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Agency :star: - Coggle Diagram
Agency :star:
"ABC"
Benefit
Control
Assent
Principals and Agents
:star:
Principals
Can be any person that has legal capacity (excludes minors, incapacitated, intoxicated)
Agents
Any person or entity who has minimal capacity
Assent to agency relationship
Perform taks on behalf of principal
Employee or Independent Contractor
Employees: Employer has right to control the agent's physical conduct of work
Independent Contractors: Principal does not have the right to control or have right to control the agent's physical conduct of work
Characteristics:
High level of independence
Free to work for others
Fixed fee
Typically owns own tools
Subject to Principal's control
Either party may terminate
Fiduciary Duties
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Duty to Exercise Reasonable Care
Duty of Loyalty
Agent cannot usurp business opportunity
Agent cannot take in secret profits
Agent cannot compete in a competing business with principal
Duty to Obey Reasonable Instructions
Authority
Actual Authority :star:
Implied Actual Authority :star:
Express Actual Authority :star:
Apparent Authority :star:
Estoppel
Ratification
Liability
Contract Liability
Principal bound on contract when:
Principal authorized agent
Agent acted with legal authority
Tort Liability
Vicarious Liability :star:
Sufficient control; and
Tort committed while in scope of employment
No vicarious liability :red_cross: for independent contractors
Exceptions
: Inherently dangerous activities, Principal negligent in hiring ICs, Principal retains control over certain tasks and tort occurred within those tasks
Frolic and Detour :star:
Frolic
Significant deviation from assigned task
Principal not liable :red_cross:
Detour
Minor deviation from assigned task
Principal liable :check:
Intentional Torts