Principal-Agent Relationship

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Principal-Agent Relationship by Mind Map: Principal-Agent Relationship

1. 2. Principal must affirm entire deal.

2. Agency Relationships

3. Employee versus Contractor Relationship

4. How agency relationships are formed

5. Agents duties to the principal

6. Principals duties to Agent

7. Types of Agent authority

8. Understanding agency is crucial to understanding the legal environment of business.

9. Principals use agents to be able to conduct multiple business operations simultaneously in various locations.

10. The principal has the right to control the agent in matters entrusted to the agent.

11. Consensual Agreement

12. Agency by Agreement.

13. Agency by Ratification

14. Agency by Estoppel

15. Agency by Operation of Law

16. Performance: reasonable diligence and skill (special skills)

17. Notification to Principal

18. Loyalty

19. Compensation

20. Cooperation

21. Provide safe working conditions.

22. Actual

23. Apparent

24. Ramification

25. Implied

26. Express

27. Inferred or conferred by custom, Agent’s position or what is reasonably necessary to carry out Agent’s express authority.

28. Written or Oral

29. Principal, by either word or act, causes 3rd party to reasonably believe that Agent has authority to act for Principal, by either word or act, causes 3rd party to reasonably believe that Agent has authority to act for Principal

30. 1. Agent must act on behalf of Principal.

31. 3. Principal must affirm before 3rd party withdraws from transaction.

32. 4.Principal and 3rd party must have legal capacity to contract when Agent made the deal.

33. 5. Principals must know all the material facts involved in the transaction.

34. Termination of Agent

35. Lapse of time

36. Purpose achieved

37. Occurrence of a Specific Event

38. Termination by One Party

39. Mutaul Agreement

40. Determining whether the worker is an employee or an independent contract affects liability of Principal/Employer

41. Employee Status and “Works for Hire.”