Chapter 25 Agency Law

The large body of common law that governs agency; a mixture of contract law and tort laws.

A party who employs another person to act on his or her behalf.

A party who agrees to act on behalf of another.

The principal-agent relationship; the fiduciary relationship " which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act"

A relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

A relationship that results when an employer hires an employee to perform some task or service but the employee has not been authorized to enter into contracts on behalf of his employer.

The relationship between a principal and an independent contractor who is not an employee of the principal but that has been employed by the principal to perform a certain task on behalf of the principal.

Principals often employ outsiders- persons and businesses that are not employees-to perform certain tasks on their behalf.

An independent contractor who is a professional (such as a lawyer)

An agency that occurs when a principal and an agent expressly agree to enter into an agency agreement with each other.

A contract a principal and agent enter into that says the principal cannot employ any agent other than the exclusive agent.

An express agency agreement that is often used to give an agent the power to sign legal documents on behalf of the principal.

A power of attorney where a principal confers broad powers on the agent to act in any matters on the principal's behalf.

A power of attorney where a principal confers powers on an agent to act in specified matters on the principal's behalf.

An agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties.