{"id":13752,"date":"2018-02-12T17:13:09","date_gmt":"2018-02-12T17:13:09","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=13752"},"modified":"2018-03-16T00:23:36","modified_gmt":"2018-03-16T00:23:36","slug":"agency-a-fiduciary-relationship-which-arises-when-one-person-a-principal-manifests-assent-to-another-an-agent-that-the-agent-will-act-on-the-principals-behalf-subject-to-the-principal","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=13752","title":{"rendered":"agency – a fiduciary relationship which arises when one person (a principal) manifests assent to another (an agent) that the agent will act on the principal\u2019s behalf, subject to the principal\u2019s control, and. the agent manifests assent or otherwise consents to do so"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0 This page is continued from Person<\/a> >>>> Party<\/a> >>>> Artificial Person<\/a>:<\/span><\/strong><\/p>\n

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agency<\/span>:<\/span><\/strong>
\n(17c)<\/span><\/p>\n

1. A relationship that arises when one person (a principal<\/a>) manifests assent to another (an agent) that the agent will act on the principal\u2019s behalf, subject to the principal\u2019s control, and. the agent manifests assent or otherwise consents to do so.\u00a0 *\u00a0 An agent\u2019s actions have legal consequences for the principal when the agent acts within the scope of the a rent\u2019s actual authority or with apparent authority, or the principal later ratifies the agent\u2019s action.<\/strong> \u2014 aka common law agency<\/strong><\/em><\/span>.\u00a0 See AUTHORITY (1). [1]
\n<\/span><\/p>\n

1. A fiduciary relationship<\/a> by which a person confides to another the management of some business to be transacted int he former’s name or on his account, and by which such other person assumes to do the business and render an account of it.<\/span><\/strong>
\n\u00a0\u00a0\u00a0\u00a0 In the legal sense, the term always imports commercial or contractual dealings between two parties by and through the medium of another. 3 Am J2d Ag \u00a7 1<\/span>.<\/strong> [2]<\/span><\/p>\n

1. A relationship in which one person acts for or on behalf of another person at the other person’s request.<\/strong> [3]<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from Harold Gill Reuschlein & William A. Gregory, The Law of Agency and Partnership<\/em><\/a> 5 1, at 3 (2d ed. 1990):<\/span><\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cThe basic theory of the agency device is to enable a person, through the services of another, to broaden the scope of his activities and receive the product of another\u2019s efforts, paying such other for what he does but retaining for himself any net benefit resulting from the work performed.<\/span>\u201d<\/strong> [4]<\/span><\/p>\n

Various Types of Agencies:<\/span><\/strong><\/p>\n

actual agency<\/span> –<\/strong> (1835) An agency, whether created expressly or impliedly, in which the agent is in fact authorized to act on behalf of the principal.<\/strong><\/span><\/p>\n

agency by estoppel<\/span> –<\/strong> (1864) An agency created by operation of law when a person\u2019s actions have led a third party reasonably to believe that another actor was actually the person\u2019s agent.<\/strong>\u00a0\u2014 aka apparent agency<\/strong><\/em><\/span>; osten<\/span><\/strong><\/em><\/span>sible agency<\/span><\/strong><\/em>; agency by operation of law<\/span><\/strong><\/em>. <\/span><\/p>\n

agency by necessity<\/span> –<\/strong> (18c) A doctrine, especially in English <\/strong><\/span>law, that confers authority to act for the benefit of another in an emergency without having obtained the latter\u2019s express consent; the relation between the person who so acts and the one to whom the benefit accrues.\u00a0 *\u00a0 This is a quasi-contractual relation formed by the operation of legal rules and not by the agreement of the parties.<\/strong> \u2014 aka agency from necessity<\/strong><\/em><\/span>; agency of necessity<\/strong><\/em><\/span>.\u00a0 See NEGOTIORUM GESTIO.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from F.M.B. Reynolds’ Bowstead & Reynolds on Agency<\/em><\/a> (18th ed. 2006):<\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cThe two traditional cases from which the concept of agency by necessity derives are those of the shipmaster, who has wide powers to bind by contract his owner, and also sometimes the cargo owners, in situations of emergency; and the person who accepts a bill of exchange for honour and succeeds to the rights of the holder against the person for whom he accepts . . . . The dissimilarity between these two cases is enough to indicate immediately that a category comprising both of them is unlikely to be a satisfactory one.<\/span>“<\/strong> [5]<\/span><\/p>\n

agency by operation of law<\/span> –<\/strong> (1858) 1. An agency that arises under circumstances specified by law without mutual consent between the principal and the agent having been manifested.\u00a0 *\u00a0 For example, in most states the secretary of state is designated as the agent for service of process for those carrying on specified activities within that state.<\/strong>\u00a0 See statutory agent<\/em> under AGENT.\u00a0 <\/span>2.<\/strong> See agency by estoppel<\/em>.\u00a0 Cf. common-law agency.<\/span><\/p>\n

agency coupled with an interest<\/span> –<\/strong> (1844) A relationship in which one party holds an irrevocable power to take action on behalf of another to protect a legal or equitable title or to secure performance of a duty apart from any duty owed to the holder by the grantor of the power.\u00a0 *\u00a0 An agency coupled with an interest is not an example of common-law agency because it is irrevocable by the grantor and because the relationship between holder and grantor is not a fiduciary relationship.<\/strong>
\nSee irrevocable proxy<\/em> under PROXY; power coupled with an interest <\/em><\/span>under POWER (3).
\n<\/span><\/p>\n

agency in fact<\/span> –<\/strong> (1824) An agency created voluntarily, as by a contract.\u00a0 *\u00a0 Agency in fact is distinguishable from an agency relationship crented by law, such as agency by estoppel.<\/strong><\/span><\/p>\n

clearing agency<\/span> –<\/strong> See clearing agent<\/em> under AGENT.<\/span><\/p>\n

common law agency<\/span> – A fiduciary relationship of agency created by express or implied mutual consent manifested by both the principal<\/a> and the agent, in which the agent is subject in some degree to the principal\u2019s control.\u00a0<\/strong> Cf. agency by operation of law.<\/span><\/p>\n

exclusive agency<\/span> –<\/strong> (1805) The right to represent a principal \u2014 especially either to sell the principal\u2019s products or to act as the seller\u2019s real-estate agent \u2014 within a particular market free from competition.\u00a0 *\u00a0 Strictly speaking, an exclusive agency merely excludes all other brokers, but not the owner, from selling the products or property. <\/strong>\u2014 aka exclusive agency to sell<\/strong><\/em><\/span>; exclusive franchise<\/span><\/strong><\/em>; sole selling agency<\/span><\/strong><\/em>.\u00a0 Cf. EXCLUSIVE RIGHT OF SALE.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from 3 Am. Jur. 2d Agency 5 268, at 768 (1986):<\/span><\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cContracts involving the element of exclusive agency generally fall into three classes: <\/span><\/strong><\/span><\/p>\n

(1) where the contract does not prevent the principal from making direct sales but deprives him of the right to appoint other agents;
\n(2) where the agent is the only one with any right to sell; and
\n(3) where the exclusive agency is accompanied with a stipulated right to commissions on all sales whether made through the agent or not.<\/span>\u201d<\/strong> [6]<\/span><\/p>\n

express agency<\/span> –<\/strong> (18c) An actual agency arising from the principal\u2019s written or oral authorization of a person to act as the principal\u2019s agent.<\/strong>\u00a0 Cf. implied agency.<\/span><\/p>\n

financing agency<\/span> –<\/strong> (1927) A bank, finance company, or other entity that in the ordinary course of business (1) makes advances against goods or documents of title, or (2) by arrangement with either the seller or the buyer intervenes to make or collect payment due or claimed under a contract for sale, as by purchasing or paying the seller\u2019s draft, making advances against it, or taking it for collection, regardless of whether documents of title <\/strong><\/span>accompany the raft. UCC \u00a7 2-104(2).<\/span><\/strong><\/p>\n

general agency<\/span> –<\/strong> (18c) A principal\u2019s delegation to an agent, without restriction, to take any action connected with a particular trade, business, or employment,\u00a0 *\u00a0 The archetypal general agent manages a business, has authority to conduct a series of transactions, and serves the principal on an ongoing basis. <\/strong>\u2014 aka uni<\/span><\/strong><\/em><\/span>versal agency<\/span><\/strong><\/em>. Cf. special agency.<\/span><\/p>\n

implied agency<\/span> –<\/strong> (18c) An actual agency arising from conduct by the principle that implies an intention to create an agency relationship.\u00a0<\/strong> Cf. express agency.<\/span><\/p>\n

presentment agency<\/span> –<\/strong> (1983) Criminal law<\/em>. In some jurisdictions, a state agency that conducts juvenile-delinquency prosecutions.<\/strong> \u2014 aka presentment office<\/strong><\/em><\/span>.<\/span><\/p>\n

special agency<\/span> –<\/strong> (1808) An agency in which the agent is authorized only to conduct a single transaction or a series of transactions not involving continuous service.<\/strong>\u00a0 <\/span>Cf. special agency.<\/span><\/p>\n

undisclosed agency<\/span> –<\/strong> (1871) An agency relationship in which an agent deals with a third party who has <\/strong><\/span>no knowledge that the agent is acting on a principal\u2019s behalf.\u00a0 *\u00a0 The fact that the agency is undisclosed does not prohibit the third party from seeking redress from <\/span>the principal or the agent. <\/span><\/strong>[1]<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 See administrative agency<\/em>; exclusive agency<\/em>. [2]<\/span>
\n\u00a0\u00a0\u00a0\u00a0 See actual agency<\/em>; exclusive agency<\/em>; implied agency<\/em>; intervening agency<\/em>; ostensible agency<\/em>. [3]<\/span><\/p>\n

agency<\/span>:<\/span><\/strong>
\n(additional definitions)<\/span><\/em><\/p>\n

2. An agent\u2019s place of business.<\/strong> <\/span><\/p>\n

administrative agency<\/span><\/a> – a single officer, board, bureau, commission, office, or department of the executive branch of government, with the authority to implement and administer particular legislation. <\/strong>\u2014 aka (in sense 3) government agency<\/span><\/strong><\/em>; agency<\/strong><\/em><\/span>; public <\/span><\/strong><\/em><\/span>agency<\/span><\/strong><\/em>; regulatory agency<\/span><\/strong><\/em>. <\/span><\/p>\n