BUS204 CHAPTERS 33 &34

THE PRINCIPAL AND AGENT RELATIONSHIP & AGENCY OPERATION NAME: ________________________________ SECTION

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Clues

• Retains complete control over methods employed to complete job
• His identity is known by the third party dealing with the agent
• Range of activities for which the servant is engaged
• Ostensible authority
• Oral or written authority in agency agreement
• Acts without a contract or right to be compensated
• Employer didn't do his homework
• Agent must agree to act for the principal
• Creates and controls the agency relationship
• One party is authorized to act for another party to negotiate with a third party
• Respondeat Superior
• Incidental authority
• When the principal affirms the agent's unauthorized act
• Agent says "I quit!"
• Principal withdraws authority

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