BUSINESS LAW: CHAPTER 4 LAW OF AGENCY

Duties of Principal to Agent

(1) to compensate the agent (2) to reimburse the agent for money spent in the principal's service (3) to indemnify the agent for losses suffered in conducting the principal's business

By Acts of the Parties:

-Agreement -Breach -Renunciation by the agent -Revocation by the principle

Express Appointment

-An oral, written, or expressed contract in which the principal authorizes an agent to act in the principal's behalf. -Power of attorney

Termination by Operation of Law

-Bankruptcy -Frustration -Death -Insanity of the principal

Termination of Agency

-By acts of parties -By operation of law

Creation of agency agreement

-Express appointment -Estoppel -Ratification -Necessity -Implied -Apparent -Agency by operation of law

Rights Agent to principal

-Remuneration -Reimbursement -Indemnity -Lien -Receive proper instructions

Renunciation by agent

-The agent has the power to put an end to the agency by notice to the principal that she renounces the authority given her by the principal. -If the parties have contracted that the agency continues for a specified time, an unjustified renunciation prior to the expiration of the time is a breach of contract.

Neccisity

-Where an agent went beyond his or her authority by intervening on behalf of the principal in an emergency. -Because of the circumstances of necessity, particularly the impracticability of the agent communicating with the principal, the courts were prepared to treat the agent as though he or she had the necessary authority to do what was reasonably necessary to save the principal's property.

Duties of Agent to Principal

1) Duty of Obedience 2) Duty of Good Conduct 3) Duty of Diligence 4) Duty to Inform 5) Duty to Account 6) Fiduciary Duty 7)Confidentiality

Agency

A fiduciary relationship between a principal and an agent, where the agent acts on behalf of the principal and everything the agency does will bind the principal.

Estoppel

A legal theory under which a person is barred from denying representation by conduct

Ratification

Agent acts without authority and the principal confirms it after being done.

Apparent (Obstensible) Authority

Out of the acts of the principle whether intentional or not appoints another person to become the agent.

reimbursement

Refund or payback

Rights of principal to agent

The rights of the principal are the duties of the agent

Implied

When a person by his words or conduct acts as if he has such authority and the principal acknowledges that he was entitled to act accordingly

lien

a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Revocation by the principal

may be revoked at any time by principal by giving agent notice but principal may still owe agent for services

indemnity

payment for damages

remuneration

payment for work done

Agency by Operation of Law

when the law imposes on a principal the consequence of an agency that was not otherwise accepted, usually in an emergency or other unusual situation