Advertisement Upgrade to remove ads

Ozzy is an officer of Prudent Financial Corporation. Ozzy serves in a representative capacity for Prudent Financal's owners. With respect to binding Prudent Financial to contracts, Ozzy is

an agent and has the authority

Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between

a principal and an agent

The occupational Safety and Health Agency issues regulations to which Precision Machine Company and other businesses are subject. This describes the relationship between

a government and its governed

Lenore is the sole proprietor of Mall Kiosks. With respect to contracting for her own business interests, Lenore is

not an agent, but does have the authority

Genetic Seed Company hires Howie to work on Genetic's shipping dock, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely

an agent

Bubbly Soda Compant hires Carlo to work on Bubbly's shipping dock, checking outgoing loads and dispatching Bubbly's drivers. With respect to Carlo, Bubbly is most likely

a principal

Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices

Janet is ABC's

employee and agent

Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices

Julie is ABC's

employee or independent contractor, depending on whether ABC controls the details of her physical performance

Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop.

Nia authorizes Liz to sell clothes at remote locations at prices that Liz negotiates in those locations. With respect to sales at those locations, Liz is

Nia's employee and agent

Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop.

At the shop, Liz and Molly are

Nia's employees and agents

Delicious Coffee Company hires Elton to sell Delicious's products in a certain area. Delicious agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours that seem appropriate. The key factor in whether Elton is Delicious's employee is

the control Delicious has over the details of the work

Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not authorized to modify the prices or other terms of a sale at the shop.

Nia hires O'Reilly's Carpet Company to clean the carpets of her shop. Nia gives O'Reilly's instructions as to what needs to be cleaned and when. O'Reilly's is

an independent contractor

Sela agrees to act on Thom's behalf, subject to Thom's control, and Tom trusts Sela to so act. They set out the terms in a written document, which they both sign. This is

an agency by agreement

Omar is Precise Service Company's chief executive officer. On Precise's behalf, Omar solicits business, hires and fires workers, and handles the finances. Precise pays Omar varying amounts, depending on his "needs." Omar is most likely

an employee

Louis, a certified public accountant and an investor, and Maria, an insurance salesperson and realtor, may create an agency relationship for

a legal purpose only

KupaJava hires Lorla to manage one of KupaJava's seven drive-through coffee stands. KupaJuva agrees to pay Lola a salary, plus commission. KupaJava stipulates the standards that should be observed, the goals that should be attained, and the methods that should be used. Lola is most likely KupaJava's

employee

Quin employs Roy as his authorized business agent on April 1. Quinn's son Stan petitions a court to declare Quinn mentally incompetent. The court grants Stan's request on May 1.

Roy enters into a contract on Quinn's behalf on April 15. After May 1, the contract, which has not been performed, is

binding on Quinn

Quin employs Roy as his authorized business agent on April 1. Quinn's son Stan petitions a court to declare Quinn mentally incompetent. The court grants Stan's request on May 1.

Roy enters into a contract on Quinn's behalf on May 15, before Roy knows of the court's action. The contract is

void

Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina later contacts Frida to approve the contract. This is

an agency by ratification

Irma retains Jerry as her authorized agent, unaware that Jerry is a minor Jerry enters into a contract with Ken on Irma's behalf. The contract is

binding on Irma

Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business transactions with those friends. If Jill is liable for Kelly's actions, it will be under

the doctrine of estoppel

Macro Corporation and National Purchasing Company may create an agency agreement

by conduct, in writing, or orally

Home Development company employs Ilya to buy property for a future residential development. Ilya secretly buys some of the property and sells it to Home Development at a profit. Ilya has breached

the duty of loyalty

Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as to the level of sales that Rita is expected to achieve. She must

use reasonable diligence and skill in selling

Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet here, and i'll install it for half of what the store would charge." Dita buys the carpet, which Bob installs for half the store's price. Bob keeps the money. Bob has breached

the duty of loyalty

Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of

a person having those skills

Dan, an agent for Eve, signs an agreement with Fred on Eve's behalf but neglects to tell Eve that the agreement requires the payment of a certain tax. The government prosecutes Eve for failing to pay the tax. Eve is

liable, because Dan's knowledge is imputed to Eve

Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of

performance

Internet Services, Inc., employs Joe as an agent. During the agency, Joe acquires new skills. after the termination of the relationship, Joe uses those skills in a new job. Joe has breeched

no duty

Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial development. Quinn secretly buys some of the property and sells is to PE at a profit. Quinn has breeched

the duty of loyalty

Tristate Financial Corporation hires Uri, a real estate agent, to locate investment properties for Tri-state. Uri learns of a warehouse available for $100,000 informs Tri-state, and makes an offer of $90,000 on Tri-state's instruction. The offer is rejected. Uri

did nothing wrong

Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000, buys it himself, and offers it to RIC for $200,000. Most likely, Sam

breached the agent's fiduciary duties to the principal

Beta Distribution Company grants its agent Cathy an exclusive territory in which to sell Beta products. Beta cannot compete with Cathy in that territory under the principal's duty of

cooperation

Mona is an agent for Nationwide Restaurant Corporation (NRC). In acting as an agent, Mona follows all of NRC's clearly stated instructions. This responsibility arises under

the agent's duty of obedience

Pam is an agent for Refined Chemicals Corporation. Refined Chemicals owes Pam the duty of

safe working conditions

Jody is an agent for Kwik Credit Company (KCC). In the course of Jody's performance for KCC, Jody pays Leo for certain auto maintenance and repair services. Jody's right to obtain the amount of those payments from KCC arises under the principal's duty of

reimbursement

Glen is an agent for Hi-Flite, Inc. On Hi-Flite's behalf and at its request, Glen pays lan for certain plane maintenance and repair services. Glen's right to obtain the amount of those payments from Hi-Flite arises under the principal's duty of

reimbursement

National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her exclusive territory in which to sell NCC products. NCC cannot compete with her in that territory under the duty of

cooperation

Regional Products, Inc., hires Sam to act as its agent. Tina sues Regional for Sam's negligent conduct. Regional's right to sue Sam for an equal amount of damages is the right of

indemnification

United Sales Corporation hires Victor to act as its agent. United's right not to perform a contract entered into by Victor, if Victor breaches their agency agreement, is the right of

avoidance

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set