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Regulation > Agency > Flashcards

Flashcards in Agency Deck (17):
1

Actual authority

power given by a principal to an agent that allows the agent to enter into contracts upon the principal's behalf

2

Agent

a party who works on behalf of another party (the principal)
may be general (broad range of duties) or special (specific type of duty/transaction)

3

Apparent authority

when a third party reasonably believes an agent has actual authority

4

Disclosed principal

Principal who is known by the third-party

5

Fiduciary duties

agent's obligations to act in the best interests of the principal

6

Independent contractor

works for another party but is not subject to control by that party. generally does not create liability for the other party

7

Joint and several liability

when principal and agent can both be held liable by third party, or third party may choose to sever liability and only hold principal or agent liable

8

Partially disclosed principal

when third party knows a principal exists, but does not know the principal's identity

9

Principal

party for whom the agent acts

10

Ratification

when a principal approves a contract that was entered into by an agent lacking authority. The principal is now liable for the contract.

11

Respondeat superior

"Superior should b e responsible"
When an agent commits a tort in the scope of employment, the principal is held liable

12

Scope of employment

Agent's actions that occur substantially in the work environment

13

Third party

party who is interacting with either the principal or the agent

14

Undisclosed principal

when third party to a contract does not know that a principal exists

15

Del credere

sales agent who guarantees the accounts of the customers (not required to be in writing)

16

gratuitous agency

when consideration is missing from a valid principal-agency relationship

17

Agency by estoppel

implied agency