Agency: Ch 24

Question 1

Partially disclosed principle

Answer 1

A partially disclosed principle is one whose existence is known but whose identity is unknown by third parties

Question 2

Broker

Answer 2

A broker has limited authority to find a customer so that a sale of property may be completed. A person employed for a commission to make contracts with third persons On behalf of a principle

Question 3

Factor

Answer 3

A factor has possession and control of another person’s property and is authorized to sell that property. May hold goods in his own name or the name of the principal and who is authorized to sell and to receive payment for the goods

Question 4

General agent

Answer 4

A general agent has broad authority to conduct a series of transactions with continuity of service

Question 5

Special agent

Answer 5

A special agent has narrower authority and conducts a single transaction or lacks continuity of service

Question 6

Independent contractor

Answer 6

An independent contractor retains control over the details of how work is to be accomplished. the person hiring an independent contractor contracts for a certain end results. The person who exercises his independent judgment on the means used to accomplish the result

Question 7

Respondeat superior

Answer 7

Let the master respond

Question 8

Doctrine of estoppel

Answer 8

The estoppel is created by some conduct of the principle that leads to a third-party to believe that a person is the principal’s agent or that an actual agent possesses the requisite authority . The third-party must know about this conduct and must be injured or damaged by his or her reliance on it

Question 9

Estoppel

Answer 9

To prevent a party from denying the legal consequences of that parties conduct

Question 10

Attorney in fact

Answer 10

A person acting for another under a grant of special power created by an instrument in writing. The agent named in a power of attorney is called an attorney in fact. The term distinguishes this formally appointed agent from an attorney at law who is a licensed lawyer

Question 11

Fiduciary

Answer 11

A position of trust and confidence in relation to a person or his or her property

Question 12

Disclosed principle

Answer 12

A disclosed principle is one whose existence and identity are known by third parties. An agent who feels that he is working for another and who reveals the principles identity is an agent of a disclosed principle

Question 13

Indemnify

Answer 13

Literally “to save harmless”. Thus one person agreeing to protect another against loss

Question 14

Undisclosed

Answer 14

The principle is undisclosed whenever a third-party reasonably believes that the agent asked only on his own behalf . when an undisclosed principle is involved the third party does not realize that an agency relationship exists

Question 16

Power of attorney

Answer 16

An instrument authorizing another to act as one’s agent or attorney in fact

Question 17

Ratification

Answer 17

The confirmation of an act or act of another another, e.g., a principal may ratify the previous unauthorized act of his or her agent.