BUSFIN 4510 Ch. 34: Liability to Third Parties and Termination
If the action was not authroized by the princiapl, and the principal is classidfied as an UNDISCLOSED principal, who is liable for the agents action?
- agent is liable - but principal is liable to the agent UNLESS: contract exclused the principal contract is a negotiable instrument agent knows that if the principals identity was revelaed, the third party wuld not enter into a contract
If the action was not authroized by the princiapl, and the principal is classidfied as a PARTIALLY DISCLOSED principal, who is liable for the agents action?
- generally: agent is not held liable and principal is -BUT agent may be held liable for contractual nonperformance
When making decisions about an agency relationships liability to third parties, courts must
1) identify the type of authority an agent has 2) determine the classification of the principal 3) decide whether the principal authorized the actions of the agents
notice of agency termination that is given by directly informing third parties, either orally or in writing.
actual notice
an agent who commits a tort that injures a third-party is personally liable for his or her actions regardless of both the
classification and the liability of the principal
If the action WAS authroized by the princiapl, who is helded liable for the agents actions is determined by considering the
classification of the principal as either disclosed, partially disclosed, or undisclosed
Notice of agency termination that is usually given by publishing an announcement in a newspaper.
constructive notice
A principal whose identity is known to a third party. The third party is aware that the agent is making an agreement on behalf of the principal.
disclosed principal
whayt are the classiciations of.principals
disclosed principal partially disclosed (or unidentified) principal undisclosed principal
A document which specifies that an agent's authority is intended to continue beyond the principal's incapacitation.
durable power of attorney
how do we cassify principals?
from the perspective pof the third partys knowledge of them
A type of express authority that allows an agent to conduct all business for the principal.
general power of attorney
if the agent commits the grime in the scope of employment for a principal without the principals authorization, the pirnicipal ______(is/is not) liable for the agents crime
is not
if an agent makes a substantial departure from the course of the employers business, the employer _________(is/is not) liable.
is not *if deviation is not susbtantial, employer can be held liable
as a genera; rule., if a principal authorizes an agent to _______________, the principal is always liable
misrepresent the agent
A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal. Also called unidentified principal.
partially disclosed principal
A specific type of express authority grants an agent specific powers (usually in writing)
power of attorney
If the action was not authroized by the princiapl, and the principal is classidfied as a DISCLOSED principal, who is liable for the agents action?
principal
Latin for "let the superior speak"; the principle by which liability for harm caused by an agent/employee is held by the principal/employer.
respondeat superior
A type of express authority that allows an agent to act on behalf of the principal only in regard to specifically outlined acts.
special power of attorney
what are the two basic powers of attorney
special power of attorney general power of attorney *durable piower of attorney
certain activities are held _______________ because of their dangerous nature; an employee cannot escape this by hiring an independent contractor
strictly liable
If the action was not authroized by the princiapl. who is liable for the agents action?
the agent -unless the princiapal ratifies the agreement
unlike __________ liability, which is based on whether the agent/emplouee was acting in teh scope of employment, ____________ liability depends on whether the principal authorized the agents act
tort, misrepresentration
A principal whose existence is not known by a third party. That is, the third party does not know that an agent is acting on behalf of a principal.
undisclosed principal
The liability or responsibility imposed on a person, a party, or an organization for damages caused by another; most commonly used in relation to employment, with the employer held vicariously liable for the damages caused by its employees.
vicarious liability