Agency (A) Module 1 Highlights

Agency is a fiduciary relationship that arises when one person (the "principal") ___ another (the "agent) to act on the principal's ___ and the agent ___.

Agency is a fiduciary relationship that arises when one person (the "principal") appoints another (the "agent) to act on the principal's behalf and the agent consents.

Agency law does not require the appointment of an agent to be in ___. However, if the agency agreement falls within the ___ of ___, a writing is required. Furthermore, under the "___ ___ ___" that is applied in many states, an agency agreement that directs the agent to enter into ___ ___ that fall within the Statute of Frauds must be in writing.

Agency law does not require the appointment of an agent to be in writing. However, if the agency agreement falls within the Statute of Frauds, a writing is required. Furthermore, under the "equal dignities rule" that is applied in many states, an agency agreement that directs the agent to enter into other contracts that fall within the Statute of Frauds must be in writing.

An agent may be ___ from acting as an agent for representing ___ parties to a transaction or failing to have a ___ ___.

An agent may be disqualified from acting as an agent for representing both parties to a transaction or failing to have a required license.

Consent by ___ parties is required.

Consent by both parties is required.

Consent may be established ___ (through written or oral statements) or by ___ from the parties' ___.

Consent may be established expressly (through written or oral statements) or by implication from the parties' conduct.

However, an agent does not need ___. Thus, a ___ or ___ can be an agent. However, a person must have at least some ___ ___ ___.

However, an agent does not need capacity. Thus, a minor or incompetent can be an agent. However, a person must have at least some minimal mental capacity. A person with literally no mental capacity cannot become an agent.

In order to appoint an agent, a principal must have ___ ___ ___. Thus, a ___ appointment of an agent is ___, and ___ cannot be principals.

In order to appoint an agent, a principal must have full contractual capacity. Thus, a minor's appointment of an agent is voidable, and incompetents cannot be principals.

No ___ is required for the creation of an agency relationship.

No consideration is required for the creation of an agency relationship. Thus, one may agree to serve as an agent gratuitously and be saddled with the duties of an agent.

HYPO: Taylor swift hires Hollywood bigwig Michael Ovitz to be her agent. Is a writing required?

No.

To summarize, all that is required to form a valid agency relationship is . . . (1) ___, (principal needs ___ ___ ___, agent needs only ___ ___ ___) (2) ___ by ___ ___, and (3) ___ a ___.

To summarize, all that is required to form a valid agency relationship is . . . (1) capacity, (principal needs full contractual capacity, agent needs only minimal mental capacity) (2) consent by both parties, and (3) maybe a writing. Consideration is not required!

HYPO: Gilligan authorizes Mike to convey his island to Ginger. Is a writing required?

Yes, if the state follows the equal dignities rule. Under the equal dignities rule, an agency agreement that directs the agent to enter into other contracts that fall within the Statute of Frauds must be in writing. A contract for the sale of land falls within the Statute of Frauds, so an agency agreement directing Mike to enter into a contract for the sale of land on his behalf would need to be in writing.

HYPO: Taylor hires Mike to be her agent for 5 years. Is a writing required?

Yes. The agency agreement falls within the Statute of Frauds.