Legal Relations Chapter 13

  1. What is Agency at Law?
    A relationship that exists when one party represents another in the formation of legal relations.
  2. What is an Agent?
    A person who is authorized to act on behalf of another.
  3. What is a Principal?
    A person who has been permitted another to act on his or her behalf.
  4. What are some examples of Agents?
    • Sports agent
    • Insurance agent
    • Travel agent
    • Booking agent
    • Stockbroker
  5. What is Agency by Estoppel?
    An agency relationship created when the principal acts such that third parties reasonably conclude that an agency relationship exists.
  6. What is Agency Ratification?
    An agency relationship created when one party adopts a contract entered into on his behalf by another who at the time acted without authority.
  7. What is Actual Authority?
    The power of an agent that derives from either express or implied agreement.
  8. What is Apparent Authority?
    The power that an agent appears to have to an outsider because of conduct or statements of the principal.
  9. What is Express Authority?
    Written or oral authority granted by a principal to an agent.
  10. What is Implied Authority?
    Agent's authority that is present by implication only.
  11. What are the Duties of an Agent?
    Must perform in accordance with the principal's instructions, or failing instructions, then performance must meet the standards of the particular trade industry.
  12. What is Fiduciary Duty?
    Duty imposed on a person who has a special relationship of trust with another.
  13. What is a Fiduciary?
    Person who has a duty of good faith towards another due to a relationship.
  14. What are the Duties of the Principal?
    • Pay the agent a specified fee or percentage for services rendered.
    • Assist the agent in the manner described in the contract.
    • Reimburses the agent for reasonable expenses associated with carrying out the agency duties.
    • Indemnify against losses incurred in carrying out the agency business.
  15. What is the Liability of the Principal to the Outsider?
    When an agent enters into a contract on behalf of a principal with a third party, it is the principal, not the agent, who ordinarily is liable on the contract.
  16. What is Liability of the Agent to the Outsider?
    An agent will be personally liable on a contract with an outsider when he or she (the agent) exceeds his or her actual or apparent authority.
  17. What is Warranty of Authority?
    A representation of authority by a person who purports to be an agent.
  18. When an agent exceeds his or her authority, can the principal sue the agent for breach of contract?
    Yes
  19. What is the Liability of an Undisclosed Principal?
    • A principal whose identity is unknown to a third party, who has no knowledge that the agent is acting in an agency capacity.
    • The general rule is that the principal is still liable on the contract so long as the agent is acting within his or her authority.
  20. What is the Liability for Torts of the Agent?
    • As a general rule, an agent is personally liable for any torts that he or she commits.
    • Principal is vicariously liable for the agent's actions so long as the agent is acting within express, implied or apparent authority.
  21. What are Electronic Agents?
    Electronic agents are computer programs, or other electronic means, used to independently initiate an action or to respond to electronic messages without review by an individual.
  22. What is the Electronic Commerce Act(Ontario)?
    Provides that a contract may be formed by the interaction of an electronic agent and an individual.
  23. How do you Terminate an Agency Relationship?
    • An agency agreement can come to an end if:
    • The agency relationship ceases by operation of the law;┬áMost commonly occurs due to the death, dissolution, insanity, or bankruptcy of one of the parties.
Author
Chas
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338498
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Legal Relations Chapter 13
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Legal Relations Chapter 13
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