R5 M4 - Agency Flashcards
(8 cards)
1
Q
- What are the condition that must be met to form an agency?
- Formation of an agency can it be done written?
A
- The principal must have contractual capabilities
- The formation of an agency may be done oral or written
2
Q
- An agent will be liable under a contract made with a third party when the agent is acting on behalf of a (an)?
- When can a third party void or rescind a contract when it comes to a disclosed or undisclosed principal?
- What is an agent?
A
- Undisclosed principal
- The third party cannot rescind the contract upon subsequent disclosure of the principal. This can happen if the non disclosure was done fraudulently.
- An agent is a person authorized to act on another person’s behalf.
3
Q
- Can a principal terminate an agency relationship?
- What does the power of attorney do to an agent?
- Who needs to sign the power of attorney?
- What is constructive trust
A
- Yes he can terminate the agency relationship at any time but he will have to pay penalty for breach of contract.
- It limits the agent’s authority to specific transactions
- The principal needs to sign the power of attorney.
- Ways to get money or secret profit back for damages
4
Q
What duties does the principal owe to the agent?
What duties does the agent owe the principal?
What is ratification?
A
- A principal has an implied duty to reimburse (indemnify) the agent for all expenses incurred while doing his duty.
- The agent owes a duty of accountability, performance, loyalty.
- The process in which a principal can accept an unauthorized agent for doing great work on his behalf without his permission.
5
Q
- When the principal doesn’t respect his agent in a principal-agent relationship that is not contractual what remedies does the agent have?
- What remedies is _not available _ to the agent who’s principal is guilty of violating a duty owed to the agent when the principal-agent relationship does not have a contract?
A
- Whether the relationship between the two is contractual or not , the agent may recover money past service for damages, future damages that has impacted him from the principal bad behavior and the agent can withhold further performance from the principal as way to boycott.
- Specific performance is a court order to fulfill the terms of a contract. If there is no contract this can’t happen.
6
Q
- An agency relationship is terminated by operation of law if?
- What act by the party can terminate an agency realtionship ?
A
- The principal is dead, the principal must be capable of carrying out the agency relationship; his incapacity terminates the relationship by operation of law (for example declared insane in court, war situation duty can’t be done, impossible to do your work) and failure to get your license by the agency to legal by law.
- Renunciation would terminate the agency not by operation of law but by the act of the party and revocation for the principal
7
Q
- When a third party communicates with an agent whose principal is undisclosed would that make the authority of the agent actual or apparent?
- Disclosed or undisclosed principal or agent who can be caused to be liable
A
- It would make the authority of the agent actual because the third party does not know that the agent is not a principal in the contract. Apparent authority comes into play when the third party know of the principal( disclosed) and the agent
- You have the option to chose between the agent or the principal
8
Q
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
What doctrine limits the corporation’s power to act outside the scope of the corporation’s statutory power or purposes?
A
- Respondent superior —> employee tort makes the principal responsible when it done within the scope of employment,
- Ultra vires is a doctrin limiting a corporation’s power to act outside the scope of the corporation’s stated purposes or statutory power
