Agency

Question 1

Subagent duty of loyalty

Answer 1

Owed to both principal and agent

Question 2

Designated sales agent

Answer 2

used when one real estate broker is representing multiple clients in same transaction. designated sales agent is subagent ro original broker.

Question 3

Broker’s agent

Answer 3

Subagent of either listing agent, buyer agent, or tenant agent.

Question 4

Termination

Answer 4

May terminate at any time, BUT breach of K if in violation of K terms.

• Irrevocable ONLY IF agent has interest in subject matter of relationship, e.g. irrevocable proxy.
• Terminates automatically if:
  1) death of principal or agent: at date of death, UNLESS notice required for: custom bank relationship OR decedant in military.
  2) principal incapacity = date of judicial determination.
• EXCEPTION: durable power of attorney (in writing), OR principal is corporation.
  3) agent breaches fiduciary duty

Question 5

Agent’s implied authority to delgate

Answer 5

1) mere ministerial or mechanical act;
2) required by law to delegate to specialist;
3) consistent with custom or usage;
4) impossible to perform without delegation.

Question 6

Termination of actual authority

Answer 6

1) revocation
2) ageement
3) change in circumstances
4) passage of time
5) principal’s death
6) agent’s death
7) principal’s loss of capacity
8) mandated by statute

Question 7

5 factors of apparent authority

Answer 7

1) past dealings between principal and agent that third party is aware of;
2) trade customs;
3) industry standards;
4) written statement of authortiy;
5) nature of transaction.

Question 8

4 factors of ratification

Answer 8

1) Knowledge
2) Comprehensiveness: all or nothing.
3) Timeliness: no prejudice to 3p.
4) Capacity.

Question 9

NY’s 5 factors for scope of employment

Answer 9

1) closely connected to servant’s work for master;
2) activity is common to that type of servant;
3) history of relationship;
4) if servants departs from normal methods of pursuing duty;
5) foreseeability of servant’s actions.

Commute is NOT within scope.

Question 10

Principal liability for tortious conduct of agent

Answer 10

1) nondelegable duty: inherently dangerous activity.

2) negligent hiring and supervision.

Question 11

Agent personal liability

Answer 11

ONLY IF undisclosed or partially disclosed principal.

• IF partially disclosed principal, 3p cannot back out.
• IF undisclosed principal, 3p can back out ONLY IF:
  1) agent represented she was acting for self;
  2) would not have entered K if knew who principal really was.

Question 12

Warranty of authority

Answer 12

If breached, no K is formed BUT agent is personally liable for damages of breach.

Question 13

Obligations of principal to agent

Answer 13

1) deal fairly and in good faith.
2) abide by K obligations;
3) unless otherwise agreed, reasonable compensation;
4) unless otherwise agreed, indemnification for actions in scope of authority.

Question 14

Agent duties to principal

Answer 14

• Loyalty: means NO:
  1) personal gain
  2) usurp business opportunity
  3) compete with principal.
• Must disclose multiple principals.
• Reasonable care and diligence.
• expected to rely on special skills or training.
• Duty of notice