Agency - agency relationship generally & formation

Question 1

creation of agency relationship

Answer 1

1- power of agent to bind expressed - expressly in writing or orally, b- implied by principal’s conduct, or c- misinterpreted by a third party
2- existence of A / P relationship - elements: a- P manifests assent to A, b- A acts on P’s behalf, c- A’s actions are subject to P’s control, d- A manifests assent or otherwise consents

Question 2

types of principals

Answer 2

individual
employer - right to control the physical conduct of employee’s performance
entrepreneurs, corporations, & p/s

Question 3

principal’s right to control A’s actions

Answer 3

P has right to control the result or ultimate objective of A’s performance

Question 4

consent requirement for agent

Answer 4

A must have minimal capacity to and must manifest assent and consent to act on P’s behalf and be subject to P’s control

Question 5

types of agents

Answer 5

individual
employee - paid hourly, work integral is that of P, and tasks are completed under P’s direction
IC - not subject to P’s control regarding physical conduct of A’s performance
gratuitous agent - does not prevent creation of agency relationship but does PREVENT creation of enforceable contract between A and P
trustee - subject to control of settlor or beneficiary
subagent - person appointed by A to perform the functions that A has agreed to perform for P

Question 6

elements of formation of agency relationship

Answer 6

capacity -
P - must consent to enter into relationship and the transaction to which A purports to bind P
A - just needs physical/mental capacity to do whatever P appoints him to do (minor can be agent but lack capacity to enter into K’s on behalf of P)

consent - both P and A consent, A can manifest by performing acts on behalf of P
consideration - NOT required
writing - generally NOT required