Liabilities To Third Parties Flashcards
What is the principal contractually liable to a third-party?
 Hey principles contractually liable to a third-party for acts of an agent with actual or apparent authority.
What is actual authority?
Actually authority occurs when the principal causes the agent to reasonably believe that the agent has authority to act.
 How is actual express authority created?
Through written or spoken words. The agent must reasonably believe that she is doing what the principal wants her to do. If so, the principal’s contrary intent is ineffective.
How is actual Implied authority created?
 The principal allows the agent to take whatever reasonable steps are necessary to achieve the principles objective? Within the accepted business practice or custom. There’s gonna rise by the principal placing the agent in a position that has authority to act, or when principal accepts or stays silent.
What is ratification?
Ratification occurs when the principal affirms the contract made on the principles behalf by the agent with knowledge of material facts.
What is authority by estoppel?
Establish prevents the principal from denying an agency relationship or the agents authority of a third-party detrimentalmentally relied on the principles negligence which caused the belief or the principal failed to correct a mistake.
Can an agent be liable to a third party?
Yes, Depending on the principal’s status.
What is a disclosed principal?
The third-party had noticed and knew the identity of the principal. The agent is not liable.
What is a partially disclosed principal?
The third-party had noticed but did not know the principles identity. The agent is liable.
What is an undisclosed principal?
The third-party did not know of the agency relationship at all Pete. The agent is liable.
What is respondeat superior?
A principal may be vicariously liable for the tortious act of his agent committed within the scope and course of employment.
When is an employer – employee relationship created?
When the principal has the right to control the manner and means of the agent performance.
When is an independent contractor liable?
An independent contractor to not buying the principal unless the task is inherently dangerous, the principal was negligent hiring, or the principal retains control over specific tasks related to the injury.
 when is an employee acting within the scope of his employment?
Performing assigned work or acting subject to the principles control.
What are exceptions to acting within the scope of employment?
Frolic (not a minor detour); use of physical force (unless it was necessary to complete the assigned task); intentional torts (unless acting for principal’s purpose and closely connected to the task); or when agent acts independent of the principal’s purpose or benefit.
