Agency Flashcards
Under What circumstances will a principal be liable to an agent?
for contracts and torts
When will the principal be liable for agent torts?
if principal agent relationship exist and tort was committed in the scope of the employment
How is the agent- principal relationship created?
ABC
Assent: voluntary, informal agreement, principal has req. capacity
Benefit: agents conduct benefits principal in some capacity
Control: principal has right to control agency actions
will a principal be responsible for a sub agents or borrowed agents?
generally no unless ABC is met
Will a principle be liable for independent contractor?
generally no because there is no power to supervise performance
unless ultra hazardous activity or estoppel (hold out independent contractors as agent)
How to determine the scope of the liability?
Was the conduct of the kind the agent was hired to perform?
Did the tort occur on the hob?
Did agent intend to benefit the principal?
What is Frolic v. Detour?
frolic is outside the scope of employment
Detour: departure from the task but within the scope
Can principal be liable for intentional torts?
generally outside scope of liability, UNLESS
specially authorized by principal, natural from type of employment, motivated by desire to serve principal
When will principal be liable for contracts entered into by agent?
if the principal authorized agent to enter into contract. The agent must have one of the three types of authorities,
actual express, actual implied, apparent
Actual Express Authority
principle used words to express authority to agent
What is the equal dignities document and how does it apply?
if contract must be in writing, then express author must be in writing
can be revoked by unilateral act or death/incpacity of principal UNLESS agent has durable power of attorney that is written with conscious language
Actual Implied Authority
authority which agent reasonable believes principal has given because of necessity in order to accomplish assignd taks custo or prior dealings
Apparent
principle gave agent the appearance of authority AND 3rd party reaonsably relies on appearance of authority
if agent goes beyond the scope of authority principle will still be liable
if actual authority is terminated but agent continues to act on principal behalf, P is still liable
What is ratification?
authority granted after contract entered if
P has knowledge of material facts and principal has accepted benefits
MUST be complete no alterations to the terms
What is undisclosed principal?
3rd party doesn’t know P exist, agent will be liable to contract
