REG mod 32a Flashcards
Who is liable when an agent commits a tort?
The agent is personally liable for torts made. Also, under the doctrine respondeat superior the principal is liable for the agent’s torts if the tort is committed within the scope of employment.
Name the positions / titles that may be considered to be agents of the corporation.
Officers, directors, employees
When an agent exceeds his / her actual authority, but the third party is unaware of this, is the principal bound by the agent’s actions?
Yes, due to the agent having apparent authority.
What level of apparent authority is held by the agent when the principle is an undisclosed principle?
An agent cannot have any apparent authority when the principle is undisclosed.
Does a promoter have a fiduciary responsibility to the corporation?
Yes, however the promoter is not considered to be an agent of a corporation.
Can a minor act as an agent for a principal?
Yes, the agent is only required to have the mental / physical abilities to follow the instructions given by the principal. Contracts entered into by the minor agent are still binding on the principal.
In general, does an agency agreement have to be in writing?
No, unless required by the statute of frauds. (Contract is for more than 1 year, involving real estate, etc.)
Who is liable to the third party when an agent is acting for an undisclosed principal?
The agent is liable.
What is the difference between a general power of attorney and a special power of attorney?
The level of authority related to handling affairs. A general power of attorney provides the agent the ability to handle all affairs, but a special power of attorney provides the agent with the ability to handle one specific affair.
What type of authority is terminated when an agency relationship is terminated?
Actual authority is terminated when actual notice (phone call, email) is provided to any party that the agent had dealt with previously. To eliminate the apparent authority constructive notice (i.e. publish notice in the newspaper) must be given to the pu
What is a partially disclosed principal?
This is when a third party is aware that the agent works for a principal, but is not aware of who the principal is.
