Agency

Front 1

Principal's Duties

Back 1

Cooperation
Compensation
Indemnity/Reimbursement
Express Contractual Duties

Front 2

Agent's Duties

Back 2

Reasonable Care
Loyalty
Obedience
Express Contractual Duties

Front 3

Actual Authority

Back 3

Agent reasonably believes that she possesses authority based on principal's dealings with her.
-Express Authority: That which is actually contained in the Agency agreement
-Implied Authority: That which the agent reasonably believes she has as result of the principal's actions.

Front 4

Termination of Actual Authority

Back 4

1) Lapse of specified or reasonable time
2) The happening of a specified event
3) A change in circumstance
4) Agent's breach of fiduciary duty
5) Either party's unilateral termination
6) Operation of law: DEATH of either party

Front 5

Apparent Authority

Back 5

If P holds out another as possessing certain authority, thereby inducing reasonable reliance by others.
-Discuss what transpired between Principal and 3rd Party (NOT between P and A).

Front 6

Types of Apparent Authority
-Impostors

Back 6

If P negligently permits an impostor to be in a position to appear to have agency authority

Front 7

Types of Apparent Authority
-Lingering Apparent Authority

Back 7

-Where A's actual authority is terminated, Notice is necessary to all 3rd Parties with whom P knows that the A dealt in order to terminate apparent authority
-If a 3rd Party relies on written authority of a party whose actual agency authority was terminated.

Front 8

Types of Apparent Authority
-When A exceeds actual authority

Back 8

When A exceeds his actual authority but (i) P had previously allowed A exceed the authority and 3rd Party knows of the prior act OR (ii) Where A is in a position that customarily carries certain responsibilities

Front 9

Types of Apparent Authority
-Inherent Authority

Back 9

When court wishes to protect innocent 3rd parties from P who gave some actual authority to A.
-Conduct similar to that authorized.

Front 10

Agent's Liability to 3rd Party

Back 10

Disclosed P:
-Disclosed Ps (existence AND identity) are always liable on the contract, and A is generally not.
Partially/Undisclosed
-Results in liability for both A and P

Front 11

Employee v. Independent Contractor

Back 11

Right to Control
Factors to determine:
-Characterization by parties
-Degree of skill required
-Whose tools or facilities
-Basis of compensation
-Period of employment (Definite? Long term?)

Front 12

Scope of Employment

Back 12

To be in scope of employment:
-Need not be actually authorized (can even be prohibited), just has to be incidental to that actually authorized.
-Frolic and Detour: a detour or small deviation from employer's direction is still within scope. Substantial departure from employment is beyond scope.
-Consider whether conduct was motivated (in part) to serve the master.
NOTE:
-Employee's invitation to passengers is generally held to be outside the scope. P not liable for injuries to passengers
-Employer not liable for torts cause by use of unauthorized instrumentalities
-Trips with two purposes are generally within the scope if any substantial purpose of the employer is being served

Front 13

Scope of Employment
-Intentional Torts

Back 13

Normally outside the scope of employment
Exceptions:
(1) Natural incident of employee's duties (bouncer)
(2) Where employee is promoting the employer's business
(3) Where nature of the work gives rise to hostilities (repo man)