Agency Authority Flashcards
How is an agency relationship created
when a person, manifests an intent that another person act on his behalf and both parties consent to the agreement
Actual Authority
agent reasonably thinks he possesses based on the principal’s dealings with him
can be express or implied
Apparent Authority
when the principal “holds out” the agent as having certain authority, causing third parties to reasonably believe the agent has such authority
Implied Actual Authority
agent reasonably believe she has authority as a result of the principals actions
- incidental to express
- arisign out of custom
- prior acquiescence
- emergency measures
- delegate authority
- to pay for and accept delivery of goods
- general warranties
- manage investments
Termination of Actual Authority
- lapse of a specified or reasonable time; happening of a specified event,
- change in circumstances
- agent’s breach of fiduciary duty
- either party’s unilateral termination
- operation of law
agents duties
fiduciary duties of care, loyalty, and obedience
duty of care
carry out agency with reasonable care (depends on any special skills that the agent may have)
duty of loyalty
undivided loyalty- putting the principal interest first
(1) account for any profits made
2. act solely for benefit of principal and not for himesle of 3P
3. must refarin from dealing with principal as adverse party
4. may not compete
5. may not sue principals property for own purposes or 3P purpose
duty of obedience
must obey all reasonable directions of his principal
Principals duties to the agent
not fiduciary in nature but duty to indemnify for carrying out principals instructions
ratification
when the agent does not have authority but principal is bound because ratification
methods of ratification
express or implied
requirements:
(1) principal has knowledge of all material facts
(2) must accept entire transaction
(3) . ratification cannot be used to alter rights of intervening parties
liability on k
GR: actual, apparent or ratification principal is liable and the agent is not UNLESS
principal is undisclosed and 3P has no notice that agent is acting for a principal or partially disclosed agent will also be laible
Torts of agent= master/servant
master is liable for torts committed by a servant within the scope of the servants employment- joint and severally liable
independent contractor torts
master generally not liable for torts ocmmited by independent contractor
servant v. independent contractor
looks at whether subject to the control
if subject to control by the means in which something is completed- servant
subject to control by the results- independent contractor
right to control factors:
- skill required
- tools and facilities
- period of employment
- basis of compensation
- business purpose
- distinct business
scope of employment factors
- conduct of the kind that agent hired
- occur on the job
- performed to benefit principal?
intentional torts
GR: employer not liable for intentional torts of employe UNLESS
within scope if conduct is 1. natural from nature of the job, 2. motivated to serve the employer, 3. specifically authorized or ratified by the employer
torts of independent contractor
GR: principal is not liable for the torts of independent contractor
UNLESS estoppel theory - when principal creates the appearance that an employer-employee relationship exists and the third party relies on that relationship
