Agency Relationship

Question 1

What parties are needed for an agency relationship

Answer 1

1) PRINCIPAL

2) AGENT

Question 2

What does agent do for principal?

Answer 2

Agent does thing’s on principal’s BEHALF

Principal DIRECTS agents acts

Question 3

Purposes for agency

Answer 3

Extend principal’s economic reach
Acquire agent’s expertise
Make $$

Question 4

Examples of common law agency relationships

Answer 4

Employer/employee
Named agents (talent agent, govt agent, etc)
Partner/partnership
Officer/Director-Corporation

Question 5

Who is liable in agency relationship

Answer 5

PRINCIPAL liable for acts of AGENTS

Question 6

WHEN is principal liable for acts of agents?

Answer 6

–in torts
–in contracts

Question 7

ABC components of creating relationship

Answer 7

ASSENT: manifest assent of both parties to work together

BENEFIT: agent agrees to work for principal’s benefit

CONTROL: agent agrees to work subject to control of principal

Question 8

Is consideration required?

Answer 8

NO

Even if one party doesn’t think there is agency relationship, if ABCs are there, agency relationship exists

Question 9

How do courts determine if agency relationship existed?

Answer 9

Look to MANIFESTATIONS OF ASSENT