Business Associations

MEE

agent’s principal rights

compensation, cooperation, reimbursement

apparent authority

principal’s manifestation to third parties that reasonably causes a third party to believe the agent has authority and the third party’s reasonable reliance on that belief

agent fiduciary duties

loyalty, obedience, care

agency relationship

principal appoints agent to act on principal’s behalf and agent consents to act

liability to third parties

agent acting with actual or apparent authority can bind the principaler

respondeat superior

vicarious liability
employer/employee relationship + conduct was within scope of employment

detour

minor deviation of an employee in the scope of their employment—principal is still vicariously liable

frolic

substantial deviation by employee from course of employment—principal is not liable

ratification

agent acts on behalf of principal with no authority, principal is aware of all material facts, principal accepts all terms of agreement

actual authority

express = written or oral terms outlining agent’s duties and limitations
implied = authority agent reasonably believes they have based off the words or actions of the principal

termination events

specific event, lapse of reasonable time, change in circumstance, breach of fiduciary duty, unilateral termination, operation of law