Essentials of Business Law Chapter 19

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Essentials of Business Law Chapter 19
2014-06-03 22:37:20
Business Law

Chapter 19
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  1. Agent
    A person authorized to act on behalf of another and subject to the other's control in dealing with third parties.
  2. Principal
    A person who authorizes an agent to act on his or her behalf and subject to his or her control.
  3. Contract of agency
    An agreement between a principal and an agent by which the agent is vested with authority to represent the principal.
  4. General agent
    A person authorized to assume complete charge of his or her principal's business or who is entrusted with general authority to act for the principal in all business-related matters.
  5. Special agent
    A person delegated to act only in a particular transaction, under definite instructions, and with specific limits on the scope of his or her authority.
  6. Power of attorney
    An instrument in writing by which one person, as principal, appoints another person as agent and confers the authority to perform certain specified acts on behalf of the principal.
  7. Attorney in fact
    The person appointed as agent when the power of attorney is exercised.
  8. Durable power of attorney
    An instrument that documents a principal's desire for an agent's authority to remain intact in the event the principal is incapacitated; or to become effective only in the event the principal becomes incompetent.
  9. Agency by ratification
    An agency that results when a principal approves an unauthorized act performed by an agent or approves an act done in the principal's name by an unauthorized person.
  10. Agency by necessity
    An agency that is created when circumstances make such an agency necessary.
  11. Agency by operation of law
    An agency that is created when a court finds the need for an agency to achieve a desired social policy.
  12. Express authority
    An agent's authority that the principal voluntarily and specifically sets forth as oral or written instructions in an agency agreement.
  13. Implied authority
    The authority an agent reasonably assumes he or she has that relates to the express authority granted by the principal.
  14. Apparent authority
    The authority that a third party may reasonably assume an agent possesses, despite the fact that the agent does not actually possess such authority.
  15. Gratuitous agent
    One who acts on behalf of a principal without being paid.
  16. Irrevocable agency
    An agency contract that cannot be terminated by a principal in which the agent has an interest in the subject matter of the agency in addition to the remuneration that he or she receives for services.