1. AGENCY LAW REVIEW

2. 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

3. 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.

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

5. 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

6. 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

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

8. 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

9. 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

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

11. 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

12. 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

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

14. 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

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