(Q4) Principle Agency Law

Question 1

Creation of Agency Relationship

Answer 1

A principal appoints an agent to act on their behalf

Question 2

Types of Agents

Answer 2

• General
• Special
• Factor
• Broker
• Attorney in Fact

Question 3

General Agency

Answer 3

Can do all of the principal’s business of a particular kind

Question 4

Special Agency

Answer 4

Only authorized to do a specific act or acts

Question 5

Factor

Answer 5

An agent who sells goods for commission

Question 6

Factor Del Credere

Answer 6

an agent who guarantees that the person they make a contract with for their client will pay for the goods or services they receive.

Question 7

Broker

Answer 7

• an agent who negotiates contracts of sale (as of real estate or securities) or other agreements (as insurance contracts or mortgages) between the parties for a fee or commission compare dealer, finder.
• finds a buyer for a seller or a seller from a buyer

Question 8

Attorney in Fact

Answer 8

The person named in a power of attorney to act on your behalf is commonly referred to as your “agent” or “attorney-in-fact.”

Question 9

Principal

Answer 9

the party who gives legal authority to another (agent) to act on his or her behalf

Question 10

Who can be a principal or agent?

Answer 10

anyone with contractual capacity

Question 11

Authority of the Agent

Answer 11

• Expressed Authority
• Implied Authority
• Customary Authority
• Apparent Authority

Question 12

Expressed Authority

Answer 12

the authority which the principal has expressly given to the agent whether orally or in writing.

Question 13

Implied/Authority

Answer 13

• the authority to act on behalf of a principal without express authorization from that principal.
• Perform acts that a reasonable necessary to accomplish the purpose of the organization

Question 14

Customary Authority

Question 15

Apparent Authority