Business Law Agency Law Flashcards

Questions and Answers

What is actual authority?

An agency relationship created by state law

An agent that works for free

An agent appointed by another agent

Express and implied powers of an agent (correct)

What is agency by agreement?

An agency relationship created by an oral or written contract between the agent and principal.

What is agency by estoppel?

An agency relationship created because the principal's action caused a third party to believe that an agency relationship exists.

What is agency by ratification?

An agency relationship created because the principal approved of an agent's unauthorized action after the action occurred. Signup and view all the answers

What is agency by statute?

An agency relationship created by state law. Signup and view all the answers

What is agency law?

An area of law dealing with working relationships created between two parties. Signup and view all the answers

Who is an agent?

An individual employed by the principal to work with the third party. Signup and view all the answers

What is an agent's agent?

An agent appointed by another agent without the knowledge or consent of the principal. Signup and view all the answers

What is apparent authority?

Occurs when the powers of the agent are created by law or circumstance. Signup and view all the answers

What are co-agents?

Two or more agents working together. Signup and view all the answers

What is a general agent?

An agent that is given the authority to perform a variety of tasks. Signup and view all the answers

What is a gratuitous agent?

An agent that works for free. Signup and view all the answers

What is a partially disclosed agent?

An agent that is given the authority to work with a third party but forbidden to reveal the identity of the principal. Signup and view all the answers

Who is the principal?

The individual who gives authority to the agent. Signup and view all the answers

What is a special agent?

An agent that is given the authority to perform specific tasks. Signup and view all the answers

What is a sub-agent?

An agent appointed by another agent with the knowledge and consent of the principal. Signup and view all the answers

Who is a third party in agency law?

The person or company whom the agent deals with on behalf of the principal. Signup and view all the answers

Study Notes

Authority Types

Actual Authority: Combines express and implied powers granted to an agent by the principal.
Apparent Authority: Arises when an agent appears to have power, creating an impression of authority for third parties due to the principal's actions.

Agency Creation

Agency by Agreement: An agency relationship established through a verbal or written contract between the principal and the agent.
Agency by Estoppel: Formed when the principal's behavior misleads a third party into assuming an agency relationship exists.
Agency by Ratification: Occurs when a principal formally accepts an agent's unauthorized action after it has taken place.
Agency by Statute: Created through state laws that define certain agency relationships.

Agent Roles

Agent: A person employed by the principal to act on their behalf, interacting with third parties.
Special Agent: Granted specific authority to perform particular tasks on behalf of the principal.
General Agent: Authorized to handle a broad range of responsibilities without needing each task's prior approval.
Gratuitous Agent: Functions without receiving any form of compensation.
Co-agents: Multiple agents working collaboratively for the same principal.
Sub-agent: An agent who is appointed by another agent with the principal's knowledge and approval.
Agent's Agent: Appointed by another agent without the principal's knowledge or consent.

Key Entities

Principal: The individual or entity that empowers an agent to represent them.
Third Party: The individual or business entity that the agent engages with on behalf of the principal.

Agency Law Overview

Agency Law: Governs the relationships and responsibilities between principals and agents, defining rights, duties, and the scope of authority.

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Description

Test your knowledge of agency law with these informative flashcards. Each card provides definitions of key terms like actual authority and agency by agreement. Perfect for students in business law or anyone looking to deepen their understanding of agency relationships.