BLA Exam 2 (Agency Law)

Fiduciary Relationship

Agent must act in the best interest of the principal

Duties of the Agents

Loyalty, Obedience, Care, Accounting, Disclosure

Duties of Principals

Compensation, Reimbursement, Indemnification

When Agency Relationships Terminate?

Death, Incapacity, Bankruptcy, Mutual Agreement, Expiration, Revocation

Types of Authority

Express, Implied, Apparent

Express Authority

Clearly stated by principal

Implied Authority

Authority inferred from job role

Apparent Authority

Third parties reasonably believe the agent has authority

Principal’s Liability

Bound by agent’s actions if within scope of employment. Not liable for agent’s criminal acts unless directly ordered

Employee Agents

Under direct control of principal

Independent Contractors

Not under direct control; principal not liable for their actions

Scope of Employment

Determines whether an employer is liable for an agent’s actions

Intentional Torts

Employers generally not liable for intentional torts by agents, unless within scope of employment

3 Rules - Not Every Agent is an Employee

1. Employees are agents, but not all agents are employees

2. Independent contractors are not employees but can be agents

3. Agents are personally responsible for their own actions

Power v. Right to Terminate

You always have the power to terminate an agency relationship, but not necessarily the right to do so legally