Chapt. 33 quizlet PDF

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Chap. 33 Agency Formation and Duties Study online at quizlet.com/_9k5z19 1.

agency by ratification requirements

Individual must misrepresent himself/herself as agent for another party

4.

Creation of Agency Relationship

Expressed agency: Agency formed by making written/oral agreement. • Power of attorney: Document giving agent authority to sign legal

Principal accepts/ratifies unauthorized act documents on behalf of principal. Principal has complete knowledge of all material facts regarding contract

• Durable power of attorney: Power of attorney intended to continue to be effective/take effect after principal incapacitated.

Principal must ratify entirety of agent's act 2.

Agency Law

• Agency: Relationship between principal and agent.

• Agency by implied authority: Agency formed by implication through conduct of parties.

Agent: One authorized to act for/on behalf of principal.

• Agency by estoppel: Agency formed when principal leads third party to believe that another individual serves as his/her agent (although principal had actually made no agreement with purported agent).

Principal: One who hires agent to represent him/her. Fiduciary: One with duty to act primarily for another person's benefit. 3.

Agency Relationships

Agency by ratification: Agency that exists when individual misrepresents himself/herself as agent for another party and principal accepts/ratifies unauthorized act.

Agency relationship: Fiduciary relationship (relationship of trust) in which agent acts on behalf of principal. • Principal-agent relationship: Employer hires employee to enter into contracts on behalf of employer; parties have agreed that agent will have power to bind principal in contract. • Employer-employee relationship: Employer hires employee to perform certain tasks; employer has right to control conduct of employees. • Employer-independent contractor relationship: Employer hires persons (other than employee) to conduct some sort of task; employer has no control over details of conduct of independent contractor.

5.

Independent Contractor or Employee?

Does worker engage in distinct occupation/independently established business? Is work done under employer's supervision, or does specialist without supervision complete the work? Does employer supply the tools? What skill is required for the occupation? What is the length of time for which worker employed? Is worker a regular part of the employer's business? How is worker paid?

6.

Principal and Agent Duties

Principal's duties to agent. Compensation Reimbursement and indemnification Cooperation Safe working conditions Agent's duties to principal Loyalty Notification Performance Obedience Accounting

7.

Principal and Agent Rights and Remedies

Principal's rights and remedies against agent: Constructive trust Avoidance Indemnification Agent's rights and remedies against principal Tort and contract remedies Demand for an accounting Specific performance...