law of Agency

Contract of Agency

An agreement where one person (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Principal

The person who is represented by the agent in an agency relationship.

Agent

The representative employed by the principal to act on their behalf in dealings with third parties.

Bilateral Contract

A contract involving two parties where both agree to fulfill certain obligations.

Express Agreement

A clear, explicit agreement between parties, which can be verbal or written.

Implied Agreement

An agreement inferred from the actions or circumstances of the parties involved.

Agency by Ratification

When a principal accepts and adopts an act performed by an agent that was initially done without authority.

Agency by Necessity

A legal concept allowing an agent to act without authority in emergency situations to protect the principal's interests.

Estoppel in Agency

Prevents a principal from denying the existence of an agency if they have represented that a person is their agent.

General Agent

An agent who has broad authority to act on behalf of the principal across a range of activities.

Special Agent

An agent authorized to act in a specific transaction or for a specific purpose.

Universal Agent

An agent with unlimited authority to act on behalf of the principal in all matters.

Mercantile Agent

An agent who has authority in business transactions typically involving the buying and selling of goods.

Sub-Agent

An agent appointed by another agent, acting under the control of the original agent.

Actual Authority

The authority explicitly given to an agent by the principal.

Apparent Authority

Authority that an agent appears to have, based on the principal's representations to third parties.

Fiduciary Duty

An obligation of loyalty and trust that the agent owes to the principal.

Capacity to Act as Agent

The legal ability of a person to act on behalf of another in an agency relationship.

Disclosed Principal

A principal whose identity is known to the third party at the time of the agent's transaction.

Partially Disclosed Principal

A principal whose existence is known, but whose identity is not revealed to the third party.

Undisclosed Principal

A principal whose existence and identity are not known to the third party at the time of the agent's transaction.

Duties of Agents

Obligations that an agent owes to the principal, including performance, care, loyalty, accounting, and notifying the principal.

Duties of Principals

Obligations that a principal owes to the agent, including compensation, reimbursement, indemnification, and safe working conditions.

Termination of Agency

The end of the agency relationship, which can occur by mutual agreement, revocation, renunciation, or by operation of law.

Right of Lien

An agent's right to retain possession of the principal's property until payment for services is made.

Right of Set-off

The agent's right to deduct amounts owed by the principal from any amounts they receive from the principal.

Action for Account

An action taken by the principal to compel the agent to report and account for their dealings.

Dismissal

The principal's right to terminate the agency relationship, typically due to the agent's breach of duty.

Ratification Conditions

Conditions required for ratification to be valid: ratifying acts must be unauthorized, known, competent, complete, reasonable, not damage third parties, and not involve forgery.