Agency

Question 1

What is an Agent?

Answer 1

An agent is someone who acts on behalf of a principal and are subject to their control when dealing with third parties.

Agent can bind the principal when they have the necessary authority.

Question 2

When is an agency relationship created?

Answer 2

Three Elements:

M.A.M.

1. Manifestation by the principal that the agent shall act for him.
2. Agent Accepts the undertaking.
3. Mutual understanding that principal is in control of the undertaking.

Question 3

Actual Authority

Answer 3

Express Authority (written or communicated to the agent)

Implied Authority (prior dealings or course of conduct)

So, basically the agent can do things that they believe are reasonably necessary for him to fulfill what the principal requires of him.

Question 4

Apparent Authority

Answer 4

Focuses on the relationship between the principal and the third party.

Test:

Whether the words or conduct of the principle would lead a reasonable person in the third party’s position to conclude that the agent had authority to act.

Elements:

R.T. – Real Talk

1. A third party Reasonably believes the actor has authority to act on behalf of the principal; and
2. that belief is Traceable to the principal’s manifestations.

(if the agent is a manager, then what the third party may reasonably believe is greater.)

Question 5

Agent Liability

Answer 5

If the principal is disclosed, the agent will not be liable to the third party.

Question 5

Limits on what Agent can do (i.e., what defines their duty of loyalty?)

Answer 5

M.A.C.I.N.

1. no Material benefits from 3P tx;
2. no actions Adverse to principal;
3. no Competition;
4. share Information;
5. Nigga better get his shift back (safeguard property)

Question 6

Principal Liability

Answer 6

Principal is subject to vicarious liability to a third party who is harmed by an agents conduct when facts show agent is an employee who commits a tort when acting in the scope of employment.

Note: if the agent is an IC, then principal not liable for tortious conduct.

Question 7

Test for whether agent is IC or employee

Answer 7

You need to look at the scope of control the principal has. If the principal is like physically controlling than its probably an employee. But if the control is pretty unclear then its an IC.

Question 8

Agent Scope of Employment Definition

Answer 8

Elements:

G.A.S.

1. Conduct is of General nature he is employed to perform;
2. At least in part, by a purpose to serve the employer.
3. within Spacial and temporal limits of employment (frolic and detour)