Agency - Types of Agency Relationships & Creation Flashcards
What is the basis of an agency relationship?
Consent of the Parties.
What actions by a party can lead to the termination of an agency relationship?
- Fulfillment of purpose;
- Lapse of time;
- Occurrence of a specified event;
- Mutual agreement;
- Act of one party (exception: agency coupled with an interest).
Define independent contractor.
One who is doing work for another but whose actions and schedule are not directly controlled by that party. Example: a lawyer handling one case for a client.
List the requirements for creation of an agency relationship.
Principal with capacity and, if agent’s contracts must be evidenced by a record, a record of creation.
Define principal.
One who appoints an agent to act on his or her behalf.
What acts by the operation of law can lead to the termination of an agency relationship?
- Death or insanity of principal or agent;
- Bankruptcy (of the agent if it impairs his duties, of the principal if the agent no longer desires the relationship);
- Change of law;
- Loss or destruction of subject matter.
Define “agency relationship.”
Legally binding arrangement in which one party (agent) acts on behalf of another (principal).
Define agent.
One who acts on behalf of another (the principal).
Define “power of attorney.”
A formal written creation of an agency relationship that lists the authority granted.
Define “general agent.”
Agent who is given general authority for the principal, i.e., not limited to specific transactions.
Define “special agent.”
Agent who is limited in time and/or scope of agency; could be agency for a specific task.
What elements are not necessary for an agency relationship to exist?
Capacity and Consideration.
What terminates actual authority?
When an agent is fired; when an agent quits, when an agent breaches his or her fiduciary duty.
