Class 5: Agency Law Flashcards
“____” - A person who agrees to represent or act on behalf of a Principal and subject to their control.
An Agent
Becomes a fiduciary to the Principal because the relationship involves being placed in a position of trust.
“____” - The person on whose behalf the agent works in respect of 3rd parties.
The Principal
Following are examples of “____”:
- Corporation (P) and Officers (A)
- Employer (P) and Employee (A)
- Homeowner (P) and Real Estate Broker (A)
Agency Agreements
Almost all employees who deal with 3rd parties are deemed to be “____” of employer.
Agents
The following are helpful in distinguishing between “____” and “____”.
- Label given by the parties through K doesn’t always control.
- Key is whether the hiring party has right to control hired person’s conduct in performance of their duties.
- Also consider whether worker is in separate occupation (IC), duration (longer tends to be E), specially skilled (less tends to be E), payment (per job tends to be IC, per hour tends to be E)
Agent or IC (Independent Contractor)
True/False:
Label given by the parties through Contract (Agent or IC) always controls employment status.
False.
Label given by the parties through Contract doesn’t always control employment status.
Whether the hiring party has “right to control” hired person’s conduct in performance of their duties is key in determining…
Agent Vs. Independent Contractor (IC)
Agent or IC?
- Long occupation duration
Agent
Agent or IC?
- Specially skilled work
IC
Agent or IC?
- Paid per job
IC
Agent or IC?
- Shorter occupation duration
IC
Agent or IC?
- Paid per hour
Agent
“____” relationships are generally created by consensual agreement between the parties.
Agency
To create an agency relationship, “____” must have contractual capacity, but even a minor can be considered an agent.
Principal
True/False:
Agency relationship can be formed for any purpose.
False.
Must be a “LAWFUL purpose”
The four ways to form an agency agreement are…
- By Agreement (express or implied) – aka Actual Agency.
- By ex post ratification by principal.
- By estoppel – aka Apparent agency.
- By operation of Law.
What are the two types of Actual Agency?
- Express Agency
2. Implied Agency
The following involves “____” Agency:
- When expressly authorized, the A also has implied authority to do what is reasonable and necessary to complete authorized tasks.
- Was the agent acting within the “usual and customary” authority given to someone in that position.
Implied Agency
The following involves “____” Agency:
- Words of agreement between principal and agent.
- May be written, or oral (unless the agreement to be entered by A on behalf of P is required to be in writing under the Statute of Frauds, i.e., the equal dignity rule)
- May also sometimes be evident through conduct (i.e., P sends A a check for A to forward on to 3rd party)
Express Agency
The following exemplifies “____” Agency:
- Even if a person is not actually an agent of another person (P) at the time they take an action or make a contract, the other person (P) can subsequent affirm the Agent’s behavior as his own.
Agency by Ratification
Ex: Alex mentions to his friend Lucy that he is having difficulty finding a reliable babysitter to watch his children on Friday nights. 3 days later, Lucy tells Alex that she identified a great babysitter (Rodrigo) who charges $20/hr and she set up a recurring babysitting gig on Alex’s behalf. Rodridgo will come to Alex’s house every Friday for 3 hours. Alex can “ratify” this agreement.