Agency

Question 1

Vicarious Liability for Agent’s Torts

Answer 1

1) Must be principal/agent relationship
- Assent, Benefit, Control

2) Tort must be committed within the scope of that relationship
- Frolic v. Detour

Question 2

Vicarious Liability for Independent Contractor’s Torts

Answer 2

No right to control, so no vicarious liability.

Exceptions:

1) Inherently Dangerous Activities
2) Estoppel

Question 3

Vicarious Liability for Agent’s Intentional Torts

Answer 3

Generally outside the scope.

Exceptions:

1) authorized by principal
2) natural from the nature of employment
3) motivated by a desire to serve the principal

Question 4

Liability for Agent’s Contracts

Answer 4

Principal is liable for contracts entered into by its agent if principal authorized.
1) Actual Express Authority - oral except for land. revocable unless durable

2) Actual Implied Authority - necessity, custom, prior acquiescence
3) Apparent Authority - P cloaks + 3rd party relies
4) Ratification + knowledge + acceptance of benefits

Authorized agents not liable unless undisclosed principal

Question 5

Duties Agent Owes to Principal

Answer 5

1) Care
2) Obedience

3) Loyalty (self-dealing, usurping opportunities, secret profits)
- must disgorge