Chapter Nine - Third Parties / Secured Transactions

Question 1

Agent

Answer 1

One who acts on behalf of another

Question 2

Principal

Answer 2

Party for whom an agent acts

Question 3

Equal Dignity Rule

Answer 3

Requirements that agency contract be written, if contract to be established by agent must be written

Question 4

Power of Attorney

Answer 4

Document creating an agency

Question 5

Express Authority

Answer 5

Authority given by words or conduct

Question 6

Implied Authority

Answer 6

Authority not expressed in writing or spoken words; arises from circumstances

Question 7

Operation of Law

Answer 7

Rights and obligations are implied by law, for example, in emergency situations

Question 8

Ratification

Answer 8

Acceptance of acts by agent after they occur

Question 9

Apparent Authority

Answer 9

Principal’s dealings with third parties have given them reason to believe that an agent has authority

Question 10

Estop

Answer 10

To bar assertion of a claim or right that contradicts what has been said for done before

Question 11

Undisclosed Principal

Answer 11

Existence of agency relationship not known to third party

Question 12

Partially Disclosed Principal

Answer 12

Existence of agency is known, identity of principal is not known

Question 13

Fiduciary Relationship

Answer 13

Relationship in which one person is under a duty to act for the benefit of the other on matters within the scope of the relationship

Question 14

Indemnification

Answer 14

Compensation or reimbursement for a loss

Question 15

Agency Coupled with an Interest

Answer 15

Agent has a financial stake in the transaction

Question 16

Third Party Beneficiary

Answer 16

Not a party to a contract but benefits form contract

Question 17

Incidental Beneficiary

Answer 17

A third-party beneficiary, not intended to benefit from contract, does not aquire fights under contract

Question 18

Donee Beneficiary

Answer 18

A third party beneficiary intended to benefit from contract performance as a gift

Question 19

Creditor Beneficiary

Answer 19

A third party beneficiary whom a contract party is indebted and who from the performance as gift

Question 20

Privity

Answer 20

Being a part to the contract

Question 21

Durable Power of Attorney

Answer 21

Creates an agency releaitonship that