Week 4 Agency Relationships Paper
Agency Relationships
Angelina Aguilar Esparza, Tamishia Anderson, Quantell Donigan, Andria Hill, Shelly Marshall
LAW/575
February 23, 2015
Shannon Allen
Agency Relationships The relationship established between two parties for lawful purposes, in which one party, named the principal, requests the other party or agent to represent him is called Agency. Agency relationships create fiduciary duties between the principal and the agent (Kubasek et al., 2012). In this paper, Team B will discuss the different types of Agency and the legal consideration surrounding each of them.
Expressed Agency
Expressed Agency is known as an agency by agreement; this agreement can be oral or written. Expressed agency is an agency that is commonly used. This particular agency gives the agent ability to contract on behalf of the principal. Power of attorney is a prime example of expressed agency. “A power of attorney establishes an agency by agreement that gives an agent authority to sign legal documents on behalf of the principal” (Kubasek et al., 2012, p.729). There is another form of power of attorney which is durable power of attorney. Durable power of attorney allows the principal to take all decisions until he/she becomes incapacitated and then the agent will step in and act on behalf of the principal.
Legal considerations. Expressed agency must have either an oral or written agreement. If there is neither then there is no expressed agency. When it comes to power of attorney “an agency relation exists only if there has been a manifestation by the principal to the agent that the agent may act on his account, and consent by the agent so to act” (Kubasek et al., 2012, p.730). The court must also determine the type of authority the agent has.
Ratification
Agency by Ratification occurs when a person entitles himself as agent of another –called the principal- without this other person having a say on it. Only after the principal ratifies his actions the
Angelina Aguilar Esparza, Tamishia Anderson, Quantell Donigan, Andria Hill, Shelly Marshall
LAW/575
February 23, 2015
Shannon Allen
Agency Relationships The relationship established between two parties for lawful purposes, in which one party, named the principal, requests the other party or agent to represent him is called Agency. Agency relationships create fiduciary duties between the principal and the agent (Kubasek et al., 2012). In this paper, Team B will discuss the different types of Agency and the legal consideration surrounding each of them.
Expressed Agency
Expressed Agency is known as an agency by agreement; this agreement can be oral or written. Expressed agency is an agency that is commonly used. This particular agency gives the agent ability to contract on behalf of the principal. Power of attorney is a prime example of expressed agency. “A power of attorney establishes an agency by agreement that gives an agent authority to sign legal documents on behalf of the principal” (Kubasek et al., 2012, p.729). There is another form of power of attorney which is durable power of attorney. Durable power of attorney allows the principal to take all decisions until he/she becomes incapacitated and then the agent will step in and act on behalf of the principal.
Legal considerations. Expressed agency must have either an oral or written agreement. If there is neither then there is no expressed agency. When it comes to power of attorney “an agency relation exists only if there has been a manifestation by the principal to the agent that the agent may act on his account, and consent by the agent so to act” (Kubasek et al., 2012, p.730). The court must also determine the type of authority the agent has.
Ratification
Agency by Ratification occurs when a person entitles himself as agent of another –called the principal- without this other person having a say on it. Only after the principal ratifies his actions the
References: Kubasek, N. K., Browne, M. N., Herron, D. J., Giampetro-Meyer, A., Barkacs, L. L., Dhooge, L. J., & Williamson, C. (2012). Dynamic business law (2nd ed.). New York, NY: McGraw-Hill/Irwin. Legal Information Institute - Implied Authority . (n.d.). Retrieved from http://www.law.cornell.edu/wex/implied_authority