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ICAEW Law 03: Agency > 02. Agency, creation, duties and rights. > Flashcards

02. Agency, creation, duties and rights. Flashcards

1
Q

An agent establishes … of contract between their principal and a third party.

A

privity

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2
Q

Ways that an agency relationship may exist: MC*, OOL, R

A

mutual consent

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3
Q

Ways that an agency relationship may exist: MC, OOL*, R

A

operation of law

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4
Q

Ways that an agency relationship may exist: MC, OOL, R*

A

ratification

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5
Q

An agency relationship (can / can not) be implied to exist by the conduct of the parties.

A

can

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6
Q

A retrospective agency relationship is created in the case of …

A

ratification

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7
Q

An agent (must / need not) have full contractual capacity themselves.

A

need not

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8
Q

An agent required to execute a deed on their principal’s behalf must be appointed …

A

in writing.

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9
Q

An agency by estoppel is created by the behaviour of …

A

the principal.

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10
Q

Agency of necessity.

A

A situation in which the property or interests of another are in imminent jeopardy and someone acts in order to protect them despite not having the authority to do so.

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11
Q

A situation in which the property or interests of another are in imminent jeopardy and someone acts in order to protect them despite not having the authority to do so.

A

Agency of necessity.

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12
Q

Ratification validates only …

A

past acts.

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13
Q

In order for ratification to be available the principal: E*, HLC, WI

A

existed

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14
Q

In order for ratification to be available the principal: E, HLC*, WI

A

had legal capacity

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15
Q

In order for ratification to be available the principal: E, HLC, WI*

A

was identified

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16
Q

Ratification must occur within a … time.

A

reasonable

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17
Q

Like an acceptance of an offer, ratification must be …

A

unconditional.

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18
Q

An agent has … duties towards their principal.

A

fiduciary

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19
Q

A managing director who accepts undisclosed commissions, including those in respect of deep sea fishing …

A

is in breach of their fiduciary duty and must account to the company for those commissions.

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20
Q

An agent who sells their own property to their principal and does not disclose the fact, including shares …

A

is in breach of fiduciary duty.

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21
Q

Duties of an agent: A*, NCOI, P, O, S, C

A

accountability

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22
Q

Duties of an agent: A, NCOI*, P, O, S, C

A

no conflicts of interest

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23
Q

Duties of an agent: A, NCOI, P*, O, S, C

A

performance

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24
Q

Duties of an agent: A, NCOI, P, O*, S, C

25
Q

Duties of an agent: A, NCOI, P, O, S*, C

26
Q

Duties of an agent: A, NCOI, P, O, S, C*

A

confidentiality

27
Q

Rights of an agent: I* R L

28
Q

Rights of an agent: I R* L

A

remuneration

29
Q

Rights of an agent: I R L*

30
Q

Lien.

A

The right of an agent to retain and hold the goods of their principal pending the payment of sums owed to them.

31
Q

The right of an agent to retain and hold the goods of their principal pending the payment of sums owed to them.

32
Q

A contract entered into by an agent is binding only if that agent has …

33
Q

A third party contracting with an agent, for example a bar manager …

A

is entitled to assume that they have actual implied authority to make purchases, including tobacco.

34
Q

A contract made by an authorised agent binds only …

A

the principal and the third party.

35
Q

Agency by estoppel arises when …

A

the words or conduct of the principal give to the third party the impression that the person who purports to contract with the third party is their agent; and

the third party, as a result, acts on this.

36
Q

T/F: in order for ratification to be possible the ‘agent’ must, at the time of making the contract, name or sufficiently identify the ‘principal.’

37
Q

Duties of an agent: A* C P O S P C

A

accountability

38
Q

Duties of an agent: A C* P O S P C

A

(no) conflict of interest

39
Q

Duties of an agent: A C P* O S P C

A

performance (provided consideration exists)

40
Q

Duties of an agent: A C P O* S P C

A

obedience (even if they think better)

41
Q

Duties of an agent: A C P O S* P C

A

skill (exercise reasonable care and)

42
Q

Duties of an agent: A C P O S P* C

A

personal performance

43
Q

Duties of an agent: A C P O S P C*

A

confidentiality (even after the agency relationship ceases to exist)

44
Q

Rights of an agent: I* R L

A

indemnity (if acting within the limits of authority)

45
Q

Rights of an agent: I R* L

A

remuneration (reasonable if not expressly stated within the agency contract)

46
Q

Rights of an agent: I R L*

47
Q

T/F: apparent authority can be granted via inaction.

A

TRUE

see Freeman v Buckhurst Park

48
Q

Actual implied authority is implied by the agent’s holding of …

A

express authority, a position or office

49
Q

A partner has … authority.

A

actual implied

50
Q

Necessary conditions for ratification: the principal E* L I

51
Q

Necessary conditions for ratification: the principal E L* I

A

legal capacity (possessed at the time the contract was made and at the time of ratification)

52
Q

Necessary conditions for ratification: the principal E L I*

A

identified at the time the contract was made

53
Q

In the situation in which an authorised agent does not identify themselves as such then the third party may sue …

A

Principal OR Agent (NOT BOTH)

54
Q

Conditions for agency of necessity: P* P E A R

A

pre-existing contractual or business relationship

55
Q

Conditions for agency of necessity: P P* E A R

A

principal uncontactable

56
Q

Conditions for agency of necessity: P P E* A R

57
Q

Conditions for agency of necessity: P P E A* R

A

agent acts in good faith

58
Q

Conditions for agency of necessity: P P E A R*

A

reasonable and prudent action

ICAEW Law 03: Agency (3 decks)

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