Vocab Flashcards
Indemnification
compensate someone for loss or harm
Respondeat superior
“let the master answer”
the principal is responsible for the torts of the agent if master/servant relationship exists and if agent acts within scope of employment
Vicarious liability
liability of the principal for torts committed by the agent in a master/servant relationship when torts are committed by the agent with authorization of the scope of employment
Frolic and detour
conduct and actions by an agent outside the scope of employment that are done while the agent is supposed to be working for the principal
what best describes ratification?
a principal’s affirmation of an agent’s unauthorized act.
when is ratification not necessary?
when an agent acted within his authority
subrogation
upon payment, surety obtains the same rights against debtor that the creditor had.
exoneration
rights of surety to force principal debtor to pay before surety pays.
guarantor of collection
the creditor has to try every way possible before going to surety
indemnity contract
one party promises to to reimburse debtor for payment of debt or loss if it arises. it is a contract involving two parties in which the first party agrees to indemnify and reimburse the second party for covered debts or losses should they take place.
suretyship contract
relationship whereby one party agrees to answer to the debt or default of another
Third party beneficiary (surety)
received intended beenfits of a contract
cosurety
jointly and severally liable to creditor
statute of frauds
requires certain contracts to be in writing to be enforceable
right of contribution
upon payment of more than his proportionate share, each cosurety may compel other cosureties to pay their shares
