Agency Law Issue Statements

Front 1

Opening Argument

Back 1

Agency is a consensual relationship wherein an agent agrees to and/or acts on behalf of a principal in affecting legal relationships with third parties.

Front 2

Express Authority

Back 2

• Express authority is conferred upon the agent through actual affirmative appointment. If a third party is aware the principal has placed restrictions on the agent, no recovery is allowed for activities exceeding the restriction.

Front 3

Implied Authority

Back 3

• Implied authority may arise from express authority or from the status of the agent.

Front 4

Apparent Authority

Back 4

• Apparent authority may also create liability to the principal where there is no actual authority (and thus no implied authority), but the principal’s actions, conduct or manifestation leads an ordinarily prudent person to reasonably believe the agent has authority.

Front 5

Enforcement by undisclosed principal

Back 5

• An undisclosed principal may enforce an agent’s contracts with a third party unless there will be a material change in performance or it can be shown the third party would not have entered into the agreement had they known that the agent was dealing on behalf of an undisclosed principal.

Front 6

Fiduciary duties of agent

Back 6

• An agent owes her principal the fiduciary duties of honest dealings, obedience, undivided loyalty, and trust.

Front 7

Agent liability for contracts

Back 7

• An agent is not generally personally liable in contract to third parties unless the principal was undisclosed or lacked capacity.

Front 8

Agent liability for torts

Back 8

• An agent is always personally liable to third parties for his own torts.

Front 9

Principal liability for agent’s torts

Back 9

• Respondeat superior will create vicarious liability for the principal if the agent’s tortious act was committed in the course and scope of the agency.

Front 10

Termination of apparent authority

Back 10

• To terminate an agent’s apparent authority, there must be actual notice to prior customers and constructive notice to third parties.