Consideration is not required no formality really is Unless real estate 394

Consideration is not required no formality really is

This preview shows page 39 - 42 out of 48 pages.

Consideration is not required, no formality really is Unless, real estate (394) Power of Attorney (POA): scope of an agent’s power is defined in writing Agent is called the attorney-in-fact
Image of page 39
General POA grants the agent broad powers to act on the principal’s behalf Special POA grants the agent power to act only in narrow ways Durable POA appoints a relative as agent and is limited in the kinds of powers that can be assigned Must obey clear instructions from the principal Must use reasonable care Must account for all money received/paid on behalf of principal Promptly notify principals of relevant information Must be loyal not to compete with the principals Girard v. Myers -duties owed by agent to principal: obedience as long as clear and legal. if ambiguous, can’t disregard but try to interpret. if clear, can only disregard under emergency or such; reasonable care/not be negligent-did not exercise skill/care; duty to keep and make account of money paid/received on behalf of principal; should not compete with the principal in business Principal: the employer of an agent o Person who wants to accomplish something o Obligated to honor the terms of their contract o Reimburse expenses an agent incurs when working for them o Must indemnify agents when agents incur liability Relationship between principal and agent: o Fiduciary relationships Trust and confidence Good faith from each party Both has specific duties Terminating the relationship If agent completely fills the limited purpose of relationship At a specific due date/event Usually, mutual agreement is not required (if they want to walk away they can) Agent may quit Principal may fire agent operation of law- death of either, insanity of either agent’s bankruptcy If an agent signs a contract, are you (the employer of the agent) liable to uphold the contract? If they had authority/legal permission, yes. 3 types: o Express authority: employer gives agent direct order o Implied authority: if agent was doing something reasonably necessary to fulfill the direct orders o Apparent authority: principal’s conduct leads a third party who is outside the agency relationship to believe that an agent can do something Salespeople sell a car, dealership has to uphold it Industrial Molded Plastic Products inc v. Gross & Sons, Inc
Image of page 40
Express ratification: if you deliberately decide to be bound by the agreement and give notice of that intention Implied ratification: your words or conduct seem to indicate that you intend to be bound by the deal If an agent commits a tort, are you (the employer of the agent) liable? Depends if you are an employee or independent contractor Employee--within scope of employment, managed, use the principal’s resources--you are liable as well.
Image of page 41
Image of page 42

You've reached the end of your free preview.

Want to read all 48 pages?

  • Spring '08
  • BREDESON
  • Law, Government, Supreme Court of the United States, U.S Supreme court

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture