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42 Cards in this Set

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  • 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