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22download_doc-20.php - L293(4/15/2009)

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L293 (4/15/2009) Third-Party Relations of the Principal and the Agent Overview o A principal bears tort and contract liability for their own acts or omissions  o A principal controls an agent, thus principal is  also liable for  agent’s  acts or  omissions Contract Liability o Generally, a principal is liable on a contract made by the agent if the agent had  express,   implied,  or   apparent  authority to make the contract  Actual v. Apparent Authority o An agent’s actual authority may be express (by words) or implied (by conduct) o Apparent authority arises if communications by principal to third party creates  reasonable appearance of authority in the agent Opp v. Wheaton Van Lines, Inc.       o Plaintiff sued Wheaton for damages and the company alleged her ex-husband  had  actual or apparent authority  to limit coverage Contract Liability of Agent o An agent’s liability for a contract depends on the nature of the principle:   An agent who represents a disclosed principal is not liable
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This note was uploaded on 04/18/2011 for the course BUS 293 taught by Professor Brown during the Winter '09 term at Indiana.

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22download_doc-20.php - L293(4/15/2009)

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