Formation of agency relationship

Question 1

Agency

Answer 1

fiduciary relationship resulting from a principal’s manifestation of consent to have another consenting party act as an agent on her behalf subject to her control

i. consent can be express or implied, but need bilateral consent of both principal and agent
ii. agent acts primarily for the benefit of the principal
iii. agency does not require significant control by principal
a. merely specifying agent’s task is enough

Question 2

Capacity

Answer 2

i. the principal needs to have capacity to contract
ii. the agent does not need to have capacity to be so appointed
iii. i.e. a capable principal can appoint an agent who is a minor

Question 3

Writing requirement

Answer 3

equal dignity rule

i. agency law requires no writing, but SoF applies
ii. equal dignity rule: the agency contract itself must be in writing if the contract to be entered into by the agent needs to be in writing (i.e. if it would fall within SoF)
a. SoF: MYLEGS (marriage, year, land, executor, goods ≥ $500, suretyships)
b. ex. if A authorizes B to convey A’s land to C, the agency agreement and the land transfer contract must be in writing

Question 4

Consideration

Answer 4

is not required for an agency agreement