Agency Flashcards
1
Q
Agents
A
Do things on behalf of principal
2
Q
principal
A
directs agent’s actions
3
Q
Benefits of Agency
A
- extend P’s business dealings
- acquire agent’s expertise
- earn a living (agent)
4
Q
P’s liability
A
- can be liable to 3P for the act of it’s agent
- bound by K/may have to pay in tort
- P bound by K when the P authorized the agent to enter into the K (A acted with legal authority)
5
Q
3 components of agency
A
- Assent- manifestation (formal letter, spoken words, physical actions) from A to P and P to A
- Benefit- A agrees to act for P’s benefit
- Control- A agrees to act subject to the P’s control
- no requirement of consideration*
- dont need to say in this relationship*
- no writing requirement*
6
Q
Who can be principal
A
- almost any person or entity that has legal capacity
- excludes: minors, incapacitated by drugs or alcohol, or illness
- entities: employer, LLC, LLP
- CANNOT: unincorporated association (lacks legal capacity)
7
Q
Who can be agent
A
- any person or entity who has minimal capacity (assent, perform tasks, and be sub to control)
- minor can
- any type of business entity
8
Q
Types of Agents
A
depends on degree of control
9
Q
Servants/Employees
A
- highest level of control
- P has right to control A’s physical conduct
- P can also be “master”
- has the control or right to control A’s physical conduct a (manner and means) of A’s performance of work
10
Q
Independent Contractors/Non-employee agent
A
- P exerts minimal control over A
- P does not have the right to control the As physical conduct at work
- ICs= high level of independence, free to work for other Ps, paid on a fixed fee on the completion of work, bring own tools
- P is not liable for IC’s actions
11
Q
Termination
A
-either can terminate an agency relationship unilaterally
12
Q
4 types of legal authority
A
- actual express
- actual implied
- apparent
- ratification
13
Q
Actual Express Authority
A
- communication is between principal and agent
- P creates actual express authority by using words, written or spoken, to convey authority to the agent
- Subject intent: A must believe that he is doing what the P wants
- Obj intent: A’s belief must be reasonable
- Term: death or lack of capacity of P/ upon death of A/ P’s revocation
14
Q
Actual Implied Authority
A
- communication= between P and A
- P creates with words, written or spoken, or by conduct that conveys authority to A to take whatever action necessary to achieve P’s obe
- A has actual implied to act within accepted business custom or general trade usage
- most common
15
Q
Apparent Authority
A
- communication is between P and the 3P
- P creates by words, written or spoken, that cause the 3P to reasonably believe that the P consents to have acts done on the P’s behalf by A
