Agency Flashcards
1
Q
Creating agency relationship
A
- granting of authority (contract or consent)
- only consent required, agent may act gratuitously
2
Q
Agency in contract
A
- required under Bills of Exchange where agent has authority to sign cheques and negotiable instruments
- where statute of frauds is still valid (over 1 year)
- in writing and under seal: “power of authority”
3
Q
Estoppel
A
if a 3rd party relys on the principals representation that the agent has the authority to act, the principle can then claim that the agent had no authority
4
Q
Radification
A
principal can ratify a contract even if the agent acted beyond both actual and apparent authority
Radification: when principle confirms a contract entered into by agent
- must be timely
- agent must have been acting for specific principal at the time deal made
- principal capable of entering into contract
- principal must be able to perform the object afer radification
**subject to approval is not a contract
**can inadvertently ratify by accepting a benifit
5
Q
Agent Duties
A
- acting within limits of contract
- perform functions in contract
- may be sued for breach of contract by principal
6
Q
Tort Law Duty of Care
A
- can be liable for acting beyond authority
- must perform functions in agreement
- duty of reasonable care to principal
- cant go against specific instructions
7
Q
- Delegation
- Fiduciary Duty
- Accounting
A
- cant delegate without consent
primary agent still responsible - obligated to act in best interest of principal
utmost good faith relationship - must turn over funds, property, goods even when agent has a claim to funds
keep accurate records
8
Q
Principle Duties
A
- must honor terms of contract
- pay agent reasonable ammount
- reimburse work related expenses
- payment for complete or part performance
9
Q
3rd party remedies
A
- can sue agent when agent exceeds their authority and 3rd party suffers loss
- Breach of warranty of authority
- remedies for fraud or negligence
