Agency MEE Rules Flashcards
Agency relationship requirements
(1) consent by both agent and principal that agent will act for principal’s benefit and (2) that the agent is subject to the principal’s control.
Actual authority
Can be express or implied. Implied when P’s conduct leads the A to believe it has authority or based on custom, past course of conduct by P, necessity, or emergency.
Apparent authority
(1) person dealing w/agent reasonably believes in agent’s authority, and (2) the belief must be generated by some act or neglect on part of principal.
Ratification
Even if agent didn’t have authority to act, principal can ratify the act by expressly or impliedly affirming or accepting the benefit of the acts, so long as the principal knew the material facts and had capacity.
Vicarious liability of employer - respondeat superior
Employer is liable in tort for the acts of an agent or employee if the agent or employee was acting in scope of employment, made a minor deviation rather than frolic, committed a tort for P’s benefit bc P authorized or or was nature of employment.
Agent liable too under joint and severally liability
Indemnification
P can recover against A for indemnification if agent acts beyond his authority.
Direct liability of principal
P is directly liable for his own negligence is he negligently hired, failed to fair, or failed to properly supervise A.
Duty of reasonable care
Duty to act as a reasonably prudent person would under the circumstances.
Duty of loyalty
No self dealing, no profit w/out disclosure, follow instructions, don’t take opportunities from principal.
Frolic
New and independent journey outside scope of employment
Detour
Mere departure from assigned task but still within scope of employment
Partially disclosed principal
Third party knows agent is acting on behalf of another but doesn’t know principal’s identity
Undisclosed principal
Third party doesn’t know the agent is acting on another’s behalf
