Agency Relationship Flashcards
How can the power to bind be manifested?
-> May be expressed orally or unwriting
-> implied by the principal’s conduct
OR
-> misinterpreted by a third party
When is the existence of a relationship found?
-> Principal (P) manifests assent to an agent (A)
-> A acts on P’s behalf
-> A’s actions are subject to P’s control
AND
-> A manifests assent or otherwise consents
How does P’s control work?
P has the right to control the result or the ultimate objectives of A’s work.
What are the different types of P’s?
Individuals
Employers
Entrepreneurs
Corporations
Partnerships
How is a person’s status as a P defined?
Individual
-> a person’s status as P is established by the person’s intent to delegate an act and control the way in which the act is performed by another
How is an employer’s status as a P defined?
Employer
-> P who employs an employee to perform services and has the right to control the physical conduct of the employee’s performance
Physical conduct of employee’s performance includes
-> P’s control over day-to-day activities, supplying tools of trade, structured pay period, specialized skill level, and P directs work to completion
What is the consensual nature of the relationship between an A and P?
A must have minimal capacity, and MUST manifest assent and consent to act on P’s behalf and to be subject to P’s control.
What are the different types of A’s? How are each defined?
Individual
Employee
Independent contractor
Gratuitous agent
Trustee
Subagent
What characterizes A as an employee?
-> paid hourly or for long time periods, the work is integral to that of P, and the tasks are completed under P’s direction
What is unique about A’s who are independent contractors?
-> not subject to P’s control regarding the physical conduct of A’s performance
What is a limitation found with regards to a gratuitous agent?
-> does not prevent the creation of an agency relationship, but does prevent an enforceable K
Who is able to control a trustee?
-> subject to the control of the settlor or beneficiary
What is a subagent?
-> a person appointed by A to perform the functions that A has agreed to perform for P
What capacity must P and A respectively have to form an agency relationship?
P
-> must consent to enter into the relationship and the transaction to which A purports to bind P
A
-> just needs physical/mental capability to do whatever he has been appointed to do
Can minors/incompetent people be As? Is there any limitation on what they can do?
Minors/incompetents can be As but minors cannot form contracts.
