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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Agency |
Relationship in which one person asked him to have another person with power to affect the legal rights and duties of the principal
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Legal relationships that overlap with agency law |
1. Employer employee 2. Independent contractors |
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Employer-employee |
Employees are agents of their employers. |
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Employer employee test |
Does employer of the ability to control the manner and means in which the person does work? |
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Independent contractors |
Not an employee of the principal |
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Employee versus independent contractor |
1. Principal's right to prohibit agent from working with competitors 2. Requirement to undergo training before working on the principal's behalf 3. Principal provides equipment tools or materials 4. Requirement to use a vehicle with the principal's logo 5. Requirement to adhere to customer service requirements adopted by the principal 6. Requirement to subject to inspections performed at the principals discretion |
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What two ways is an agency created? |
Either by contract or agreement |
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What are the three elements of an agency relationship?
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1. A person acting on behalf of another 2. assent by the agent 3.control by the principal |
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Agency by estoppel |
Principal intentionally or carelessly causes a third-party to believe that another person has authority to act on the principal's behalf
The principal knows of the third-party's belief belief and does not take reasonable efforts to notify the third-party
The third-party relied on good faith on the appearances created by the principal |
Principal stays silent |
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Does the agency contract need to be in writing? |
No |
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When is writing required in an agency contract? (3 things) |
1. The principal appoints an agent for more than a year 2. The principal wants to grant authority to an agent to sell land 3. The principal must authorize an agent in writing whenever the agent is to enter into a contract that requires a writing under the Statute of Frauds (a.k.a. Equal dignity statutes) |
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What is the power of attorney? |
Instrument in writing that states the authority of an agent |
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What happens to an agency contract if the principal is a minor or mentally incompetent? |
The contract entered into by an agent on the behalf of the principal is voidable by the principal, regardless of the agent's capacity |
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If the principal as an adult, contracts entered into by an agent who is a minor are...? |
Valid |
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What happens to the agent when the principal subsequently loses capacity? |
The agent's power to enter into a contract is terminated on the behalf of the principal |
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Durable power of attorney expresses what two things? |
1. The agent's authority will not be affected by the principal's subsequent incapacity 2. The agent's authority will become effective upon the principal's subsequent incapacity |
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The five duties an agent owes to the principal |
1.Obedience 2.good conduct 3.diligence and loyalty 4.duty to inform 5.duty to provide an accounting |
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If the agent breaches any of his fiduciary duties to the principal, who is liable? |
The agent |
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