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19 Cards in this Set
- Front
- Back
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Agency |
In an agency relationship involving two parties, one of the parties, called the agent, agrees to represent or act for the other, called the principal. |
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Fiduciary |
Refers to a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. |
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Fiduciary relationship |
The relationship involves trust and confidence |
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Independent contractor |
Those who hire them have no control over the details of their work performance |
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Agency by agreement |
The agent will act for the principal in that the principal agrees to have the agent so act |
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Agency by ratification |
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Loyalty |
The agent has the duty to act solely for the benefit of his or her principal and not the interest of the agent or third-party. |
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Principles duties to the agent |
Compensation, reimbursement and indemnification, cooperation, safe working conditions |
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Agents duties to principal |
Performance, notification, loyalty, obedience, accounting |
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Express authority |
Authority declared and clear, direct, and definite terms |
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Equal dignity rule |
Requires that is the contract being executed is or must be in writing, and agents authority must also be in writing |
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Implied authority |
What an agent has to do what is reasonably necessary to carry out express authority and accomplish the objectives of the agency. |
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Apparent authority |
What an agent has been the principal, but either word or action, causes a third-party reasonably to believe that the agent has authority to act, even though the agent has no express or implied authority. |
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Ratification |
Occurs when the principalaffirms, or except your possibility for, and agents unauthorized act. |
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Disclosed principle |
The principal whose identity is known by the third-party at the time the contract is made by the agent |
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Partially disclosed principle |
A principal whose identity is not known by the third-party |
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Undisclosed principle |
A principal whose identity is totally known by the third-party |
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Respondeat superior |
A Latin term meaning let the master respond and is a principal may also be liable for harm that his or her agent causes to a third-party |
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Vicarious liability |
The employer is liable for torts committed by an employee acting within the course and scope of employment |
