Week 10 Flashcards
Who is a principal?
A person who has permitted another to act on their behalf
Law of agency
The law governing the relationship where one party, the agent, acts on behalf of another, the principal.
Actual Authority
The power of an agent that derives from either express or implied agreement
Express Authority
written or oral authority granted by a principal to an agent
Agency by Estoppel
An agency relationship created when the principal acts such as that third parties reasonably conclude that an agency relationship exists.
(A person leads another to believe that a third person is authorized to act on their behalf. Even though no formal agreement exists, the person who created the impression of agency is bound by actions of the third person as if they were their agent)
Fiduciary duties of the agent
A person who has a duty of good faith toward another because of their relationship
Termination of agency agreements
- The agency relationship ceases by operation of the law; this most commonly occurs due to death, dissolution, insanity, or bankruptcy of one of the parties
- the parties agree to bring their relationship to an end
- One party gives notice of termination to the other
the principal should give notice to third parties
Adverse effects discrimination
Discrimination as a result of a rule that appears neutral but in its effects is discriminatory
(Requiring workers to wear hard hats and work every second Saturday may be to discriminate against those who wear a turban or don’t work on Saturdays. )
Just cause
Employee conduct that amounts to a fundamental breach of the employment contract; the employer can dismiss without notice.
dismissal without notice
For employment with fixed periods of time, contracts end when the term expires and no notice is needed but termination prior to expiry is a breach of contract.
Period of notice can use standards legislation, contracts terms and common law.
Reasonable notice periods
character of employment, length of service, age, availability of similar employment
Character of employment
Refers to the status of the position; high-level management is entitled to more than a junior employee
- the reasoning is it is harder for high-level employees to find relevant work
A wrongful dismissal suit arises:
- when an employee claims not just cause
- when an employee is given notice, but claims the notice is inadequate
- from a constructive dismissal.
What type of worker relationship is when the worker provides their own equipment?
Independent contractor
What type of worker relationship is investing capital and managing staff by the worker?
Independent contractor
What type of worker relationship is when a worker is not in a position to realize a business profit or loss?
Employee relationship
What are the rights or benefits that employees have?
- Paid holidays and over time
- deduction of income taxes and employment insurance premiums
- payment of Canada pension plans premiums
- entitled to reasonable notice on termination
-Employee can initiate an action for wrongful dismissal - Employer is responsible for the torts and employee committed in course of employment
Can an employer be vicariously liable for the acts of an independent contractor?
Yes, if they are an agent.
Under traditional agency principals
What is an agency?
A relationship that exists when one party (the agent) represents another party (the principal) in the formation of legal relationships
What is an agent?
A person who is authorized to act on behalf of another
Nature of agency as for legal relationships
Legal relationships are binding
Two key relationships at play in an agency situation
Agent principal relationship
Outsider principal relationship
What is an outsider relationship?
The relationship between the principal and the party with whom the agent does the business. (Outsider or third party)
What does the law of agency address?
It addresses complications resulting from the relationship of the agent and principal.
What is law of agency derived from?
It is derived largely from tort and contract law
Creation of Agency Relationship
A relationship usually arises by contract between the parties.
- a contract involves a principal authorizing an agent to act on their behalf and an agent agreeing to do so in return for remuneration.
- a contract is usually created only for that single purpose
- it can also arise as part of a larger contract. (When one is acting as an agent on behalf of an employer)
- sometimes a relationship arises by conduct (no agreed to, but outsiders are led to believe the relationship is one of agency)
-Agency agreement can be express, implied, oral, in writing, or in writing under seal.
Authority of Agent
Determines whether there is a contract between the principal and the outsider.
The principal is bound by contract.
Implied Authority
An agents authority that is present by implication only
Apparent Authority
The power that an agent appears to have to an outsider because of conduct or statements of the principal
Agency created by estoppel when
The principal indicates another is his agent when no such agency relationship exists