Agency Law

Agency

Agency is a consensual fiduciary relationship in which one person (Agent)

consents to act on behalf of – and under the control of, another person (Principal), for the

benefit of the principal.

What governs agency?

agency + contract law

Agency vs Contract Law in governing Agency

agency created when consent, control and benefit are all present, and fiduciary duties that come with apply the same way regardless of context

contract creates agency and can be completely different

purpose of agency

ANYTHING except 1) voting in a governmental election or 2) executing a will

Ways agency can form

agreement of parties, apparent authority, ratification, by operation of the law

apparent authority/agency by estoppel

ratification

by operation of law

formation of agency: agreement of parties

creates actual authority for agent (to act on principal’s behalf) and can be express or implied

express agreement of parties

exists when both consent to relationship (does not have to be in writing)

objective test for express authority

would a reasonable person in the position of the agent thing the principal authorized the agent to act?

implied agreement of parties

authority to take reasonable actions necessary to carry out express tasks + be closely connected to express authority

types of implied agreement of parties

authority rising from business relationship

usual authority: