Ch. 14 – Agency Relationships

Agency

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal)

agency coupled with an interest

An agency, created for the benefit of the agent, in which the agent has some legal right (interest) in the property that is the subject of the agency

apparent authority

Authority that is only apparent, not real. An agent's apparent authority arises when the principal causes a third party to believe that the agent has authority, even though the agent does not

disclosed principal

A principal whose identity is known to a third party at the time the agent makes a contract with the third party

equal dignity rule

A rule requiring that an agent's authority be in writing if the contract to be made on behalf of the principal must be in writing (statute of frauds)

Fiduciary

As a noun, a person who, having undertaken a certain enterprise on behalf of another person, has a duty to act for the other person's benefit in all matters related to that enterprise. As an adjective, a relationship founded on trust and confidence

independent contractor

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent

notary public

A public official authorized to attest to the authenticity of signatures

partially disclosed principal

A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract

power of attorney

Authorization for another to act as one's agent or attorney either in specified circumstances (special) or in all situations (general)

Ratification

A party's act of accepting or giving legal force to a previously unenforceable contract or other obligation entered into on that party's behalf by another party

respondeat superior

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal)

undisclosed principal

A principal whose identity is unknown by a third party, and the third party has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract

vicarious liability

Indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties