Chapter 17 Flashcards
agency relationship
between two parties in which ONE PART (agent) agrees to represent or act on behalf of another party (principal)
employer-employee
independent contractor
fiduciary relationship
when principal authorizes or consents to allow an agent to act on his or her behalf
SOMEONE ELSES INTEREST
agent’s duties to principal
PERFORMANCE NOTIFICATION LOYALTY OBEDIENCE ACCOUNTING
Principal liabilities
agents contract, if disclosed
agents torts, if agent in “course & scope”
(neglience or intentional tort—not criminal
not liable for most criminal acts unless criminal activity was directed by principal ( but are liable for intentional torts committed in scope of employment)
Respondeat Superior
doctrine if someone isn’t doing what they are asks to do
on their own? company is no longer liable.
How are agency’s formed
written agreement oral agreement implied by conduct estoppel implied by optertion of law by ratification
Estoppel
“apparent authority”
- actions of principal must imply authority
- (not actions of agent)
- reasonable person must believe agency exists
