Law Test 3

Front 1

Agency

Back 1

[T]he fiduciary relation which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

Front 2

independent contractor

Back 2

a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking. He may or may not be an agent.

Front 3

Agency by Agreement

Back 3

An agency relationship based on an express or implied agreement that the agent will act for the principal.

Front 4

Agency by Ratification

Back 4

A confirmation by the principal
of an act or contract performed or entered into on his or her
behalf by another, who assumed, without authority, to act
as his or her agent.

Front 5

Agency by Estoppel

Back 5

If a principal holds out to a third
party that another is authorized to act on the principal’s
behalf, and the third party deals with the other person
accordingly, the principal may not later deny that the other
was the principal’s agent for purposes of dealing with that
third party.

Front 6

Agency by Operation of Law

Back 6

Agencies recognized by
courts – e.g., family relationships, emergency situations –
in the absence of any formal agreement, confirmation, or
act or omission by the principal that implied the agent’s
authority.

Front 7

Performance

Back 7

An agent impliedly agrees to use
reasonable diligence and skill (except for a specialist,
who is held to a higher degree of skill) in performing the
task in its entirety.

Front 8

Notification

Back 8

An agent is required to notify the principal
of all matters that come to the agent’s attention concerning
the subject matter of the agency

Front 9

Loyalty

Back 9

An agent has the duty to act solely for the benefit
of his or her principal, and not in the interest of the agent
or a third party. Moreover, any information or knowledge
obtained in the course of the agency is confidential

Front 10

Obedience

Back 10

An agent has the duty to follow all lawful and
clearly stated instructions of the principal

Front 11

Accounting

Back 11

Unless otherwise agreed, an agent has the duty to keep and make available to the principal an account of all property and money received and paid out on the principal’s behalf, including gifts received from third persons.

Front 12

Constructive Trust

Back 12

Anything an agent obtains by virtue of the agency relationship belongs to the principal; therefore, a principal may sue to recover any benefits retained by the agent.

Front 13

Avoidance

Back 13

In the event that the agent breaches her contract with the principal, the principal may elect to avoid any contract he entered into with the agent

Front 14

Indemnification

Back 14

To the extent that the agent’s breach causes harm to some third party, who then sues the principal, the principal may seek indemnification from the agent.

Front 15

Compensation

Back 15

When a principal requests certain services from an agent, the principal has a duty to pay the agent, in a timely manner, for those services rendered

Front 16

Reimbursement

Back 16

Whenever an agent disburses sums of money to fulfill the principal’s request or to pay for necessary expenses incurred in the reasonable performance of his or her duties, the principal has the duty to reimburse the agent.

Front 17

Indemnification

Back 17

Subject to the terms of the agency agreement, the principal has a duty to compensate, or indemnify, the agent for liabilities arising from the agent’s lawful and authorized acts on the principal’s behalf

Front 18

Cooperation

Back 18

A principal has the duty to cooperate with the agent and to assist the agent in performing his or her duties.

Front 19

Safe Working Conditions

Back 19

A principal has the duties to (i) provide its agents and employees with safe working premises, equipment, and conditions, and (ii) inspect working conditions and warn agents and employees of unsafe areas.