Agency

Torts

Contracts

3rd Party v. Agent: individuals are always liable for their own torts

Agent v. Principal: individual are always liable for their own torts

3rd Party v. Principal

Principal v. Agent: agents are liable for breach of their duties to the principal (COLA)

AGENT V. PRINCIPAL: contractual duties owed to agents

PRINCIPAL V. AGENT: Contract liability based on the terms of their contract. Not a highly likely test area as examiners would have to give you the contract terms, but if they do, simply use your contract mind map.

3RD PARTY V AGENT

3RD PARTY V PRINCIPAL

Essays involving agency relationship. First question: who is suing who. Second question: is this a tort or contract issue.

Agent is employee

Agent is independent contractor

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

Respondeat superior: doctrine imposes vicarious liability upon a principal for the torts his agent commits in the scope of employment.

General rule: no liability

Exceptions

Nondelegable duty

Negligent selection of independent contractor

Inherently dangerous activities: nature and circumstances of the work to be performed are such that injury of others will probably result unless precautions are taken

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).

Agent performs tasks assigned by the employer or engage in a course of conduct subject to employer's control

Employer is still liable for slight deviations from the assigned task (detour)

Duty of OBEDIENCE

Duty of LOYALTY: 1) no self-dealing 2) may not usurp a business opportunity belonging to the principal 3) duty not to compete 4) no dual agency

Duty of CARE

Duty to ACCOUNT

An agent acting within the scope of authority may bind the principal in contract

Types of authority

APPARENT: the agent is "cloaked" with authority. .

RATIFICATION: principal grants retroactive authority for the agent's earlier unauthorized actions

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 (including verbal requests)

IMPLIED: 1) authoirty to accomplish the principal's express request or 2) things the agent believes the principal wishes the agent to do based on the agent's reasonable understanding of the principal's expressed request

Third party reasonable believes the agent has authority to act on behalf of the principal, and

Belief is based on the principal's representations made to the third party.

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

UNDISLOSED principal: agent is personally liable in contract

PARTIALLY DISCLOSED principal: agent is personally liable in contract. 1) 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. 2) Breach of warrant of authority: agent acts beyond the agent's authority on behalf of a principal. Agent is personally liable.

FULLY DISCLOSED principal: agent is not personally liable in contract

INDEMNIFY: for reasonably incurred legal liabilities

REIMBURSE: for reasonably incurred expenses.

COMPENSATE: per the agency contract

COOPERATE: 1) principal may not interfere with the agent's performance. 2) Principal must affirmatively aid where reasonably required to do so.