Agency Flashcards
In what 3 scenarios is an agency irrevocable?
- When coupled w/ interest (ex: good consigned to A by P where agent works on commission)
- After it’s been partly exercised
- If for fixed period then cant revoke before time expires (except w/ sufficient cause)
When is an agency terminated by operation of law (6)?
- death of P or A
- Insanity of P or A
- Bankruptcy of P
- Impossibility of performance
- Changed circumstances
- War b/w P & A’s countries
What are the 4 ways an Agency’s Authority can be revoked?
- Expiration of time/ accomplishment of purpose
- Death or incapacity of principal
- Unilateral act of P or Agent
- Operation of law
What is the main distinction b/w a disclosed & undisclosed principal?
Disclosed: Existence & identity of P are known to 3rd parties
Undisclosed:
-Identity unknown, existence known (partially disclosed)
-agent acting on P behalf is unknown to 3rd party (undisclosed)
When will a court order construtive trust be maintained due to the breach of duty of an agent?
Where assets being compensated are identifiable (traceable)
- Awarded to continuing, identifiable profit of a self-dealing agent
- Courts will remedy profits of self-dealing agent by rendering an account of the profits
What are the 2 main duties of a principal?
- compensation/ reimbursement
- contractual
- P liable for K’s of Agent
What are the 3 main fiduciary duties of an Agent?
- Reasonable care: no negligence
- Obedience
- duty not to accept new obligations inconsistent w/ duties owed to Principal - Loyalty: no self-dealing
- cant receive benefit to P’s detriment
- cant usurp opportunity of P
- can’t take secret profits at P’s expense
When can authority be granted after K was entered into? (ratification)`
- when principal has knowledge of all material facts regarding K
AND
- Principal accepts benefit of K
* Principal not liable for K until he ratifies it
What are the 4 types of authority of an agent?
- Express
- Implied (necessity, custom, prior dealings)
- Apparent (agent cloaked w/ appearance of authority; 3rd party reasonably relies)
- Inherent
What are the 3 exceptions to the general rule that intentional torts are outside agency relationship?
- specifically authorized by principal
- natural fr type of employment
- motivated by desire to serve principal
What is the main distinction b/w a frolic and a detour?
Frolic: new & independent journey (principal not vicariously liable)
Detour: mere departure (principal still vicariously liable)
When will a principal be vicariously liable for torts committed by his agent? (2)
1. principal- agent relationship exists AND 2. committed by agent w/in scope of employment -job description -tort occurred on job -agent intended benefit to principal
When must express authority to enter agency K be in writing?
- conveys land
2. conveys interest in real estate that lasts over 1 year
What are the 2 exceptions to the general rule that a principal is not vicariously liable for torts of independent contractors? (i.c.)
- IC is engaged in ultra-hazardous act when tort occurred
2. Estoppel: i.c. holding out appearance of agency
what 3 elements must be present for a principal- agent relationship to exist?
- Assent: agreement b/w principal (w/ capacity) & agent
- Benefit: agent’s conduct for principals benefit
- Control: principal controls agent via power to supervise agents performance
