Agency

Question 0

When Will a Principal Be Liable for the Intentional Torts of its Agents?

Answer 0

Intentional torts are outside the scope of the agency relationship unless it is 1) authorized by the principal, 2) a natural result of the nature of agency relationship, and 3) the agent is motivated by a desire to serve the principal.

Question 1

What are the elements of Apparent Authority?

Answer 1

Principal provides agent with the 1) indicia of authority to make a decision that would bind the company and 2) the other party reasonable relies on those indicia and the agent’s actions.

Question 2

What is required to form an Agency Relationship?

Answer 2

Assent: there is an agreement between the parties.
Benefit: the agent’s conduct for benefit of the principal.
Control: principal has right to control and supervise performance.

Sub-agents typically are not agents of the principal because the principal lacks assent and control; borrowed agents typically are not agents of the principal because of lack of control.

Question 3

What Conduct is Considered Within the Scope of An Agency Relationship?

Answer 3

1) The conduct was of the kind agent was hired to perform;
2) the tort occurred “on the job” (Better Formulation?); and
3) the agent’s act benefitted the principal.

Question 4

What is a Frolic?

Answer 4

A new and independent journey of an agent not within the scope of the agency relationship.

Question 5

What is a Detour?

Answer 5

A “mere departure” during the scope of an agent’s work; considered to be within the scope of the agency relationship.

Question 6

What is Implied Authority?

Answer 6

1) Authority to do certain actions where such authority is necessary for the agent to achieve the primary task;

also occurs where 2) the authority would be given to people who customarily perform similar functions;

or 3) the principal has given the agent prior acquiescence regarding the conduct.

Question 7

What is Ratification?

Answer 7

Authority that is granted to the agent after the principal has knowledge of material facts of the action and has accepted the benefits of the agent’s action.

Question 8

What is an Agent’s Duty of Care?

Answer 8

Duty to perform task which agent is assigned with ordinary care associated with the task or profession.

Question 9

What is an Agent’s Duty of Loyalty

Answer 9

Agent cannot engage in self-dealing, usurp the principal’s authority, or earn secret profits.

Principal may recover losses caused by breach and disgorgement of funds achieved in violation of the duty of loyalty.