Agency Law: Principal-Agent Relationships, Duties, and Termination

Agent

A person who acts on behalf of and under the control of a principal

Principal

A person who grants authority to an agent to act on their behalf

Principal-agent relationship

A fiduciary relationship where an agent acts for the benefit and under the control of a principal

Express agreement

A clear written or oral agreement creating agency

Implied agreement

Agency created by the conduct of the parties

Ratification

Principal approving an unauthorized act and making it binding

Estoppel (apparent authority)

When a principal's conduct causes a third party to reasonably rely on an agent's authority

5 duties of a agent

Loyalty, obedience, care, accounting, notification

Duties of a principal

Compensation reimbursement indemnification cooperation and safe conditions

Apparent authority

Authority third parties reasonably believe an agent has based on the principal's actions

Actual authority

Authority the agent reasonably believes they have

Irrevocable powers

Powers coupled with an interest that cannot be revoked by the principal

Undisclosed principal

A situation where the third party does not know the agent is acting for a principal

Power of attorney

A formal written instrument authorizing an agent to act for a principal

Agency termination by mutual agreement

Agency ends when both sides agree

Agency termination by lapse of time

Agency ends when the set time expires

Agency termination by purpose achieved

Agency ends when the task is completed

Agency termination by revocation

Principal withdraws authority

Agency termination by renunciation

Agent withdraws from agency

Agency termination by death

Agency ends when either party dies

Agency termination by incapacity or bankruptcy

Agency ends when the principal becomes unable to perform legally

Employee

A worker controlled by the employer regarding work details

Independent contractor

A worker hired for a task but not controlled as to how the work is performed

Factors for classification

Control tools skill payment schedule supervision multiple clients profit/loss taxes length of relationship

Employer preference

Employers prefer contractors to avoid taxes benefits and liability

Real property

Land and anything permanently attached to it

Personal property

Movable property not attached to land

Intellectual property

Ideas and creations with legal protection

Creation

Acquiring ownership by creating something new

Capture

Acquiring previously unowned property by taking possession

Finding

Acquiring rights to found property subject to the true owner's claim

Gift

A voluntary transfer of property without consideration

Requirements for gift

Intent delivery and acceptance

Gift inter vivos

A gift made during life intended to take effect immediately

Gift causa mortis

A gift made in contemplation of imminent death

Purchase

Ownership acquired by buying property

Accession

Gaining ownership by adding labor or materials in good faith increasing value

Confusion

Commingling property where owners receive proportional shares

Bailment

A relationship where property is delivered to a bailee who must return it

Bailor

Person who owns and delivers the property

Bailee

Person receiving and holding the property

Elements of bailment

Delivery acceptance and agreement to return

Benefit of bailor bailment

Bailee owes slight care

Benefit of bailee bailment

Bailee owes high care

Mutual benefit bailment

Bailee owes ordinary care

Businesses in bailment

Hotels warehouses and common carriers

Strict liability in bailment

Applies to bailment businesses unless exceptions

Exceptions to strict liability

Acts of God and acts of public enemy

Breach of bailment

Failure to return or care for property as required

Bundle of rights

Set of ownership rights such as possess use exclude and transfer

Fee simple absolute

Complete ownership with full rights

Defeasible fee

Ownership that can terminate if a condition occurs

Life estate

Ownership measured by someone's lifetime

Vested remainder

A guaranteed future interest with no conditions

Contingent remainder

A future interest dependent on a condition

Reversion

Interest returning to grantor after limited estate ends

Ameliorative waste

Improvements increasing value but violating grantor's intent

Concurrent ownership

Ownership by two or more people at the same time

Tenancy in common

Default co-ownership without survivorship rights

Joint tenancy

Co-ownership with right of survivorship

General warranty deed

Deed guaranteeing no defects ever

Special warranty deed

Deed guaranteeing no defects during seller's ownership

Quitclaim deed

Deed giving any interest the grantor has without protection

Best deed type

General warranty deed

Recordation

Public notice of property transfer

Race statute

First to record wins

Notice statute

Bona fide purchaser without notice wins

Race-notice statute

Bona fide purchaser who records first wins

Non-possessory interest

Right to use but not possess land

Easement

Right to use another's land

Easement appurtenant

Easement benefiting land and running with the land

Easement in gross

Easement benefiting a person or company

Acquire easement by grant

Easement created by agreement

Acquire easement by necessity

Easement ordered by court due to landlock

Acquire easement by prescription

Use that is adverse open continuous for statutory period

Negative easement

Easement preventing servient owner from doing something

Adverse possession

Acquiring title through possession without permission

Adverse requirement

Possession without owner's consent

Open and notorious requirement

Visible and obvious possession

Continuous requirement

Use as a reasonable owner would over time

Statutory period requirement

Possession for the required number of years

Actual possession requirement

Physical occupancy often with taxes paid

Tenancy for years

Lease with fixed start and end dates

Periodic tenancy

Automatically renewing lease requiring notice to end

Tenancy at will

Lease with no fixed term terminable at will

Tenancy at sufferance

Holdover tenant after lease expiration

Tenant duty pay rent

Tenants must pay rent

Tenant duty avoid waste

Tenants must not damage property

Tenant duty no subletting

Tenants cannot sublease without consent

Tenant duty not disturb tenants

Tenants must not interfere with others

Landlord duty habitability

Provide safe livable premises

Landlord duty quiet enjoyment

Not interfere with tenant's possession

Landlord duty maintain areas

Maintain common areas

Landlord duty actual possession

Provide physical possession at start

Eviction reason

Breach of lease or nonpayment

Eviction step notice

Pay or quit notice

Eviction step complaint

Landlord files complaint

Eviction step serve

Complaint must be served

Eviction step response

Tenant has about 10 days to respond

Eviction step default

Default judgment if no response