Agency Relationship Flashcards
How is an agency r/ship created?
- P manifests assent to an agent (A)
- A acts on P’s behalf
- A’s actions are subject to P’s control
- A manifests assent or otherwise consents
Must an agency r/ship be established in writing?
No, it can be:
1. expressed orally or in writing
2. implied by the P’s conduct
3. misinterpreted by a 3rd party
What control does a principal have?
P has the right to control the result or the
**ultimate objectives **of A’s work.
What makes an individual a principal?
Their status as a P is established by the person’s intent to delegate an act and control the way in which the act is performed by another.
What makes an employer a principal?
P who employs an employee to perform services and has the right to control the physical conduct of the employee’s performance
EX: P has control over day-to-day activities, supplies tools, structured pay period, and P directs work to completion
Different from an independent contractor!
What is required for someone to be an agent?
- A must have minimal capacity, and
- must manifest assent and consent to act on P’s behalf, and
- Be subject to P’s control
Gratuitous Agent?
Just because someone is doing the work for free, doesn’t prevent the creation of an agency r/ship, but DOES prevent an enforceable K.
Is a trustee and agent?
Yes, subject to the control of the settlor or beneficiary
Who is a subagent
A person appointed by A to perform the functions that A has agreed to perform for P.
What capacity is required of P
to form an agency r/ship?
P must consent to enter into the r/ship AND the transaction to which A purports to bind P.
What capacity is required of Agent
to be in an agency r/ship?
A just needs phsyical/mental capacity to do whatever has been appointed to do
Minors/incompetents CAN be As but minors can’t form Ks, and unincorporated associations can NOT be As.
Is consent required to form an agency r/ship?
Both P and A must consent, but A can manifest assent by performing acts on behalf of P.
