20. BE: Mandate Flashcards

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1
Q

Mandate

A

K between a principal and mandatary conferring on the mandatary the authority to transact on behalf of the principal

may be either gratuitous or onerous

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2
Q

Form Requirements for Mandate

A

generally NO no form requirements — ORAL OK

exception = equal dignities

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3
Q

Equal Dignities Exception

A

if act to be performed by mandatary must be in a certain form, the act creating the mandate must be in that form

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4
Q

Mandatary’s Authority

A

principal may confer general authority on the mandatary to do whatever he thinks is appropriate

mandatary can do all acts incidental or necessary for performance

EXCEPTIONS…

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5
Q

Exceptions to Mandatary Authority

A

= EXPRESS AUTHORITY REQUIRED FOR:

  • acquiring, alienating, encumbering, or leasing ANY property
  • making an inter vivos donation
  • accepting or renouncing a succession
  • contracting a loan, or acknowledging or remitting debt
  • becoming a surety
  • making or endorsing promissory note or negotiable instrument
  • entering compromise/ arbitration
  • making health care decisions
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6
Q

Duties of Mandatary

A

fulfill mandate and act with prudence and diligence

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7
Q

Mandatory Exceeding Authority

A

mandatary who exceeds his authority is liable to principal for ANY LOSS

mandatary does NOT exceed his authority when result of act is MORE ADVANTAGEOUS than authorized act

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8
Q

Duties of Principal

A
  • must perform obligations mandatary contracted within their authority
  • bound for post-termination obligations if mandatary was unaware of termination when contracted
  • must REIMBURSE for expenses/charges/ remuneration
  • exceeded authority? principal not bound unless he RATIFIES those acts
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9
Q

Mandatary’s Obligations to 3P: disclosed mandate and disclosed principal

A

mandatary is not personally bound

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10
Q

Mandatary’s Obligations to 3P: undisclosed mandate

A

mandatary IS personally bound

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11
Q

Mandatary’s Obligations to 3P:
disclosed mandate and undisclosed principal

A

mandatary is personally bound until identity of principal is disclosed to 3P

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12
Q

Exception to Personal Liability

A
  1. 3P knew that mandatary was exceeding authority
  2. principal ratifies contract
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13
Q

Obligations of Principal to 3P

A

principal is generally bound to 3P for all contracts made by mandatary within limits of his authority

is there apparent authority?

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14
Q

Apparent Authority

A

principal gives GF 3P reason to believe another person is mandatary

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15
Q

Obligations of 3P to Principal

A

3P who contracts with mandatary is bound to principal, if mandatary contracted in principal’s name

EXCEPTION, 3P not bound IF: undisclosed mandate and obligation is strictly personal

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16
Q

Termination of Mandate

A
  1. DEATH of either principal or mandatary
  2. INTERDICTION of either party
  3. NOTICE of termination
17
Q

Mandatary Authority Continues When:

A
  1. 3P lacks knowledge of termination
  2. principal dies and failure to act hurts the principal’s interest
  3. relying on public records – if mandate filed
  4. mandatary lacks knowledge of termination in GF
18
Q

Management of Affairs/ Acting Without Authority in Exigent Circumstances

A

person acts without authority to protect the interests of another,in reasonable belief that owner would approve of action

  • manager must promptly GIVE NOTICE to the owner and await further directions, unless there is immediate danger
  • must exercise care of prudent administrator
  • owner must fulfill obligations and reimburse manager for all necessary and useful expenses