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18 Cards in this Set
- Front
- Back
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agency |
a relationship between two parties created by an agreement by law |
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principal |
the person who so empowers another to enter into legal into legal relationships in his or her behalf |
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agent |
the party so empowered |
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warranty of the principal's capacity |
a law that assumes that the agent promised the third party that the principal had capacity |
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scope of authority |
the range of acts authorized by the principal |
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express authority |
communicated directly by the principal to the agent |
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power of attorney |
any writing that appoints someone |
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implied authority |
the power to do anything that is reasonably necessary or customary to carry out the duties expressly authorized |
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apparent authority |
the authority that the principal, with knowledge or through negligence, permits the agent to assume , or which the principal holds the agent out as possessing |
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ratification |
approval of a recently unauthorized act, or an act outside the agents scope of authority |
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fiduciary duties |
require certain categories of persons such as agents, to subordinate their personal interests in order to act for the benefit of another person |
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duty of loyalty |
the agent may not secretly benefit from the agency transaction |
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duty of obedience |
the agent must carefully obey the instructions of the principal |
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duty of reasonable care and skill |
this requires the agent to excercise the degree of care and skill that a reasonably prudent person would use in a similar situation |
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duty of confidentiality |
requires the agent to treat info about the principal with great caution |
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duty of accounting |
requires agent to account to the principal for all money and property of the principal that comes into the agents possession |
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commingling |
mixing the funds or property of a fiduciary such as an agent with those of the person to whom the fiduciary duty is owed |
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undisclosed principal |
when an agent is not allowed to reveal the principals existence or identity |
