GA Agency
How can actual authority be terminated?
1. after a specified time/event or a reasonable time 2. by change of circumstances 3. if agent acquires adverse interest 4. when agent says so 5. when principal says so unless the power is coupled with an interest which makes it irrevocable 6. by death/incapacity/bankruptcy
what remedies are available for agency?
1. constructive trust
What duties are owed by the principal to the agent?
1. must compensate 2. reimburse 3. and indemnify the agent
What are the requirements of ratification?
1. principal must have knowledge of all material facts 2. principal must accept entire transaction 3. principals must have capacity both at the time of ratification and at the time of original contract because ratification is retroactive
Who is liable to the principal?
1. the agent 2. the third party is almost always liable to the principle: only exception is where there is an undisclosed principal and the agent has special skills or special reputation
What is adoption?
Adoption is not retroactive unlike ratification. Adopting party is only liable for the contract from the moment of adoption going forward.
What is the problem with apparent authority?
Apparent authority can linger even after actual authority ends.
Does a third party agent have liability?
Generally no liability (agent is just a go-between)
what happens if a servant is released from vicarious liability?
In Georgia, Releasing a servant does not release the master from vicarious liability
Does agency law require writing?
No, but the statute of Frauds may.
If a contract is adopted from a promoter, is the promoter relieved of liability?
No, the adopter is liable along with the promoter
Does an agent need contractual capacity?
No.
If a Principal hires someone to be their agent, is a writing required?
No.
Is consideration required for liability in contract?
No. Consideration is not required.
Does an agent have contractual capacity?
No. The principal must have contractual capacity (because the contract that results is between the Principal and third party), but Agent does not (because the agent is just an intermediary).
What is delegation?
OK if Plaintiff consents (may be express or implied from circumstances)
Is a master liable for intentional torts?
Outside scope unless force is used to further masters business. master ratifies the use of force or master authorized servant to commit the tort.
How does a principal become liable to a third party on a contract?
Principal becomes liable to third party through the actions of his agent if agent and principal both consent and agent is subject to the principal's control.
Who has to have contractual capacity?
Principal must have contractual capacity (because the contract that results is between the Principal and third party), but Agent does not (because the agent is just an intermediary).
What is express authority?
Principal tells agent to act on principals behalf
What is implied authority?
Principal's conduct leads agent to believe that agent has authority. The principal can endorse the agents behavior by not acting otherwise.
What is apparent authority?
Principals leads third party to mistakenly believe that agent has authority. Reasonable belief must be crated by the principal, not the agent alone.
What duties are owed to the principal by the agent?
The agent. Even a gratuitous agent owes principal a 1. duty of loyalty (must put principal's interests above her own), 2. a duty of care ("sliding scale" depending on any special skills agent may have) 3. duty of obedience
What is the policy behind apparent authority?
The policy or equitable doctrine behind apparent authority is to protect innocent third parties who rely on principal's holding out A as an agent.
How can a contract be ratified?
The principal can ratify the contract by 1. expressly affirming the contract 2. accepting the benefit of the contract 3. suing the third party on the contract
How can apparent authority be destroyed?
The principals must provide notice to the third party that the agent no longer has authority.
Can a minor disaffirm a contract made by their parent?
Yes because a minor lacks capacity.
If a principal hires someone to be their agent for FIVE YEARs, is a writing required?
Yes because it falls within the statute of frauds one-year provision.
What is a detour v. a frolic?
a minor deviation (a detour) is usually within the scope of employment while a substantial deviation (a frolic) is not
How do you distinguish a servant and an independent contractor?
did the employer have the right to control how the servant did the job? who supplied the tools/workplace? was the job part of the employers regular business? was it long-term? how much skill was required?' was payment in regular intervals or by the job?
When is a master directly liable?
master is directly liable for its own negligence if master fails to train or supervise employees or check on an employee's criminal record or job history
what is the scope of employment?
master is not automatically liable for the servants tort. Master will be liable for servants tort only if servant was acting with the scope of employment. If servant was doing a usual task, the tort was within the scope.
What are intervening rights?
since ratification is retroactive, we must protect the intervening rights of a bona find purchaser
Who is liable if a tort was committed by a servant acting within the scope of employment?
the master and servant are jointly and severally liable to the injured party
Who is liable if a tort was within the scope of employment?
the master and servant are jointly and severally liable. the third party can sue both or either for the full amount. One will have to indemnify the other.
Who is liable to a third party?
the principal is always liable to third party
What is the policy between liability in tort?
vicarious liability to protect an "innocent" third party
If a Principal authorizes an agent to transfer their land, is a writing required?
yes, an agents authority to sell real property must be in writing.