Law 3220 Exam 4 Clemson Exam Solved 100% Correct!!

Agency - An agency is created when a person or company (an agent) agrees to act for or in place of another person or company (the principal) Parties in an Agency - -The principal creates authority in an agent -The agent receives authority and carries out the principal's instructions -Third parties make contract or are involved in torts with the agents Disclosed Principal - Identity of principal is known by the third party at time of making of contract with agent Undisclosed Principal - Identity of principal is unknown to third party, which can be fine. Agent does the work and will be indemnified by principal if agent acts within scope of authority Universal agents - Do all acts that can be legally delegated, i.e. General Power Attorney General agents - Execute all transactions in connection with a business, i.e. top level managers Special agents - Execute a specific transaction or series of transactions, i.e. a real estate agent Agency coupled with an interest - Agent has paid for the right to have authority for a business Gratuitous agent - No payment is made to the agent, i.e. favor for a volunteer Creating an Agency: By agreement of the parties - May be oral or written. Legal document called a power of attorney establishes agency and creates an attorney-in-fact Creating an Agency: Implied or Express ratification by the Principal - A principal accepts responsibility for acts of an agent going beyond his/ her authority (ratification)Creating an agency: agency by estoppel - Actions of the principal lead others to believe an agency exists- the principal is estopped from denying the agency's existence