AGENCY Flashcards
Authority of Agent: Actual Authority
A principal is bound to contracts entered into by its agent if the agent has actual authority. Actual authority may be express or implied.
Express authority occurs when the principal has explicitly told the agent (either orally or in writing) that he is entitled to act.
Implied authority occurs when either: (a) the agent believes he is entitled to act because the action is incidental or necessary to carry out his express authorized duties; (b) the agent has acted similarly in prior dealings between the principal and agent (prior acquiescence of principal); OR (c) it is customary for agents in that position to act in that way.
Authority of Agent: Apparent Authority
A principal is bound to contracts entered into by its agent if the agent has apparent authority. Apparent authority arises where: (1) the principal holds out another as having authority; AND (2) the third-party reasonably relies on that authority.
A principal holds an agent out as having authority when he: (a) gives the agent a position or title indicating certain authority; (b) has previously held the agent out as having authority and has not published a revocation of said authority; OR (c) has cloaked the agent with the appearance of such authority.
Vicarious Liability: Doctrine of Respondeat Superior
Under the Doctrine of Respondeat Superior, an employer is vicariously liable for an employee’s negligent acts if the employee was acting within the scope of employment. A party is generally NOT vicariously liable for the torts of an independent contractor.
An employee acts within the scope of employment when: (a) performing work assigned by the employer; (b) engaging in a course of conduct subject to the employer’s control; OR (c) the conduct is of the same general nature as that authorized or incidental to the conduct authorized.
Conduct is NOT outside the scope of employment merely because an employee disregards the employer’s instructions.
Respondeat Superior–Employee’s Intentional Torts Being Within the Scope of Employment
An employee’s intentional torts are NOT generally within the scope of employment UNLESS the act: (a) was specifically authorized by the employer; (b) was driven by a desire to serve the employer; OR (c) was the result of naturally occurring friction from the type of employment.
