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Independent contractors
Outside contractors who are employed by a principal to conduct limited activities for the principal
Agency law
Large body of common law that governs agency
– Mixture of contract law and tort law
Principal-agent relationship
Fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other to act
Principal
Party who employs another person to act on his or her behalf
Agent
Party who agrees to act on behalf of another
Persons who lack contractual capacity cannot
appoint an agent
Principal-independent contractor relationship
Relationship between a principal and an independent contractor
– Contractor is not an employee of the principal but has been employed by the principal to perform a certain task on behalf of the principal
Express agency
Occurs when a principal and an agent expressly agree to enter into an agency agreement with each other
– Can be either oral or written unless the Statute of Frauds stipulates that they must be written
Exclusive agency contract
If a principal and agent have one of these, principal cannot employ any agent other than the exclusive agent
General power of attorney
Principal confers broad powers on the agent to act in any matters on the principal’s behalf
Special power of attorney
Principal confers powers on an agent to act in specified matters on the principal’s behalf
Agent’s duty to a principal that includes
Performing the lawful duties expressed in the contract
– Meeting the standards of reasonable care, skill, and diligence implicit in all contracts
Imputed knowledge
Information that is learned by an agent that is attributed to the principal
Termination of Agency by Act of Parties
Situation where the parties to an agency contract terminate their contract by mutual agreement or when a previously agreed on event occurs
