Chapter 10: Specific Contracts of Law Flashcards
(14 cards)
Agency Law
What is an Agent’s Authority?
The Powers an Agent has to Act on Behalf of Their Principal and Bind Them to Contracts or Obligations.
Agency Law
What is Expressed and Implied Authority?
One is Clearly Defined in Writing or Verbally Whilst the Other Involes Incidental Acts Necessary for an Agent to Perform Their Role.
Agency Law
The Duties of Agents Include:
- Obeying Instructions
- Perform with Reasonable Skill and Care
- Not to Delegate (Unless Authorised)
- Not to Make a Secretive Profit
- Avoiding Conflicts of Interest
Agency Law
The Duties of a Principal Include:
Agent Remuneration and Indemnification.
Monies Paid for Work Done and Expenses Incurred
Guarentee Contracts
What is a Contract of Guarentee Formally Called?
A Tri-Partite Contract.
Involves Three Different Parties
Guarentee Contracts
What are the Contracts in a Guarentee Situation Called?
The Principal and Collateral Contract.
The Main and Supporting Contract
Guarentee Contracts
When is a Guarentee Contract Enforceable?
Where Evidenced in Writing.
Guarentee Contracts
Who Does the Guarentee Claim From if Things Go Wrong?
The Principal Debtor.
An Allowable Capital Loss if Amounts are Unrecoverable.
Hire of Chattels
What is a Hiree Entitled to?
The Right to Possession and Use of the Chattel.
Hire of Chattels
What is the Hirer Entitled to?
A Return of Rental Payments.
Hire Purchase
What is Available Under Hire Purchase?
The Option to Purchase the Asset Following the Final Rental Payment.
Hire Purchase
How is an Asset Acquired Under Hire Purchase Treated Under CAA 2001?
Capital Allowance Can be Claimed From the Start of the Hire Period.
A Loan of Money
What Relationship is Created in Entering a Contract of a Loan of Money?
A Debtor/Creditor Relationship.
CT Loan Relationship Rules Apply
A Loan of Money
Contracts Which are Not Loans of Money Include the Following:
- Money Owed on Assets Sold/Rented/Hired
- Declared But Unpaid Dividends
