Sole Proprietorship
Agency Relationship
Agency Relationship 2
Parties
Learning Goals Review
100
A business owned by one person
What is Sole Proprietorship
100
A person or business that acts on behalf of another person or business
What is Agency
100
An agent who acts for the principal in an emergency, usually to prevent a loss.
What is Agent of Necessity
100
How do both parties act in a contractual relationship?
What is utmost good faith.
100
Responsible for negotiating contracts with third parties on behalf of the principal
What is An Agent
200
Legal relationships that carry on business
What is Business Organization
200
If a principal is a person on whose behalf an agent acts, then a person appointed to act for another (usually in contract matters) is know as what?
What is an Agent
200
The adoption of a contract or act of another by a party who was not originally bound by the contract
What is Ratification
200
Agency can be terminated in numerous ways. Name 2 of the possibilities
What is after a specified time by notice of one of the parties by the incapacity of one of the parties by completion of a particular task by bankruptcy on the part of the principal
200
True or False: The agents interests come above the interests of the principal
What is False
300
skilled trades businesses
What Municipality businesses need their own license?
300
What is another name for "Agency by Conduct"?
What is Agency by Estoppel
300
The short form of per procurationem ("on behalf of another")
What is Per
300
A basis of which a third party could sue an agent.
What is Breach of Warranty
300
Who is obligated to inform the principal of all the information received during negotiations?
The Agent
400
Who has unlimited liability for the debts of the business but is entitled to all the profits
What is a sole proprietor
400
When a principal enters a contract with a third party using an agent, the agent negotiates on behalf of the principal. Who is left in the contract at the end of the process?
What is The Third Party and The Principal
400
Principal (Authority) -> Agent (Conducting contract on behalf of principal)-> Third Party This process is known as?
What is Rights of Third Parties
400
A common tort that an agent may commit is sometimes fraudulent misrepresentation. When a tort is committed, who is held responsible
The Principal
400
What can a principal do when an agent exceeds his/her authority
Ratify the Contract
500
An unlicensed drain contractor entered a contract with a construction company. They got in an argument before the job was done. The contractor sued for the amount owing for the work completed so far. Did the construction have to pay?
What is no
500
Owners of a property got an agent to help sell their house. The agent received 2 verbal offers and did not inform the principal(s). The property eventually sold for less then the 2 offers the agent received. What cause would the homeowners have to sue the agent?
What is Breach of duty
500
An agent was engaged to sell a block of land for a property owner. The agent and prospective purchaser conspired to acquire the land at a price much lower than what an ordinary purchaser might be prepared to pay for land. After the sale was completed, the principal discovered the collusion between the agent and the purchaser and refused to pay the agent's commission on the sale. The agent sued the principal for the amount of the commission. Would the agent be entitled to a commission?
No. Only an honest agent would be entitled to a commission.
500
If Sheridan owed Retail Sales Co. a sum of money, the amount could legitimately be deducted from the contract price owing for the goods purchased. Is this true or False?
What is True
500
Agents will sometimes suggest to prospective purchasers that they make an offer of less than the listed price, knowing this information concerning the value of the property. Is this a true statement or a false statement?
What is True
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