BLS Final - Chapter 33 Agency relationship: the agent is...

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Chapter 33 Agency relationship : the agent is authorized to act for and on behalf of the principal 1. Must have a lawful purpose 2. Must have contractual capacity - Agency : the fiduciary relationship that results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other to act Basis for agency relationships: a. By expressed agency or agency by agreement b. By implied authority c. By apparent agency, or agency by estoppel d. By ratification Gratuitous agent : one who acts without consideration; ex. not paid for their services Expressed agency : agency by agreement - Power of attorney : establishes an agency by agreement that gives an agent authority to sign legal documents on behalf of the principal - Durable power of attorney : a written document expressing his or her wishes for an agent’s authority not to be affected by the principal’s subsequent incapacity Apparent agency : (agency by estoppel) created on the acts of the principal; the principal is estopped, or prevented, from the denying that individual is an agent Agency by ratification : an individual must misrepresent themselves as an agent for another party and the principle must accept or ratify the act.(principal must have complete knowledge and they must accept the entire contract) Principal agent relationship : when an employer hires an employee to enter into contracts on its behalf Employer employee relationship : employee is subject to the employer’s control Independent contractor : a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other’s right to control with respect to his physical in the performance of the undertaking Principal’s duties: 1. Duty to compensate : principal’s duty to compensate the agent 2. Duty to reimbursement and indemnification : ex. authorized expenditures 3. Duty of cooperation : must assist the agent in their duties 4. Duty to provide safe working conditions Agent’s duties to perform: 1. Duty of loyalty : must act in the interest of the principal 2. Duty of notification : must tell the principal any information that could be important 3. Duty of performance 4. Duty of accounting Principal’s rights and remedies: - Constructive trust : equitable trust imposed on someone who wrongfully obtains or holds legal rights to property her or she should not possess - Avoidance : when the agent breached the contract the principal can avoid - Indemnification : if a principal is sued by a third party they have the right to sue the agent
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Agent’s rights and remedies: - Tort and contract remedies : - Demand for an accounting : may without duties until principal supplies accounting - Specific performance : can force the principal to perform Chapter 34 Power of attorney : usually in writing granting an agent specific powers Special power of attorney : grants the agent express authority over specific
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BLS Final - Chapter 33 Agency relationship: the agent is...

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