Chapter 24 Flash Cards

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Chapter 24 Flash Cards
2010-11-28 17:38:46

Chapter 24 Flash Cards
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  1. What is an Agency
    A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal)
  2. What is Fiduciary
    As a noun, a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective, a relationship founded on trust and confidence.
  3. What is an 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.
  4. A principal may deny the existance of an agency relationship whenever it suits his or her purpose.

    t or f
  5. An agent must use reasonable deligence and skill in acting on behalf of his or her prinicipal.

    True or False
  6. If a contract is in writing, the agents authority to perform the same duty must be in writing.

    True or False
  7. A principal must ratify a contract to be bound to it.

    True or False
  8. Express Authority
    Authority Expressly given by the principal to the agent
  9. Implied Authority
    Authority implied 1. because such authority is necassary if the agent is to carry out expressly authorized duties and responsibilities,
  10. Unauthorized Acts
    Acts committed by an agent that are outside the scope of his or her express, implied, or apparent authority..
  11. Apparent Authority
    Authority created when the conduct of the principal leads a third party to believe that the principals agent has authority.
  12. Even after an agency relationship has terminated, there are circumstances under which a principal may be bound by his or her agent's act.

    True or False