Agency/Part Flashcards
Creation of Agency Relationship
Both parties manifest assent Agent acts on principal’s behalf Agent’s actions subject to principal’s control Consideration not required and Need not be in writing
Agent Requirements
Any person can serve as agent
So long as has minimal capacity
Principal Requirements
Must have capacity to consent to
Agency relationship and
To enter into transaction to which
Agent will bind principal
Emp/Emp Agency Rel
Factors:
Principal exercises significant control over
Details of day-to-day activities
Principal supplies tools
Principal pays work on structured pay period
Worker’s skill level specialized, and
Principal directs work to completion
Indep Contractor Agency Rel
Bears risk and benefits from management Maintains high level of independence Free to work for others Agrees to be paid fixed fee Receives payment based on results Liable for work performed, and Accepts responsibility to remedy at own expense Principal less likely to be liable here
Liab of Prin for K to 3rd Parties
Principal subject to liability on
K agent enters into on behalf of
Principal if agent has authority to bind
Types of Authority
Express Actual
Implied Actual
Apparent
Express Actual Auth
Created by oral or written words By clear, direct, and definite language, or Specific detailed terms and instructions Principal’s manifestation must cause Agent to reasonably believe agent Doing what principal wants
Implied Actual Auth
Allows agent to take whatever actions
Necessary to achieve principal’s objectives
Based upon agent’s reasonable
Understanding of objectives
May be determined by customary
Business practices within trade or by
Position that customarily has certain authority
Acquiescence Implied Auth
If principal accepts agent’s acts or Fails to object to unauthorized action Affirms agent’s belief those actions Further principal’s objections and Support authority for future
Apparent Auth
Reasonable reliance by 3rd party
Agent has authority
Perception based upon principal’s
Actions to third party
Reas Belief of Apparent Auth
Past dealings between principal and agent
And 3rd party aware
Trade customs regarding similar transaction
Relevant industry standards
Principal’s written statement of authority, or
Transactions that do not benefit principal
Term of Agency Rel
Principal’s revocation Principal’s agreement with agent Change of circumstances Passage of time Principal or agent’s death Principal’s loss of capacity or Statutorily mandated termination
Ratification by Prinicipal
Principal must ratify entire act
Principal must have legal capacity to ratify
Must be timely and
Principal must have knowledge of material facts
Types of Tort Liable of Principal
Vicarious Liability
Direct Liability
Respondeat Superior
Tort committed by agent acting within Scope of Employment Performing work assigned by employer OR Engaging in course of conduct Subject to employer’s control
Types of Work Travel
Direct
Frolic
Detour
Direct Work Travel
Employee traveling during workday and
Does not deviate
Frolic Work Travel
Takes significant deviation from path
Outside scope of employment
Detour Work Travel
Takes de minimis departure from route
Within scope of employment
Direct Liability of Princ
Principal authorizes or ratifies conduct
Principal negligent in selecting, supervising, or controlling
Principal delegates performance of non-delegable duty