Agency Flashcards
(42 cards)
This is anyone authorized to act on the behalf of another
Agency
T/F
Minors can be agents
TRUE
Give 3 common examples of agents
1) Partners
2) Corporate Officers
3) Employees
Agency requires an ______ but not ______
Agreement (meeting of minds)
Consideration
What two types of agencies require a writing?
1) Buying Land
2) Those impossible to perform in 1 year
T/F
Most agencies are terminable at will
TRUE
If an agency is wrongly terminated (breach of contract) what remedies are there?
Payment of damages
Cannot force specific performance (you can’t force an agent to work for you)
What 4 instances terminate an agency immediately
1) Death/Insanity of either party
2) Bankruptcy of Principal
3) Loss/Destruction of an essential subject to the agency
4) Failure to have or loss of a required license
If the agent is terminated, what must the principal do?
1) Give actual notice to old customers
2) Give published notice to new customers
T/F
An agent can bind a principal even after the agent is terminated if the agent still has apparent authority, meaning the Principal did not properly notify parties of the termination of the relationship
TRUE
This is when the principal tells the agent that they are to do something
Express Authority
This is when the principal allows the agent necessary authority to do whatever they must to accomplish their assigned tasks
Implied Authority
The principal can only be liable for an unathorized contract made by the agent on the principal’s behalf if the principal does what?
Ratifies the contract
T/F
A principal can imply that they ratify a deal
TRUE
If the principal accepts the benefits of the deal, they ratify the contract even if they don’t expressly say anything
Who is liable for authorized contracts made by the agent on the principal’s behalf? Is there an exception?
The Principal is liable, NOT the Agent
Exception is if Agent was acting for an undisclosed principal, in which case they are liable for an authorized contract in addition to the principal being liable
Who is liable for unauthorized contracts made by the agent on the principal’s behalf?
The principal is NOT liable, the agent IS
T/F
If the agent acts outside the grant of actual authority (makes an unauthorized deal) and the Principal is undisclosed, the Principal is not liable to 3rd parties
TRUE
If an agent makes a contract in his own name, while really acting for a secret principal, the agent has what authority?
The same actual authority as an agent for a disclosed principal
If an agent makes a contract in his own name, while really acting for a secret principal, the agent cannot have what authority?
Apparent Authority, because the 3rd party thinks the Agent is the Principal
T/F
There is no ratification when an agent makes a deal with an undisclosed principal
TRUE
Because the third party believes the Agent is the Principal
If there is a breach of a contract where the agent made a deal with an undisclosed principal, who is liable?
BOTH the Principal and the Agent
Generally a Principal is liable for authorized contracts made by the agent on the principal’s behalf. Exception is if Agent was acting for an undisclosed principal, in which case they are liable for an authorized contract in addition to the principal being liable
T/F
If a 3rd party finds out that the individual they were working with is an agent, not a principal, and that the principal was undisclosed, the 3rd party can get out of the deal
FALSE
They can’t get out of the deal because of an undisclosed principal, because in general the 3rd party still agreed to the deal
What is Respondeat Superior?
This means “Liability for Torts”
When is the principal liable for the agent’s torts?
for all torts committed by the agent while acting in the scope of the agency, even if the agent’s tort was a flagrant disregard of instructions
