Agency Flashcards
Duties of an Agent to a Principal
Duty of Loyalty
Duty to Obey Instructions
Duty of Care
Duty to Provide Information
Components of the Duty of Loyalty
Restriction of Outside Benefits Confidential Information No Competition with Principal No Conflict between Principals No Secret Dealing Appropriate Behavior
Duties of a Principal to an Agent
Reimbursement
Cooperation
Requirements of an Agency Relationship
Principal (P) Agent (A) Mutual Consent Control Fiduciary Relationship
Agent’s Liability for Contracts of Principal
Fully Disclose P (only P liable) Partially Disclose P (A and P are jointly and severally liable) Undisclosed P (A and P are jointly and severally liable)
Fully Disclosed P
Existence and Identity of P is revealed
Partially Disclosed P
Existence but not the Identity of the P is revealed.
Undisclosed P
Plaintiff can find out about a Undisclosed P during the discovery process and add them to the complaint
Factors the Court Considers When Determining Whether P is Liable for the Torts of A
Whether the act occurred during business hours
Whether the act is part of P’s general business
Whether the act is similar to one authorized by P
Whether P supplied the tools
Whether the act is seriously criminal
Factors
Do not need to prove all of them (not elements)
Court will consider in totality of circumstances
Individual
An individual is always liable for his/her own negligence and intentional torts
When is a P liable for the Torts of and A
When the A has acted within the scope of employment
Seriously Criminal Act
It usually severs the P liability