2484889
Description
Mind Map by a_schneiss, updated more than 1 year ago
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Created by a_schneiss
over 9 years ago
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Agency Relationships
- Employee Vs. Contractor Relationships
- Contractor
- Works for and receives payment from
an employer but working conditions
and methods are not controlled by the
employer. A contractor maybe an agent.
- Works for and receives payment from
an employer but working conditions
and methods are not controlled by the
employer. A contractor maybe an agent.
- Employee
- Acts on the owners behalf
- Work Conditions
controlled by
employer
- Employment laws apply
- Acts on the owners behalf
- Contractor
- A relationship between two parties. One of the
parties, the agent, agrees to represent or act for
the other, called the principle.
- Formed by voluntary consent and agreement between
the parties
- Individuals possess the mental capacity
required by law to enter into a contract.
- Express or implied agreement (oral or
written) that the agent will act for the
principle and the principle agrees for
the agent to do so.
- Ratification: An agreement made by a
person not an agent or acting outside their
scope of authority.
- Estoppel: A principle causes a third person to believe that
another person is their agent and the third person deals with
the supposed agent.
- Individuals possess the mental capacity
required by law to enter into a contract.
- Formed by voluntary consent and agreement between
the parties
- An Agent's Duties
- Notification: Communicating all matters that come to the agents
attention concerning the subject matter to the Principle.
- Performance: the
agent uses
reasonable diligence
and skill performing
the work.
- Loyalty: Acting soley for the
benefit of his or her principle.
- Obedience: Following all lawful and clearly
stated instructions of the principle.
- Accounting: Keeping and making available to the
principle an account of all property and funds
received and paid out on behalf of the principle.
- Notification: Communicating all matters that come to the agents
attention concerning the subject matter to the Principle.
- Principal's Duties
- Compensation: Payment to the
agent for service in a timely manner.
- Cooperation: Not interfering with the agent's abilities
to perform their duties
- Reimburses agent for reasonable costs
incurred
- Provide safe
working conditions
and equipment.
- Compensation: Payment to the
agent for service in a timely manner.
- Agent's Authority
- Express Authority
- Declared in clear, direct
and definite terms.
Power of Attorney and a
notary public are
examples.
- Declared in clear, direct
and definite terms.
Power of Attorney and a
notary public are
examples.
- Implied Authority
- Doing what is reasonably necessary to
carry out express authority and
accomplish objectives.
- Doing what is reasonably necessary to
carry out express authority and
accomplish objectives.
- Apparent Authority
- Causing a third party to believe
an agent has authority to act
- Causing a third party to believe
an agent has authority to act
- Express Authority
- TERMINATION OF AGENCY can occur when:
- A time period agreed upon during which
the agency relationship exists, expires.
- The agent accomplishes the objective they
were hired for.
- An agency relationship is created to be terminated on the happening of a specific event.
- Mutual agreement by both parties to terminate
the contract/relationship.
- One of the parties decides to
terminate.
- A time period agreed upon during which
the agency relationship exists, expires.
- Ratification of Agency
- Occurs when the principle
affirms an agent's
unauthorized act.
- Both the principal and third party must have
legal capacity to engage in the transaction
- A principal who ratifies a contract
without knowing all the facts
can cancel the contract.
- The prinicpal's affirmation occurs
before the third party withdraws from
the transactions
- Occurs when the principle
affirms an agent's
unauthorized act.
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