Chapter 11 Agency - Chapter 11 Agency Agency

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Unformatted text preview: Chapter 11 Agency Agency ................................................Ancient principles tracing back to Roman law. Agents act ................................................ on behalf and under the control of a principal who remains ................................................ liable for acts. Master/servant. Employer/Employee ................................................Business organizations function through agency principles ................................................ whether closely held or widely (publicly) held Principles of Agency Law Principal/Agent........................................Principals delegate authority to agents to act for the principals ................................................ and legally bind them in dealings with third parties. Duties of Agents..........................Loyalty (act for principal’s benefit not agent’s benefit) ................................................Informing(law presumes if principal knows agent’s knowledge) ................................................Obeying (act within scope of authority or liable to principal) ................................................Accounting (report on principal’s money and assets) Tort liability............................................. vicarious liability – “innocent” but liable for agent’s torts ................................................ theory: if with in scope of authority, agent=principal ................................................ respondeat superior – Roman master answers for servant. ................................................ ER causes EE to work, so negligence is deep pocket ER’s. Agent’s intentional tort................ER liable if agent had business not personal motivation Frolic and Detour.........................defense based on agent leaving ER’s task for personal business Agent’s liability to Principal........agent is liable to principal for losses from agent’s negligence Partners as agents.........................each partner is both agent and principal :. contract/tort liability Contract liability......................................principal bound when agent acts with a form of authority Actual Authority..........................expressly given orally or in writing by principal to agent Implied Authority.........................inferred from past dealings or from position (eg store manager) Apparent (ostensible) Authority. .no actual or implied authority BUT third party did not have ................................................ notice principal terminated authority Special rules...........................trading partnerships, partner has implied authority to borrow $ ................................................non-trading (service) partnerships, no implied auth to borrow $ Criminal liability......................................agents can impose criminal liability on business orgsCriminal liability....
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This note was uploaded on 02/23/2009 for the course SBAD 347 taught by Professor Routman during the Spring '09 term at South Carolina Upstate.

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Chapter 11 Agency - Chapter 11 Agency Agency

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