Agency general pt 2 Flashcards
The agents liability to third parties
If an agent contracts with a 3rd party on behalf of a disclosed principal, the agent
is not liable on the contract absent a contrary agreement
The agents liability to third parties
The court normally require clear proof
of intent to bind the agent
The agents liability to third parties
teh agent if not liable unless there is clear and explicit evidence of the agents
intention to substitute or superadd his own personable liability, for, or to, that of its principal
The agents liability to third parties
When an agent contracts on behalf of a paritally disclosed or undisclosed principal, the agent is normally
liable on the contract
The agents liability to third parties
An agent who purports to act on behalf of a principal impliedly warrents that
he has authority unless he disclaims the existance of such a warranty of the third party knows that he lacks authoruty
The agents liability to third parties
if the agent lacks the power to bind the princiapal, the 3rd party may sue
the agent for breach of warrenty of authority or misrepresentation of authority
Unless the contract provides to the contrary, if an agent acting for a disclosed or partially disclosed principal has authority, the 3rd party is
bound as well as the principal
When the principal is undisclosed and where the agent has authority, the 3rd party is bound to the contract unless:
- the principals existance is fraudualently concealed, or
- the 3rd party is induced to enter into the contract by a representation that the agent was acting for himself and the agent or principal has notice that the 3rd party would not have dealt with the principal
An undisclosed principal cannot require that a 3rd party accept the principals performance instead of the agents if this substitution substantially
changes the performance contemplated by the contract
An undisclosed principal may not require that a 3rd party render performance to the principal if such performance substantially
changes the nature of the 3rd party’s obligation
Pursuant to the doctrine of respondeat superior, a principal who is a “master” is responsible for the torts of “servents” acting
within the scope of their employment
A master is a principal who
employs an agent to perform service in his affairs and who controls or has the right to control the physical conduct of the other in the performance of the service
The agent so controlled is called a
servent
A servent is to be contracted with an
independant contractor
independant contractor
A person who contracts with another to do something for him but who is not controlled by the other nor subject to the others right to control with respect to his physical conduct in the performance of the undertaking
Whereas a servant is always an agent, an independant contractor
may or may not be an agent
With few exceptions, a principal is not responsible for the torts of
Independent contractor agents
An employee is an agent whose
principal controls or has the right ot control the manner and means of the agents performance of work
nonemployee agents are essentially
independant contractor agents
Under R3A there is still areas where principal may be liable for the torts of
nonemployee agents
Princiapals are always responsible for
their own misconduct
A principal is liable for the torts of his agent if the agent acts
under his direction and the principal intends the conduct or its consequences
A principal is liable for torts commited by an agent acting with
actual authority or whose acts the principal has ratified
Agents are responsible for their own
torts