MEE - Agency Flashcards
Creation of Agency
Agent undertakes to act on behalf of or for the benefit of the principal (implied or express).
Termination of agency
Desire, expiration, fulfilment of purpose, loss of capacity, death.
Duties of an agent
Duty of loyalty
Duty of obedience
Duty to exercise reasonable due skill and care
Duty to notify of important matters
Duty of principal
Compensate
Reimburse
Cooperate
Actual authority
Agent reasonably believes based on principal conduct. Can be express or implicit.
Apparent authority
Third party reasonably believes based on principal conduct / holding out. Note also “lingering authority.”
Ratification
1/ Agent acted on principal’s behalf
2/ Agent acted all material terms / facts
3/ Principal accepts all the terms of the contract (can be implication, i.e. takes the benefit of the contract)
4/ Principal does not cut off third party rights
Liability to third parties - principal identified
The principal enforces the contract and is liable under it where he is identified and there is actual or apparent authority
Liability to third parties - principal not identified
Both the principal and agent liable - if agent enforces contract he does so for principal
Respondent superior
A principal will be held liable for the tortious acts of his employee if employee acts in the scope of employment
Employer - employee relationship
Employee/ employer relationship will exist where the employer controls the method and manner of work (consider also: place of work, hours set, remuneration etc)
Independent contractors
Contractor or employee depends upon the degree of control the principal exercises. Cf, employee by estoppel
Respondeat superior and public policy exceptions
1/ Non delegable duties (occupiers’ liability)
2/ Inherently dangerous activities
3/ Negligent hiring / entrustment (though this is direct liability)
Employee by estoppel
Employee not an employee but (i) held out as such by principal and (ii) aggrieved party relied on holding out
