Agency Flashcards
What are rules of agency law?
Principal needs capacity, not agent No contract required No consideration required Must be consent No need to be in writing unless fall under Statute of Frauds
What is a fully disclosed principal?
3rd party know identity of principal
Principal liable, not agent
What is a partially disclosed principal?
3rd party knows agent is acting for another, but not identity
Principal and agent jointly and severally liable
What is an undisclosed principal?
3rd party believes agent is acting for themselves
Either principal or agent liable
How is an agency terminated?
Agreement
Unilateral
Operation of law - death, insanity, or bankruptcy of principal, subject matter illegal or impossible
What can the agent recover for a breach by the principal?
Recovery for past services
Recovery for future damages
Authority to withhold further performance
Not specific performance
What is required for a principal to ratify a contract?
Meet all 3:
Must have been fully or partially disclosed
Understand the contract
Act to ratify before 3rd party discovers agent acted without authority
Must ratify contract in its entirety