Special Deck - Agency Flashcards
What is an agency coupled with an interest?
Where the agent has either a property or security interest in the subject matter. This makes termination of the relationship impossible by the principal.
What must an agent with an undisclosed principal do to avoid liability?
He must disclose the principal before the contract is made
When a fired employee sells to customers who still think he works for his former company, what kind of notice is required for the agents former clients, and those that were aware of his authority?
In order to protect the company from having to stand good for product fraudulently “sold”, actual notice must be given to any former clients he dealt with. Constructive, or public notice will protect the company from claims by everyone else.
