. What kind of authority did he have?
What were his limitations?
Was the principle disclosed?
Is there a question of interpretation?
Is the principal bound by the agents statements?
Tests –
1. An agency is a relationship based on an express or implied agreement by which 1 person, the agent, is authorized to act under the control of or for another, the principle, in negotiating and making contracts with third persons.
2. A general agent is authorized by the P to transact all affairs in connection with a particular kind of business/ trade.
3. The usual method of creating an agency is by express authorization, that is a person is appointed to act for, or on behalf of another.
**A majority of states, by statute, require the appointment of an agent to be in writing when the agency is created to acquire/dispose of any interest in land
4. An A. has implied incidental authority to perform any act reasonably necessary to execute the express authority given to the A.
**3rd persons should recognize that a contract made with an officer of a private corp. may not be binding unless ratified by the P.
5. When the A, makes know the identity of the P. and the fact that the A is acting on behalf of that P., the P is disclosed.
6. To avoid any question of interpretation, an A should execute an instrument by signing the P’s name and either By: or Per: and the agents name
7. A P. is bound by a statement made by an A. while transacting business within the scope of authority. This means that the P cant later contradict the statement of an A and show that it is not true.
Application –
The Alexander Sumner Company is one that buys and sells real estate and has subsidiaries that act as brokers bringing together commercial landlords with businesses that need to rent commercial space. One of those subsidiaries is the Alexander Sumner Industrial Company which is a corporation. James Hanson works as VP for that corporation. As VP Hanson negotiated and made contracts with businesses to rent commercial space, for the AS Company. He was an agent for the company in many of these situations before, and so he did have the authority as an agent to make arrangements with Ms. Rogers.
Now, when the arrangements were being made, Hanson told Ms. Rogers that a current tenant of a building had over 40,000 sq.
Defining Issue: In order to make an agreement binding one element that must be used is consideration. Without consideration an agreement may not be enforceable, even if there has been an offer and acceptance. What a promiser demands and receives is the price for the promise, which is consideration. A person who makes the promise is called the promisor, while the person to whom the promise is made to is called the promisee. However, the promisor is not entitled to consideration.
“Agency relationships are formed by the mutual consent of a principal and an agent.” (Cheeseman, p.487) Our book goes on to cite the Restatement (Second) of Agency,
The State of Missouri requires professionals to obtain a license before providing services to the public, in many careers. Misconceptions hold that issuance of licenses is just something that is needed in order to charge money for services. Licenses are issued however, because the public puts their trust in professionals who are more knowledgeable than they are. Many people today want to avoid the hassles and risks associated with the transfer of land, so they put their trust in licensed real estate professionals. The Missouri Broker Disclosure Form (MBDF) is a document used by the Missouri State Real Estate Commission that attempts to provide the public, knowledgeable information, about agency relationships (the fiduciary relationship between buyers/sellers and agents). It also holds real estate agents and brokers somewhat accountable to the public in representing them in their best interest; all real estate agents are required to present and explain this form to buyers and sellers. It seems in today’s society that greed, corruption, and self-interest has spread like an infectious disease and we live in a world where it is risky to put our trust in other people. The government tries to respond to that corruption by putting into place more regulations and laws to keep people honest. In summary, the Missouri Broker Disclosure Form is a document designed to help the public make an informed choice about the agency type, of the people that they are putting trust in, and the fiduciary commitments due to them.
1. The court stated that they did have power to hear this case: "Since the court has consistently exercised the power to construe and delineate claims arising under express powers, it must follow that the Court has authority to interpret claims with respect to powers alleged to derive from enumerated powers."
VI. All patients with insurance must sign the authorization for release of medical information form
Soon after they take over the farm, the animals create a system called Animalism. Animalism is based on th...
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
Knoll / The battle of D-Day was fought over many large knolls occupied by the Nazis.
The principal/agent relationship is a sensitive kind of relation. The agent has the obligation to obey the rules that are formed by the principals, direct the actions to achieve the organization’s goals, create public value, and be loyal to the principals by not performing according to self-interest. However, the agent is responsible to conduct ethical behavior while doing the required job. Agent is accountable also to serve the public according to their expectations, yet agent has to be ethical in applying the rules. The problem in the principal/agent relation starts when the principal is not ethical as it might seems serve self-interests instead of serving the public or might cause some harm to others. Thus, the principal is having the higher authority and the agent is having the obligation of following rules and at the same time maintains the public trust. This situation is considered to be ...
The second part of liabilities of partnership is emphasised in the internal liabilities under the Pa...
An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the principal). Normally, all employees who deal with third parties are considered agents. Principal-Agent relationships are defined as the understanding that the agent will act for and on behalf of the principal. (Cheeseman) The agent assumes an obligation of loyalty to the principal that he will follow the principal’s instructions and will neither intentionally nor negligently act improperly in the performance of the act. An agent cannot take personal advantage of the business opportunities the agency position uncovers. A principal-agent relationship is fiduciary, meaning these obligations bring forth a fiduciary relationship of trust and confidence. As such, an agency relationship is governed by employment law.
As they change to Corporate limited, Thurston’s could argue to claim remedies because of separate legal entity as demonstrated in the famous case of Salomon v Salomon & Co Ltd (1897). Pennington (2001) stated that terms for partnership decisions of each partner binding on the others whether knowingly or not.
Principal-agent theory assumes that actors anywhere are governed by economic self-interest (Kassim and Menon, 2003). The question is then how principals can manage the self-interest of those empowered to act on their behalf, their agents, so that it is aligned with the purposes that the principals wish to achieve. Both conflicts of interests and the agents’ inherent access to key information are usually the sources of information asymmetry (Gailmard, 2012).
4. Obligation statements which mention the obligation of the interlocutor to take an action (e.g. "Sir, you'll have to keep quiet.")