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What is an agent in the context of legal relationships?
What is an agent in the context of legal relationships?
An agent is a person who can enter into a legal relationship on behalf of another person, referred to as the principal.
Name two types of agency relationships that can be created.
Name two types of agency relationships that can be created.
Agency by ratification and agency by necessity are two types of agency relationships.
What is one key duty an agent must uphold?
What is one key duty an agent must uphold?
An agent has a duty to personally perform their responsibilities unless certain exceptions apply.
In what scenario can an agent delegate their duties?
In what scenario can an agent delegate their duties?
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List one reason an agent may be unable to perform their duties.
List one reason an agent may be unable to perform their duties.
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Who is typically considered a gratuitous agent?
Who is typically considered a gratuitous agent?
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What distinguishes a general agent from a special agent?
What distinguishes a general agent from a special agent?
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Identify one type of agent that operates in the mercantile sector.
Identify one type of agent that operates in the mercantile sector.
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Study Notes
Agency Relationships
- Agent: A person who acts on behalf of another person (principal) to create a legal relationship with a third party.
- Principal: The person for whom the agent acts.
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Types of Agency Creation:
- Agency by Estoppel: Principal's conduct leads a third party to believe an agency relationship exists.
- Agency by Ratification: Principal approves an unauthorized act by an agent.
- Agency by Agreement: Formal agreement between the parties.
- Agency by Necessity: Agent acts to prevent loss or damage to the principal's property.
Agent's Duties
- Duty to Perform Personally: Agents must personally perform their duties, except in some circumstances, like need to delegate due to work type, express/implied permission, or emergency situation where total loss is prevented.
- Duty of Loyalty and Obedience: Agents cannot depart from instructions. Vague, professionally-relevant instructions should be followed accordingly. Exceptions include explicitly stated exceptions.
- Duty of Care and Skill: Agents must perform to the level of their expertise or in accordance with professional practice-relevant standards.
- Duty to Act in the Interest of the Principal: Act in good faith and avoid acts of self-interest.
- Duty to Account: Agents must account for money or property received on behalf of the principal.
Delegating Duties
- Delegation Restrictions (Delegatus Non Possest Delegare): Generally, agents cannot delegate their duties.
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Exceptions to Delegation:
- Emergency situations to prevent total loss.
- Explicit or implied permission to delegate.
- Nature of the agency requiring delegation.
Agent's Duty Limitations
- Illegality: Agents cannot perform duties that are illegal.
- Criminality: Agents cannot perform duties involving criminal activities.
Agreement Restrictions
- Mentally Incapacitated: A contract with a mentally incapacitated person is invalid.
- Minors: Contracts with minors need to be limited to what minors usually engage with.
- Bankrupts: Contracts with bankrupts are invalid.
Gratuitous Agents
- Gratuitous agent: An agent acting without receiving compensation.
Types of Agents
- General Agents: Handle a wide variety of transactions or tasks for their principal.
- Special Agents: Authorized to handle a single transaction or a limited set of tasks for their principal.
- Commission Agents: E.g., insurance agents, brokers - earn a commission on a contract.
- Brokers: Facilitate contracts between two or more parties.
- Mercantile Agents: Trade in goods or commodities on behalf of others.
- Del Credere Agents: Guarantee payment of debts.
- Solicitors: Legal representatives.
- Estate agents: Responsible for buying and selling property.
- Auctioneers: Sell property at auctions.
Remedies for Agents
- Sue for damages and losses.
- Counter-claims.
- Hold off property (lien).
- Action for outstanding sums (fees).
Remedies for Principals
- Action in court for claims.
- Request for actions to be carried out.
- Damages.
- Dismissal of Agency Relationship.
Termination of Agency Relationship
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Operation of Law:
- Performance of the agreement.
- Death or insanity of the agent or principal.
- Bankruptcy or winding up of the agency.
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Act of Parties:
- Agreement between both parties.
- Principal requesting the agent to leave.
- Agent’s notice for termination.
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Description
Explore the essential concepts of agency relationships, including the roles of agents and principals, and the various types of agency creation. This quiz also covers the duties of agents, highlighting their responsibilities and obligations towards their principals. Test your understanding of these fundamental legal principles.
