ch 33- agency liability and termination

What is the definition of expressed authority in an agency relationship?

Expressed authority is the authority explicitly granted by the principal to the agent, either in writing or verbally.

Explain the Equal Dignity Rule.

The Equal Dignity Rule requires that if an agent is to enter into a contract that must be in writing, the agent's authority to do so must also be in writing, unless the agent acts in the presence of the principal.

What is a Power of Attorney, and when is it commonly used?

A Power of Attorney is a legal document that gives one person (the agent or attorney-in-fact) the power to act for another (the principal), often used when the principal is incapacitated or unable to manage their affairs.

How can implied authority be established in an agency relationship?

Implied authority can be established by inferring from the agent's position, duties, or from a pattern of conduct by the principal.

What was the significance of the Lundberg v. Church Farms case regarding apparent authority?

Lundberg v. Church Farms established that apparent authority can be based on the principal's past practices and the agent's actions.

Under what conditions does an agent have emergency powers?

An agent has emergency powers when immediate action is required to protect or preserve the principal's interests, and the principal cannot be reached.

Define ratification and list its requirements.

Ratification is the act of approving an unauthorized act by the agent after the fact. Requirements include: the principal must be identified, know the agent's work, affirm the work, both parties must have capacity, the principal must know all material facts, and affirm before the third party cancels.

What is the difference in liability between a disclosed, partially disclosed, and undisclosed principal in contract law?

A disclosed principal is liable on the contract, while the agent is not. With a partially disclosed principal, both are liable. An undisclosed principal and the agent are both liable to third parties.

What happens when an agent acts without authority, and the third party knew or should have known?

If the third party knew or should have known that the agent lacked authority, the principal is not liable for the unauthorized act.

What is an e-agent, and where are they commonly used?

An e-agent is an automated system or software that acts on behalf of a principal, commonly used in e-commerce, online services, and automated business processes.

How does the doctrine of respondent superior apply to an agent's negligence?

Under respondent superior, an employer (principal) can be liable for the torts committed by their employee (agent) within the scope of employment due to the control the employer has over the employee's actions.

What is the difference between a detour and a frolic in the context of agency liability?

A detour is a minor deviation from employment duties where the principal remains liable, while a frolic is a significant departure where the principal is typically not liable.

Under what circumstances might a principal be liable for an agent's intentional torts?

A principal can be liable for an agent's intentional torts if they were committed within the scope of employment or if the principal had prior knowledge of the agent's propensity for such acts.

When might a principal be liable for the crimes of an independent contractor?

Exceptions include when the work is inherently dangerous, the principal retains control over the manner of the work, or if the contractor is engaged in a non-delegable duty.

What are the two methods for terminating an agency relationship, and what is the significance of notice in termination?

The two methods are by acts of the parties or by operation of law. Notice is significant because without proper notification to third parties, the agent might still have apparent authority, potentially making the principal liable.