Chap. 40 Flashcards
Principal
Person whom an action is to be taken
Agent
One party agrees to act on behalf of and under control of another
Power of attorney
Written instrument by which one person authorizes another to act as her agent
General agent
Authorized to conduct a series of transactions involving a continuity of service
Special agent
Conducts a single transaction or series of transactions not involving continuity of service
Master
A principal who has the control of an agents physical conduct
Servant
Under the masters control
Independent contractor
Contracts to do something for another but whose physical conduct can’t be controlled
Factor or commission merchant
Agent with control of the principals good for purpose of sale
Del Credere agent
A factor that sells goods on credit and then guarantees the principal he purchase
Duty of loyalty
Agent is to act solely for the benefit of the principal regarding all matters
Authority
Agents power to bind and principal to a contract
Express authority
Explicit oral or written statement defining the agents power
Implied
Authority that is a given
Implied warranty of authority
Agent who is acting without authority. Liable in damages to the third party
Disclosed
If the third party knows both the agent is acting for a principal and who the principal is
Partially disclosed
Principal is unknown to the third party
Undisclosed
Neither the existence nor identity of the principal is known to the third party
Election
Third party can told the principal or agent liable to the contract
Apparent authority
Principal conduct toward third party
Principal > third party
Secret limitation
Are not binding upon the third party
Notice of a fact if….
1) has knowledge
2) has reason to know it exists
3) has received notification of it
Knowledge
Belief In The truth of a fact or condition
Notification
Formal act intended to affect relations between the notifier and the person notified
