Part IV: Agency Flashcards Preview

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Flashcards in Part IV: Agency Deck (11):
1

agency agreement

when one party designates another to act on his/her behalf

2

principal

party who hires agent

3

agent

party who acts on behalf of principal

4

Is a written agreement necessary to create an express agency relationship?

No, unless:
1. the contract being entered into falls under the Statute of Frauds.
2. OR, if the agency relationship cannot reasonable be completed w/in 1 yr.
3. capacity.

5

capacity & agency relationship

An agency relationship terminates as soon as either of the agent or principal is adjudicated incompetent.

6

Does an agency relationship require consideration?

No.

7

principal ratification w/out express or implied authoity

The principal is required to ratify the contract before it is binding.

8

apparent authority

comes from how the agent is viewed by 3rd parties when the principal does nothing to correct the appearance of authority.

9

principal ratification when agent enters contract w/principal's identity undisclosed

1. principal is not known does not have to ratify the contract to be held liable.
2. The principal can only be sued if his/her identity is discovered. Otherwise, only the agent can be sued.

10

principal ratification when agent enters contract w/out authority on behalf of a principal

the principal must know all material facts in order to ratify the contract

11

principal ratification when agent commits a tort while working for a principal in the manner in which they were hired

the principal will be liable.

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