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The issue is whether the principal will be VL for the torts committed by its agent. As a rule, the principal will be liable for the torts/contracts committed/authorized by its agent if two are true: 1) there must be a principal agent relationship and 2) the tort must have occurred within the scope of employment. |
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- Ultra Hazordous activities
- IC held out with appearance of agency=gas station and brake repair
- Principal Negligent in selecting IC
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Does employer have the right to control and power to supervise the manner of the work performed?
IC supplies own tools for work!! |
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Elements to form P/A relationship |
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Definition
- CAPACITY= P capacity to contract
- ASSENT=yes to P/A relationship
- CONTROL=right to control,power to supervise
- ACTION ON BEHALF (BENEFIT)=P benefits from A
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Term
Define Scope of Employment (3) |
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Definition
- When & Where=On The Way
- Job Description
- Purpose of the act (Benefit Principal)
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Damages sustained during CoE |
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- FROLIC= A new and independent journey
- DETOUR= A mere departure
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Agent has authority to use or hire sub-servant in an emergency |
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regardless if irregular, doing work to benefit P (bartender swinging knife) |
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Risk created by the activities of the enterprise (sailor draining docks) |
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enterprise directed or ratified acts |
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ACTUAL/EXPRESSED AUTHORITY |
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Oral or written authority. Implied do things that are necessary, customary, or prior dealings |
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Definition
P Manifest (CLOAKED) A, P held out (APPEARANCE)
3rd party relied reasonably
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Definition
Exceeds scope= CEO, Manager (Williams, cigar)
KNOWN AGENT
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Definition
P who intentionally or negligently causes 3rd party to believe agent has authority, 3rd party detrimentally relies on P's conduct
Losses recovered from reliance |
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Authority conferred by P to A after contract entered , P knowledge and acceptance of benefits
Express or imply intention to ratify
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Agent personally liable if check signed in agent name only and makes no reference to his capacity as agent
"Agent for Principal" |
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Goods over $500 require contract in writing and agent authority in writing. (Some States) |
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Definition
Corporation (hospital) owes a duty to customers to exercise reasonable care selecting staff/employees for granting special privileges (doctors/nurses) |
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