Agency Relationships in Businesses

Agent liability liability for contracts principals

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Agent Liability Liability for Contracts Principals are classified as: Disclosed:  identity known to 3 rd  party Partially Disclosed:  3 rd  party knows he is dealing with an agent, but doesn’t  know principal’s indentity Undisclosed:  3 rd  party doesn’t know he is dealing with an agent, and the  principal’s identity is totally unknown  Authorized Acts Disclosed or Partially Disclosed Principal: Liable to 3 rd  party is agent acts within  scope of authority Agent has no liability to 3 rd  party for disclosed principal’s  Liability for Torts and Crimes Agent is liable to 3 rd  party for his own torts Course and Scope Principal may be liable for agent’s torts if they result from: Principal’s Tortious Conduct Principal’s Authorization of Agent’s Tortious Conduct Liability for Agent’s Misrepresentation . Apparent Implied Authority. Innocent Misrepresentation. Liability for Agent’s Negligence Liability for Agent’s Negligence .
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Respondeat Superior : employer is vicariously liable for employee’s negligent  torts committed within the agent’s “course and scope of employment.” Determining the Scope of Employment.   If the employer tells the employee to do something then the employee won’t be  liable Distinction Between  a “Detour” and a “Frolic”:   if detour, principal is liable; if frolic,  principal is not liable.  Employee Travel Time:  to or from meals is outside scope of employment. Notice of Dangerous Conditions A detour-  a foreseeable and reasonable departure from a job- liable for an  employer Ex. Traveling salesman with a large territory to cover.  He has an 8 to 5 job, has  to stop to get lunch. He is what is called a detour.  It is a likely part of the job.  Getting gas is a detour. MINOR DEVIATION.   A Frolic  – major deviation from the job.  Not a foreseeable deviation.  To liability  for an employer Liability for Agent’s Intentional Torts.
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