Agency

Front 1

Agency

Back 1

a fiduciary relationship that develops when on person manifest assent to another that agent shall act on principal's behalf

Front 2

Express Authority

Back 2

arises when the principal directly requests the agent to act on the principal's behalf in a specific manner.

Inherent is the principal's consent to any actions that are necessary or incidental to achieving the principal's objectives.

Front 3

Implied Authority

Back 3

includes the authority to do anything necessary to accomplish the principal's express request or those things the agent believes the principal wished him to do based on a reasonable understanding of the principal's expressed request.

Front 4

Apparent Authority

Back 4

An agent has apparent authority when a third party believes the agent has authority to act on behalf of the principal and that belief is traceable to the principal's manifestations.

Apparent authority can exist with our without actual authority.

IL: third party must reasonably rely to his detriment.

If facts suggest it is unreasonable for a third party to believe the purported agent has authority to act in a certain way, the third party has a duty to investigate further.

Front 5

Disclosed Principal

Back 5

If at the time of the transaction, the third party has notice that the agent is acting for a principal and has notice of the principal's identity.

Front 6

Undisclosed Principal

Back 6

If the third party has no knowledge of the existence or identity of a principal.

Agent is personally liable.

Front 7

Partially Disclosed Principal

Back 7

One whose existence, but not identity, is known to the third party.

Agent is personally liable.

Front 8

General Agent

Back 8

Employed by a Principal to transact all of his business of a particular kind.

Front 9

Special Agent

Back 9

Employed by a Principal specifically for one transaction.

No authority to bind his principal beyond the terms of the specific authority conferred upon him by the agreement for employment.

Front 10

Subagent

Back 10

Persons entitled to do work for the original agent.

When authorized by Principal: subagent has same responsibilities to principal as agent.

Any breaches of duty imputed to agent.

Not authorized: No agency relationship exists between principal and subagent.

Front 11

Duties: Principal to Agent

Back 11

Begin when the agency relationship is created and end when the agency relationship is terminated...

Duty to compensate, reimburse, indemnify and exonerate the agent for any liability that results from his good faith performance of his duties, cooperate with the agent, and exercise due care.

Front 12

Principal's Defenses

Back 12

In the event of breach:

1) Statute of Frauds,
2) Illegality,
3) agent's disobedience, or
4) agent's contributory negligence.

Front 13

Duties: Agent to Principal

Back 13

Duty of care, to perform the contract and render services with reasonable care, Duty of loyalty (no self-dealing, no usurpation of business opportunities).

Can't use confidential information obtained from principal to the detriment of principal.

Front 14

Duties: Agent to Third Parties

Back 14

If disclosed principal agent is not liable, unless he takes additional actions to assume personal liability.

Disclosure of principal after contract execution will not relieve the agent of liability.

Third party can sue principal or agent.

Front 15

Equal Dignity Rule

Back 15

If a contract must be in writing, the grant of authority to an agent to enter into such contract on behalf of the principal must also be in writing.

Front 16

Independent Contractor

Back 16

Contract with another to do something for him, but is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in performance of the undertaking.

Front 17

Independent Contract v. Employee

Back 17

For agency purposes only, whether an agent is a servant or independent contractor:

1) amount of control principal exerts
2) whether agent is engaged in distinct operation or business,
3) whether type of work is customarily done under supervision,
4) skill,
5) who supplies the tools,
6) the length of time,
7) paid by the job or by the hour,
8) intent to create an employment relationship,
9) whether principal is in business.

Front 18

Frolic

Back 18

An employer will not be liable if the employee has substantially deviated from the authorized route.

Employee can return to scope of employment after a frolic occurs.

Front 19

Detour

Back 19

An employer will be liable if the employee slightly deviates from authorized route.

Within the scope of agency.

Front 20

Liability for Intentional Torts

Back 20

Extends to situations where the type of employment provides a peculiar opportunity and incentive for the commission of an intentional tort.

Front 21

Imputed Knowledge

Back 21

Knowledge of the agent is imputed to his principal.