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WVU BCOR 320 - Chapter 16 cont

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BCOR 320 1nd Edition Lecture 30Chapter 16: Agency Law cont Principals Liability for Contracts: The principal is bound by the acts of an agent if: ◦ The agent had authority ◦ The principal ratifies the acts of the agentAuthority: A principal is bound by the acts of an agent if the agent has authority There are three types of authority◦ Express - Granted by words or conduct that: Reasonably interpreted, cause the agent to believe the principal desires her to act◦ Implied - Authority to conduct a transaction includes: Authority to do acts that are reasonably necessary to accomplish it◦ Apparent - Principal can be liable for the acts of an agent who is not acting with authority if: Principal’s conduct causes a third party reasonably to believe that the agent is authorizedRatification and subagents: Ratification◦ If a person accepts the benefit of an unauthorized transaction or fails to repudiate it, then: He is as bound by the act as if he had originally authorized it Subagents◦ Intermediary agent – Someone who hires subagents for the principal◦ When an agent is authorized to hire a subagent: Principal is as liable for the acts of subagent as he is for the acts of regular agentAgents for liability for contracts: Fully disclosed principal◦ An agent is not liable for any contractsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Unidentified principal◦ Third party can recover from either the agent or the principal Undisclosed principal◦ Third party can recover from either the agent or the principal◦ Third party is not bound to the contract with an undisclosed principal if: Contract provides that the third party is not bound to anyone other than the agent Agent lies about the principal because she knows the third party would refuse to contract with him Unauthorized agent◦ The principal is not liable and the agent isPrincipals liability for torts: Employer is liable for a tort committed by its employee acting within the scope of employment or acting with the authority Two kinds of agents◦ Employees◦ Independent contractors Principal may be liable for the torts of an employee but generally is not liable for the torts of an independent contractorEmployee or independent contractor: Courts consider whether:◦ Principal supervises details of the work◦ Principal supplies the tools and place of work◦ Agents work full time for the principal◦ Agents receive a salary or hourly wages◦ Work is part of regular business of the principal◦ Principal and agents believe they have employer-employee relationship◦ Principal is in businessNegligent Hiring: The principal is liable for the torts of an independent contractor if the principal has been negligent in hiring or supervising herScope of Employement: Principals are liable only for torts that an employee commits An employee is acting within the scope of employment if the act:◦ Is one that employees are responsible for◦ Takes place during hours that employee is employed◦ Is part of the principal’s business◦ Is similar to the one the principal authorized◦ Is one for which the principal supplied the tools◦ Is not seriously criminal Authorization◦ An act is within the scope of employment if: Expressly forbidden  It is of the same general nature as that authorized  It is incidental to the conduct authorized Abandonment◦ The principal is liable:  For the actions of the employee that occur while the employee is at work Not for actions that occur after the employee has abandoned the principal’s businessIntentional Tort: Principal is not liable for the intentional torts of an employee unless:◦ Employee is intended to serve some purpose of the employer◦ Employer was negligent in hiring or supervising this employeePhysical or non-physical harm: Physical torts – Principal is liable for the negligent conduct of an employee that occurs within the scope of employment Nonphysical torts – Principal is liable if the employee if the employee acted with express, implied, or apparent authorityAgent’s liability for torts: Agents are always liable for their own torts, even if the principal is also liable Principal and the agent are jointly and severally liable◦ Injured party can sue either one or both Agents are always liable for their own torts, even if the principal is also liable Principal and the agent are jointly and severally liable◦ Injured party can sue either one or


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