Agency Flashcards
Agency exists if
1) Voluntary agreement
2) Where one acts w/ the benefit of another
3) that person has control over the persons actions
Agent
Person who is given authority to act on behalf of another
Principal
Person who gives authority to act on behalf of another
Independent contractor
One who is hired to carry out specific tasks
Difference between this and agent is the degree of control a principal has
Principal’s liability for torts committed by an agent
Liable if acting within the scope of their authority
Detour v. frolic
Principal’s liability for intentional torts by an agent
Generally not liable unless:
1) Natural consequence of duties
2) Committed out of motivation to serve
3) Authorized
Principal is liable to 3p if:
Agent is acting with actual or apparent authority
Actual authority
Actual express or implied
Actual express authority
Express words/conduct authorizing agent’s actions
Actual implied authority
Would a reasonable person in the agent’s position believe they had authority?
1) Necessary
2) Customary
3) Previously authorized
Apparent authority
1) P holds out the agent as having authority on his behalf to the TP
2) Words/conduct would make a reasonable person believe the agent had authority on his behalf
Ratification
Agent acts without authority
1) Principal knows the material terms
2) Accepts benefits without complaint
Agent is liable to 3p if:
1) Acts like they have authority but don’t
2) Don’t disclose the existence of Principal
3) Failure to identify principal, acts w/ authority
Duties owed by agent to principal
Exercise reasonable care
Obey reasonable instructions
Duty of loyalty
Breach of exercising reasonable care
Can receive indemnification
