Agency

Question 1

Who are the actors in an agency relationship?

Answer 1

Principal and an agent

Question 2

What is an agent?

Answer 2

Agent does things on behalf of the principal.

Question 3

What is a principal?

Answer 3

Directs agents acts

Question 4

Three Components of an Agency Relationship

Answer 4

1. Asset: Requires both parties both manifest asset aka agree to work with one another.
2. Benefit: Agent agrees to work for the principal’s benefit.
3. Control: Agent agrees to work subject to the control of the principal

Question 5

Is there a requirement of consideration to create an agency relationship?

Answer 5

No

Question 6

Who can be a principal?

Answer 6

Any person that has legal capacity can be a principal.
Excludes a minors and anyone incapacitated by illness or intoxication.

Question 7

Who can be an agent?

Answer 7

Any person or entity who has minimal capacity.
A minor may serve as an agent.

Question 8

To have minimal capacity, an agent must be able to:

Answer 8

Assent to the agency relationship
Perform the tasks on behalf f the principal and
Be subject to the principal’s control.

Question 9

Contract Liability

Answer 9

When is a principal liable for K that an agent enters on behalf of the principal?

Bound when:
1. Principal authorized the agent to enter into the K
2. The agent acted w/ legal authority

Question 10

Four types of legal authority

Answer 10

1. Actual express authority
2. Actual implied authority
3. Apparent authority
4. Ratification

Question 11

Actual Express Authority

Answer 11

• Use of words, written or spoken.
• Requisite Intent
  1. Subjective Intent: The agent must believe that he doing what the principal wants him to do.
  2. Objective Intent: The belief must be objectively reasonable.
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Question 12

Termination by Death

Answer 12

Actual express authority terminates when the agent has actual knowledge of the principal’s death.
Actual express authority terminates immediately upon the death of the agent.

Question 13

Actual Implied Authority

Answer 13

A principal creates actual implied authority by using words, written or spoken, OR OTHER CONDUCT to convey authroity the principal’s objective.

The agent has actual implied authority to act within the accepted business custom or general trade custom.

Question 14

Apparent Authority

Answer 14

Between pirinciapl and third-party
Created by words, written or spoken, that cause the third-party to reasonably believe that principal wants to have acts doe on the principal’s behalf by the gent.

Question 15

Ratisfication

Answer 15

No pre-act communication to consider.
Requirements:
P has knowledge of the material terms of the K
P accepts the K’s benefits.

Question 16

Three types of princiapls

Answer 16

Principals can be disclosed, partially disclosed, and undisclosed.

Question 17

Disclosed Prinipals

Answer 17

Third party knows:
Agent is acting on behalf of a princiapl
P’s identity.

Question 18

P is partially disclosed

Answer 18

Knows working on behalf of a P, but not the identity.

Question 19

Undisclosed P

Answer 19

Knows either A’s status nor P’s identity.

Question 20

Vicarious Liability

Answer 20

A principal may be liable for his acts of his agent.
Requirements:
1. The P has sufficient control over the A’s conduct such that the agency relationship employer-employee
2. The tort committed by the A was committed while the A was acting within the scope of his employment.

Question 21

Sufficient control

Answer 21

A P wrote controls or has the right to control, the physicla conduct of the agent’s performance of work is in the higher category of employer-employee status.

Question 22

Does a princial have vicarious liability for torts committed by an indepedne nt contractor

Answer 22

No.
Exceptions:
Task is inherently dangerous
P was neg in hiring the independent contractor
P retains cotnrol over certain tasks and tort occurs within these tasks.

Question 23

Three questions to determine scope of employment

Answer 23

1. Did the A intend to benefit the P
2. Was the A’s conduct of the kind that A was hired to perform?
3. Did the tort occur on the job.

Question 24

What is frolic?

Answer 24

A significant deviation from an assigned path; outside scope of employment.

Question 25

What is detour?

Answer 25

De minims deviation from an assigned path, within scope of employment.

Question 26

Intentional Torts

Answer 26

Outside the scope of employment.
THere would not be liability for the principals.

Question 27

What are the exceptions that a P may be held vicariously liable for intentional torts

Answer 27

• Conduct occurred within time and space limits of employment
• A was motivated in some part to benefit the P.
• The act is of a kind that the A was hired to perform.