Creation and Type of Agent - Bussiness Law - Lecture Slides, Slides of Commercial Law

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Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency What You’ll Learn How to recognize the creation of an agency relationship by agreement (p. 404) How to recognize the creation of an agency relationship by operation of law (p. 405) Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency What You’ll Learn How to distinguish between a general agent and a special agent (p. 402) How to distinguish among a subagent, a coagent, and an agent’s agent (pp. 403-404) Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Types of Agents Extent of Authority How Agents Relate to One Another Section Outline Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency How Agency Relationships Are Created By Agreement By Operation of Law By Ratification Section Outline Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Pre-Learning Question What are some different types of agents? Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency A person who has been given authority to perform any act within the scope of a business is a general agent. The manager of a department store is a general agent. General Agent Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency A person who is employed to accomplish a specific purpose or to do a particular job is a special agent. Sales representatives are special agents. Special Agent Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Agents may be classified according to the nature of their relationships with other agents. How Agents Relate to One Another Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency If the principal hires two or more agents, he or she has created a coagent situation. Coagents Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Pre-Learning Question How do you think agency relationships are created? Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Generally, any business you can transact personally can also be transacted through an agent. How Agency Relationships Are Created Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency No contract exists if an agreement does not involve consideration. An agency agreement that does not involve a contract is called a gratuitous agency. By Agreement Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Agency relationships may be created automatically by operation of law. By Operation of Law Sometimes the law creates an agency relationship by circumstance. Agency relationships can also arise through enactment of specific laws. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency When the law creates an agency relationship by circumstance, it is called agency by estoppel, also known as apparent authority. Agency by Estoppel Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency ANSWER A gratuitous agency. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency What is an agency by estoppel? Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency ANSWER When the law creates an agency relationship by circumstance. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Describe what occurs when an agency is created by ratification. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency ANSWER When the principal, with full knowledge of the facts, accepts the benefits of an unauthorized act. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Reviewing What You Learned 1. How are most agency relationships created? Section 18.2 Assessment Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Reviewing What You Learned By estoppel and by statute. Section 18.2 Assessment Answer Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Reviewing What You Learned 3. What is the difference between a general agent and a special agent? Section 18.2 Assessment Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Reviewing What You Learned General agent: authority to carry out any act within the scope of a business. Special agent: employed to accomplish a specific purpose or to do a particular job. Section 18.2 Assessment Answer Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Reviewing What You Learned If an agent has no power to appoint a subagent but does so anyway, he or she has appointed an agent’s agent. Section 18.2 Assessment Answer Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Section 18.2 Assessment Critical Thinking Activity Types of Agents Why is it important to be able to distinguish between a general agent and a special agent? Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Section 18.2 Assessment Critical Thinking Activity Answer Types of Agents Answers will vary, but could recognize that by knowing the difference between the two types of agents, you will understand the authority of an agent you may be dealing with. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Section 18.2 Assessment Legal Skills in Action Apparent Authority Write a paragraph that explains whether the Alomar Brothers Department Store will be compelled to return the $100 to Tony. Docsity.com Understanding Business and Personal Law Creation and Types of Agents Section 18.2 Creation of an Agency Section 18.2 Assessment Legal Skills in Action Answer Apparent Authority Answers should recognize that Alomar Brothers Department Store would be liable for any loss incurred by Tony because the law would assume this to be an agency by estoppel. Docsity.com Creation and Types of Agents End of Section 18.2 Docsity.com