Agency Flashcards
Creation of agency relationship
- Principal manifests assent to an Agent
- A acts on P’s behalf
- A’s actions are subject to P’s control, &
- A manifests assent or otherwise consents
A principal is liable to third parties for contracts of the agent if there is
Authority: actual )express or implied) or apparent Or Ratification.
A principal is liable for an agents torts if?
Within the scope of agency.
An agent can be liable as a party to a contract if:
The identity of the principal is not disclosed.
Agents have what duties?
Duty of care and lyoalty.
Principals have what duties?
Duty not to interfere and duty to indemnify A for losses in scope of agency.
Vicarious liability
A form of strict liability in which one person is liable for the tortious actions of another
A person is an employer if . . .
The person has the right to control the means & methods by which another performs a task or achieves a result
Employee
Person subject to employer’s control
—> absent a right to control, the person is likely an independent contractor
When is an employer liable for the tortious conduct of an employee?
When the conduct is within the scope of employment
Conduct within the scope of employment includes . . .
- Acts that the employee is employed to perform, or
2. Acts that were intended to benefit the employer
Effect of employer’s instructions for employee on employee’s subsequent tortious conduct
Careful instructions directed at employee do NOT insulate the employer from liability - even when employee acts counter to the instructions - IF the employee is acting within the scope of employment
When is a principal liable for a tort committed by an agent with apparent authority?
When the agent’s appearance of authority enables him to:
(A) commit a tort, OR
(B) conceal its commission
When does apparent authority exist
For apparent authority to exist:
- A third person believes that the agent acted with actual authority
- Such belief is reasonable, &
- Belief is traceable to a manifestation by the principal
What are the agency theories under which a principal could potentially be held liable for the acts of its agent?
- Vicarious liability (employer/employee)
- Actual authority (express or implied)
- Apparent authority