week 7 Flashcards Preview

PIMS - Business law > week 7 > Flashcards

Flashcards in week 7 Deck (32)
Loading flashcards...
1

a relationship where one party (the principal) delegates authority to another party (the agent) to act on behalf of the first party, the principal

agency

2

a party who appoints a second party to serve as an agent

principal

3

parties (2)

principal
agent

4

the party appointed by the principal to enter into a contract with a third party on behalf of the principal

agent

5

examples of agency (6)

1. employment
2. power of attorney
3. decedents of estate (executor/admin)
4. corporations (officers/directors)
5. partnerships
6. administrative agencies

6

authority stated in document or agreement creating the agency

express

7

authority to do things not specifically authorized in order to carry out express authority

implied

8

4 creation of agents authority

2. express
2. implied
3. apparent
4. ratification

9

authority agent is believed by 3rd parties to have because of the behavior of the principal

apparent

10

after agent without authority enters into contract which the principal then accepts as authorized

ratification

11

classification of agents (2)

1. general agent
2. special agent

12

agent authorized to execute the principals business of. a particular kind, or all the principals business at a particular place, if not all of one kind

general agent

13

agent authorized by the principal to execute specific acts. usually the tasks are more specific and the authority more limited than that of a general agent

special agent

14

issues in agency (3)

1. creation
2 operation
3 termination

15

operation of agency (2)

1. agents duties to principal
-loyalty and good faith
--fiduciary duty
-obedience
-reasonable skill and diligence
-accounting
-information
2. principal duties to agent
-compensation
-reimbursement
-indemification
-perform contracts properly entered into by agent

16

termination of agency

1. acts of the parties
2. both have the power to terminate/may not have the right
-original agreement
-subsequent agreement
-revocation ; by principal
-renunciation ; by agent
3. termination by operation of law
-subsequent illegality
-death or incapacity
-destruction of subject matter
-bankruptcy
-dissolution of corporation
-war

17

tort liability

1. liability of employer
-tortfeasor- direct
-vicarious liability
-respondeat superior
2. liability of agent
-tortfeasor
-acts within scope of authority
-frolic and detour

18

contractual liability of agent

1. disclosed principal
/S/smith, president of PIMS; no liability
2. partially disclosed principal
-/S/Smith, Agent ; liable until principal disclosed
3. undisclosed principal
/S/Smith; liable until principal disclosed

19

contractual liability of principal

-liable to perform contracts entered into by authorized agent

20

what is an entity

1. an existence
2. how a business is organized/operates

21

one owner subject to claims of creditors

sole proprietorship

22

generic entities/business entities

1. sole proprietorship
2. partnership
3. corporation

23

two or more people carry on business for their joint profit

partnership

24

statutory entity owned by stockholders

corporations

25

questions in studying entities

1. how is it created?
2. operated?
3. terminated?

26

sole proprietorship

1. created; just do it
2. operates; receives all profits and assumes all losses/claims
-bears all risk; unlimited liability
3. terminates; death of owner

27

partnership

1. created; agreement
-partners are both principal and agent
-uniform partnership act
2. operation ; duties of partners (agents)
-loyalty and good faith
-reasonable care and skill
-conform to contract; accounting
-inform
-rights of partners; participate in management
-inspect records
-contribution
w/d advances
- w/d profits
-liabilites of partners
-contracts
-torts

28

actively openly engaged in business known to public as partner

general

29

not active in business known to public as a partner

silent

30

active in business unknown to public as a partner

secret