Agency

Question 1

Agent duties

Answer 1

Reasonable care
Loyalty
Obedience
Express contractual duties

Principal Duty to agent- reasonable compensation

Question 2

Termination of actual authority

Answer 2

1. Lapse of specified or reasonable time
2. Specified event
3. Change in circumstances
4. Agents breach of fiduciary duty
5. Either party’s unilateral termination
6. Operation of law( principal death)

Question 3

Irrevocable agency

Answer 3

1. Coupled with interest or power given as security if given to protect agent or third party’s rights and supported by consideration

Question 4

Lingering apparent authority

Answer 4

Principal has duty to inform of termination of authority or else is liable for actions of terminated agent

Apparent authority generally not terminated by death of principal

Question 5

Disclosed principal

Answer 5

1. Third party knows of principal and identity

Agent not liable

Principal liable

Only principal may enforce against third party not agent

Question 6

Unidentified principal or undisclosed principal

Answer 6

1. Know acting for principal but identity unknown to 3rd party
2. Dont know there is a principal
   Agent and principal liable

Either principal or agent may enforce against third party

Principal may not be able to enforce if fraudulent misrepresentation of identity or increased burden if performance due to that principal

Question 7

Principal Liable for Independent contractor

Answer 7

1. Inherently dangerous
2. Non delegable
3. Knowingly selected

Question 8

Respondeat superior factors

Answer 8

1. Characterization of the parties
2. Is business distinct
3. Customs of the locality regarding supervision if work
4. Degree of skill required
5. Whose tools and facilities used
6. Period of employment
7. Basis of compensation
8. Understanding of parties
9. Whether in furtherance of business

Key word is control