4553080
Description
Flashcards by sevilia tzivara, updated more than 1 year ago
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Created by sevilia tzivara
about 8 years ago
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| Question | Answer |
| Agency is a consensual and fiduciary relationship a principal and an agent. Directors are agents of the company and have the authority to act on behalf of the company. An independent contractor can be an agent. | Types of agents. General agent-estate agent Special agent-is limited to act for the principal in respect of one specific transaction. Mercantile agent-agent entrusted with the possession of goods for the purpose of sale. Del credere agent-in return for extra commission this agent guarantees that if the third party he has introduced fails to to pay for goods received the agent will indemnify the principal. |
| Authorities Actual Implied Apparent-the authority of an agent as it appears to others | Formation of agency Express appointment By implication By ratification-to put principal,agent and third party into the position in which thy would have been if the agent's acts had been authorised from the start. By necessity By estoppel |
| Duties of principal and agent. To carry out the wishes of the principal in accordance with the agency agreement. To exercise reasonable care and skill. To carry out his duties personally unless there is express or implied authority for him to delegate his duties. To account for all money and property received on behalf on behalf of the principal and keep proper accounts. To avoid a conflict of interest. Not to take bribes or make a secret profit. To be paid the agreed amount, or if no fee is agreed, a reasonable amount. To be indemnified for any expenses incurred in performing his duties. To exercise a lien over the principal's goods and to stop them in transit where payment is outstanding. | Termination of agency By the parties-mutual agreement between the two or the agency contract may allow either party to terminate it by giving reasonable notice. By operation of the law-with the death or insanity of either party or by the bankruptcy of the principal the relationship will come to an end automatically. |
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