Restatement of the Law, Agency 3rd Sec. 1

Question 1

Agency

Answer 1

§ 1.01 Agency Defined

Agency is the fiduciary relationship that arises when one person (a “principal”) manifests assent to another person (an “agent”) that the agent shall act on the principal’s behalf and subject to the principal’s control, and the agent manifests assent or otherwise consents so to act.

Question 2

Manifestation

Answer 2

§ 1.03 Manifestation

A person manifests assent or intention through written or spoken words or other conduct.

Question 3

Coagents

Answer 3

Coagents have agency relationships with the same principal.

A coagent may be appointed by the principal or by another agent actually or apparently authorized by the principal to do so.

Question 4

Disclosed, undisclosed, and unidentified principals

Answer 4

(a) Disclosed principal. A principal is disclosed if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal and has notice of the principal’s identity.
(b) Undisclosed principal. A principal is undisclosed if, when an agent and a third party interact, the third party has no notice that the agent is acting for a principal.
(c) Unidentified principal. A principal is unidentified if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal but does not have notice of the principal’s identity.

Question 5

Gratuitous agent

Answer 5

A gratuitous agent acts without a right to compensation.

Question 6

Notice

Answer 6

A person has notice of a fact if the person knows the fact, has reason to know the fact, has received an effective notification of the fact, or should know the fact to fulfill a duty owed to another person.

Notice of a fact that an agent knows or has reason to know is imputed to the principal as stated in §§ 5.03 and 5.04. A notification given to or by an agent is effective as notice to or by the principal as stated in § 5.02.

Question 7

Person

Answer 7

A person is

(a) an individual;
(b) an organization or association that has legal capacity to possess rights and incur obligations;
(c) a government, political subdivision, or instrumentality or entity created by government; or
(d) any other entity that has legal capacity to possess rights and incur obligations.

Question 8

Power given as security

Answer 8

A power given as security is a power to affect the legal relations of its creator that is created in the form of a manifestation of actual authority and held for the benefit of the holder or a third person. It is given to protect a legal or equitable title or to secure the performance of a duty apart from any duties owed the holder of the power by its creator that are incident to a relationship of agency under § 1.01.

Question 9

Power of attorney

Answer 9

A power of attorney is an instrument that states an agent’s authority.

Question 10

Subagent

Answer 10

A subagent is a person appointed by an agent to perform functions that the agent has consented to perform on behalf of the agent’s principal and for whose conduct the appointing agent is responsible to the principal.

The relationship between an appointing agent and a subagent is one of agency, created as stated in § 1.01.

Question 11

Superior and subordinate coagents

Answer 11

A superior coagent has the right, conferred by the principal, to direct a subordinate coagent.

Question 12

Trustee and agent-trustee

Answer 12

A trustee is a holder of property who is subject to fiduciary duties to deal with the property for the benefit of charity or for one or more persons, at least one of whom is not the sole trustee. An agent-trustee is a trustee subject to the control of the settlor or of one or more beneficiaries.