Exam One Review Flashcards
A legal relationship in which the agent acts for or represents the principal by the principal’s authority.
Agency
The party for whom the agent acts and from whom the agent derives authority to act.
Principal
The person authorized by the principal to act with third parties on the principal’s behalf.
Agent
agent is authorized to transact all business of a particular kind for the principal, all business at a particular place, and/ or all acts connected with a particular employment or business.
General Agent
agent is authorized to do one or more specific acts in accordance with a principals instructions.
Special Agent
A type of power of attorney designed to continue for certain purposes even after the incapacity of the principal .
Durable Power of attorney
Actual Authority
involves communications between the principal and agent.
Actual express authority
is granted by a principal directly to an agent through specifically conveyed instructions
Actual implied authority
is established between a principal and agent when an agent acts in accordance with the general bounds of an established agency relationship coupled with principal evidencing consent to the agency through ratification.
Takes place when a principal behaves in a way that evidences acquiescence with the agent’s actions on behalf of the principal, such as when a principal accepts income from the agent’s actions.
Ratification
When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal’s agent, and the third party relies on that belief in transacting business with a person believed to be the principal’s agent.
Apparent agency
Apparent authority
Results from communications between a principal and a third party.
Granted to an agent so that an agent is capable of properly completing duties to the principal.
Inherent authority
can arise from actual agency or apparent agency
Inherent authority
Respondeat Superior
An employer is responsible for the negligent or reckless actions of an employee while an employer is in the course of employment.
An unincorporated business owned by one individual with unlimited liability.
Sole propietorship
General Partnership
Must have at least two general partners, made up of two or more persons, for the purpose of carrying on co-ownership of a business for profit.
A type of business organization that is very similar to a partnership, but is formed for one particular event or purpose, terminates when that event or purpose completes, and is not set up to be an ongoing concern.
Joint Venture
Agency
A legal relationship in which the agent acts for or represents the principal by the principal’s authority.
Principal
The party for whom the agent acts and from whom the agent derives authority to act.
Agent
The person authorized by the principal to act with third parties on the principal’s behalf.
General Agent
agent is authorized to transact all business of a particular kind for the principal, all business at a particular place, and/ or all acts connected with a particular employment or business.
Special Agent
agent is authorized to do one or more specific acts in accordance with a principals instructions.
Durable Power of attorney
A type of power of attorney designed to continue for certain purposes even after the incapacity of the principal .
involves communications between the principal and agent.
Actual Authority
is granted by a principal directly to an agent through specifically conveyed instructions
Actual express authority
is established between a principal and agent when an agent acts in accordance with the general bounds of an established agency relationship coupled with principal evidencing consent to the agency through ratification.
Actual implied authority
Ratification
Takes place when a principal behaves in a way that evidences acquiescence with the agent’s actions on behalf of the principal, such as when a principal accepts income from the agent’s actions.
Apparent agency
When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal’s agent, and the third party relies on that belief in transacting business with a person believed to be the principal’s agent.
Results from communications between a principal and a third party.
Apparent authority
Inherent authority
Granted to an agent so that an agent is capable of properly completing duties to the principal.
Inherent authority
can arise from actual agency or apparent agency
An employer is responsible for the negligent or reckless actions of an employee while an employer is in the course of employment.
Respondeat Superior
Sole propietorship
An unincorporated business owned by one individual with unlimited liability.
Must have at least two general partners, made up of two or more persons, for the purpose of carrying on co-ownership of a business for profit.
General Partnership
Joint Venture
A type of business organization that is very similar to a partnership, but is formed for one particular event or purpose, terminates when that event or purpose completes, and is not set up to be an ongoing concern.
