Chapter 4: Law of agency Flashcards
(25 cards)
agents of a company
employees, they have no physical existence
express agent agreement terms
- authority and power of the agent
- duties to be performed
- commission or other remuneration
- period of the agreement
power of attorney
- appointment by deed
- can sign deeds on the principles behalf
implied agreement
someone tasked with acting on the behalf of another with a commission or remuneration involved
rules for agreement by ratification
- mustve acted on the principals behalf, with the principal in mind
- principal mustve been of contractual capacity when it occured
- ratification must be in a reasonable time
- principal must be in full knowledge of that relevant to the act or have waived that right
marine ratification can occur after the loss
actions of an agent
- giving general advice
- granting cover (acting for insurer)
- collecting premiums
- completion of the proposal forms
- ## agents knowledge is deemed known by the insured
when are they the insured agent
- collecting info from the insured with express authority from the insurer
- enters into a contract on the insurers behalf
- does something as the appointed rep of the insurer for the purposes of the financial services and markets act 2000
- places insurance of type x with only one insurer or contractually limited number of insurers
- the insurer only provides insurance type x through a limited number of agents
- insurance sold under the agents name
- agent uses the insurers name
- insurer asks agent to solicit customers customs
not if the only recognition they receive from the insurer is the payment of commission
conflict of interest
if its the brokers fault by taking on the clients they are held they are held liable for any breches
duties of agent
- obey principals instructions
- exercise proper care and skill
- perform duties
- act in good faith (full disclosure , sales by agent unless it made known)
- account for money received
exercise proper care and skill
that of a reasonable professional
in a timely manor
where is agent delegation allowed
- where its expressed
- where its trade custom
- where its implied by the circumstances
- in case of necessity
this work is done on behalf of the agent not the principal so the agent remains liable | not vivacious between placing and producing broker
remedies for bride
- fire the agent
- take the bribe or amount of loss if thats more
- refuse commission
is a crime
action by agents is treated by the prinsipals actions in law
what is the principal (not taken to know)
confidential info known to the agent or obtained from from persons not connected to the insurance contract
rights of agents
- remuneration (for transactions brought about before renumeration)
- indemnity (unless illegal, unauthorized, breach of duties)
lienor
person holding the lien
can hold but generally cant sell without a court order
what is ostensible/apparent based on
estoppel by representation (words or action)
common ways for apparant authority
- restricted authority
- authority was terminated
- there was never any appointment (agency by estoppel)
when is an agent liable on a contract with a disclosed principle
- signed a deed
- rade customs
- negotioation instrument unless they make clear that they re signing for the principal
undisclosed principle enforcement by 3rd parties
right of election
can go after the principal or the agent, not both
payments due to a third party or principal arent discharged by paying the agent unless they are told to do so
termination of agency
- agreement between the parties
- performance
- lapse of time
- withdrawal of authority
- renunciation by the agent
- death by either principal or agent
- bankruptcy (if of principal done, if of agent only if stops the agent carrying out duties)
- insanaity
- frustration
sources of frustration
- subject matter destroyed
- task becomes impossible illegal or futi;e
- agent becomes an enemy alien
-illness of either party that makes the agency useless (nonconsumer)
