Formation Flashcards
1
Q
Agency Relationship
A
Agency is a fiduciary relationship that arises when one person (the “principal” appoints another (the “agent”) to act on the principal’s behalf and the agent consents to act. The
2
Q
Control
A
The agent must act subject to the principal’s control, but the degree of control exercised by the principal doesn’t have to be significant. The requisite level of control may be found simply by the fact that the
principal has specified the task that the agent should perform, even if the principal hasn’t.
3
Q
Capacity
A
A principal must have contractual capacity. Thus, a minor’s appointment of an agent is voidable, and incompetents and most unincorporated organizations cannot be principals.
