Chapter 22 Agency law

Agency

A legal relationship in which one party, the agent, transacts business for and under the control of the second, the principal.

Proprietor-independent contractor relationship

A party who agrees to do a job and retains complete control over the methods employed to obtain final completion

Master

A person who has the right to control the activities of another person.

Principal-agency relationship

An agency relationship is always consensual because the agent must agree to act for the principal.

Third Party

Individual with whom the agent deals for the principal.

Scope of employment

Involves the range of activities for which the servant is engaged.

Employer-Employee Relationship

The legal principles governing the relationship of principal and agent and of employer and employee are similar.

Proprietor

The party for which an Independent Contractor works for.

Servant

The person whos activities are controlled

Criminal Liability

The principal or employer ordinarily is not liable for an agent's or employee's crimes, unless the principal or employer aids or participates in their commission.

Tort Liability

To establish the existence of the master-servant relationship, the court must decide whether the alleged tortfeasor is a servant or an independent contractor.

Undisclosed Principal

When an agent does not reveal the existence of an agency relationship but appears to act on his or her own behalf rather than for another

Partially Disclosed Principal

exists when the agent, in dealing with third parties, reveals the existence of an agency relationship but does not identify the principal

soverign immunity

doctrine preventing a lawsuit against a government authority without the government's consent.

Vicarious Liability

is based on the principle of respondent superior (let the master, or the superior, respond).

Nondelegable Duty

one that the proprietor cannot delegate, or pass off, to another party

Disclosed Principal

one whose identity is known by third parties dealing with that principal's agent

The Control Test

requires that we look at the degree of control, or right to control, that the hiring person exercises over the hired person.

The economic reality test

to uncover the true nature of the employment relationship. Includes determining the hired party's autonomy on the job, the length of time involved in the employment situation, and the level of skill needed to do the job