Agency Flashcards
Agency
A relationship that exists when one party represents another party in the form of legal relations.
Agent - principal realtionship
Agent
A person who is authorized to act on behalf of another
Principal
A person who has permitted another to act on her behalf
Outsider
Third Party - Principle Relationship
Law of Agency
Law governing the relationship between agents and the principle
Agency By Agreement
Relationship created by contract, Principle authorizes an agent to act on her behalf, and the agent agreeing to do so in return for come fee or reumeration
Two concepts of authority
Actual Authority: Power of an agent that derives from either express or implied agreement
Apparent Authority: Power that an agent appears to have to an outsider because of conduct or statements of the principle
Agency by Estoppel
the creation of an agency relationship when the principal acts in such a way that Outsiders (3rd parties) reasonably conclude that an agency relationship exists
Agency by Ratification
An Agency relationship created when one party adopts a contract entered into on his/her behalf by another person who, at the time, acted without authority
Fiduciary Duty
a duty imposed on a person who has a special relationship of trust with another.
Fiduciary
a duty of good faith owed to another because of their relationship
Insurance broker
One who provides advice and assistance to those acquiring insurance
Warranty of authority
a representation of authority by a person who purports to be an agent
Undisclosed principal
A principal whose identity is known to a third party who has no knowledge that the agent is acting in an agency capacity.
