Agency

Question 1

3 requirements to form an agency relationship

Answer 1

Consent (principal & agent)
Control (Sub to principal’s control)
Contractual Capacity by principal (agent does not need)

Question 2

Equal dignity rule

Answer 2

follow SOF, otherwise no writing required.

Question 3

Consideration?

Answer 3

No

Question 4

Fiduciary duties (agent)

Answer 4

duty of care & duty of loyalty

Question 5

duty of care

Answer 5

reasonable care

Question 6

duty of loyalty

Answer 6

utmost fairness. (undivided loyalty to principal)

Question 7

Principal’s duties?

Answer 7

NOT fiduciary.
- indemnify agent’s losses in carrying out principals instruction
- compensate agent.

Question 8

When does liability of the principal rise for the agent’s contracts?

Answer 8

Actual authority or apparent authority

Question 9

actual authority

Answer 9

based on agent’s reasonable (person) belief.
express - words
implied - actions

Question 10

apparent authority

Answer 10

3rd party reasonably believed had authority.
- protects innocent 3rd parties.
(can linger)

Question 11

ratification

Answer 11

after the fact authority (blessed by principal)
- kicks in if was no authority at time of K

express - oral/written
implied - principal accepts benefits

(all or nothing)

Question 12

When is the agent bound by the K?

Answer 12

undisclosed or only partially disclosed principal.
(partial - know agent but don’t know princiapl’s identity)

Question 13

Vicarious liability

Answer 13

servant? if so, generally master liable

factors for right to control
- skill
- tools
-period of employee
- business purpose
- distinct business

Question 14

Scope of employment

Answer 14

frolic - not ok
detour - ok