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15 Cards in this Set

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TORTS: A principal is liable for the torts of his agent if
i) a principal-agent relationship exists, and
ii) the tort was committed w/in the scope of the agency.
A principal-agent relationship exists IF
Assent
Benefit
Control
AASENT MEANS
a voluntary agreement btwn a competent principal & agent
CONTROL MEANS
the principal has the right to control the manner of agent's performance
TEST FOR SUBAGENTS & BORROWED AGENTS
sub-agents (likely missing assent) & borrowed agents (likely missing control) must also meet this test to bind the principal.
CAN AN INDEPENDENT CONTRACTOR BE AN AGENT?
AN independent contractor is not an agent b/c there is no power to supervise, hence there is no vicarious liability unless:
▫ the independent contractor is engaged in an ultrahazardous activity, or
▫ harm caused to invitee on employer's land, or
▫ estoppel (indep. contractor held out as an agent)
THE SCOPE OF AGENCY INCLUDES
"detours", but not "frolics"
SCOPE OF AGENCY: Intentional torts are not generally w/in the scope of agency, unless
• authorized by the principal
• natural to employment, i.e. friction generated by employement (e.g. bouncers, bill collectors)
• motivated by a desire to serve the principal
CONTRACTS: A principal is liable
only for its authorized contracts, INCL:
a) actual express authority
b) actual implied authority
c) apparent authority
d) ratification
ACTUAL EXPRESS AUTHORITY INCLUDES
oral, private words OK (except land interests >1 yr)
but construed narrowly & easily revocable (unilateral act or death/incapacity of principal)
ACTUAL IMPLIED AUTHORITY MEANS
Authority through
necessity,
custom, or
acquiescence thru prior dealings
APPARENT AUTHORITY MEANS
P cloaked A w/ appearance of authority + 3rd party reliance
• secret limiting instructions
• lingering authority
RATIFICATION OCCURS WHEN
knowledge + acceptance of benefit (in total)
AGENT LIABILITY
ii) If no authority → Agent, not principal, is liable.
iii) If authority → Principal, not agent, is liable unless principal undisclosed.
agent duties
1. REASONABLE CARE
2. REASONABLE OBEDIENCE (no lying, lawbreaking)
3. LOYALTY (→ disgorgement of profits)
i) No Self-Dealing
ii) No Usurping P's Opportunity
iii) No Secret Profit