Formation Flashcards
what are the three components of an agency relationship
Assent, Benefit, and Control
what is assent
the agreement of both parties to the agent/principal relationship
what is a benefit
the agent agrees to work for the benefit of the principal
What is control
the agent agrees to work under the control of the principal
Is there a requirement of consideration to create an agency relationship
No
Who can be a principal
almost any person or entity that has legal capacity
what types of entities can be principals
Employer, Corporation; LLC, Partnerships; LLP
Can an unincorporated association be a principal
No, they lack the legal capacity
Who can be an agent
any person or entity who has minial capacity
In order to have minimal capacity, an agent must be able to
assent to the agency relationship, perform the tasks on behalf of the principal; and be subject to the principal’s control
Must there be an evidence in writing
No
what are the types of agents
servants/employees and independent contractors
what type of control does a principal have over a servant/employee
The employer has the right to control the agent’s physical conduct of work
what type of control does a principal have over an independent contractor?
the principal does not control or have the right to control the agent’s physical conduct of work
what are characteristics of an independent contractor
maintain a high level of independence, free to work for other people, paid on a fixed fee, has their own tools
