2. Liability Of Principal For Agency Flashcards
What types of authority are available for contract liability?
Actual authority
Apparent authority
Ratification
What is required for actual authority?
Express
- Authority
- Oral/written
Implied
- Reasonable belief of authority
- Principal’s dealings
How can actual authority be terminated?
Expiration Incapacity Breach Change of circumstances Reasonable time/specified time
NO notice required
What is actual authority?
Agent’s reasonable belief that Agent was authorised to act for Principal in ways typical of someone who holds Agent’s title/position
What is apparent authority?
TP’s reasonable belief that Agent was authorised to act for Principal in ways typical of someone who holds Agent’s title/position
What is required for apparent authority?
Holding out
Written manifestations
TP reasonable belief
How can apparent authority be terminated?
Notice to TP
What is ratification?
Principal’s approval of Agent’s act that has no authority
What is required for ratification?
Principal’s knowledge of material facts
Principal’s acceptance of entire transaction
NO alteration of TP’s rights
What types of ratification are there?
Express
- Written
- Oral
Implied
- Principal’s acceptance of benefits of contract
What is required for Agent to be liable?
Undisclosed Principal
Unidentified Principal
Is TP liable?
NO
What is the difference between Servant and Independent Contractor?
Servant
- Achieve particular result
IC
- NOT achieve particular result
- IC’s own method
What is Independent Contractor?
Great skill Tools + facilities Definite/short period employment NOT furtherance of Master's business Own business/occupation
What is required for Master to be liable for Servant’s torts?
Servant’s torts committed within scope of Servant’s employment
- Of the kind Servant was hired to perform
- On the job (frolic, NOT detour)
- At least in part to benefit Principal
