Agency: Contract Liability of Agent & Principals Flashcards Preview

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Flashcards in Agency: Contract Liability of Agent & Principals Deck (2)
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1

Agency:
Contract Liability

Depends on type of authority and if principal was disclosed
Disclosed Principal
- 3rd party is aware of agency and knows who principal is
- Disclosed principal with actual authority: Principal only is liable
- Disclosed principal with apparent authority: principal only is liable to 3rd parties, agent liable to principal
- Liability of Disclosed principal - no actual or apparent authority
- agent is liable
Partially Disclosed
- does not identify, both liable
Undisclosed Principal
- both liable
- agent can pursue reimbursment

2

Agency:
Termination

Terminating Actual Authority
- principal must end & terminates all authority
Terminating Apparent Authority
- give direct notice to all customers
- give constructive notice to everyone else
Limitation
- act of law terminates all authority

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