Unit 10 - Chapter 13 Flashcards
Who is an agent?
person authorized to act on behalf of another
Who is a principal?
person who has permitted another to act on his/her behalf
What is agency by estoppel?
agency relationship where by words or actions, outsiders are led to believe an agency relationship exists
What is agency by ratification?
agency relationship by contract when the parties formally agree to create an agency relationship
Principal can ratify a contract if
does so within a reasonable time, had the capacity to create the contract at the time and the agent identified the principal at the time of entering the contract
What is actual authority
power of an agent that derives from either express or implied agreement
what is apparent authority (hint: appear)
power that an agent appears to have to an outsider b/c of conduct or statements of the principal
what is express authority (hint: written/oral)
written or oral authority granted by a principal to an agent
what is implied authority
agent’s authority that is present my implication only
what is fiduciary duty
duty imposed on a person who has a special relationship of trust with another
(i.e. doctor-patient)
who is a fiduciary
person who has a duty of good faith toward another due to a relationship
who is liable in a contract b/w an agent and principal
principal is liable when an agent enters into a contract on behalf of a principal with a third party (agency)
warranty of authority
a representation of authority by a person who purports to be an agent
–> agent is personally liable on a contract when he/she exceeds their apparent authority
electronic commerce act
provides that a contract may be formed by the interaction of an electronic agent and an individual
how can an agency agreement come to an end?
death, dissolution, insanity, or bankruptcy of one of the parties
