AGENCY LAW REVIEW

Agency Review What is agency and who are the parties in an agency relationship? A relationship in which one person represents another person in a business transaction Agent Principal Third Party

Agency Review What is the difference between an agent and an independent contractor? An agent acts under the authority and on behalf of the principal. An independent contractor performs a particular task for a proprietor.

Agency Review What is agency by ratification? When a principal accepts or approves an unauthorized act by an agent after the fact

Agency Review Travis has express authority to sell Abe’s condo for no less than $250,000 while Abe is away on vacation. Abe learns that Travis has allowed prospective buyers to enter the property and have it inspected. Was Travis legally justified in these actions? YES. From the express authority given to Travis, he could assume an implied authority to take the steps necessary to secure a buyer

Agency Review What is the difference between express and implied warranty? Express authority explicitly gives an agent authority Implied authority allows an agent to perform reasonable acts necessary to carry out the express authority

Agency Review What is a power of attorney? A formal document granting someone authority to act as an agent

Agency Review What hours is an independent contractor required to work? Full time Hours established by an employer Hours he or she chooses Part time Hours he or she chooses

Agency Review Employees are generally paid By the hour, week, or month Whatever they want By the job On a straight commission By the hour, week, or month By the hour, week, or month

Agency Review What is a fiduciary relationship? A relationship based on trust

Agency Review What is the difference between reimbursement and indemnification? Reimbursement is the repayment of money spent by an agent on behalf of the principal Indemnification is the payment for losses suffered by an agent due to the principal’s instructions

Agency Review What is the difference between negligent hiring and negligent retention? Negligent hiring is when a proprietor fails to check qualifications Negligent retention is when a proprietor fails to fire a contractor after learning of incompetence

Agency Review What are the two ways an agency can be terminated? By operation of law By acts of the parties

Agency Review When is an agency relationship terminated by an act of the parties? When completed By mutual assent When agent withdraws or resigns When principal discharges the agent

Agency Review What parties are entitled to notice that an agency has ended? Third parties who have known of the agency relationship