Chapter 13 Flashcards
Who is an Agent?
One who is authorized to act on behalf of another
Who is the Principal?
One who has permitter another to act on their behalf
Who is the Outsider?
Party whom the agent does business with
What is Actual Authority?
Power of an agent from express/implied agreement
What is Apparent Authority?
Power that the agent appears to have because of conduct or statement of the principle
What is Agency Estoppel?
When there is no agency relationship but 3rd party thinks there is, the contract is still binding.
What duties does an Agent have?
Duty to honour the contract, Fiduciary duty, and a Duty of care
What is Ratification?
If agent exceeds their authority, principle may ratify/adopt agreement as long as it before you receive any benefits from the contract
What happens if there is an Unnamed Principle?
Agent has no apparent authority, not apparent that they were authorized therefore agent only has actual authority
What happens is there is an Undisclosed Principle?
Relationship is between agent and 3rd party
What is Vicarious Liability?
Accountable for their employees
