Test 3 Flashcards
(52 cards)
What is agency
Consensual, voluntary, fiduciary relationship recognized by law between a principal with the right to control the actions of the agent
Employees are?
All Employees are agents but not all agents are employees
Determining whether the principal is liable to a third party for breach of contract tract is based on what?
Authority given by the principal to the agent
3 types of Actual authority
Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings
3 types of Actual authority
Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings
4 types of circumstantial authority
Apparent
Estoppel
Ratification
Emergency
What is apparent authority
Law implies agency where none existed to prevent injustice to a third party
What is estoppel authority
Legally barred from claiming lack of authority
State Farm story
What is ratification authority
Principal accepts the actions of the agent after the fact.
Booked books by secretary that boss used.
What is emergency authority
Agent takes reasonable and necessary actions in an emergency to protect the principals interest.
What are the 5 exceptions when an agent can be held liable to a third party
Undisclosed principal
Partially disclosed principal.
Agent makes a personal promise
Agent commits forgery
Agent signs negotiable instrument and a third party pays value for it. (Check)
When is a principal Liable to a third party for a tort committed by the agent
Direct liability
Respondeat Superior
Agent was acting in the scope of his employment
What are the 4 forms of direct liability a principle can commit to make him culpable of an agents tort
Authorization
Ratification
Negligent hiring
Negligent supervision
What is respondeat superior
“Let the master respond”
I direct or vicious liability, principle had done nothing wrong but held liable for acts of agent
That not used when there is no direct liability
Based on degree of control principle has
Definition of partnership
An association of 2+ persons to carry in a business as co-workers for a profit
4 requirements of a partnership
2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable
4 requirements of a partnership
2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable
What does UPA stand for
Uniform partnership act
What does the UPA do
Governs partnership formation, operation and termination.
48 states
Partnership property is where in the UPA
Section 8
Section 8 of the UPA says what?
Partnership property defined
All prop originally contributed is capital contribution
All prop acquired on of account of the p-ship
All prop acquired with p-ship funds
Any interest in real estate acquired in p-ship name
Any conveyance of property in p-ship name
What does a partner own and not own in a partnership
Own his share of profits only
No non-rata interest in p-ship property
Can not assign, sell or devise by will
What are the unless agreed upon otherwise rules
Equal voice
Equal share of profits
Share losses in same proportion as profits of not stated 50/50
Books/records kept in central office
UPA rules that cannot change
Each partner is an agent of the p-ship and other partners while acting on p-ship business
Each partner personally and unlimitedly liable for torts and contracts of the p-ship
Partners must give duty of loyalty to p-ship and may not compete
