Jennifer Hakala - Principle Agent Relationship - Final - Mind Map

Jennifer Hakala - Principle Agent Relationship - Final  Mind Map
 
 
 
 

Jennifer Hakala - Principle Agent Relationship - Final - Mind Map

4 months ago by: Jennifer Hakala
 
 
Jennifer Hakala - Principle Agent Relationship - Final
  • Principle-Agent Relationship
    • Agency Relationships
      • Agent & Principal
        • Agent represents or acts on behalf of Principal
        • Principal agrees agent will act on their behalf
      • Fiduciary Relationship
        • Relationship involves trust and confidence
        • Principal has right to direct agent
    • Employee vs contractor relationships
      • Employee
        • Agent to 3rd party for businesses
        • State and Federal employment laws apply
        • Employer has control of how and when job is done
      • Contractor
        • Not an employee
        • Contractor controls how and when job is done
        • May or may not be an agent
    • How Agency relationships are formed
      • Agency by Agreement - Express written contract or oral agreement
      • Agency by Ratification - Agent unofficially establishes contract for principal-who affirms the contract themselves
      • Agency by Estoppel - Principal falsely implies agency Third party follows implication
      • Agency by Operation of Law - Spousal liability and Agency to authorize medical care
    • Agent’s Duties to the Principal
      • Performance - Use diligence and skill in performed work
      • Notification - Agent must notify principal on all matters regarding agency
      • Loyalty - Agent must act solely for principal benefit
      • Obedience - Agency must obey instruction given by principal
      • Accounting - Agent must keep an accounting available to principal
    • Principal’s duties to the Agent
      • Compensation - Payment due for services unless provided gratuitously
      • Reimbursement and Indemnification - Reimbursement for expenses incurred by principal for agency liabilities
      • Cooperation - Principal must assist agent in duties required
      • Safe Working Conditions - Equipment premises and conditions must be safe for principal
    • Type of Agent Authority
      • Express Authority - Authority declared in clear, direct, and definite terms either orally or in writing
      • Ratification - Principal affirms agents actions retroactively following the six requirements
        • Agent must have acted on behalf of identified principal who ratifies retroactively
        • Principal must know all material facts - If material facts unknown principal may rescind
        • Principal must affirm the agent's action in full
        • Principal and third party must have legal capacity at time of engagement and ratification
        • Principals affirmation must happen prior to third-party withdrawal
        • Principal must authorize is same manor that would have initially been required
      • Implied Authority - Agent acts with reasonable care to accomplish agency objectives
      • Apparent Authority - Principal causes third-party to believe agent has their authority to act although no express or implied authority exists
    • Termination of Agency
      • Termination by Act of the Parties - Acts include lapse of time, achievement of purpose, occurrence of an specified event, mutual agreement, and action by one party
        • Wrongful Termination - Power does not mean right to termination agency
        • Agency Coupled with an Interest - When agent has legal rights to property in agency the agent may not be terminated until their interest ends
        • Notice of Termination - If written permission then written termination otherwise no particular form is required and principal must inform third-persons directly
      • Termination by Operation of Law - No duty to notify third-persons
        • Death or Insanity
        • Impossibility
        • Changed Circumstances
        • Bankruptcy
        • War
Report abuse
More Maps by This User