Business Entities

Question 1

Agency

Answer 1

is the relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.

Question 2

Principal

Answer 2

Is a word used to describe a person who has authorized another to act on his account and subject to his control.

Question 3

Agent

Answer 3

a person authorized by another to act on his account and under his control.

Question 4

Master

Answer 4

is a principal who employs another to perform service in his affairs and who controls or has the right to control the physical conduct of the other in the performance of the service.

Question 5

Servant

Answer 5

is a person employed by a master to perform service in his affairs whose physical conduct in the performance of the service is controlled or is subject to the right to control by the master.

Question 6

Independent Contractor

Answer 6

is a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other’s right to control with respect to his physical conduct in the performance of the undertaking.

Question 7

General Agent

Answer 7

is an agent authorized to conduct a series of transactions involving a continuity of service.

Question 8

Special Agent

Answer 8

is an agent authorized to conduct a single transaction or a series of transactions not involving continuity of service.

Question 9

Disclosed Principal

Answer 9

If, at the time of a transaction conducted by the agent, the other party thereto has notice that the agent is acting for a principal and of the principal’s identity, the principal is disclosed.

Question 10

Partially Disclosed Principal

Answer 10

If the other party has notice that the agent is or may be acting for a principal but has no notice of the principal’s identity, the principal for whom the agent is acting is partially disclosed

Question 11

Undisclosed Principal

Answer 11

If the other party has no notice that the agent is acting for a principal, the principal is undisclosed

Question 12

Subagent

Answer 12

is a person to whom the agent delegates, as his agent, the performance of an act for the principal which the agent has been empowered to perform through his own representative.

Question 13

Power

Answer 13

is an ability on the part of a person to produce a change in a given legal relation by doing or not doing a given act.

Question 14

Authority

Answer 14

is the power of the agent to affect the legal relations of the principal by acts done in accordance with the principal’s manifestations of consent to him.

Question 15

Apparent Authority

Answer 15

is the power of an apparent agent to affect the legal relations of an apparent principal with respect to a third person by acts done in accordance with such principal’s manifestations of consent to such third person that such agent shall act as his agent.

Question 16

When does someone have Notice?

Answer 16

A person has notice of a fact if he or his agent knows the fact, has reason to know it, should know it or has been given notification of it.