Agency

Question 1

Rule: When does an agency relationship exist?

Answer 1

Agency agreement exists when principal authorizes an agent to act on her behalf and represent her in dealings with third parties.

Question 2

Capacity to be an agent

Answer 2

minimal capacity - can be a minor.

Question 3

Duty of principal:

Answer 3

all duties imposed by contract

Question 4

Duty of agent

Answer 4

Duty of care to act as reasonably prudent person; Duty of loyalty (conflicting interest, commingling funds, obedience, ecommunication)

Question 5

When is an agent personally liable to third parties?

Answer 5

Agent acting w/o authority , principal’s identify not revealed, principal’s existence and identicy is undisclosed, parties intend agent be treated as party to the contract.

Question 6

When does agent’s actions bind the principal?

Answer 6

if agnt was acting under actual or apparent authority to act for the principal.

Question 7

Types of authority (Agency)

Answer 7

Actually express authority, actual implied authority (agent reasonably believes principal gave authority because of necessity, custom, or prior dealings; apparent authority

Question 8

apparent authority

Answer 8

An agent’s actions bind the principal when the principal has provided the agent with the appearance of authority, on which a third party reasonably relies.

Question 9

rule: principal’s liability for an agent’s torts

Answer 9

Principal is liable for tort of agents committed within the scope of principal-agent relationship.

Question 10

Tort - scope of principal-agent relatinship

Answer 10

Conduct of the kind agent hired to perform, tort occurred on the job and/or agent intnded action to benefit to the principal. Frolic/detour.

Question 11

When is a principal liable for intentional torts of the agent?

Answer 11

When specifically authorized by principal, natural result from nature of employment, tortious act motivated by desire to serve the principal.