Agency Law Flashcards Preview

Agency Law > Agency Law > Flashcards

Flashcards in Agency Law Deck (13)
Loading flashcards...
1
Q
What is Agency Law?
A
Agency Law deals with someone's ability to bind you to a contract with a third party
2
Q
What is required for Agency to exist?
A
Both parties must consent to the relationship and intend for an Agency relationship to exist

Agent owes Principal fiduciary duty

Principal doesn't owe Agent fiduciary duty

A contract is NOT required and an Agency agreement is not based on Contract Law; Exception - If duties cannot be performed within a year; a signed writing is required
3
Q
What is Actual Authority in an agency?
A
Actual Authority is what is expressly granted or is implied by the duties you expect the Agent to perform and is necessary to carry them out
4
Q
What is Implied Authority in an agency?
A
When authority is expressly granted; it is implied that the agent has the authority to carry out the duties

Does not include authority to sell or alter a business
5
Q
What is Apparent (Ostensible) Authority in an agency?
A
Apparent Authority is based on the third party's perspective - they believe that the Agent has the
authority to enter into a contract based on:

*Prior dealings with agent
*Agent's title leads the third party to believe they can enter into a contract
*The Principal hires the Agent to carry out duties that normally carry with them the rights to enter into contracts
6
Q
How is an Agency terminated?
A
*Both Agent and Principal agree to terminate
*Principal fires Agent
*Agent fires Principal
*Agent breaches their contract by doing something like violating their obligation to act as a fiduciary to Principal
7
Q
How do you terminate Apparent Authority?
A
*Let the public know
*Let the people or entities that the Agent previously interacted with know
*In cases of death; or Principal is otherwise not competent to contract; ALL authority is revoked
8
Q
What is an Agency Coupled with an Interest?
A
Agent acquires an ownership interest in the Agency

Can only be terminated early (before the interest expiration date) by the Agent

Unless the Agency has a specific time limit spelled out in a contract; the Agent's authority is irrevocable
by the Principal
9
Q
When is an employee an Agent; and when does this make the employer liable?
A
Employees are agents while acting within the scope of their duties.

For employees who injure third parties while acting within the scope of their duties; both Employee and Employer are liable
10
Q
When are Agents liable for torts (civil wrongs) they commit?
A
Agents are liable for torts (civil wrongs) committed whether they had authority or not
11
Q
Are Agents who act outside of their authority liable?
A
Agents who act outside of their authority will be liable for the act

Exception - Principal ratifies the contract which relieves Agent of liability

In order to ratify; Principal must know all of the facts and must ratify before third party cancels agreement

If Principal keeps the benefits of the contract; ratification is implied

Contract must be 100% ratified or there is no contract
12
Q
What is an Agent's liability when acting for an undisclosed principle?
A
*Agent liable to third party even if acting within authority
*Third party can sue both Principal and Agent if Principal becomes disclosed
*Agent can then sue Principal
13
Q
What are the requirements for a Power of Attorney (POA)?
A
Must be in writing

Must be signed by person granting the POA

Ends upon death of Principal

General POA - Agent authorized to handle all affairs

Special POA - Agent authorized to handle only specific affairs