated in an agreement
|
specific power of attorney
|
|
|
incidental authority
|
when an express agency agreement does not provide enough detail to cover all contingencies that may arise in the future regarding the performace of the agency
|
|
|
another name for apparent agency
|
agency by estoppel
|
|
|
Agency by ratification occurs when
|
a person misrepresents himself as another's agent when in fact he is not AND
the principal accepts the unauthorized act |
|
|
In express agency enforcement of the contract
|
Principal and third party are bound to the contract
|
|
|
In implied agency enforcement of the contract
|
Principal and tird party acts are boutnd to the contract
|
|
|
In apparant agency enforcement of the contract
|
Principal and third party are bound to the contract
|
|
|
By Ratification enforcement of the contract
|
Principal and third party are not bound to the contract unless the principal ratifies teh contract
|
|
|
duty to compensate
|
a duty that a principal owes to pay an agreed upon amount to the agent either upon completion of the agency or at some other mutually agreeable time
|
|
|
duty to reimburse
|
if an agent spends his own money on the principal's behalf
|
|
|
if an agent spends his own money on the principal's behalf, the principal must reimburse expenses if
|
they were authorized by the principal
they were within the scope of the agency they were necessary to discharge the agents duties |
|
|
duty to cooperate
|
must agree to assist the agent in doing their duties, i.e. show
|
|
|
The duty of accountabiliy requires that the agent
|
maintain a separate account for the principal
use the principal's property in an authorized manner |
|
|
Methods of dermination of agency by the parties
|
mutual agreement
lapse of time purpose achieved occurence of a specified event |
|
|
The following notificaitons of termination of agency must me met
|
Direct notice of termination must be given to all persons with whom the agent dealt. May be written or oral
The principal must give direct or constructive notice to any third party who has knowledge of the gency but with whom the agent has not dealt Not obligated to people who do not have knowlledge of the agency |
|
|
agency coupled with interest
|
a special type of agency relationship that is created for the agents benefit, cannot be terminated by the principal
|
|
|
conditions that agency contracts can be terminated by operation of law
|
death
insanity bankruptcy impossibily changed circumstances war |
|
|
an agency relationship teminates if a situation arises that makes fulfillment impossible these circumstances would be
|
lost of subject matter (horse dies)
loss of qualification (license refolked) change in law (illegal trapping of alligators) |
|
|
when a principal terminates an agency contract it is called
|
revocation of authority
|
|
|
when an agent terminates an agency it is called
|
renunciation fo authority
|
