Authority of Agents and Principals
The authority an Agent holds in an express agency relationship
Agent holds whatever authority is provided in the agreement. In addition, agent has whatever authority is customary for his or her position.
What ends an agency relationship immediately?
Death or insanity of either the principal or agent. Incompetent = insane.
An agency relationship consists of what types of ACTUAL authority?
Express Authority and Implied (Apparent Authority)
Three types of authority through which agency power can arise.
Express, implied, apparent
Ratification
Giving approval, consent
Independent Contractor
Someone who acts on behalf of a principal, but the principal does not control the agents day to day activities.
Written Agency agreement
Statute of Frauds requires writing for contracts for sales of goods $500 or more, real estate, contracts to complete in one year, a promise to answer the debt of another, and an executor's promise to be personally liable for the debt of an estate.
Conditions to form an agency relationship
The principal must have the ability to enter into contracts. Both sides must agree and consent to the arrangement.
Power of attorney
a WRITTEN creation agency relationships that lists authority granted. Must by signed by principal, not necessarily the agent. May limit agent's authority to specific transactions.
Lingering Apparent Agency relationship
this relationship exists when the principal fires an agent but the agent continues to act as an employee.
Express agency relationship
A principal orally or in writing delegates authority to an agent. If the contract an agent is entering into is under the Statute of Frauds, contract needs to be in writing.
Agency Relationship by Ratification
An AGENT doesn't have express, implied, or apparent authority, but the agent enters a contract on behalf of the principal. The principal is not bound, but gives the principal a choice.
Gratuitous Agency
An agency relationship can be created with or without CONSIDERATION. Agent who serves without consideration can quit at any time.
Apparent agency relationship
An agency relationship that exists by the appearance to third parties that an agency relationship between principal and agent exists.
Special Agent
Authorized to conduct a single transaction or series of related transactions. Such as a real estate agent.
General Agent
Authorized to conduct all necessary personal and business transactions. General Manager of a restaurant
Universal Agent
Authorized to do all acts that can be legally delegated to an agent.