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Flashcards in Agency Deck (13):

Two part test for liability for torts of agents

(1) principle/agent relationship
(2) tort was committed by the agent within the scope of the relationship: (i) was it in job description; (ii) intended to benefit principal


Principle agent (ABC)

(1) assent (agreement with principal having capacity and agent)
(2) benefit (agent's conduct is for principal's benefit)
(3) control (P must have right to control the agent by having power to supervise the manner of agent's performance)


Will principal be vicariously liable for sub-agent's or borrowed agents?

If there is ABC (assent, benefit, control)


Distinction between agent and independent contractor

No right to control an independent contractor b/c no power to supervise manner


Vicarious liability for independent contractors

(1) no vicarious liability
(2) exceptions: (i) inherently dangerous activities; (ii) estoppel (holding out independent contractor with appearance of agency



new and independent journey



Departure from assigned task


Intentional torts

(1) generally outside scope of agency
(2) exceptions: (i) authorized by principal; (ii) natural from nature of employment; (iii) motivated by desire to serve principle


Contractual liability for contracts of agents

Principal is liable for contracts entered into by its agent if the principal authorized the agent to enter the contract


For types of contractual authorization

(1) actual express authority: if contract must be in writing, authorization must be in writing; revoked by unilateral act of principal or agent or death of principal
(2) actual implied authority: (i) necessity (necessary to accomplish expressly authorized task); (ii) custom; (iii) prior dealings between principal and the agent
(3) apparent authority: (i) principal cloaked agent with appearance of authority; (ii) third party reasonably relies on appearance of authority
(4) ratification: (i) principal has knowledge of all material facts regarding the contract; (ii) principal accepts its benefits; (iii) ratification cannot alter the terms of the contract


Are agents liable on contracts

(1) generally not liable on authorized contracts
(2) exception: undisclosed principal


Duties of agent to principal

(1) duty of care
(2) duty to obey instructions that are reasonable
(3) duty of loyalty: (i) self-dealing; (ii) usurping principal's opportunity; (iii) secret profits


Remedies against agent breaching duty

(1) recover losses caused by breach
(2) disgorge profits made by breaching agent