Agency

Question 1

What is Agency?

Answer 1

An agency is a fiduciary relationship created by express or implied contract or law, in which one party (the argent) may act on behalf of another party (the principal) and bind that other party oner by words or actions

Question 2

Types of Authority

Answer 2

Actual Authority

• can be express or implied
• -express: principal expressly authorizes the agent to act on it’s behalf
• -implied: the principal’s conduct leads the agent to believe it has authority

Apparent Authority

• 1) person dealing with the agent must do so with a reasonable belief in the agent’s authority
• 2) the belief must be generated by some act or neglect on the part of the principal sought to be charged, and
• 3) the person relying on the agent’s authority must be himself be guilty of negligence

Ratification
-principal can ratify the acts of agents non-authority by expressly or impliedly affirming or accepting the benefit of it so long as the principal knew the material facts and had capacity to do so

Question 3

Tort Liability

Answer 3

Principal can be liable 2 ways:

1) vicarious liability for torts of agent acting within scope of employment (includ minor deviation-a detour)
2) direct liability: principal is directly liable for its own negligence if he negligently failed to hire/fire/supervise his agents