Agency and the Scope of Authority

Agency and the Scope of Authority - Agency and the Scope of...

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Agency and the Scope of Authoirty I. Nature of Agency A. Agency i. Agency- consensual relationship between two persons known as principal and agent …agent is authorized to act on behalf of principal ii. Principal, Agent, and Third Party iii. Agent may negotatiate terms of contracts with others and bind her principal to such contracts…exposes themto Tort liability B. Scope of Agency Purposes i. Person may o through an agent whatever business activity he may accomplish personally however whatever he cannot leagally do for himself he cannot authorize another to do C. Other Legal Realtionships i. Employment relationship- employer has right to control physical conduct of employee ii. *Independent contractor- do not have right to control conduct and activities iii. PAGE 327 indepdent contractor requirements iv. All employees are agents….not all agents are employees (independent contractor) II. Creation of Agency A. Agency i. creation through conract or agreement ii. OBJECTIVE TEST: if principal requests another to act for hm with respect t a matter and indicates that other is toa ct without FURTHER COMMUNICATION then agency relationship eists iii. Principal has right to control conduct of agent with respect o matters entrusted in him iv. Gratuitous Agency- agency that exsts without consideration v. Agency by Estoppel - apparent agency 1. P intentionally or negligently causes belief that another person A has authority to on on behalf of P 2. A third person reasonably and in good faith relies on appearances created by P 3.
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  • Fall '07
  • Contract Law, Principal A. Duty, principal reimburse agent

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