business law Collin College -Business Law fully solved

business law Collin College -Business Law fully solvedWhat is Agency? - correct answer A representative relationship where one person (the agent) may acquire rights on behalf of another person (the principal) by entering into contracts with others on behalf of the principal. What is agencies most important feature? - correct answer The agent has the power to bind the principal in a contract with a third party without the agent himself becoming a party. This is 'maxim qui facit per alium facit' as play. He who acts through another acts through himself. What are the three types of creation in agency? And briefly explain them. - correct answer Express Authority - Based on consensus where principal and agent agree on their rights and duties. Agent can be appointed orally or in writing. But if agent is authorised to execute a deed, the authority must be given under seal and is called 'power of attorney'. Implied Authority - Agent has authority in the absence of express provisions to the contrary to make those contracts which are necessary or incidental to the agent's activities. Apparent Authority results from a representation by a principal which casues a third party to believe that a person who may or may not be the principal's agent has the authority to enter into negotiations or transcations as his agents. What are the duties of an agent? - correct answer Agent must perform agreed task to the principal's instructions unless acting without reward. Turpin v Bilton. An agent must maintain a standard of 'skill and care' expected of their trade and profession. Chariot Inns Ltd v Assicurazioni for paid agents. Chaudhry v Prabhakar for unpaid agents.