Agency Partnership Essay Flashcards
Agency Essay
Authority to Act
Authority may be actual or apparent
* actual authority can be expressed or implied
Express:
* is authority oral or written communication form the agent
Implied
* is authority that the agent reasonably believes he has as a result of action of principal
Apparent Authority
* if the agent lacks authority, the principal can still be liable if the third party can show the agent had apparent authority to act.
Ratification
* if a principal ratifies an unauthorized transaction by an agent, the principal because bound by the contract.
Essay (Agency)
Principle- Agent Relationship
Principle- Agent Relationship is created through consent of both parties, provided they have capacity.
* no writing or consideration required.
Breach:
* an agent has a duty of loyalty and obedience to the principal
Remedies:
- An action for secret profits.
- The principal may recover actual lost profits held by agent where or not agent caused any loss.
Essay (Agency)
Contract Liability- Authority of Agent
A principal is liable to a 3rd party for the action of an agent who acted with authority.
* authority can be actual or apparent
Actual:
* IS authority that an agent reasonably believed he possessed the basses on the principal dealing with him.
Apparent
- is where the 3rd party reasonably believes the agent has given authority based on 3rd party dealing with the principal.
- If an agent actual authority has been terminated, the agent will have apparent authority until 3rd party receives actual or constructive notice.
Essay (Agent)
Respondiat Superior
Estoppel
Provides that a principal is liable in tort for the act of an agent performed within the scope of employment.
Act of Agent
* Normally a Tort Plaintiff is not in the position to rely on apparent authority of an agent, unless estoppel.
- estoppel
- May be asserted to prevent the principal from denying an employee employer relationship, if principal created appearance of such relationship to to a third party .