[Solution]What is “agency” at law?

What is “agency” at law? A relationship that exists when 1 party represents another in the formation of legal relation Agent-A person, who is authorized…

What is “agency” at law?
A relationship that exists when 1 party represents another in the formation of legal relation
Agent-A person, who is authorized to act on behalf of another
Principal-A person who has permitted another to act on his behalf
(Order a pizza, tell your kid to pick up pizza, kid is agent, you are principal)
Examples of Agency Relationships
A sports agent negotiates a multimillion dollar deal behalf of a hockey player
An insurance agents sells fire and theft insurance on behalf of several insurance companies
A travel agent sells tickets, cruises, and vacation packages on behalf of carriers and hotels
A booking agent negotiates fees and dates on behalf of entertainers
A stockbroker buys and sells shares on behalf of indivuals and companies
Principal creating the situation, agent representing the principal
P is you, A is your kid, OS is the pizza place
P is responsible for what A is doing
A might overstep boundary and affect OS (kid buys more KFC than intended)
Creation of Agency Relationship
Agency By Estoppel-An agency relationship created when the principal acts such that third parties reasonably conclude that an agency relationship exists
(a middle man says an account is good at marketing to get a contact, but he is just an accountant not a marketer
Agency by Ratification: an agency relationship created when 1 party adopts a contract entered into on his behalf by another who at the time acted without authority (agent overstepped authority, daughter buys 2 bags, father did not intend for that)
A principal can ratify a contract if
-he/she does so in a reasonable time
-the principal had the capacity to create the contract at the time the agent entered into in and at the time of ratification, and
-the agent identified the principal at the time of entering the contract
(to kill a mockingbird author when insane, the lawyer took advantage of a manuscript, that was locked up in a vault, of kill of mockingbird 2 which was much darker, and the author reputation was ruined)
Authority of Agent
Actual Authority-Power of an agent that derives from either express or implied agreement
Apparent Authority-Power that an agent appears to have to an outsider because of conduct or statements of the principal (agency by estoppel)
Express Authority-Written or oral authority granted by a principal to an agent(usually oral)
Implied Authority-Agent’s authority that is present by implication only
Duties of an Agent
Must perform in accordance with the principal’s instructions, or failing instructions, then performance must meet the standards of particular trade or industry
Agents Are Fiduciaries
Fiduciary Duty-Duty imposed on a person who has a special relationship of trust with another
Fiduciary-person who has a duty of good faith toward another due to a relationship
(Fiduciary daughter of a power man, man gives a trust fund to daughter and manage it, fiduciary duty) (daughter kicks dad out of the trust fund)
Duties of Principal
-Pay the agent a specified fee or percentage for services rendered
-Assist the agent in the manner described in the contract
-Reimburse the agent for reasonable expenses associated with carrying out agency duties (all cheap hotels are full, must buy expensive ones)
-indemnify against losses incurred in carrying out the agency business
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
An agent will be personally liable on a contract with an outsider when he/she(the agent) exceeds his actual or apparent authority
Warrant of Authority- A representation of authority by a person who purports to be an agent
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, principal is still liable on the contract so long as the agent is acting within his authority
Liability of Agent to Principal
When an agent exceeds his authority, the principal can sue the agent for breach of contract
Liability for Torts of the Agent
As a general rule, an agent is personally liable for any torts that he commits
Principal is vicariously liable for the agent’s actions so long as the agent is acting within express, implied, or apparent authority (principal is liable for agent’s conduct in front of authority)
Electronic Agents
Electronic Agents are computer programs, or other electronic means, used to independently initiate an action or to respond to electronic message without review by an individuals
Power of Attorney Kit, Property and Personal Care, has biological will

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