Agency

Question 1

Agency

Answer 1

A relationship between two parties where one acts

as a representative of the other for a legal purpose.

Question 2

Power of Attorney

Answer 2

the authority to act for another person in specified or all legal or financial matters.

Question 3

Equal Dignity Rule

Answer 3

Equal-dignities rule refers to a legal doctrine requiring an agent to perform all acts authorized by a principal

Question 4

Agency by Ratification

Answer 4

Agency relationship created when a principal confirms and accepts a purported agent’s unauthorized act.

Question 5

Agency by Estoppel

Answer 5

A legal principle that bars a party from denying or alleging a certain fact owing to that party’s previous conduct, allegation, or denial.

Question 6

Agency by Operation of Law

Answer 6

an agency that exists because it will conform to prevalent law that is not because of an agreement between the agent and the principal.

Question 7

Registered Agent for Corporation/Business

Answer 7

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

Question 8

Family Purpose Doctrine

Answer 8

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.

Question 9

Duties of Principals to Agents

Answer 9

o Compensation
o Reimbursement and Indemnification
o Cooperation
o Provide a safe work place

Question 10

Duties of Agents to Principals

Answer 10

o Performance
o Notification
o Loyalty
o Obedience
o Accounting

Question 11

Scope of Agent’s Authority in the World of

Contracts

Answer 11

o Actual Authority – Express and Implied

o Apparent Authority

Question 12

Expressed Actual Authority

Answer 12

an agent has been expressly told he or she may act on behalf of a principal

Question 13

Implied Actual Authority

Answer 13

“usual authority”, is authority an agent has by virtue of being reasonably necessary to carry out his express authority.

Question 14

Partially Disclosed Principal

Answer 14

• 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

Question 15

Disclosed Principal

Answer 15

• 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.

Question 16

Undisclosed Principal

Answer 16

• a person who uses an agent for negotiations with a third party who has no knowledge of the identity of the agent’s principal.
• agent pretends to be acting for himself or herself, and both can be held liable

Question 17

Liability for Agent’s Torts

Answer 17

An agent is subject to tort liability to a third party harmed by the agent’s conduct only when the agent’s conduct breaches a duty that the agent owes to the third party.

Question 18

Doctrine of Respondeat Superior

Answer 18

occurs when the agent commits a tort or civil wrong within the scope of employment and the principal is held liable although the principal may have done nothing wrong.

Question 19

Liabilities are all about facts:

Answer 19

1) the many ways of looking at it

2) coming and going rule/frolic and detour

Question 20

Frolic and detour

Answer 20

Agents sometimes do things during the course of his or her employment to further their own interests, rather than the principal’s.

Question 21

Liability of Principal for Intentional

Torts of Agent

Answer 21

a principal is liable for torts only if the servant committed them “in the scope of employment.”

Question 22

Liability of Principal for Tort of the

Independent Contractor

Answer 22

Independent contractors are personally liable for their own torts (degree of control)

Question 23

Termination of Agency Relationship

Answer 23

such a relationship can also be brought to an end by mutual agreement between the parties, either in writing or orally.