Flashcards in Ch26 Nature and Creation of an Agency Deck (98):
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Principal
Nature of Agency
1
Agent
Nature of Agency
2
Principal appointing agent results in contract of agency.
Nature of Agency
3
Person who appoints another to contract with third parties.
Principal
4
Person appointed to contract on behalf of another.
Agent
5
Agents are delegated by business owners for the important details of business transactions.
Importance of Agency
6
Agents are necessary in order to bring one person into a business contractual relationship with other people.
Importance of Agency
7
An agent has all the powers the person who appointed them has.
What Powers May Be Delegated to an Agent?
8
Courts will not permit certain acts of a personal nature delegated to agents.
What Powers May Be Delegated to an Agent?
9
Agents cannot be authorized to act out against the law.
What Powers May Be Delegated to an Agent?
10
All people legally competent to act for themselves can act through an agent.
Who May Appoint an Agent?
11
A contract between a minor and an agent is voidable. Some states find this contract void.
Who May Appoint an Agent?
12
Any person with sufficient intelligence to carry out the principal’s order may act as an agent.
Who May Act as an Agent?
13
Corporations and partnerships may act as agents.
Who May Act as an Agent?
14
An agent may require certain requirements for some types of transactions.
Who May Act as an Agent?
15
Failure to meet these requirements disqualifies an agent in performing his duties of those transactions.
Who May Act as an Agent?
16
Agent authorized to carry out particular kind of business or all business at a place.
General agents
17
Agent authorized to transact specific act or acts.
Special agent
18
Bailee seeking to sell property on commission.
Factors
19
Factor who sells on credit and guarantees price will be paid.
Factors del credere
20
Agent with job of bringing two contracting parties together.
Brokers
21
General agent appointed by written authorization.
Attorneys in fact
22
Extent of Authority: Acts clearly within the scope of the express authority.
A general agent has authority to transact several classes of acts.
23
Extent of Authority: Acts customarily within such an agent’s authority.
A general agent has authority to transact several classes of acts.
24
Extent of Authority: Acts outside of express authority but appear to third parties to be within the scope of the agent’s authority.
A general agent has authority to transact several classes of acts.
25
Authority of agent stated in agreement creating agency.
Express authority
26
Agent’s authority to do things in order to carry out express authority.
Implied authority
27
Authority an agent possesses by custom.
Customary authority
28
Authority an agent is believed to have because of principal’s behavior.
Apparent authority
29
Appointment
Creation of an Agency
30
Ratification
Creation of an Agency
31
Estoppel
Creation of an Agency
32
Necessity
Creation of an Agency
33
Common way to create an agency; principal makes a statement to the agent.
Appointment
34
Contract may be written or oral, formal or informal.
Appointment
35
Power of attorney: writing appointment of agent.
Appointment
36
Approval by one person of the unauthorized act of another done in the former’s name.
Ratification
37
Requirements for ratification:
Ratification
38
The one who assumed the authority of an agent must have made it known to the third party that he or she was acting on behalf of the party who attempts to ratify the act.
Requirements for ratification
39
The one attempting to ratify must have been capable of authorizing the act at the time the act was done. Some jurisdictions apply this rule to corporations so that a corporation formed subsequent to the time of the act cannot ratify an act of a promoter. Other states have ignored this requirement in regard to ratification to ratification of the acts of corporation promoters.
Requirements for ratification
40
The one attempting to ratify must be capable of authorizing the act at the time the approval of the act is given.
Requirements for ratification
41
The one attempting to ratify must have knowledge of all material facts.
Requirements for ratification
42
The one attempting to ratify must approve the entire act.
Requirements for ratification
43
The ratified act must be legal, although the person whose name was forged may ratify a forgery on commercial paper.
Requirements for ratification
44
The ratification must be made before the third party has withdrawn from the transaction.
Requirements for ratification
45
Agency arising when one person leads another to believe third party is an agent.
Estoppel
46
The principal is bound to the extent of the representations made.
Estoppel
47
Relationship of agency may be created by necessity for one.
Necessity
48
Agency of necessity may also arise from an unforeseen emergency.
Necessity
49
One who contracts to do jobs and is controlled only by contract as to how performed.
Independent Contractor
50
Employee works for an employer.
Employer and Employee
51
Employer controls what work employee is to do and in what manner.
Employer and Employee
52
Crossword Question: These three words represent a general agent who has been appointed by a written authorization.
Attorney in Fact
53
Crossword Question: ___________ and partnerships, as well as individuals, may appoint agents.
Corporations
54
Crossword Question: The principal may have behaved in a way or made a statement that caused the third person to believe that the agent has authority.
Apparent
55
Crossword Question: This authority specifically delegated to the agent by the agreement creating the agency.
Express
56
Crossword Question: The appointed person.
Agent
57
Crossword Question: This acronym stands for a written instrument indicating the appointment of an agent. Many times we think of these when someone gets ill and we have to have them to act on their behalf.
POA
58
Crossword Question: This person is a commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid by the purchaser or by the factor. (Three words).
Factor Del Credere
59
Crossword Question: A person who appoints another to contract with third parties.
Principal
60
Crossword Question: A special agent whose task is to bring the two contracting parties together.
Broker
61
Crossword Question: These two words represent the person that may sell in the name of the principal.
Commission Merchants
62
Crossword Question: This is the approval by one person of the unauthorized act of another done in the former's name.
Ratification
63
Crossword Question: This agent is authorized by a principal to transact some specific act or acts.
Special
64
Crossword Question: This authority allows an agent to carry out orders without them being specifically enumerated in the agreement.
Implied
65
Crossword Question: A ______is one who receives possession of another's for the purpose of sale on commission.
Factor
66
Crossword Question: This agent is authorized to carry out all of the principal's business of a particular kind....
General
67
Cengage Learning: Contract under which one party is authorized to contract for another.
Agency
68
Cengage Learning: Agency arising when person leads another to believe third party is agent
Agency by Estoppel
69
Cengage Learning: Person appointed to contract on behalf of another
Agent
70
Cengage Learning: Authority agent believed to have because of principal’s behavior
Apparent Authority
71
Cengage Learning: General agent appointed by written authorization
Attorney in Fact
72
Cengage Learning: Agent with job of bringing two contracting parties together
Broker
73
Cengage Learning: Authority agent possesses by custom
Customary Authority
74
Cengage Learning: Authority of agent stated in agreement creating agency
Express Authority
75
Cengage Learning: Bailee seeking to sell property on commission
Factor
76
Cengage Learning: Factor who sells on credit and guarantees price will be paid
Factor del Credere
77
Cengage Learning: Agent authorized to carry out particular kind of business or all business at a place
General Agent
78
Cengage Learning: Agent’s authority to do things in order to carry out express authority
Implied Authority
79
Cengage Learning: One who contracts to do jobs and is controlled only by contract as to how performed
Independent Contractor
80
Cengage Learning: Writing appointing an agent
Power of Attorney
81
Cengage Learning: Person who appoints another to contract with third parties
Principal
82
Cengage Learning: Approval of unauthorized act
Ratification
83
Cengage Learning: Agent authorized to transact specific act or acts
Special Agent
84
1. Every agency relationship involves at least three parties.
True
85
2. Most businesses can operate without the use of agency.
False
86
3. A partnership can act as an agent.
True
87
4. A person can delegate anything to an agent.
False
88
5. A special agent is one authorized to carry out the principal's business.
False
89
6. A commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid is called a factor del credere.
True
90
7. A/n ________ is one who contracts to perform some tasks for a fixed fee.
Independent contractor
91
8. When the principal behaves in a way or makes statements that mislead a third party into mistakenly believing that the agent has authority, this authority is called ________ authority.
Apparent
92
9. A general agent has authority that one in his or her position usually possesses. This authority is known as ________ authority.
Customary
93
10. Agents may be classified as ________.
General and special
94
11. A person who appoints another to enter into contracts with third parties is called a ________.
Principal
95
12. bailee who seeks to sell the bailed property on commission is a/n ________.
Factor
96
13. An agency which arises when a person leads another to believe a third party is an agent is an agency by ________.
Estoppel
97