Agency Relationships

These flashcards cover key vocabulary and concepts related to agency relationships as discussed in the lecture.

Agency

A relationship where one person (the agent) acts on behalf of another person (the principal).

Express Authority

Authority granted in clear, direct, and definite terms, either orally or in writing.

Implied Authority

Authority inferred from the conduct of the parties or circumstances, allowing an agent to perform acts that are necessary to fulfill express authority.

Apparent Authority

The appearance of authority that causes a third party to believe the agent has the power to act on behalf of the principal, even if no actual authority exists.

Duty of Performance

The obligation of an agent to use reasonable skill and diligence in performing their work.

Duty of Loyalty

An agent's responsibility to act solely for the benefit of the principal and avoid conflicts of interest.

Contractual Liability

The responsibility of the principal and agent in a contract based on whether the principal's identity is disclosed or undisclosed to the third party.

Tortious Liability

The accountability for wrongful acts committed by the agent or principal, with each liable for their own actions.

Termination of Agency Relationship

Occurs when the agreement ends, including by mutual consent, operation of law, death, or impossibility.

Scope of Employment

The boundaries within which an employee's actions are performed and whether they can impose liability on the principal.