unit 15 agency law

By Operation of Law

1 party tells steps to reasonably provide members of the family Quasi contract Automatic legal process by which an effect or result, or liability or right, is created or extinguished whether the affected party intended it or not.

how many parties in an agency

3 1.Principal 2. Agent 3. 3d Party

Partially disclosed principal

3rd party knows agent is Agent but don't know who the Principal is. (real estate) (Donald trump)

Liability for Crimes

Agent's Liability Principal's Liability

Liability for Torts

Agent's Liability Principal's Liability - Doctrine of Respondeat Superior Scope of Employment

Creating an Agency Relationship by

By Agreement By Ratification By Estoppel By Operation of Law

Duties of Principal

Compensation Reimbursement Indemnification Cooperation Safe Working Conditions

Liability

Contracts Torts Crimes

Agent v. Independent Contractor

Control Distinct occupation or business Tools Degree of Skill Duration/Method of Payment

contract liability

Disclosed principal Undisclosed principal Partially disclosed principal

Authority of Agents

Express (Actual) Authority Implied Authority Apparent Authority

Principal's Liability - Doctrine of Respondent Superior

Legal doctrine that a principal, employer, or superior is responsible for the acts of commission and omission of an agent, employee, or subordinate, performed within the scope of his or her duties. Latin for, let the chief (master) answer.

By Ratification

Method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principal's agent. after party was benefited, party accepts or ratify the action (bob supply) accept order become agent (must have toy)

Duties of Agent

Performance Notification Loyalty Obedience Accounting

Scope of Employment

Range of activities, duties, or responsibilities, that an employee is reasonably expected to carry out or fulfill within the ambit of his or her job or position.

What is an Agency Relationship?

The arrangement that exists when one person or entity (called the agent) acts on behalf of another (called the principal). representative relationship

Safe Working Conditions

The conditions in which an individual or staff works, including but not limited to such things as amenities, physical environment, stress and noise levels, degree of safety or danger, and the like.

Indemnification ex

Will ask for a bank's indemnity for releasing a shipment to a consignee who has lost original shipping documents. The bank in turn will require the consignee to sign a counter-indemnity before issuing its indemnity to the shipping company. This way the consignee gets the release of shipment in completion of a transaction, and both the shipping company and the bank are protected in case some dispute arises out of that transaction. See also letter of indemnity.

Loyalty

act solely for benefits for principal

Implied Authority

action or inaction of principal would lead a reason for principal to believe agent has right to take it

Obedience

agent must follow principal directions

Performance

agent must have skills and act carefully The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of an obligation, in a manner that releases the performer from all liabilities under the contract.

Notification

agent must tell principal about all materials matters (employee jokes)

By Agreement

agreeing to work using express contract

Agent's Liability

always responsible

Indemnification

cover legal cost by action taken by the agent if agent gets in trouble and done everything right, principal will pay Undertaking given to compensate for (or to provide protection against) injury, loss, incurred penalties, or from a contingent liability

notary public

doc is notarized- public official authorized to attest to authenticity of signatures

Compensation

duty to pay agent

Disclosed principal

face of con shows who the principal is, 3rd pary knows agent is an agent Disclosed principal refers to a principal whose identity is revealed to a third party by an agent. A disclosed principal is always liable on the third party contract. However, the agent is not liable generally.

Degree of Skill

high worker skill lvl=contractor low worker skil lvl= agent

By Estoppel

if a principal leads a reasonable third party to believe it cant deny later arises which termination by the principal; must alert all companies about agent no longer has power a bar or impediment (obstruction) which precludes a person from asserting a fact or a right or prevents one from denying a fact.

equal dignity rule

if contract being executed is or must be in writing, then the agent's authority must also be in writing

vicarious liablity

indirect liability on employer that is liability without regard to personal fault of employer for tors committed by employee in scope of employement

Duration/Method of Payment

longer person works for principal likely is an agent someone paid by project or hour is contractor

Accounting

must keep tracks of all money proper belonging to the principal that are in agent position or control

fiduciary

noun: refers to person having duty created by his or her undertaking to act for another's benefit in matters connected with undertaking adjective: involves trust and confidence

Principal

person being represented by an agent

Agent

person doing representing

Distinct occupation or business

person has another job outside of the work he or she is doing for the owner= contractor agent: has no other job except working for owner

fiduciary as a noun

person having duty created by his or her undertaking to act primarily for another's benefit in mattes connected with undertaking

3rdd Party

person interacts customer vendor Someone other than the principals directly involved in a transaction or agreement.

ratification

principal affirms or accepts responsiblity for an agent's unauthorized act when occurs, principal is bound to agent's act, and act treated as if it had been authorized by principal from the outset

Reimbursement

principal expected to pay agent for (Joe Atlanta) reimburse for reasonable A plan that reimburses employees for various kinds of out-of-pocket expenses. For example, a plan might reimburse employees for travel expenses or for the use of personal vehicles. Most companies require that employees submit detailed records of expenses in order to be reimbursed.

Cooperation

principal must give agent what he needs to fulfill the duty (real-a-state agent)

respondeat superior

principal-employer is liable for any harm caused to 3rd party by an agent-employee within scope of employement

principal liability, can he she be held responsible?

prob so

fiduciary relationship

relationship involves trust and confidence

e-agent

semiautomatics computer program that is capable of executing specific task

agency relationship example

shareholders of a company (principals) elect management (agents) to act on their behalf, and investors (principals) choose fund managers (agents) to manage their assets. This arrangement works well when the agent is an expert at making the necessary decisions, but doesn't work well when the interests of the principal and agent differ substantially. In general, a contract is used to specify the terms of a principal-agent relationship.

Undisclosed principal

very dangerous 3rd party believes does not know agent is an agent, 3rd party can sue agent personally (sign relative on paternity not personally)

apparent authority

when actions by principal make reasonable agent has power Legal concept that (in agency agreements) a principal is liable for the acts of the agent if the principal (by his or her actions or by a failure to act) gives an impression to a third party that the agent acts or speaks for the principal. See also actual authority.

Express (Actual) Authority

when principal tells agent what they are suppose to do Actual, distinctly stated (not implied) specific, authority given by a delegator or principal to his or her delegatee or agent, through oral or written, or partly-oral and partly-written, words

Control

who control how a person work is then, where they should be, and what they should do=agent independent: work whenever he she wants as long as task is done by deadline

Tools

who supplies the tools principal should supply agent tools, independent has own tools

unidentified principal

whose identity is not known by 3rd party, but 3rd party has no knowledge that agent is acting in an agency capacity at time contract made

power of attorney

written doc and is usually notarized