CH 22 Agency Relationships

Management 2106 with Rubinoff at Georgia Institute of Technology

About this deck

By: Sarah Biggers
Textbook:

Cengage Advantage Books: Fundamentals of Business Law: Summarized Cases
Created: 2011-04-30
Size: 26 flashcards
Views: 34

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agency relationship

parties agree that the agent will act on behalf in negotiating and transacting business with third persons

employer-employer

all employees who deal with third parties are deemed to be agents

employer-independent

those who hire independent contractors have no control over the details of their physical performance

agency by agreement

agent is understood to act for principal, can be an express written contract, implied by conduct or oral.

agency by ratification

a person who is not an agent may make a contract on behalf of their principal... if principal approves or affirms by word or action, the relationship is created via ratification

agency by estoppel- principal's action

when a principal causes a third person to believe that another person is their agent and the third person deal with the agent, the principal cannot deny the agent.

agency by estoppel- third party's reasonable belief

third person must prove that they reasonably believed they were an agent and thus, authority

agency by operation of law

agency relationship without a formal agreement may occur in family or in emergency, if the agents failure to act outside the scope of their authority would case substantial loss for the principal

agent's duties to principal

performance, notification, loyalty, obedience, accounting

principal's duties to the agent

compensation, reimbursement and indemnification, cooperation, safe working conditions

express authority

may be oral or written

implied authority

may be conferred by custom, can be inferred from the position an agent occupies or as reasonably necessary to carry out express authority

ratification

principal can ratify

liability for contracts if agent acts appropriately

-if principal's identity is known to third party, the principal is liable

-if the third party knows the agent is acting for the principal, usually both are liable and always the principal

-if identity is unknown to third party, both are liable

liability for contracts if agent has no authority

principal is not liable to third party, agent is. unless third party knew that the agent didn't have authority

liability for contracts with e-agents

include semi-autonomous computer programs capable of executing specific tasks, generally the party using e-agent is bound

principal's tortious conduct

agent is always liable, principal may be liable for harm resulting from their tortious behavior

principal authorization of agent's tortious conduct

agent is always liable, principal may be liable

liability for agent misinterpretations

principal is liable

liability for agent negligence- respondeat superior

employer is liable for harm cause to a third party by an employee if acting within their employment, known as vicarious liability

liability for independent contractor torts

employer is not liable for physical hard to a third person by an independent contractor tort unless it is known hazardous acts that have been authorized

termination-lapse of time

if agreement with specific end date is made, the relationship ends then. if no specific date was said, then it's a reasonable time before either can opt out

termination-purpose achieved

if agent was hired to achieve particular goal, when it is met the relationship ends

termination-mutual agreement

pretty straightforward...

termination- one party

both have power but not right to terminate unless they want to be held liable for breach of contract

termination by operation of law

death or insanity, impossibility, changed circumstances, bankruptcy, war

About this deck

By: Sarah Biggers
Textbook:

Cengage Advantage Books: Fundamentals of Business Law: Summarized Cases
Created: 2011-04-30
Size: 26 flashcards
Views: 34

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj