Agency

Front 1

Respondiat Superior

Back 1

Under Respondiat Superior, master is vicariously liable for servant's torts committed within the scope of employment.

Front 2

Scope of Employment

Back 2

Employee acts within scope of employement when performing tasks assigned by the employer or engagin in a course of conduct subject to the employer's control.
Unless tort occurred at least in part to serve master, master will not be held liable.

Front 3

Death of principal's effect on agency relationship

Back 3

Death of principal or agent terminate the agency relationship.

Front 4

Power of Attorney and the agency relationship

Back 4

A power of attorney creates an agency relationship.
Death of principal who has executed a Power of Attorney does not terminate the agency relationship if the agent is unaware and acts in good faith.

Front 5

Creation of Agency relationship

Back 5

Agency is a fiduciary relationship that arises when one person, the principal manifests assent to another person the agent, that the agent shall act on the principal's behalf and be subject to the principals's control and agent manifests assent or otherwise consents so to act.

Front 6

Types of Agency relationships

Back 6

Master and Servant (Employer and Employee)
Principal and Independant Contractor

Front 7

Factor to determine if Ind. Contractor or Employee

Back 7

1. amount of control over agent
2. Whether agent is engaged in a distinct type of business
3. Does type of work require P's supervision
4. Skill
5. who supplies tools and workspace
6. length of time agent is engaged by P
7. intent of P and agent
8. whether P is a business

Front 8

Consequences of agency

Back 8

1. duties
2. agent has power to bind P
3. P liable for agents actioins
4. knowledge of agent is imputed to P

Front 9

Elements of the Agency Relationship

Back 9

1. Both parties manifest intent
2. Both parties Assent
3. agent agrees to act on behalf of P
4. agent acts under control of P

Front 10

Capacity

Back 10

Agent: anybody with minimum mental capacity
-minors and incompetents may act as agents
-agent will be endowed with same mental capacity as P
Principal: any person who has capacity to effect his own transactions can be an agent.

Front 11

Types of Priniciples

Back 11

Disclosed
undisclosed
partially disclosed

Front 12

Types of agents

Back 12

General agent
special agent
subagent
gratuitous agent

Front 13

General Agent

Back 13

A general agent has apparant authority to perform all of Ps business of a certain kind.

Front 14

Special Agent

Back 14

Employed by P for 1 transaction

Front 15

subagent

Back 15

Principal hires agent then agent hires subagent.
Subagent has same duties to P as agent.

Front 16

Gratuitous Agent

Back 16

Agrees to all duties of an agent without compensation

Front 17

Duties of Principle to Agent

Back 17

1. compensate for service
2. reimburse for reasonable expenses
3. cooperate in performance of agents duties
4. exercise due care toward agent

Front 18

Duties of agent to principal

Back 18

1. duty of care:
-obey P
-act with care, competence and diligence
-refrain from damaging conduct
-indemnify P against loss due to wrongful conduct
2. duty of loyalty:
-no self dealing
-no usurpation of biz opp
-duty of confidentiality
-duty to not compete
3.duty to account
4. duty to provide info

Front 19

Agent's duties to third parties

Back 19

1. if disclosed P: not liable unless agent takes additional actions
2. if partially disclosed P then agent is a party to K
3. if P not disclosed then agent is presumed to be contracting on his own behalf

Front 20

Authority of Agent

Back 20

1. Actual
2. Apparent
3. estoppel to deny existence of agency

Front 21

Actual Authority

Back 21

1. Express: P directly requests agent to act
2. Implied: agent has authority to do what is necessary to accomplish P direct request and those things the agent reasonably believes is part of P's direct request

Front 22

Apparent Authority

Back 22

arises by P's representations to 3rd parties that leads them to believe agent has authority

Front 23

Estopple to deny agency

Back 23

3rd party may successfully assert estopple if:
-if P intentionally or carelessly caused a reasonable belief in the 3rd party that an agency existed. or
-having notice of such belief and that it may induce others to change their positions, the P did not take reasonable steps to notify them of the facts and 3rd party reasonably relies

Front 24

Ratification

Back 24

-P grants retroactive authority for agents earlier actions
-person ratifies by manifesting assent
-any act done or purported to be don on principal's behalf may be ratified

Front 25

Limitations on Ratification

Back 25

-P can't ratify part of deal it is either all or nothing.
-no ratification if it would cause 3rd party difficulty in certain circumstances.

Front 26

Retroactive effect of Ratification

Back 26

Generally a ratified transaction is given retroactive effect but if P did not have capacity at time of agents act then deal is effective from date of ratification.

Front 27

Delegation

Back 27

If agent is using his own judgement then he cannot delegate absent emergency or explit agreement with principal

Front 28

Respondiat Superior

Back 28

P liable for action within scope of employment unless employee on "frolic"

Front 29

frolic

Back 29

employee substantially deviates from authorized route
*employer not liable

Front 30

detour

Back 30

employee takes slight deviation from authorized route
*employer is liable

Front 31

Employee driving own car during course of employement

Back 31

Employer may be liable in spite of employee using own car and choosing route

Front 32

Respondiat Superior and Intentional Torts

Back 32

Employer liable if the tort is done in the course of employment
*In VA employee's conduct is ratified by employer if employer has factual knowledge of conduct

Front 33

Imputed knowlege to P

Back 33

knowledge of agent is imputed to P.
knowledge is not imputed when agent acts adversly

Front 34

Termination of agency

Back 34

1.P must notify agent unless: -agency naturally expires upon completion
-agency set to expire at set time
2. P must notify all 3rd parties with whom agent dealt
3. agency not terminable at will if: -agency is coupled with interest in subject matter
-agent has powerr given as security