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20 Cards in this Set
- Front
- Back
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A two party relationship in which one party (the agent) is authorized to act on the behalf of, and under the control of, the other party (The principal)
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Agency
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When a manifested agreement of two parties that one party (The agent) will act for the benefit of the other (The principal) under the principal's direction.
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Agency Formation
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Duties or acts that must be performed personally and cannot be delegated to an agent.
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Non-Delegable obligations
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An agents ability to affect his principal's legal relations
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Authority
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Authority that must be communicated to the agent
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Actual Authority
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Authority that must be communicated to a third party
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Apparent Authority
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Actual Authority created by the principal's actual words (Written or oral)
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Express Authority
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Actual authority to do whatever is reasonable to assume that the principal wanted him to do, given the principal's expressed statements and the surrounding circumstances.
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Implied Authority
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(1) Agent possesses the power to alter legal relations between principals and third parties and principal and himself.(2) The agent acts as a fiduciary regarding matters within the scope of the agency. (3) Right to control the agent's conduct with regard to matters entrusted to the agent.
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Proof of an agency's existence
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An agent continuously employed to conduct a series of actions
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General agent
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An agent employed to conduct a single transaction or a simple group of transactions.
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Special agent
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An agent who receives no compensation for his services.
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Gratuitous agent
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An agent of an agent. A person appointed by an agent to perform tasks that the agent has undertaken to perform for his principal. E.g. Hiring an accounting firm for your employer.
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Subagent
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(1) Hiring party's right to control the manner and means by which the project is accomplished. (2) The skills required. (3) The source of the instrumentalities. (4) location of the work. (5) Duration of the relationship between parties. (6) The hiring party's right to assign additional projects to the hired party. (7) Extent of the hired party's discretion over when or how long to work. (8) Method of payment. (9) Hired party's role in hiring and paying of assistants. (10) Whether the work is part of regular business. (11) Whether the hiring party was in business. (12) Provision for employee benefits. (13) Tax treatment of the hired party.
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Definition of an employee v. independent contractor
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An agent must subordinate his personal concerns by (1) avoiding conflicts of interest with the principal and (2) not disclosing confidential information received from the principal.
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Duty of loyalty
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An agent must keep accurate records and accounts of all transactions and disclose these to the principal once the principal makes a reasonable demand for them
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Duty to account
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(1) The principal's obligation to compensate the agent, (2) To reimburse the agent for the money spent in the principal's service and (3) to indemnify the agent for losses suffered in conducting the principal's business.
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Duties of principal to agent
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(1) At a time or upon the happening of an event stated in the agreement. (2) When a specified result has been accomplished, if the agency was created to accomplish a specified result. (3) By mutual agreement of the parties, at any time. 4. At the option of either party (Revocation/Renunciation)
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Termination by act of parties
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(1) Death of the principal. (2) The death of the agent. (3) The Principal's permanent loss of capacity (e.g. insanity). (4) The agent's loss of capacity to perform the agency business (e.g. loss of license). (5) Changes in the value of the agency property or subject matter. (6) Changes in business conditions. (7) The loss of destruction of the agency property or subject matter or the termination of the principal's interest therein. (8) Changes in the law that make the agency business legal. (9) The principal's bankruptcy. (10) The agent's bankruptcy. (11) Impossibility of performance by the agent. (12) A serious breach of the agent's duty of loyalty. (13) The outbreak of war.
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Termination by operation of law
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When an agent has an interest in the subject matter of the agency that is distinct from the principal's interest and that is not exercised for the principal's benefit
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Agency coupled with an interest
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