Agency Flashcards
When is a principal liable for his agent’s torts?
1) There has to be a principal-agent relationship
2) Tort was committed within the scope of the relationship
Requirements for a principal-agent relationship
1) Assent
2) Benefit of the principal
3) Control- principal must exercise control over the agent
Sub-agent liability
Only if ABC all met, usually assent will be missing
Borrowed agent
Only if ABC are met, usually will be missing control
Two situations where there is vicarious liability for independent contractor torts
1) Inherently dangerous activities (non-delegable duties)
2) Estoppel- If you hold out your independent contractor as an agency relationship
Frolic v. Detour
Frolic- New and independent journey
Detour- slight departure from assigned task
Factors in determining whether it was within scope of employment?
1) Was it within the job desription?
2) Did it occur on the job? (Frolic/detour)
3) Did the agent intend to benefit the principal?
Vicarious liability for intentional torts (rule and exception)
Generally no liability, unless conduct was :
1) Authorized by principal
2) Natural form the nature of employment
3) Motivated by desire to serve principal
Four types of authority for k’s
Actual express, actual implied, apparent, and ratification
Express authority is revoked by
1) Unilateral act of either the principal or the agent
2) Death of principal
Effect of incapacity of the principal on an agency relationship
Express authority will survive if there is a POA, but to survive death, the POA must say that it survives death
Actual implied authority can arise from
1) Necessity- authority to do all tasks necessary to accomplish expressly authorized task
2) Custom- Implied authority to do all tasks customarily done by people in their position
3) Prior dealings between principal and agent
Requirements for apparent authority
1) Principal cloaked agent with appearance of authority
2) Third party reasonably relies on appearance of authority
Ratification requirements
1) Principal has knowledge of material facts regarding the contract
2) Principal accepts its benefits
3) Ratification cannot alter the terms of the contract
Who is liable on a contract that an agent signed for principal?
Principal (not agent) unless the principal was partially disclosed or undisclosed, in which case agent can be sued too
Duties agent owes to principal
1) Duty of care
2) Duty to obey instructions that are reasonable
3) Duty of loyalty
