Agency relationships

Question 1

what is an agency?

Answer 1

Agency Is the fiduciary relationship that exists between an agent and principal where the agent acts on the principal’s behalf and is subject to the principal’s control

Question 2

when is an agency relationship created?

Answer 2

An agency relationship is created when:

1) The parties voluntarily consent (express or implied) to enter into an agency relationship; AND
2) The agent is subject to the principal’s control

Question 3

how can an agency relationship be terminated?

Answer 3

The agency relationship may be terminated by the parties if:

(a) The agent or principal manifests to the other the desire to cease the agency relationship (termination us effective when the other party receives notice of the termination
(b) The express terms if the agency expire
(c) The purpose of the agency relationship is fulfilled

The agency relationship may be terminated by operation if law if:

(a) The agent or principal; dies
(b) the agent or principal loses capacity
(c) The agent materially breaches a fiduciary duty owed to the principal

Question 4

what is an agent?

Answer 4

An agent is a person or entity that acts on behalf of another the principal