Wa Barbri - Agency

Front 1

DEFINE

agency

Back 1

Fiduciary relationship created when two parties manifest the intention that the agent will act on the principal’s behalf and subject to the principal’s control

Front 2

FORMATION

of agency

Back 2

No writing or other formality required unless required by statute

Oral appointment of agent is OK

Consent of both parties required to create AND continue relationship

Contractual capacity required of principal ONLY

Front 3

Agent's fiduciary duties to principal

Back 3

LOR

Loyalty: includes avoiding secret profits, conflicts of interests; remedy for breach is construct trust of any gains

Obedience: must follow reasonable instructions from principal

Reasonable care: reasonable under the circumstances

Front 4

Principal's fiduciary duties to agent

Back 4

Reasonable compensation

Reimbursement of expenses
Indemnification

Cooperation with agent's efforts

Front 5

Types of agent/principal authority

Back 5

Actual (express, implied)

Apparent authority

Ratification of unauthorized act

Front 6

DEFINE

actual authority

Back 6

What agent reasonable believed based on principal's statements/conduct

Express actual authority: based on principal's words

Implied actual authority: based on reasonable inferences from principal's statements or conduct
Depends on what's in mind of agent

Can terminate by express terms, drastic change in condition, operation of law

Front 7

Termination of actual authority

Back 7

Can terminate actual authority by express terms, drastic change in condition, operation of law (death/insanity/bankruptcy/dissolution)

Front 8

DEFINE

apparent authority

Back 8

Depends on what is reasonably in mind of THIRD PARTY, based on conduct/statements of principal

Front 9

Ratification of authority

Back 9

Approval by principal of agent's action, after the fact, where "agent" had no authority

Front 10

Agent's liabilities to 3rd parties (4 types)

Back 10

Fully disclosed agency

Partially disclosed

Undisclosed

Breach of warranty of authority

Front 11

Fully disclosed agency liability to agent

Back 11

Agent not personally liable to 3rd parties executed on behalf of principal, provided 3rd party knew agent was acting on behalf of principal and knew IDENTITY of principal

Front 12

Partially disclosed agency liability to agent

Back 12

3rd party knew agent was acting on behalf of principal, but did not know IDENTITY of principal

Third party can bind either agent OR principal

Front 13

Undisclosed agency liability to agent

Back 13

3rd party did not know person contracting with was an agent

Third party can bind either agent OR principal

Front 14

DEFINE

breach of warranty of agency authority

Back 14

Agent's representation to 3rd party that she is acting on behalf of principal is deemed a promise/warranty - breach can lead to liability of agent

Front 15

Respondeat superior

Back 15

Employers are vicariously liable for torts committed by employees acting within scope of employment

Doctrine does NOT cover independent contractors

Front 16

DEFINE

employee

Back 16

Depends on facts relating to employer's right to control time, place, manner, etc. of work

More control means it is more likely there is employer/employee relationship

Front 17

Scope of employment and tort liability (2 types)

Back 17

Scope of employment is conduct at direction of employer OR conduct motivated to serve employer

Detour: minor and reasonable deviation from assigned routs or tasks - generally considered within scope

Frolic: major deviation, especially for self-serving task - generally NOT in scope

Front 18

Intentional tort liability on employer

Back 18

Not within scope of employment; might have liability nonetheless if employer receives benefit from tort