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15 Cards in this Set
- Front
- Back
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TORTS: A principal is liable for the torts of his agent if
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i) a principal-agent relationship exists, and
ii) the tort was committed w/in the scope of the agency. |
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A principal-agent relationship exists IF
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Assent
Benefit Control |
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AASENT MEANS
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a voluntary agreement btwn a competent principal & agent
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CONTROL MEANS
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the principal has the right to control the manner of agent's performance
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TEST FOR SUBAGENTS & BORROWED AGENTS
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sub-agents (likely missing assent) & borrowed agents (likely missing control) must also meet this test to bind the principal.
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CAN AN INDEPENDENT CONTRACTOR BE AN AGENT?
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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) |
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THE SCOPE OF AGENCY INCLUDES
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"detours", but not "frolics"
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SCOPE OF AGENCY: Intentional torts are not generally w/in the scope of agency, unless
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• 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 |
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CONTRACTS: A principal is liable
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only for its authorized contracts, INCL:
a) actual express authority b) actual implied authority c) apparent authority d) ratification |
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ACTUAL EXPRESS AUTHORITY INCLUDES
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oral, private words OK (except land interests >1 yr)
but construed narrowly & easily revocable (unilateral act or death/incapacity of principal) |
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ACTUAL IMPLIED AUTHORITY MEANS
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Authority through
necessity, custom, or acquiescence thru prior dealings |
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APPARENT AUTHORITY MEANS
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P cloaked A w/ appearance of authority + 3rd party reliance
• secret limiting instructions • lingering authority |
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RATIFICATION OCCURS WHEN
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knowledge + acceptance of benefit (in total)
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AGENT LIABILITY
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ii) If no authority → Agent, not principal, is liable.
iii) If authority → Principal, not agent, is liable unless principal undisclosed. |
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agent duties
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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 |
