Agency Law

Express Authority

. Express authority is authority given by an express agreement, either orally or in writing.

Two exceptions exist that may impose liability on a principal for the work of an independent contractor.

1. If work is dangerous 2. Illegal

A Disclosed Principal

A disclosed principal is a principal whose identity is revealed by the agent to a third party. Most common Name Badge

Partially Disclosed Principal

A partially disclosed principal is a principal whose existence, but not actual identity, is revealed by the agent to a third party. In other words, a third party knows that the agent represents a principal but does not know the identity of the principal. For example, a realtor in Aspen may represent celebrities and wealthy individuals who want to purchase property but do not want the paparazzi to publicize the information

Contract Liability

A principal is always liable on a contract if the the agent had authority.

Principal

A principal is the person who authorizes another to act on his, her, or its behalf as an agent.

Actual Authority

Actual authority, sometimes called real authority, occurs when a principal intentionally confers authority on an agent. Actual authority can be either express or implied.

Agency

Agency is a fiduciary relationship created by express contract or implied actions, in which the agent has the authority to act on behalf of the principal and legally bind the principal to third parties.

Tort Liability

Agents, employees, and independent contractors are Agency | 278 personally liable for their own torts Company is in charge of employers but employers are not in charge of company

Agent

An agent is the person who is authorized to act for or in place of another.

Doctrine of Respondeat Superior

An employer is liable for the torts of an employee if the employee is acting within the scope of employment. Even if the employer does not direct its employees to act negligently or intentionally, the employer is responsible because employers are usually in a better position to pay for damages than employees.

Undisclosed Principal

An undisclosed principal is a principal whose identity is kept secret by the agent. Often third parties do not realize that an agency relationship exists and believe that the agent is working on his or her own behalf. Undisclosed principals occur when the identity of the principal can lead to increased purchase prices, unwanted publicity, and security concerns.

Appartent Authority

Apparent authority is authority that a third party reasonably believes an agent has, based on the third party's dealings with the principal

Authority

Authority is the right or permission to act legally on another's behalf. In general, authority can be either actual or apparent

Duties and Obligations of the Principal to the Agent

Duty to reimburst and idemnify

Termination of the Agency Relationship

Express Act Operation of Law

Agency is described as a __________ relationship that results when a principal manifests consent to an agent to act on the principal's behalf subject to the principal's control. necessary business layperson fiduciary

Fiduciary

General agents have the authority to transact all the principal's business of a particular kind or in a particular place. General agents often include partners, managers, factors and brokers.

General Agents

An agency relationship is created when one person or entity agrees to perform a task for, and under the direction of, another individual or entity.

How is an agency created?

Implied Authority

Implied authority is authority granted to the agent as a result of the principal's conduct.

Suppose that Jeff and Douglas are college roommates. Both chose to do their laundry at the dormitory laundry facility on Tuesday evening. Since Jeff had to study for a biology examination, he asked Doug to pick up his laundry as a favor for him when it was done, and Doug agree to do so. In this case, Doug is Jeff's non-compensated employee an independent contractor Jeff's gratuitous agent Correct not Jeff's agent, since a principal-agent relationship arises only in a business setting

Jeffs gratutitous agent

Agent's Fiduciary Duties ato the Principal

Loyalty Obedience Care Disclosure Accounting

Brian hired Craig to negotiate a deal with Rudy. Brian instructs Craig that while he is in Rudy's office, he should be able to steal the important file. If Craig has the opportunity to steal the file but fails to do so, what is a true statement concerning this incident and Craig? he is in violation of his duty of obedience he failed to follow his principal's instructions he is in violation of his fiduciary duty None of the choices are correct.

None

fiduciary relationship

One party has an obligation to act in the best interest of the other party rather than them self.

Which of the following is a true statement? Ratification applies to previously unauthorized acts. Actual authority must be expressly created and cannot be based on custom or past dealings. Apparent authority is based on what the principal communicates to the agent and not to the third party. Actual authority must always be expressed in writing.

Ratification applies to previously unauthorized acts.

Principasl Remedies for Breach

Rescission and Disgorgement Unauthorized Acts of Agent

Special Agents

Special agents, in contrast, only have the authority to conduct a particular transaction or to perform a specific act. Special agents often include realtors, athlete's agents, and employment recruiters.

Which of the following is true regarding termination of an agency relationship? Expiration of an agency cannot be tied to a specific time period. Expiration of an agency cannot be tied to the occurrence of a specific event. The principal and agent may agree to end the agency once the agency's purpose has been accomplished. Since an agency relationship is established exclusively by contract (either express of implied), it may not be terminated by operation of law.

The principal and agent may agree to end the agency once the agency's purpose has been accomplished.

In general, an agency relationship is terminated either through __________ or __________. express acts; conduct express acts; operation of law implied acts; conduct implied acts; operation of law

express acts; operation of law

Agents contract liability to third parties depends on

wheter agency relationship is Fully disclosed Partially disclosed Undislosed