Agency Authority

Question 1

How is an agency relationship created

Answer 1

when a person, manifests an intent that another person act on his behalf and both parties consent to the agreement

Question 2

Actual Authority

Answer 2

agent reasonably thinks he possesses based on the principal’s dealings with him

can be express or implied

Question 3

Apparent Authority

Answer 3

when the principal “holds out” the agent as having certain authority, causing third parties to reasonably believe the agent has such authority

Question 4

Implied Actual Authority

Answer 4

agent reasonably believe she has authority as a result of the principals actions

1. incidental to express
2. arisign out of custom
3. prior acquiescence
4. emergency measures
5. delegate authority
6. to pay for and accept delivery of goods
7. general warranties
8. manage investments

Question 5

Termination of Actual Authority

Answer 5

1. lapse of a specified or reasonable time; happening of a specified event,
2. change in circumstances
3. agent’s breach of fiduciary duty
4. either party’s unilateral termination
5. operation of law

Question 6

agents duties

Answer 6

fiduciary duties of care, loyalty, and obedience

Question 7

duty of care

Answer 7

carry out agency with reasonable care (depends on any special skills that the agent may have)

Question 8

duty of loyalty

Answer 8

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

Question 9

duty of obedience

Answer 9

must obey all reasonable directions of his principal

Question 10

Principals duties to the agent

Answer 10

not fiduciary in nature but duty to indemnify for carrying out principals instructions

Question 11

ratification

Answer 11

when the agent does not have authority but principal is bound because ratification

Question 12

methods of ratification

Answer 12

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

Question 13

liability on k

Answer 13

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

Question 14

Torts of agent= master/servant

Answer 14

master is liable for torts committed by a servant within the scope of the servants employment- joint and severally liable

Question 15

independent contractor torts

Answer 15

master generally not liable for torts ocmmited by independent contractor

Question 16

servant v. independent contractor

Answer 16

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

Question 17

right to control factors:

Answer 17

1. skill required
2. tools and facilities
3. period of employment
4. basis of compensation
5. business purpose
6. distinct business

Question 18

scope of employment factors

Answer 18

1. conduct of the kind that agent hired
2. occur on the job
3. performed to benefit principal?

Question 19

intentional torts

Answer 19

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

Question 20

torts of independent contractor

Answer 20

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