Agency Flashcards
An agent, gratuitous or not, has a duty for which of the following: commingle funds OR account for the principal’s property
Account for the principal’s property
Which of the following remedies is not available to the agent whose principal is guilty of violating a duty owed the agent: Recovery for future damages OR Specific performance
Specific Performance
What is the minimum age requirement for an agent to bind the principal: 18 years old or 21 years old?
None. An agent does not need to have the capacity to personally enter into contracts in order to bind a principal.
When a principal is undisclosed, it affects the principal’s relationship with: agent OR third parties?
Third parties
If termination is caused by this, notifying third parties is not necessary: achieving the agency’s purpose OR destruction of the subject matter of the agency
Destruction of the subject matter of the agency
If a principal that is initially undisclosed becomes disclosed, principal becomes liable to third parties: TRUE or FALSE?
TRUE. Principal and agent become jointly and severally liable.
The following is available to a principal when an agent fraudulently breaches a fiduciary duty: constructive trust OR termination of agency
Both constructive trust AND termination of agency
Either party can terminate an agency at any time even when there is a breach of contract: TRUE or FALSE?
TRUE
This is a type of agency where the agent has an interest in the property or activity of the principal that is subject to the agency relationship
An agency coupled with an interest
An agency coupled with an interest can be terminated at any time by either party: TRUE or FALSE
FALSE
What is the difference in liability to third parties between (1) an agent who discloses that he is an agent but has an undisclosed principal, and (2) an agent who does not disclose that he is an agent?
….
If scenario 2, agent is liable to third party with recourse against the principal
A power of attorney can only be for a specified period of time: TRUE or FALSE?
FALSE. A power of attorney can be for an indefinite period of time.
When a contract made by an agent on behalf of the principal falls within the requirements of the Statue of Frauds, an oral agency agreement will suffice: TRUE or FALSE?
FALSE. A written agency agreement will be needed in this case.