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18 Cards in this Set
- Front
- Back
agency |
relationship between two parties created by an implied or an express agreement or by law |
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principal |
person who so empowers one to enter into legal relatioship |
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agent |
party empowered |
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warranty of principals |
imposed by law on the agent |
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scope of authority |
range of acts authorized by principal |
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express authority |
communicated directly by the principal to the agent |
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power of attorney |
writing that appoints someone as agent |
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implied authority |
power to do anything that is reasonably necessary to carry out the duties expressly authorized |
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apparent authority |
authority that the principal, with knowledge or through negligence, permits agent to assume |
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ratification |
act outside the agents scope of authority |
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fiducary duties |
requires certain categories of persons, to subordinate their personal interest in order to act for the benefit of another person |
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duty of loyalty |
means an agent may not secretly benefit from agency transaction |
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duty of obedience |
agent must carefully obey this instruction of principal |
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duty of reasonable care and skill |
exercise the degree of care and skill that a reasonably prudent person would use |
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duty of confidentiality |
treat information about the principal with great caution |
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duty of accounting |
to count to the principal for all money and property of the principal that comes into agents possesion |
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commingling |
mixing the funds or property of a fiduciary |
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undisclosed principal |
agent liable on contract entered into under such circumstances |