Agency

Question 1

Principal

Answer 1

Powers authority and money

Delegates authority to agent

Question 2

How is an agency arrangement created?

Answer 2

1. Express
2. Conduct , by estoppel
3. By apparent authority
4. By necessity

Question 3

Express

Answer 3

Agent is hired and given instructions

Question 4

By conduct, by estoppel

Answer 4

Creating an impression that your agent is your agent, you cannot deny it.

If a principal creates the impression that an agent has the authority to bing then in k- then they do.
This impression can be by words or conduct

Question 5

By apparent authority

Answer 5

Basically the same as all the others- just make it look like they are your agent

If someone was your agent and then stopped you must give notice to third parties that they are no longer your agent

Question 6

Necessity

Answer 6

Salvage- if you need to protect the property or lives of a principal then you become their agent for that purpose.

Question 7

By operation of law (unions, bankruptcy)

Answer 7

Union becomes your agent

Question 8

Roles of principal

Answer 8

Principal has money, power- they grant an agent authority within set limits- called a warranty if authority, so long as agent acts within power granted. The principal is bound to honour k. With 3rd parties and pay agreed to commission and expenses

Honour k, pay agreed commission and expenses

Question 9

Role of agent

Answer 9

Agent can bind p to k within authority but must behave with “utmost good faith”

1. obey all instructions
2. keep in constant contact with p
3. Keep p Info confidential
4. Put p’s interest first before your interest
5. Use best efforts , employ all skills to best of your ability
6. Cannot delegate your authority
7. No secret commissions

Question 10

How does agency end?

Answer 10

1. Agreement
2. Terms of agency contract (certain events end it)
3. Death, insanity, bankruptcy of principal. - if principal loses capacity so does the agent
4. By time or event specified

Question 11

Ratification

Answer 11

If an act outside of its authority to k with a 3rd party - then the agent maybe bound (not the p) - unless the p decides to expand the a’s authority for that deal

Question 12

Disclosed and undisclosed agency

Answer 12

If an undisclosed agent gets in trouble with the p the p may deny the agency relationship and an agent who signs a k using only their name could be solely bound by it

If undisclosed agent reveals who p is, the p does not need to honour the k

If agent lies, deceives, breaches, warranty of authority then the agent is liable