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20 Cards in this Set

  • Front
  • Back
What is an agent?
An agent is one who acts for another (the principal)
Requirements to create an agency
- agency involves a consensual relationship
- an agency relationship may or may not be based on a contractual agreement - when it is, the law of contract is applied (there need be no consideration)
What does it mean to call the agent a FIDUCIARY?
the agent owes fiduciary duties to the principal - meaning that it is a relationship of trust and confidence.

- the agent is expected to act in good faith and candor (to be forthright) with his principal and put his own needs second
Agency by estoppel
Agency relationship that is not the result of an agreement - this is the appearance of an agency relationship whre one does not exist.

This is where the principal, by his actions, causes third parties to believe that another person (or persons) is his agent and the third party (or parties) deals, in good faith, with the supposed"agent" of the principal on that basis

The court (equity) will uphold the agreement made by the "agent" with the third party
Can a minor be an agent or a principal?
A minor can act as an agent, but cannot act as the principal unless it is dealing with necessaries.
General Agent
broad authority to act for the principal in a variety of transactions - more authority
Special Agent
has authority that is limited to a single transaction or series of related transactions - less authority
Is an agent less liable for a special agent's acts or a general agent's acts?
Less liable for a special agent
agents appointed by another agent who is authorized to appoint sub-agents in connection with his/her performance on the principal's business.
hired by another agent - subject to control by the principal, not the employing agent - acts as an ancillary agent for the principal
Gratuitous Agent
"volunteer" - agrees to work without compensation and canchoose to perform or not perform

-only liable for GROSS negligence, not ordinary negligence (ie, retiree who works for red cross)
Agency coupled with interest
irrevocable agency (cannot be changed because the agent has financial interest in the goods, property, or items to be sold)
Exclusive Agent - provide an example
example - real estate agent - sole right usually for a specified time to sell the goods, property, or item
Del Credere Agent
a sales agent who promises to pay the principal is the principal's customer fails to pay
Agents by virtue of their status
- an employee is an agent of his employer when acting on his behalf and when acting within the scope of his employment
- a general partner is an agent as well as a principal of the partnership when acting for the partnership
- a corporation can only act through its agents - the officers and directors of a corporation are its agents and can bind it when acting within their authority as spelled out by the corporation's by-laws
- an independent contractor is not an employee but can act as an agent for a principal when retained for that purpose
Power of Attorney
an instrument (written legal document) by which one party, as principal, appoints another party (the attorny-in-fact) as his agent and confers upon him the authority to perform certain specified acts on his behalf (like sign the principals name to certain documents)
- the primary purpose is to evidence the authority of the agent in dealing with third parties
What are the types of powers of attorney
General - do anything i could

Limited - sell and transfer title to my house

Durable - document that permits the attorney-in-fact to act for the principal (ie children acting for their senile parents) -effective until the principal dies or revokes it
Duties an agent CANNOT perform
a principal cannot appoint an agent to:
- perform duties that the principal is personally bound to perform (non-delegable, such as personal service)
- duties precluded by statute (execute a will)
- duties the principal himself cannot perform (a minor cannot appoint an gent to convey real estate)
An agent's duties to the principal
1. Obedience and compliance with the principal's instructions
2. The use of reasonable care
3. The duty to account for all money and property
4. The duty to notify the principal of relevent facts
5. The duty not to represent both parties without their knowledge and consent
6. The duty of loyalty
Principals' remedies when the agent breaches the duty owed
1. the principal may RECOVER ANY DAMAGES from the agent which the breach may have caused
2. if an agent has profited financially from any breach of duty owed, the agent must turn over such profits to the principal
3. the principal may also rescind (revoke) the transaction in which the agent breaches the dity of loyalty