Agent
A person who agrees to represent or act on behalf of another
Principal
The person whom the agent represents or acts on behalf of
Fiduciary
A person having a special duty created by his agreeing to act for the benefit of another
Fiduciary Relationship
One that involves...
Works For Hire - ANSWER-Any work created by an employee, owned by the employer
Agency by Agreement - ANSWER-May be an expressed agreement
May be an implied agreement
If this is present the other Agency relationships will not be
Agency by Ratification - ANSWER-Giving legal force
Agency by Estoppel - ANSWER-The principal's action creates the appearance of an
agency that does not actually exist (stopped)
A third person reasonably believes that the agency existed (principal is prevented from
denying there is an agency relationship)
, Agency by Operation of Law - ANSWER-Law says it will empower
EX: in a coma, parents or whoever was next in charge would make the medical decision
Express Authority - ANSWER-Can be written or oral; authority is clear and direct in
definite terms; Equal dignity rule
equal dignity rule - ANSWER-if the contract being executed is or must be in writing, then
the agent's authority must also be in writing
Exceptions to equal dignity rule - ANSWER-1. An executive officer in a corporation
when acting for the corporation in an ordinary business situation
2. When the agent acts in the presence of the principal
3. When the agent's act of signing is merely a formality
power of attorney - ANSWER-grants power to a representative of your choosing to
legally act and make decisions on your behalf.
Implied Authority - ANSWER-reasonably necessary to carry out express authority,
inferred from the agents position
Apparent Authority - ANSWER-(Agency by Estoppel)
Emergency Powers - ANSWER-(operation of law) unforeseen emergency demands
action to protect or serve the principal, but the agent is unable to communicate with the
principal, the agent has emergency power
Ratification - ANSWER-Principal accepts the responsibility for agent's Unauthorized
actions
Disclosed principal - ANSWER-principal's identity is known by the 3rd party at the time
the contract is entered into with the agent
Partially Disclosed Principal - ANSWER-A principal whose identity is unknown by a third
party, but the third party knows that the agent is or may be acting for a principal at the
time the agent and the third party form a contract.
Undisclosed Principal - ANSWER-A principal whose identity is unknown by a third
person, and the third person has no knowledge that the agent is acting for a principal at
the time the agent and the third person form a contract.
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