Term
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Definition
| employer/employee. relationship created between two parties, one that hires the other and transfers authority with confidence and trust |
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Term
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Definition
| real estate agent acting for client. performs functions on behalf of their client. |
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Term
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Definition
| Person who has the power and obligation to act for another person in trust |
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Term
| employer/employee relationship criteria |
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Definition
| exert control over work. work done under employers scrutiny. provides tools. employed for a long time. paid. |
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Term
| independent contractor criteria |
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Definition
| engaged in more than one business. paid by job. significant degree of skill. |
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Term
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Definition
| relationship between agent and principle with the highest degree of confidence and trust |
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Term
| example of independent contractor relationships |
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Definition
| general contractor to build a home. real estate agent. insurance agent. leasing agent. |
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Term
| 4 ways of forming a agency relationship |
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Definition
| hire someone (mutual agreement). ratification. estople. operation of law. |
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Term
| only way to ratify is to advise principle of every aspect of deal. true or false |
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Definition
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Term
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Definition
| created when a principle leads a 3rd party to believe that the principle has empowered their agent. |
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Term
| agreements must be written or oral. true or false |
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Definition
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Term
| 5 specific duties owed by an agent to its princple |
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Definition
| performance. notification. obedience. loyalty. accounting- when an agent collects money, must give it all to their principle. |
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Term
| 4 specific duties owed by a principle to its agent |
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Definition
| compensation. cooperation. safe environment. reimbursement. |
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Term
| an agents rights and remedies against a principle |
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Definition
| primarily based on contract. breach of contract or tortuous acts |
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Term
| a principles rights and remedies against an agent |
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Definition
| breach on contract. tort law for conversion. breach of fiduciary duty. misrepresentation. negligence. fraud. deceit. defamation. trespass. |
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Term
| an agent can perform a act even if it is illegal. true or false |
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Definition
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Term
| can you create a relationship between principle and agency without being in writing |
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Definition
| yes. but if agreement will be longer than a year then it needs to be in writing |
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Term
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Definition
| what principle says the agent is responsible to do. written or oral |
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Term
| if contract offered in writing then the acceptance must also be offered in writing. true or false. |
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Definition
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Term
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Definition
| authority that an agent receives from a principle involving what they are going to actually have to do in order to fulfill their obligations. what it takes to carry out the expressed authority. |
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Term
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Definition
| created by the action of the principle. involves a 3rd party |
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Term
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Definition
| when a principle affirms an agents unauthorized acts. can be expressed or implied. |
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Term
| 5 requirements of an effective ratification |
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Definition
| 1. agent must act on behalf of an identified principle. 2. principle must affirm agents act in their entirety. 3. principles affirmance must occur before 3rd party withdraws. 4. principle must have legal capacity. 5. principle must know all of the material facts involved in transaction |
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Term
| 3 classifications of principle |
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Definition
| disclosed. partially disclosed. undisclosed. |
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Term
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Definition
| notify 3rd party of who they are doing business with |
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Term
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Definition
| 3rd party knows they are doing business with an agent working for someone else but don't know who that agent is working for |
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Term
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Definition
| 3rd party is not aware that the agent is working for someone |
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Term
| acts that can cause a principal to become liable for an agents torts |
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Definition
| principles own tortuous conduct. principles authorization of agents tortuous conduct. agents unauthorized, but misrepresentation made within the scope of agency- may be fraudulent or innocent. |
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Term
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Definition
| doctrine that will allow a 3rd party to sue the principle. for criminal acts, principles are not liable for the acts of their agent unless they have provided the tools they used to commit the criminal act. |
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Term
| borrowed servant doctrine |
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Definition
| deals with independent contractors. when an employer leases the use of its employee and the employee commits tortuous conduct the issue of liability on who had the primary right to control the employee at the time of the tortuous act |
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