Agency Flashcards
Agency
A relationship between two parties where one acts
as a representative of the other for a legal purpose.
Power of Attorney
the authority to act for another person in specified or all legal or financial matters.
Equal Dignity Rule
Equal-dignities rule refers to a legal doctrine requiring an agent to perform all acts authorized by a principal
Agency by Ratification
Agency relationship created when a principal confirms and accepts a purported agent’s unauthorized act.
Agency by Estoppel
A legal principle that bars a party from denying or alleging a certain fact owing to that party’s previous conduct, allegation, or denial.
Agency by Operation of Law
an agency that exists because it will conform to prevalent law that is not because of an agreement between the agent and the principal.
Registered Agent for Corporation/Business
The purpose of a Registered Agent is to provide a legal address (not a P.O. Box) within that jurisdiction where there are persons available during normal business hours to facilitate legal service of process being served in the event of a legal action or lawsuit
Family Purpose Doctrine
a rule that holds the owner of an automobile liable for damages to others while a member of the family is driving the vehicle, regardless of whether or not the owner gave permission.
Duties of Principals to Agents
o Compensation
o Reimbursement and Indemnification
o Cooperation
o Provide a safe work place
Duties of Agents to Principals
o Performance o Notification o Loyalty o Obedience o Accounting
Scope of Agent’s Authority in the World of
Contracts
o Actual Authority – Express and Implied
o Apparent Authority
Expressed Actual Authority
an agent has been expressly told he or she may act on behalf of a principal
Implied Actual Authority
“usual authority”, is authority an agent has by virtue of being reasonably necessary to carry out his express authority.
Partially Disclosed Principal
- one whose agent reveals that he has a principal, but does not reveal the principal’s identity
- the principal and the third party will be liable on contracts the agent makes, and the agent will also generally be liable unless otherwise agreed
Disclosed Principal
- a principal whose identity is revealed to a third party by an agent.
- always liable on the third party contract
- agent is not liable generally.