Business Law Chapt 20

Front 1

What is the contract liability of the principal?

Back 1

the power of an agent in his ability to change the legal status of his principal. an agent either having actual or apparent authority has the power to bind his principal

Front 2

What is a disclosed principal?

Back 2

when an agent and a third party interact, the third party has notice that the agent is acting for a principal and also has notice of the principal's identity.

Front 3

What is an unidentified principal?

Back 3

When an agent and a third party interact, the third party has notice that the agent is acting for a principal but does not have notice of the principal's identity.

Front 4

What is an undisclosed principal?

Back 4

when an agent and a third party interact, the third party has no notice that the agent is acting for a principal.

Front 5

What is the types of authority?

Back 5

there are two basic types actual authority and apparent authority. it may be either expressed or implied actual express authority does not depend on the third party knowing or statements made by the principal or agent.

Front 6

what is apparent authority?

Back 6

based upon acts or conduct of the principal that lead a third person to believe that the agent,or supposed agent, has actual authority, upon which belief the third person justifiably relies.

Front 7

what is a tort of liability of agent?

Back 7

an agent is personally liable for his tortious acts that injure third persons, whether the principal authorizes such acts or not and whether or not the principal may also be liable

Front 8

What is a contract liability of agent?

Back 8

when an agent exceeds his actual or apparent authority and enters into a contract on behalf of an unidentified principal or an undisclosed principal, the agent become personally liable to the third party on the contract.

Front 9

What is ratification?

Back 9

is the equivalent to an original authorization and confirms that which was originally unauthorized. ratification occurs where a principal attempts to seek or retain the benefits of the transaction.

Front 10

What is agent acts with apparent authority?

Back 10

this liability applies to agents, whether or not they are employees
agents who are employees but whose tortious conduct is not within the scope of employement under respondeat superior

Front 11

what rules apply to agent's act with apparent authority to bind his principal?

Back 11

fraudulent and negligent misrepresentations, defamation, wrongful institution of legal proceedings and converstion of property

Front 12

torts of independent contractor

Back 12

respondeat superior generally does not apply torts committed by independent contractors.

Front 13

when can a principal be liable for the duty and care of an independent contractor?

Back 13

if they they fail to exercise reasonable care in selecting an independent contractor. both will be liable.

Front 14

when is a principal vicariously liable for torts committed by a carefully selected independent contractor?

Back 14

in carrying on an abnormally dangerous activity, such as using fire or high explosives, or spraying crops. they cannot delegate nongelegable duties imposed by law.

Front 15

criminal liability of agent

Back 15

when an agent enters into a contract on behalf of an unidentified principal or an undisclosed principal, the agent becomes personally liable to the third party on the contract.

Front 16

Delegation of Authority: What is a subagent?

Back 16

a person appointed by an agent has consented to an agent to perform functions that the agent is responsible to the principal.

Front 17

effect of termination of agency on authority: second restatement says?

Back 17

where the performance of an authorized transaction become impossible, like distroyed or is illegal, or agent's apparent authority expires and notice of such termination to third person is not required.

Front 18

second restatement says?

Back 18

termination is by the death or incapacity of the principal or agent. such termination does not require to give notice to third party unless a uniform durable power of attorney act says if a power of atty is written

Front 19

Delegation of Authority: What is a subagent?

Back 19

a person appointed by an agent has consented to an agent to perform functions that the agent is responsible to the principal.

Front 20

effect of termination of agency on authority: second restatement says?

Back 20

where the performance of an authorized transaction become impossible, like distroyed or is illegal, or agent's apparent authority expires and notice of such termination to third person is not required.

Front 21

second restatement says?

Back 21

termination is by the death or incapacity of the principal or agent. such termination does not require to give notice to third party unless a uniform durable power of attorney act says if a power of atty is written

Front 22

when does an agent assumes liability?

Back 22

an agent for a disclosed principal may agree to become liable on a contract between the principal and a third party.
by making the contract in her own name
by co-making the contract with the princiapl
or by guaranteeing that the principal will perform the contract between the third party and the principal.

Front 23

Unauthorized contracts: what is an express warranty of authority?

Back 23

an agent stating that he has the authority and that he will be personally liable to the third pary if he does not in fact have the authority to bind his principal.