Agency Relationships

Question 0

What elements are needed to create an AGENCY RELATIONSHIP?

Answer 0

Voluntary CONSENT (must have capacity and knowledge)

CONTROL

Question 1

What is an AGENCY?

Answer 1

The FIDUCIARY relation which results from the manifestation of CONSENT by one person to another that the other shall act on his behalf in subject to his CONTROL and CONSENT by the other so to act

Question 2

What is a general agent?

Answer 2

An agent is a general agent if authorized to act in place of the principal in any business capacity that the principal could act

Question 3

What is a special agent?

Answer 3

In agent is a special agent if authorized to perform specific acts as authorized by specific instructions

Question 4

What is a gratuitous agent?

Answer 4

An agent is a gratuitous agent if the agent is acting without any compensation

Question 5

What is an employee?

Answer 5

An employee is an agent whose actions are under the direct control of the principal.

Question 6

What is an independent contractor?

Answer 6

An independent contractor is a type of quasi-agent who is only liable for delivering a finished product to the principal.

Question 7

What is a sub agent?

Answer 7

A sub agent is a person appointed by an agent empowered to do so, to perform functions undertaken by the agent for the principle, but for whose conduct the agent agrees with the principal to be primarily responsible

Question 8

What is a dual agent?

Answer 8

An agent usually only has one master at a time. A situation in which an agent simultaneously has two masters is a dual relationship. In Maryland such a dual agency arrangement is not authorized unless and does not exist until a principle is notified of the dual relationship and provides consent to it

Question 9

How may an agency relationship be terminated?

Answer 9

Termination By Will

Termination by operation of law

Question 10

What is termination by will? In reference to termination of an agency relationship.

Answer 10

Agency authority created in any manner terminates win either party manifests to the other the desire to cease the relationship. Termination is not effective until the principal received notice of the termination. The party asserting a termination has the burden of proving it

Question 11

What is termination by operation of law (in reference to terminating an agency relationship)?

Answer 11

Death: generally in agency relationship is destroyed upon the death of either party
Loss of capacity
Bankruptcy of the principal
Breach of fiduciary duty

Question 12

A principal when dealing with general agents must provide what?

Answer 12

For general agents a principal must provide notice of termination of the authority of the agent in order to protect himself against those who previously relied on the agents authority or who may rely on in appearance of continuing authority.

Question 13

What are the types of notice a principal must give to third parties when terminating the agency relationship with an agent?

Answer 13

Actual notice
Constructive notice
Apparent authority
No notice necessary–termination by law

Question 14

What is constructive notice?

Answer 14

The principal must provide constructive notice– such as publication–to all other third parties who have not actually relied on a manifestation made by principal

Question 15

What is apparent authority in reference to termination of an agency relationship to third parties?

Answer 15

Apparent authority is terminated when a third-party knows or has reason to know that the principal no longer consents to the at the agent is alleging to have authority to do

Question 16

When is no notice necessary to give to third parties when an agency relationship is terminated?

Answer 16

When there is a termination by law. Death or lack of capacity of either party to an agency relationship automatically terminates the relationship. Therefore under the circumstances no notice to third parties relying in good faith on apparent authority of an agent is required.