Agency

Question 1

Nature of Agency Relationship

Answer 1

Voluntary, fiduciary relationship between a principal and agent (P/A)

Question 2

Types of Agency

Answer 2

Gratuitous Agency
Contractual Agency

Question 3

Gratuitous Agency

Answer 3

Principal does not compensate teh agent

Question 4

Contractual Agency

Answer 4

Employer-employee relationship
Factors;
-whether the work is typically performed by specialists without supervision
-who supplies the agent with tools and a place to perform
-length and exclusivity of employment relationship
-whether the agent was paid by the job
-whether the agent’s work is part of the employer’s regular business.

Question 5

Agency as an equitable doctrine

Answer 5

Parties may appeal to these equitable doctrines when there is in fact no actual agency and thus no agent acting within the scope of work.

Question 6

Requirements for creating an Agency Relationship

Answer 6

General requirements;
-Principal must manifest intent
-Agent must consent
-Principal and agent can manifest the requisite intent either expressly or implied
-requires mutual assent

Question 7

Agency by Ratification

Answer 7

Retroactive creation of agency;
- To grant authority retroactively, the principal must have the requisite contractual capacity to authorize agents actions, OR through conduct that is justifiable only on the assumption that the principal consents to be bound

Question 8

Duties owed by Agents to Principals

Answer 8

Duty of Care
Duty of Loyalty
Duty to Account
Duty of Candor

Question 9

Duties owed by Principals to Agents

Answer 9

Duty of Compensation
Duty of Reimbursements

Question 10

Power of Agents

Answer 10

Power to Bind
-when agent acts within scope of authorized powers, they have the power to bind the principal to contracts

Question 11

Authority

Answer 11

Apparent Authority;
-Principal’s representations made to a third-party

Question 12

Principal’s Power to Ratify Unauthorized Acts of Agent

Answer 12

Ratification equals retroactive grant of authority
Provided that the P knows of all material fact, the P can ratify A actions by manifesting assent, through conduct

Question 13

Agent’s Liability to Third Parties

Answer 13

Agents are liable to third parties for harm caused by their negligence
Contractual Liability;
-Fully disclose?
–if an agent enters into a contract on behalf of a fully disclosed principal, the agent will not be personally liable on the contract
-Not Fully disclosed Principal
–if A enters into a contract on behalf of a principal that is not fully disclosed, either partially disclosed, or undisclosed, the agent will be personally liable on the contract

Question 14

Third Parties and Principal’s Tort Liability

Answer 14

Doctrine of Respondeat Superior, employer is vicariously liable for the torts of an employee where the trot is committed within the scope of employment
-the liability of the employer is in addition to, not instead of, the employee’s liability. The employer and employee are jointly and severally liable.
-a principal is not vicariously liable for torts of non-employees
Scope of Employment;
–The extent to which the conduct is kind of work employee was hired for
–extent to which the conduct occurred substantially within the time and space authorized by the employer
–the extent to which the conduct was intended to serve the interests of the employer

Question 15

Employee’s intentional tort

Answer 15

Employers will not be held liable for intentional torts of employees unless it was done during the course of the work, for the purpose of accomplishing said word.

Question 16

Negligent Supervision

Answer 16

Principal is liable to third party for harm caused by the principal’s negligence in selecting, training, retaining, supervising, or otherwise controlling the agent

Question 17

Third Parties and a Principal’s Liability on the contract

Answer 17

Contractual liability Arising from an Agent’s ACTUAL authority;
-Principals liable on Contracts with third-parties if agent has actual authority
Contractual liability Arising from an Agent’s Apparent authority;
-A Party will be liable on a contract as if there were actual authority when the party’s words, actions, or failure to act causes a third-party to reasonably but mistakenly believe that another acts as an authorized agent.
Implied Warranty of Authority;
-A person who purports to contract with a third party on behalf of another has no power to act for the other, the person is liable to the third-party for breach of implied warranty of authority

Question 17

Third Parties and a Principal’s Liability on the contract

Answer 17

Contractual liability Arising from an Agent’s ACTUAL authority;
-Principals liable on Contracts with third-parties if agent has actual authority
Contractual liability Arising from an Agent’s Apparent authority;
-A Party will be liable on a contract as if there were actual authority when the party’s words, actions, or failure to act causes a third-party to reasonably but mistakenly believe that another acts as an authorized agent.
Implied Warranty of Authority;
-A person who purports to contract with a third party on behalf of another has no power to act for the other, the person is liable to the third-party for breach of implied warranty of authority