Agency & Partnerships Flashcards
What is a partnership
Association of two or more persons to carry on as co-owners, a business for profit whether or not the persons intended to form a partnership.
A partner must reimburse what?
a partner for any payment made by the partner in the course of the partners activities on behalf of the partnership.
A partner is not entitled to separate rewards for services when?
His compensation for his services is his or her share of profits.
Partner’s dislocation in at will partnership
Results in its dissolution, and the business may be wound up.
But such dissolution can be rescinded by the affirmative vote or consent of all remaining partners.
What happens when a partnership is continued and not dissolved?
The dissociating partner is entitled to have her interest purchased for a buyout price equal to that partners interest in the value of the partnership.
Implied warranty of authority to third party.
A person who purports to make a contact with a third party on behalf of another person, lacking authority to, gives an implied warranty of authority to the third party and is subject to liability caused by the breach
Undisclosed principal
An undisclosed principal is bound by contracts made on his account by an agent acting within his authority.
An agent who purports to act on his own behalf but undisclosed principal.
An agent purporting to act on his own account, but in fact making a contract on behalf of an undisclosed principal is also a party to the contract.
Partiall disclosed principal
When a third party contracts with a person that they know to be acting within the capacity for another but unaware of the identity of the principal.
Partially disclosed principal liable when?
A partially disclosed principal will be liable on a contract entered into by an agent who had actual or apparent authority
An agent acting on behalf of a partially disclosed principal?
is a party to a contract if the agent acted with actual or apparent authority.
When an agent with actual or apparent authority contracts on behalf of a disclosed principal?
A contract arises between the principal and third party, but not between the agent and third party.
A principal can be vicariously liable to a third person for torts committed by a non employee agent where the agent acts with
Apparent authority
A principal who conducts an activity through an agent is subject to liability to a third party Caused by?
the agents conduct harm if the harm was caused by the principals negligence in selection.
