Agency

• Expression (by appointment)
• Implication (by principal's conduct)
• Misinterpretation (by a third party via principal's fault)

Principal manifests assent or intent to agent

Agent acts on principal's behalf

Agent is subject to principal's control

Agent manifests assent or otherwise consents to act on the principal's behalf.

This control need not be particularly firm—it suffices that the agent’s activities are occurring pursuant to the overall direction of the principal.

The fact that a principal lacks the right to control the full range of an agent’s actions, or fails to exercise the right to control the agent, does not affect the existence of an agency relationship.

Any individual or entity (e.g., a government, corporation, partnership) which has the legal capacity to possess rights and incur obligations can be a principal.

Does NOT include unincorporated associations.

Anyone with minimal capacity. This means that an agent does not have to have the legal capacity to form contracts (including minors and incompetents).

Special type of principal who controls—or has a right to control—the physical conduct of the agent’s performance. In this context, the agency in referred to as a “servant” (employee).

The more control a master exerts over a servant’s actions, the more likely the master-servant relationship exists.

Whether a “master-servant” relationship exists between an employer and its employees depends on the following factors:

• i) Employer exercises significant control over the details of the worker’s day-to-day activities;
• ii) Employer supplies the tools at the place of employment;
• iii) Employer pays workers on a structured pay period;
• iv) Worker’s skill level is not specialized; and
• v) Employer directs completion of the work.

A gratuitous agent is an agent who does not receive compensation. This does not prevent creation of an agency relationship.

Example: A and B are good friends. B has a new job starting in a week, but does not want to drive her new sports car from Ohio to California. A offers to drive B’s car to California for free. An agency relationship exists between A and B. B is the principal, and A is the (gratuitous) agent.

One with broad authority over a wide variety of tasks involving a continuity of service in a particular kind of business, without express direction from the principal. General agents include store managers and purchasing agents.

Trustee is an agent of the settlor of the trust.

Special agents generally have limited authority regarding a specific transaction, or string of repetitious acts. Common titles include real estate agents, subagents, insurance agents, commission merchants, and bailees.

A special agent appointed by an agent to perform the agent's duties. The agent must have authority to appoint a subagent.

The agent is liable to the principal for the conduct of the subagent. Subagent has a duty of loyalty both to the principal and to the appointing agent.

• When an appointing agent hires employees, they are presumed to be subagents of the appointing agent, acting on behalf of the appointing agent’s principal.
• Example:
• Employees of an advertising firm working on the account of a customer of the firm are presumed to be subagents, of the firm.

Yes.

Yes. A principal is bound by the subagent’s acts to the same extent as if the agent had undertaken the same acts. Notice received by a subagent is treated as notice to the principal; knowledge possessed by the subagent is imputed to the principal.

No, the agent's duty of loyalty requires that he not work for both.

An agent who appoints a subagent may be subject to vicarious liability for torts committed by the subagent. Additionally, a principal may be liable for torts committed by authorized subagents.

A Broker! Has a duty of care and loyalty to the buyer.

A seller's agent

A listing agent

One who acts both as a buyer's and a seller's agent in the same transaction

Utilized when a real estate broker represents several parties in the same transaction. A designated sales agent takes over some of the brokers duties.

Helps someone find a property to rent

Helps a landlord finad a tenant

• A broker's agent is an agent of:
• 1. listing agent,
• 2. tenant's agent, or
• 3. buyer's agent.

A broker's agent is not a subagent of the broker, just the agent of the above three.

Must be 20 years old, a US citizen of legal alien, not convicted of felony or sex offence, and be in compliance with any child support orders.

Either party has the right to terminate the agency relationship. This right may be exercised without regard to the implied covenant of good faith and fair dealing, at least where the agent is not an employee.

Once the non-terminating party receives notice.

They last for a "reasonable amount of time" unless other arrangements are made.

1) Death of the principal or agent - no notice required unless between a customer and his bank or if the dead person was in the military and an agent held a written power of attorney.

2) Principal's loss of capacity - no notice required, and effective immediately upon adjudication as incapacitated. Exception: does not apply where agent has a durable power of attorney.

3) Principal organization loses capacity

4) Agent breaches a fiduciary duty

• Must be:
• 1) In writing
• 2) Evidences appointment as agency
• 3) Details that agency will not lose agent status upon incapacity