Chapter 23 Vocabulary

Question 1

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).

Answer 1

Agency

Question 2

As a noun, a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking. As an adjective, a relationship founded on trust and confidence.

Answer 2

Fiduciary

Question 3

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. This is not an employee but may be an agent.

Answer 3

Independent Contractor

Question 4

A party’s act of accepting or giving legal force to a contract or other obligation entered into on his or her behalf by another that previously was not enforceable.

Answer 4

Ratification

Question 5

A rule requiring that an agent’s authority be in writing if the contract to be made on behalf of the principal must be in writing.

Answer 5

Equal Dignity Rule

Question 6

Authorization for another to act as one’s agent or attorney either in specified circumstances (special) or in all situations (general).

Answer 6

Power or Attorney

Question 7

A public official authorized to attest to the authenticity of signatures.

Answer 7

Notary Public

Question 8

A principal whose identity is known to a third party at the time the agent makes a contract with the third party.

Answer 8

Disclosed Principal

Question 9

A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.

Answer 9

Partially Disclosed Principal

Question 10

A principal whose identity is unknown by a third party, and that person has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract.

Answer 10

Undisclosed Principal

Question 11

A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.

Answer 11

Respondeat Superior

Question 12

Indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such a an employee) because of the relationship between the two parties.

Answer 12

Vicarious Liability

Question 13

An agency, created for the benefit of the agent, in whcih the agent has some legal right (interest) in the property that is the subject of the agency.

Answer 13

Agency Coupled with an Interest

Question 14

Authority that is only apparent, not real. Arises when the principal causes a third party to believe that the agent has authority, even though she or he does not.

Answer 14

Apparent Authority