Ch 32 - Agency Formation and Duties Flashcards
Principal def
right to control agent’s conduct in matters entrusted to the agent
agency def
fiduciary relation that results from the manifestation of consent by one person to another that the other shall act ih their behalf and sbject to their control, and consent by the other so to act
fiduciary
person having duty created by their undertaking to act primarily for anothers benefit in matters connected with the undertaking
When - employee X an agent?
When * has exceeded scope of authority
What are agency and employment law based on?
1 is based on common law, 2 is based on statutory law
Independent contract
person who contract w/ * to do something for them but who - X controlled by other or subject to others right to control w respect to their phys conduct in the performance of the undertaking
Determination of employee status (9)
(most important) How much control does employer exercise over details of work? Considerable over work and day to day activities -> employee status
Is the worker engages in an occupation or business distinct from that of the employer? Yes-> X employee
Is the work usually done under employer’s direction/by specialist w/o supervision? Yes -> employee status
Does employer supply tools at place of work? Yes -> employee
For how long is the person employed? Long-> employee
What is method of payment, time period or end of job? Time period -> employee
What degree of skill is rq of worker? Great -> specialized job -> contractor
Workers sometimes benefit
Employees X pay some taxes for contractors + fed statutes gov employment discrimination apply only in employer-employee rela
Does contractor normally own copyright?
Yes, unless parties agreed in writing that work - “work for hire”
work for hire def
copyrighted work created by employee within scope o employment at request o employer
ways to make agency relationship (1+4)
X need writing or consideration, only principal rq capacity
agency by agreement, ratification, estoppel, and operation of law
agency by ratification
Person makes contract on behalf of another, principal approves/affirms by word/action
Question of intent expressed thr words/conduct
Agency by estoppel
Principal has caused a 3rd * to believe that another * is principal’s agent, and 3rd party acts to their detriment in reasonable relaince on that belief -> principal “estopped to deny”
- 2RD PARTYS RELIANCE MUST BE REASONABLE considering facts and circumstance
- CREATED BY PRINCIPALS CONDUCT
- Not the acts or declaration of a purported agent
agency by operation of law
based on social/legal duty; oft with family rela
emergency situations
Agent’s duties to principal (4)
performance = reasonable diligence and skill in perfromance or else liability f breach o contract and notification = all matters that come to their attention concerning the sbject matter of the agency
loyalty
obedience = follow all lawful + clearly stated instructions o principal
accounting= agent must keep + make avail to prin* account o all property + funds recieved + paid out on prin* behald
gratuitous agents
no payment, no liability for breach of contract, only tort liability
Once a gratuitous agent begins to act in agency capacity, they have duty to continue to perform
