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Business Law 3.02
Understand Agency Law
Term | Definition |
---|---|
Actual authority | the principal intentionally gives express and implied powers to the agent to act for him/her |
agency by agreement | a legal contract that is used to create a principal-agent relationship |
agency by estoppel | legally binding agency relationship that requires no formal agency agreement |
agency by ratification | situation in which a person or company inaccurately claims to be an agent for another person and conducts some act in that capacity, but which the principal later accepts and recognizes |
agency by statute | a contract of agency relationship put into place by a legislative body |
agency law | area of law dealing relationships created between two parties in which the principal gives authority to an agent to act of the principal's behalf in business transactions with a third party |
agent | individual employed by principal to work with the third party |
agent's agent | an agent appointed by another agent without the knowledge and consent of the principal |
apparent authority | occurs when a principal causes or allows a third person to believe that an agency relationship exists, when there is no express agency |
co-agents | two or more agents working together |
general agent | given authority by principal to perform a variety of tasks |
gratuitous agent | agent that works for free; no contract exists between agent and principal |
partially disclosed agent | given authority to work with a third party but forbidden to reveal identity of the principal |
principal | individual who gives authority to the agent |
special agent | an agent whose authority is limited to the special undertaking which she/he is instructed to perform; has a limited authority to act |
subagent | an agent appointed by another agent with the knowledge and consent of the principal |
third party | the person or company whom the agent deals with on behalf of the Principal |