Lex Bar Rules Flashcards
In order to bind a principal in a contract, the agent must act with either
actual or apparent authority, or the principal must subsequently ratify the contract.
Actual authority may be either express or implied, and it is based on
the principal’s communications with the agent and the agent’s reasonable belief that he is authorized.
An agent acts with apparent authority where
a third-party reasonably believes, based on manifestations of the principal that the agent is authorized.
Apparent authority arises out of the principal’s
holding out of the agent as authorized.
In order to ratify the agent’s conduct involving a contract, a principal must
know of the material terms of the contract, or be aware of his lack of knowlege.
A principal cannot avoid ratification by relying on his ignorance of the contract terms where
he was deliberately ignorant of those terms.
Silence may constitute ratification where
a person would be expected to speak.
Under the doctrine of respondeat superior, an employer is only liable for the torts of his employee when
they are committed within the scope of his employment.
Employers remain liable for employees’ minor or expected deviations, which are considered
within the scope of employment.
An employee’s minor or expected deviation if ofter referred to as
a “detour.”
When an employer is found liable for his employee’s torts under the doctrine of respondeat superior, the employer will have a claim for
indemnification against the employee.
