Authority
Authority declared in clear, direct, and definite terms, orally or usually in writing.
Express Authority
An agency relationship based on an express or implied agreement that the agent will act for the principal.
Agency by Agreement/Contract
The person or entity on whose behalf and subject to whose control an agent acts.
Principal
Acts on behalf of a seller to sell a house.
A real estate agent
An agent has the duty to act solely for the benefit of his or her principal, and not in the interest of the agent or a third party. Moreover, any information or knowledge obtained in the course of the agency is confidential. THE AGENT CANNOT PROFIT INDIVIDUALLY WITHOUT PERMISSION FROM THE PRINCIPAL.
Loyalty
If a contract being executed by an agent on the principal's behalf is in writing, most states require that the agent's authority must also be in writing; otherwise, the contract executed by the agent is voidable at the principal's option.
Equal Dignity Rule
Subject to the terms of the agency agreement, the principal has a duty to compensate, or indemnify, the agent for liabilities arising from the agent's lawful and authorized acts on the principal's behalf.
Indemnification:
A person who agrees to act on behalf of and instead of his or her principal
Agent
Acts on behalf of a family trust
A trustee
When a principal requests certain services from an agent, the principal has a duty to pay the agent, in a timely manner, for those services rendered.
Compensation
A written document, usually notarized, authorizing an agent to act for a principal.
Power of Attorney
Agencies recognized by courts -- e.g., family relationships, emergency situations -- in the absence of any formal agreement, confirmation, or act or omission by the principal that implied the agent's authority.
Agency by Operation of Law
A person who undertakes to act on behalf of and primarily for the benefit of another.
Fiduciary
Acts on behalf of a company to negotiate and draft contracts.
A corporate lawyer
A principal has the duty to cooperate with the agent and to assist the agent in performing his or her duties.
Cooperation
Actual authority.
Implied Authority
If a principal (NOT THE AGENT) holds out to a third party that another is authorized to act on the principal's behalf, and the third party deals with the other person accordingly, the principal may not later deny that the other was the principal's agent for purposes of dealing with that third party.
Agency by Estoppel
A duty arising from the trust and confidence placed in a fiduciary by those on whose behalf and for whose benefit he or she acts.
Fiduciary Duty
Acts on behalf of an athlete to negotiate contracts and endorsements.
A sports agent
An agent has the duty to follow all lawful and clearly stated instructions of the principal.
Obedience
Authority that arises when a principal, by either words or actions, causes a third party to believe that an agent has authority to act, even though the agent has no express or implied authority to act with regard to the particular matter at hand.
Apparent Authority
A confirmation by the principal of an act or contract performed or entered into on his or her behalf by another, who assumed, without authority, to act as his or her agent. May be oral or written, usually cannot be rescinded, is retroactively applied back to original date the alleged contract
Agency by Ratification
A natural person, corporation, partnership or other recognized entity
Person
Acts on behalf of a company to negotiate and draft contracts.
A corporate lawyer
A principal has the duties (i) to provide its agents and employees with safe working premises, equipment, and conditions, and (ii) to inspect working conditions and warn agents and employees of unsafe areas.
Safe Working Conditions