BLAW ch 20-36 Glossary

Agent

the party appointed by the principal to enter into a contract with a third-party on behalf of the principal.

Authority

power to act for someone else.

Cashiers check

a check drawn on a bank's own funds and signed by a responsible bank official.

Certified check

a check for which the bank assures that the drawer has sufficient funds to make payment.

Check

an order by a depositor to the bank to pay a sum of money to a payee.

Delegation

transfer of contractual duties to a third-party.

Drawee

the person, company or financial institution ordered to pay a check

Drawer

the person who executes any check.

Employee

a person hired to perform work that is directed and controlled by the employer.

Employer

the party who hires employees to do certain work

Express Authority

rights of an agent stated in the agreement creating the agency

General Agent

one who is given broad authority to conduct the principal's business.

Implied Authority

an agent's authority to do things in order to carry out express authority.

Independent Contractor

one who contracts to do jobs and is controlled only by the contract as to how performance is to be rendered.

Negotiable Instrument

a writing drawn in a special form which can be transferred as a substitute for money or as an instrument of credit.

Negotiation

the act of transferring ownership of a negotiable instrument to another party

Payee

the party to whom a negotiable instrument is made payable.

Principal

a party who appoints another to serve as an agent.

Promissory Note

a negotiable instrument containing a promise to pay

Special Agent

one authorized by the principal to execute specific act(s)

Term life policy

contract whereby insurer assumes risk of death of insured for a specific time with no cash surrender value.

Universal Life policy

an insurance product combining features of both whole life and term life policies.

Whole life policy

insurance that covers an insured for life and accumulates cash surrender value.