Agency

Front 1

Define Agency

Back 1

An agent does things on behalf of the principal and the principal typically directs the agent's acts.

Front 2

How is an agency relationship created?

(Three componenets: ABC)

Back 2

Assent: parties agree the agent will act on behalf of the principal.

Benefit: the agent agrees to work for benefit of principal

Control: the agent agrees to be subject to control by the principal

Front 3

Who can be a principal?

Back 3

Anyone who has legal capacity.

Front 4

Who can be an agent?

Back 4

Any person or entity who has minimal capacity.

• minors can be agents
  

Front 5

Formalities of creating agency relationship?

Back 5

Assent

Benefit

Control

Front 6

Who can terminate the agency relationship?

Back 6

Either party can terminate unilaterally.

Front 7

When is the principal liable for a contract entered into by the agent?

Back 7

When the principal authorized the agent to enter into that contract.

Front 8

What are the 4 types of legal authority?

Back 8

1. Actual Express
2. Actual implied
3. Apparent
4. Ratification

Front 9

Actual Express Authority

Back 9

The principal creates actual express authority by using words-written or spoken to convey authority to the agent.

• Subjective intent: Agent must believe he is doing the principal's bidding
• Objective intent: Agent's belief must be reasonable
• If P dies and A is aware, actual express authority terminates
  

Front 10

Actual Implied Authority

Back 10

Principal creates actual implied authority by using words, wirtten or spoken, or other conduct to convey autohrity to the agent to take whatever steps are necessary to achieve the principal's objectives.

• Agent has actual implied authority to act within general business custom or past dealings.
  

Front 11

Apparent Authority

Back 11

Principal creates apparent authority by words, written or spoken, that cause the third party to reasonably believe the principal consents to have agent act on principal's behalf.

• Look to communication between P and third party
• Is third party's belief reasonable?
• Do they have similar past dealings?
  

Front 12

Ratification

Back 12

Principal ratifies agent's authority where:

1. P has knowledge of material facts, and
2. P accepts the contract's benefits

• There is no pre-act communication to consider
  

Front 13

Disclosure of Principals

(3 types)

Back 13

1. Disclosed
2. Partially disclosed
3. Undisclosed

The difference is whether the other party has knowledge of principal's (1) existence, and (2) identity.

Front 14

Define Respondeat Superior (Vicarious Liability)

Back 14

A principal may liable for the tortious acts of his agent if:

1. P has sufficient control such that the agency relationship is employer-employee, and
2. A's tort was committed while the agent was acting within the scope of the agency relationship.
   

Front 15

Respondeat Superior does not apply to tortious acts of contractors except under the following three scenarios:

Back 15

1. the task is inherently dangerous
2. the principal negligently hired the independent contractor
3. the principal retains control over activities and the tort occurs within those tasks
   

Front 16

What's the difference between frolic and detour?

Back 16

Frolic is a significant deviation from an assigned path. Principal is not liable for agent's torts during frolic.

Detour is a de minimis deviation from an assigned path and the principal remains liable for the agent's torts during a detour.

Front 17

The principal is generally not liable for the agent's intentional torts except when:

Back 17

• conduct occurred within the general space and time limits of employment
• the agent was motivated in some part to benefit the principal
• the act is of a kind that the agent was hired to perform

*e.g. Al Leiter turns and pegs JJ for mouthing off to him during pregame warmups.

Front 18

Agents owe principals three fiduciary duties:

Back 18

1. reasonable care
2. obedience (to reasonable instructions)
3. loyalty