R7 Flashcards
What are the duties of an agent (5)
Loyalty - solely in principal interest
Obedience - agent must obey principals reasonable instructions
Reasonable care - must not be negligent
Account - duty to account for money and property received and paid out
Subagent - owes duty of care to both agent and principal
What are the damages that the principal can recover from the agent? (4)
Tort damages, contract damages, secret profits, and withhold compensation
What does duties does the principal owe the agent? (3)
Compensation - unless otherwise agreed on
Reimbursement/indemnification - expenses
Remedies of agent - if principal breach duties, agent can bring action against principal for damages
Define actual authority
Authority agent reasonably believed that he or she possess bc of principal communication to the agent
What are the 2 types of Actual Authority
- Express - principal specifically rants power
- Implied - agent reasonably believes they have authority based on dealings between principal and agent (necessary to run the business or carry out agency
What are the 2 main ways both actual and apparent authority are terminated?
- operation of law
2. death of principal or agent
Define Apparent Authority
Power that a third party reasonably believes agent has based on prior dealings:
Title and failure to give notice of agents termination
What the requirements of ratification (3)
Ratification can bind the principal in contract . Requirements:
- Agent must have indicated that they are acting on behalf of principal
- All material facts must be disclosed to principal
- Principal must ratify the entire transaction
Define disclosed principal liability
Principal’s existence and ID are known to third party, agent is not liable to 3rd party under contract
Define Partially disclosed party liability
3rd party does not know agent is an agent or does not know principal’s ID, agent is liable under contract with 3rd party along with principal
Define respondeat Superior
Employer can be held liable for employee’s torts committed within scope of employment (while employee is performing services for employer))
What are the elements of a contract?
Agreement (Offer and acceptance) - “meeting of the minds”, offer must be communicated to the offeree
Consideration - legal value
Lack of defense
What is the Statue of frauds (MY LEGS)
Contracts that need to be in writing
Marriage Year - contracts that are longer than one year Land Estate Goods for more than $500 Surety contracts
*Need only be singed by one party but can be enforce only against the one who signed
What are the differences between an Accord and satisfaction and substitute contract
Accord - agreement to substitute one contract for another
Satisfaction - execution (performance) of the accord until the accord is completed
Substitute contract - discharges the original contract discharge
immediately
what is a novation
Occurs when a new contract substitutes a new party for an old party in an existing contract and all parties agree that old party is immediately released from liability
What are the Damages the on breaching party may be entitled to? (4)
Compensatory (money, compensated to where the non breaching party would be if there would be no breach)
Specific Performance (land and unique items) - court order requiring to perform
Liquidated damages - damages agreed to in the contract, reasonable and not penalty
Punitive - punish defendant, not available for breach of contract
What are the exceptions to the statute of frauds?
Specifically manufactured goods (goods not suitable for sale of others)
Written confirmations
Admission in court
Performance