Business and Personal LawChapter 14:
Agency Authority and TerminationSelf Check AnswersSection 14.1 - a relationship based on trust
- reimbursement: repayment of money spent by agent on behalf of a principal; indemnification: payment for losses suffered by agent due to principal's instructions
- negligent hiring: proprietor fails to check qualifications; negligent retention: proprietor fails to fire a contractor after learning of incompetence
Section 14.2 - by operation of law or by acts of the parties
- when completed, by mutual assent, when agent withdraws or resigns, when the principal discharges the agent
- third parties who have known of the agency relationship
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