The understanding that the agent will act for and on behalf of the principal. The agent assumes an obligation of loyalty to the principal that she will follow the principal’s instructions and will neither intentionally nor negligently act improperly in the performance of the act.
When one employs another to perform services and control how those services are performed. Employee has the right to control the details of the work.
Where one contracts with another for the results of a service to be performed. Independent contractor has the right to determine how to perform the service.
Agency by Agreement
Occurs by the understanding that one will act for another. Can be by express agreement, implied agreement, and follow the equal dignity rule.
A contract, either oral or written, which contains the intentions of the involved parties in words.
An agreement that is not explicitly in writing, but presumably intended by all parties involved. A manager's oral promise, a statement in an employee manual, a company policy, a chain of positive employee merit reviews, and a company's customary practices are each examples of what might constitute an implied contract
Equal Dignity Rule
If an agent must enter in to a writen contract the principal must also enter into that writen contract.
Agency by Ratification
The principal approves of a previous unauthorized act.
Agency by Estoppel
Legally binding agency relationship that may arise where, in fact, no formal agency agreement is in effect. A principal may give an appearance of agency relationship by, for example, furnishing his or her firm's call cards or other stationery to the agent.
Duty of Performance
Agent must perform reasonable skill and diligence.
Duty of Notice
Requires agent to notify principal of all facts brought to attention.
Duty of Loyalty
Agent must act exlusively for the benefit of the principal.
Duty of Obedience
Agent must follow all lawful instructions from the principal in performing tasks.
Duty of Account
Agent must keep records of the money that the principal makes.
Duty of Reimbursement
Principal must pay the agent for authorized expenses.
Duty of Indemnification
The principal must cover loses to the agent on the behalf of the principal.
There must be a Principal-Agent relationship, it must be enforceable, and act within the scope of authority.
A civil wrong other than a breach of contract that causes harm to another.
One willfully causes harm to another.
One accidentilly causes harm to another.
Imposes legal responsibility for injuries sustained by or as a result of an actor's conduct, whether or not the actor used reasonable care and regardless of the actor's state of mind.
Rules for Tort (Doctrince of Respondiate Superior)
1) Imposes liability on the principal if there is an employer-employee relationship. 2) Has to act withing the scope of employement (Time, place, and manner). 3) The employer is not repsonsible for intentional torts.
Want to see the other 22 Flashcards in Exam 2?JOIN TODAY FOR FREE!