Chapter 4 - Agency Law

Chapter 4 - Agency Law - Agency Law A Agency Relationship...

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Agency Law A. Agency Relationship An Agent becomes the representation for the Principal The Agent can bind Principal to contracts with third parties Agency Relationship is based off of contract Law B. Reasons to have an Agency Relationship Principal does not have time to meet with all of clients The Principal wants to remain anonymous C. 4 Ways to Create the Agency Relationship 1. Agency by Agreement Contract between two parties Written (if under statues of fraud) – Written contract will have power of attorney Oral General Agency – The Agency gives the Agent the power to do everything the Principal can do Express Authority – agreed power Implied Authority – the power necessary to carry out express authority Special Agency – only specified actions allowed (no implied powers) Universal Agency – personal and business actions are allowed as part of the general agency 2. Agency by Ratification Principal agrees to the actions a non-agent has done on the Principal’s behalf, then the non-agent becomes an agent and the Principal is liable for the new agent’s actions, the Principal could have refused the non-agent’s actions and would not have been liable 3. Agency by Law
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