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