The defining characteristics of agency Flashcards
What are the defining characteristics of agency?
- Fiduciary relationship
- Manifesting assent
- Empowered agency
- Authorise agent to act
- Unempowered agency
What is agency?
A fiduciary relationship that arises between two persons when the principal manifests assent that another person the agent shall perform acts on the principal’s behalf in a representative capacity, and the agent in turn manifests assent to act or acts on the principal’s behalf pursuant to the principal’s manifestation.
What is the paradigm case of agency?
When the authority conferred by the principal provides the agent with the power to perform juristic acts that affect the principal’s legal position in relation to third parties.
What is the extended case of agency?
Where the agent is authorised to assist the principal as a representative, but has no power to affect the principal’s relationship with third parties.
What are the types of authority?
- Actual
- Apparent.
What is actual authority?
Authority that is expressly or tacitly conferred to the agent by the principal or authority that originates from their relationship by operation of law.
What is apparent authority?
Where such a manifestation is made to a 3rd party and the objective circumstances surrounding that manifestation lead a 3rd party to believe that a principal had given authority to the agent.
What is the internal aspect of agency?
The relationship between the principal and the agent, how it arises and the rights and duties that attach to the principal and agent pursuant to this relationship.
What is the external aspect of agency?
The agent’s power to affect a principal’s legal position with a 3rd party, and the consequences for principal and third party of the agent exercising this power by an act of representation.
What is the crux of agency?
The allocation of one’s usual individual powers to control their personal relations to another.
What forms the basis of power in the paradigm case of agency?
The details/content of that authority.
What is meant by juristic acts?
An empowered agent is able to conclude a binding contract on behalf of the principal.
What is meant by binding?
It imposes a legal obligation on the prinicipal.
What is representation?
A person performing the juristic or otherwise lawful act they are entitled to perform ito the authority the agent has been given on behalf of the prinicpal.
