Ch 17 Vocab Crc Bus Law

Front 1

Agency

Back 1

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).

Front 2

Fiduciary

Back 2

As a noun, a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking. As an adjective, a relationship founded on trust and confidence.

Front 3

Independent Contractor

Back 3

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.

Front 4

Ratification

Back 4

A party’s act of accepting or giving legal force to a contract or other obligation entered into by another that previously was not enforceable.

Front 5

Equal Dignity Rule

Back 5

A rule requiring that an agent’s authority be in writing if the contract to be made on behalf of the principal must be in writing.

Front 6

Power of Attorney

Back 6

Authorization for another to act as one’s agent or attorney in either specified circumstances (special) or in all situations (general).

Front 7

Notary Public

Back 7

A public official authorized to attest to the authenticity of signatures

Front 8

Apparent Authority

Back 8

Authority that is only apparent, not real. An agent’s apparent authority arises when the principal causes a third party to believe that the agent has authority, even though she or he does not.

Front 9

Disclosed Principal

Back 9

A principal whose identity is known to a third party at the time the agent makes a contract with the third party.

Front 10

Partially Disclosed Principal

Back 10

A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.

Front 11

Undisclosed Principal

Back 11

A principal whose identity is unknown by a third party, and that person has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract.

Front 12

Respondeat Superior

Back 12

A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.

Front 13

Vicarious Liability

Back 13

Indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.