Term
Agency (1)
What is the test for vicarious liability between Agent ("A") and Principal ("P")? |
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Definition
1) P will be liable if the P/A relationship exists. 2) AND the tort was committed by A within the scope of that realtionship |
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Term
Agency (2)
What three things are required for the P/A relationship to exist? |
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Definition
Agreement to create P/A relationship (assent), A's conduct will further P's objectives (Benefit), P retains the power to supervise the manor and method of A (Control) |
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Term
Agency (3)
How do we know an act is within the scope of the Agency relationship? |
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Definition
1) when A's conduct is within the job description of A, OR 2) if A even partially intended to benefit P or 3) if a substantial purpose of P is being served. |
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Term
Agency (4)
What is the difference between a Frolic and a Detour? |
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Definition
Frolic - new and independent journey/major deviation from P's direction that is outside the scope of the agency relationship Detour - near departure from assigned task/minor deviation from P's direction that is inside the scope of the agency relationship. |
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Term
Agency (5)
What is the relationship between A and P's liability in tort? |
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Definition
Joint and several liability. |
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Term
Agency (6)
What is the general rule of liability in P/A relationship with Intentional torts? |
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Definition
Intentional torts are outside the scope of P/A relationship |
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Term
Agency (7)
What are the exceptions to the general rule concerning Intentional torts? |
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Definition
1) P authorized the IT, 2) the IT was a natural incident to carrying out P's directions or 3) A was motivated by a desire to serve P. |
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Term
Agency (8)
What is a sub-agent and when is P liable for the actions of one? |
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Definition
Sub-Agent is hired by A to assist in a task A was assigned by P. P is liable when it Assents to, benefits and controls the sub-agent either directly or indirectly. |
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Term
Agency (9)
What is the key distinction between Independent contractors and A? |
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Definition
P does not have the power to supervise the maner and method of IC's performance. |
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Term
Agency (9)
When will P be VL for torts of an IC? |
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Definition
When IC is performing an ultra-hazardous/inherently dangerous work OR in a case of Estoppel (P makes out that a P/A relationship exists between P and IC and TP reasonably relies. |
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Term
Agency (10)
When is P liable for contracts A entered into? |
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Definition
when P has legal capacity and authorized A to enter into the contract. |
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Term
Agency (11)
Define: Actual Express Authority |
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Definition
Authority expressly granted, can be oral/private |
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Term
Agency (12)
When does Actual Express Authority have to be expressed in writing? |
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Definition
When A is entering into a contract for land lasting longer than 1 year. |
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Term
Agency (13)
How can Actual Express Authority be revoked? |
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Definition
1) unilateral act by P or A 2) Death of P 3) incapacity of P |
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Term
Agency (14)
when will incapacity not revoke Actual Express Authority? |
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Definition
When there exists a durable power of attorney. |
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Term
Agency (15)
What is Actual Implied Authority? |
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Definition
It is authority that arises through the circumstances or conduct of P |
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Term
Agency (16)
What are the three situations where Actual Implied Authority can arise? |
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Definition
1)Necessity, 2) custom 3) prior dealings |
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Term
Agency (17)
What is the test for apparent authority? |
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Definition
1) P cloaked A with the appearance of authority and 2) TP reasonably relied upon the appearance of authority. |
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Term
Agency (18)
What is the test for ratification? |
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Definition
1) P has knowledge of all material facts regarding the contract, 2) P accepts the contract's benefits, 3) P did not alter the terms of the contract (contract must be ratified as is) |
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Term
Agency (19)
When is P held liable for A's contracts and when is A held liable? |
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Definition
P is liable for all authorized contracts, A is liable for all unauthorized contracts, A MAY be liable by the election of TP in cases of a Partially Disclosed or Un-Disclosed P. |
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Term
Agency (20)
What duties does A owe P? |
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Definition
A owes P fiduciary duties: Loyalty, Obedience, Reasonable Care |
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Term
Agency (21)
What three acts can A do to violate it's fiduciary duty of loyalty to P? |
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Definition
1) Self dealing, 2) usurp P's opportunity 3) earn secret profits |
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Term
Agency (22)
what may P recover in relation to A's breach of A's fiduciary duties? |
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Definition
1) losses due to the breach 2) disgorgement of A's profits. |
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