Agency Flashcards
Components of an agency relationship
1) Manifestation of assent
2) Agent agrees to act for the benefit of the principal
3) Agent agrees to act subject to the control of the principal
Fiduciary duties owed to principals
1) Reasonable care
2) Obey instructions
3) Loyalty
Vicariously liable for non-employee agents
1) Task is inherently dangerous
2) non-delegable duties (landlord taking care of common areas)
3) Negligent hiring
4) Retained control over the task
Scope of employment
Frolic vs. detour
Disclosure of principals
1) Fully disclosed (agent is not party to contract)
2) Partially disclosed (agent and principal are party to contract)
3) Undisclosed (contract is between the third party and agent, plus principal if agent was authorized)
Requirements for respondeat superior
1) Control
2) Occurred within the scope of the agency relationship
Types of agents
Servants/employees (call them employees)
Independent contractors/non-employee agents
Intentional torts w/in scope of employment
1) Conduct occurred within the space and time limits of employment;
2) Agent was motivated to benefit the principal
3) Act is of a kind that the agent was hired to perform
Terminating the agency relationship
Either party can terminate it unilaterally
Types of authority
1) Actual express authority (requires both subjective and objective intent from the agent to act on behalf of the principal)
2) Actual implied authority (absent instructions to the contrary, includes authority to act within accepted business custom or general trade usage)
3) Apparent authority (principal causes the third party to reasonably believe that the principal intends to have agent act for him)
4) Ratification (includes actual knowledge + acceptance of the benefits)
Who can be agents
Anyone with minimal capacity, including minors. Must be able to:
1) assent
2) perform the tasks
3) be subject to the principal’s control
Cannot be principal
- Persons without legal capacity (minors, incapacitated)
- Unincorporated associations
