Business Law Chapter 34.

If an agent has misrepresented herself, the third party has two option

Cancel the contract with the principal and be compensated for any money lost. Affirm the contract and sue the principal to recover damages.

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.

A document which specifies that an agent's authority is intended to continue beyond the principal's incapacitation.

Durable power of attorney.

A type of express authority that allows an agent to conduct all business for the principal.

General power of attorney.

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.

To establish employer liability, the third party must show that the wrongful act occurred within the scope of the employment. The courts consider the following in determining this element:

Restatement (Second) of Agency, sec. 229 Did the employer authorize the employee's act? Did the act occur within the time and space limits of employment? Was the act performed, at least in part, on behalf of the employer? To what extent were the employer's interests advanced by the act? To what extent were the private interests of the employee involved? Did the employer provide the means (tools) by which the act occurred? Did the employee use force not expected by the employer? Did the employer know that the act would include the commission of a serious crime? If a delivery driver negligently injures a third party while making deliveries on behalf of the employer, both the employee and the employer will be held liable

First, a principal who directs the agent to commit a tort is authorizing the agent's unlawful behavior and thus is liable for any damages caused by the tort.

Restatement (Second) of Agency. sec 212.

Thus, a third party injured through the negligence of an employee can sue either the employee or the employer

Restatement (Second) of Agency. sec. 216 and 219.

Similarly, the principal who ratifies an agent's tortious act knowing that the agent acted illegally is liable, even if she does not condone the agent's conduct.9

Restatement (Second) of Agency. sec. 218.

A type of express authority that allows an agent to act on behalf of the principal only in regard to specifically outline acts.

Special power of attorney.

Def: A specific type of express authority that grants an agent specific powers.

Term: power of attorney.

1. The contract expressly excludes the principal from the contract. If the principal was not a party to the contract, he or she has no liability to the agent. 2. The agent enters into a contract that is a negotiable instrument. The Uniform Commercial Code (UCC) governs negotiable intrument. The states that other parties, that is, principals, cannot be liable for them if their name is not on the instrument or if the agent's signature does not indicate that it was made in a representative capacity. 3. The third party enters into a contract with the agent such a that the agent's performance is required and the third party may reject the performance of the principal. For example , fi the agent is a photographer and he enters into a contract for his principal's attempt to fulfill the contract by taking the third party's picture. 4. The principal or agent know a third party would not enter into a contract with the principal if the principal's identity were disclosed by the agent does so anyway. The agent will be the only party liable should the third party rescind the contract.

Under this situations the agent is the only party liable for the contract.

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.