Agency Relationship

Question 1

Agency Law

Answer 1

Relationship created when principal allows another’s agent to act on their behalf.

Agent acts subject to principal’s control, principal bound by agent’s act and subject to liability.

Tort law and contract law, two ways agent’s acts subjects principal.

Question 2

Creation

Answer 2

Appointment
Implication
Misinterpretation
Ratification

Question 3

Determining Existence

Answer 3

AB double C

Assent: Principal manifest agreement to being in relationship. Express or implied.

Behalf: agent agree to act on behalf of principal.

Control: agent subject to principal’s control.

Consent: Agent consent to act on principal’s behalf.

Question 4

Principal

Answer 4

Legal capacity to enter into an agreement.

Right to control agent’s actions.

Variety of titles (individual, employer, entrepreneur etc.)

Question 5

Agent

Answer 5

Anyone, someone who lacks capacity.

Actions subject principal to liability.

Common types: servant, individual, employee, gratuitous agent.

General agent has broad authority.

Special agents have special or unique authority.
Sub-agent appointed by agent to perform tasks agent agreed to perform. Once appointed, owes duties and liable to both agent and principal.

Question 6

Formation of Agency Relationships

Answer 6

Minor can be agent but not principal.

Agent and principal need consent.

No consideration needed, agent doesn’t need to be compensated for agency to exist.

Don’t need to formalize agency in writing.