BLAW Exam 4 Flashcards
(30 cards)
What is an agency?
Person 1 gives Person 2 legal authority to act on Person 1’s behalf when dealing with 3rd parties
What is a principal?
Person 1, a person who has someone else acting on his or her behalf
What is a agent?
Person 2, a person who is acting for someone else
What do you need to create an agency relationship?
Consent: must be mutual
Control: agent controlled by principal
Fiduciary relationship: relationship of trust, act in best interest
What do you not need for an agency?
Written Agreement: exception of equal dignities rule
Formal Agreement
Compensation
What is the duty in agency law?
Its agent to principal and duty of loyalty
What is outside benefits?
Agent can only receive profits if the principal allows it
What is confidentiality?
duty to keep secrets
What is competition?
Agent cannot compete with the principal
What is conflict of interest?
Cannot act for more than one principal whose interests’ conflict
What are secret dealings?
Agent must tell the principal if he is actually dealing with agent
Who must obey instructions?
Agent must obey principal, unless it is unethical
What is duty of reasonable care?
Special skills
Gratuitous agents
What is the remedy of profits?
Agent must pay principal profits received through the breach
What is the remedy of recession?
Principal may be able to rescind/cancel a contract made through the breach, they can’t represent you anymore
What is the duty to compensate?
principal agreed to pay your agent
What is the duty to indemnify/reimburse?
For tort claims by third party
For contract claims by third parties
What is the duty to cooperate?
Allow opportunity to work
Can’t unreasonably interfere
How does the principal-agent relationship terminate?
1.) Term Agency Agreement: certain period of time or purpose is achieved
2.) Agency at will: either party can terminate at any time
3.) Wrongful termination: may have to pay damages to the other party
What is the principal’s contract liability to 3rd parties?
Agency had authority
Express authority, implied authority, apparent authority
Principal ratified the agents acts, subagents
What is the Agent’s Contract Liability to 3rd parties?
1.) Fully Disclosed Principal: existence and identity of principal is known
2.) Unidentified Principal: existence of principal is known but identity pr principal is unknown
