1. Chapter 29 Agency Formation and Termination

4. The Principal-Agent Relationship Principal Agent Third Party Agency Contract Contract with third party on behalf of principal Principal’s obligation to perform the contract

7. Kinds of Employment Relationships Employer-Employee Relationship Principal-Agent Relationship Principal-Independent Contractor Relationship

13. Summary: Kinds of Employment Relationships The principal has no control over the details of the independent contractor’s conduct. An independent contractor is usually not an agent of the principal. Principal-Independent Contractor The agent has the authority to act on behalf of the principal as authorized by the principal and implied from the agency. An employee is often the agent of his employer. Principal-Agent The employer has the right to control the physical conduct of the employee. Employer-Employee Description Type of Relationship

14. Formation of the Agency Relationship Express Agency Implied Agency Apparent Agency Agency by Ratification

19. Summary: Formation of Agency Relationships (1 of 2) Principal and third party acts are bound to the contract. Authority is implied from the conduct of the parties, custom and usage of trade, or act incidental to carrying out the agent’s duties. Implied Principal and third party are bound to the contract. Authority is expressly given to the agent by the principal. Express Enforcement of the Contract Definition Type of Agency

20. Summary: Formation of Agency Relationships (2 of 2) Principal and third party are not bound to the contract unless the principal ratifies the contract. Acts of the agent committed outside the scope of his authority. By Ratification Principal and third party are bound to the contract. Authority created when the principal leads a third party into believing that the agent has authority. Apparent Enforcement of the Contract Definition Type of Agency