LESSON 7: CREATION+TERMINATION OF AGENCY Flashcards
(84 cards)
How is an agency relationship created?
An agency relationship is created by an agreement between two parties: the principal and the agent. However, for the law of agency to work, it requires three parties: the principal, the license holder (agent), and a third party.
What is required to create an agency relationship?
“Mutual consent” by all parties is required to create an agency relationship.
What is Actual Agency?
Actual Agency is an agency where the agent is directly employed by the principal to represent their interests.
What is Agency by Estoppel?
Agency by Estoppel is an agency created by law through a principal’s actions that lead a third party to reasonably believe that an agency exists.
What is Agency by Necessity?
Agency by Necessity arises in an emergency situation, where the agent acts without the principal’s prior authorization due to exigent circumstances.
What is Agency by Operation of Law?
This is another term for Agency by Estoppel, where the agency relationship is created through the operation of legal rules rather than by an agreement.
What is Agency Coupled With an Interest?
An agency where the agent has both the power to act on behalf of the principal and a legal interest in the property or estate involved.
What is Agency in Fact?
Agency in Fact is an agency created voluntarily by the principal, such as through a contract.
What is Apparent Agency?
Apparent Agency is the same as Agency by Estoppel, where the third party believes an agent has authority due to the principal’s actions.
What is Exclusive Agency?
Exclusive Agency is an arrangement where the agent has the right to represent the principal exclusively, often in a particular market.
What are the three classes of Exclusive Agency contracts?
- The contract does not prevent the principal from making direct sales but stops the appointment of other agents. 2. The agent is the only one with rights to sell. 3. The agent has rights to commissions on all sales, whether made by the agent or not.
What is Express Agency?
Express Agency is an agency created when the principal gives written or oral authorization to the agent to act on their behalf.
What is Financing Agency?
A Financing Agency is a bank or other entity that advances funds, intervenes in payment, or makes advances in contracts for sale.
What is General Agency?
General Agency is when a principal delegates authority to an agent to act on their behalf in a broad range of actions related to a business or trade.
What is Implied Agency?
Implied Agency arises from the conduct of the principal that implies an intention to create an agency relationship.
What is Ostensible Agency?
Ostensible Agency is another term for Agency by Estoppel, where the agent appears to have authority due to the principal’s actions.
What is Agency by Ratification?
Agency by Ratification occurs when the principal approves or ratifies the actions of the agent after the fact.
What is Special Agency?
Special Agency is an agency where the agent is authorized to conduct a single transaction or a series of transactions that do not involve continuous service.
What is Undisclosed Agency?
Undisclosed Agency is when an agent deals with a third party without the third party knowing the agent is acting on behalf of a principal.
What is Universal Agency?
Universal Agency is the same as General Agency, where the agent has broad authority to act on behalf of the principal in various matters.
How can an agency relationship be created in writing?
An agency relationship can be created through a written agreement, such as a Power of Attorney (POA), which grants specific or broad authority to an agent.
Can an agency relationship be created verbally?
Yes, an agency relationship can be created verbally, although written agreements are recommended to avoid confusion and legal issues.