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Elaborate Outline- - Corporations Outline – Fanto – Fall 2004 AGENCY 1 INTRODUCTION a A simple form of business relationship because a

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Corporations Outline – Fanto – Fall 2004 AGENCY 1) INTRODUCTION a) A simple form of business relationship, because a proprietor cannot do everything himself. However, other people have their own interests , different from proprietor. Agency law provides a structure for the relationship and rules to enhance profit. b) Agency : a consensual relationship that exists when there is a i) Manifestation by principal that the agent shall act for him; an agreement, not necessarily a contract ii) Agent’s acceptance of the undertaking and the understanding of the parties that principal is to be in control of the undertaking iii) DOES NOT occur when the parties just think of themselves or intend to be A/P w/out manifestation iv) DOES occur if parties manifest their arrangement but never actually intend to be bound v) Agency law governs the relationship between the (1) Agent and Principal (2) Agent and Third Party’s whom the agent deals on principal’s behalf (3) Principal and Third Party whom the agent deals on principal’s behalf c) Principal : the person for whom the agent acts and whose control he is subject i) Disclosed: if at time of transaction between agent and third person, third person knows that agent is acting on behalf of a principal and knows the principal’s identity ii) Partially Disclosed : if at time of transaction the third person knows that the agent is acting on behalf of a principal, but does not know the principal’s identity iii) Undisclosed : if agent, in dealing with 3 rd person, purports to be acting on his own behalf; an undisclosed principal is liable for her agent’s unauthorized activities even though 3d person doesn’t know. This is because (1) The principal set the transaction in motion and stood to gain from it (2) Judicial efficiency: 3 rd person sues agent and then agent would sue principal-collapses 2 lawsuits iv) Respondeat superior : torts: principal is a master controls the physical conduct of a servant (agent); master is liable if tort committed within scope of servant’s employment (1) POLICY: to spread risk of losses; proper allocation of resources; principal in position to control the employee leading to greater safety; greater assurance that 3d party will be paid d) Agent : person who by mutual assent acts on behalf of another and subject to the other’s control.Rest. §1. i) General Agent : agent who is authorized to conduct a series of transactions; continuously related ii) Special Agent : agent who is authorized to conduct only one transaction or only a series of actions not involving continuity of service e) Acquiescence (15): if agent performs series of acts of similar nature, failure of principal to object to them is indication that he consents to performance of similar acts in the future under similar conditions f) Actual Authority : when principal’s words or deed lead the agent to reasonably conclude that he has been granted authority by the principal. i)
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This note was uploaded on 04/17/2008 for the course LAW ? taught by Professor Harmon during the Spring '08 term at Touro NY.

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Elaborate Outline- - Corporations Outline – Fanto – Fall 2004 AGENCY 1 INTRODUCTION a A simple form of business relationship because a

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