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Business Topics (Tort Liability (Third Party v. Principal (Agent is…

- - - - Respondent Superior: Doctrine imposes vicarious liability upon a principal for the torts their agent commits in the scope of employment
        
        Agent performs tasks assigned by the employer or engages in a course of conduct subject to employer's control
        
        Serves employer's purposes
        
        Employer is not liable if the employee substantially deviates from the authorized route (frolic)
        
        Employee can return to the scope of the employment after a frolic
        
        Employer's liability is in addition to the agent's liability
        
        Employer and employee are jointly and severally liable
        
        Strict liability doctrine, so no defenses
    - - General rule: no liability
      - Exceptions:
        
        Inherently dangerous activities: nature and circumstances of the work to be performed are such that injury to others will result unless precautions are taken
        
        Nondelegable duty
        
        Loaned agent
        
        Negligent selection of contractor
  - - - Duty of obedience
      - Duty of loyalty
        
        No self-dealing
        
        May not usurp a business opportunity belonging to the principal
        
        Duty not to compete
        
        No dual agency
      - Duty to account
      - Duty of care
- - - - Actual: Manifestation of the principal to the agent that the agent acts for the benefit of the principal in a particular way and that the principal agrees to be bound by the agent's actions
        
        Express: Principal directly requests the agent to act
        
        Implied
        
        Authority to accomplish the principal's express request
        
        Things the agent believes the principal wishes him to do based on his reasonable understanding of the principal's expressed request
      - Apparent: The agent is "cloaked" with authority
        
        Third party reasonably believes the agent has authority to act on behalf of the principal
        
        Belief is based on the principal's representations made to the third party
      - Ratification: Principal grants retroactive authority for his agent's earlier unauthorized actions
        
        Ratified act must be one that the principal could have authorized at the time of the act
        
        Once ratified, an act has the same effect as if it were originally done with authority
  - - - Fully disclosed principal: Agent is not liable in contract
      - Undisclosed principal: Agent is personally liable in contract
      - Partially disclosed principal: Agent is personally liable in contract
        
        When the third party learns the identity of the principal, the third party must elect to go after either the agent or principal, but not both
  - - - Principal may not interfere with the agent's performance
      - Principal must affirmatively aid where reasonably required to do so