Ch26 Nature and Creation of an Agency Flashcards Preview

Business Law > Ch26 Nature and Creation of an Agency > Flashcards

Flashcards in Ch26 Nature and Creation of an Agency Deck (98):
0

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

14. The approval by one person of the unauthorized act of another done in the former's name is called ________.

Ratification