Term
What are the three agency problems that occur |
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Definition
LIABILTY OF PRINCIPLE TO THIRD PARTY FOR TORTS OF AGENT
LIABLITY OF PRINCIPLE TO THIRD PARTY FOR CONBTRACTS OF AGENT
DUTY OF AGENT TO PRINCIPLE
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Term
| WHEN CAN EXPRESS AUTHORITY NOT BE REVOKED |
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Definition
1. POWER OF ATTORNEY (WRITTEN EXPRESSION OF AUTHORITY)
2. DURABLE LANGUAGE - SURVIVES DEATH OR INCAPACITY
3. OR PRINCIPAL HAD DURABLE POWER OF ATTORNEY |
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Term
WHAT IS THE EFFECT OF SECRETLY LIMITING INSTRUCTIONS
(DONT SELL BOOK) |
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Definition
| AGENT HAS ACTUAL AUTHORITY BUT PRINCIPAL SECRETLY LIMITED AUTHORITY |
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Term
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Definition
A- ASSENT - MUST BE INFORMAL AGREEMENT BETWEEN PRINCIPLE WITH CAPACITY AND THE AGENT
B- BENEFIT - THE AGENTS CONDUCT MUST BE FOR THE PRINCIPALS BENEFIT
C- THE PRINCIPAL MUST HAVE THE RIGHT TO CONTROL THE AGENT BY HAVING POWER TO SUPERVISE TEH MANNER OF PERFORMANCE |
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Term
AGENCY
WHAT CONSTITUTES ACTUAL EXPRESS AUTHORITY
PLUS EXCEPTION |
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Definition
1. ORAL, PRIVATE WHISPER OK
EXCEPT
CONVEYANCE OF LAND MUST BE IN WRITING |
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Term
AGENCY
PRINCIPLE IS LIABLE FOR CONTRACTS ENTEREDE INTO BY AGENT IF PRINCIPLE AUTHORISED AGENT TO ENTER CONTRACT.
QUESTION: NAME THE 4 TYPES OF AUTHORITY |
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Definition
1. ACTUAL EXPRESS
2. ACTUAL IMPLIED
3. APPARANT
4. RATIFICATION |
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Term
AGENCY
QUESTION: WHAT CONSTITUTES ACTUAL EXPRESS AUTHORITY
(MODEL EXAM ANSWER)
ORAL / AGENT CONT LAND |
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Definition
| THE PRINCIPAL WILL BE LIABLE ON ITS AUTHORISED CONTRACTS. IN THIS CASE, BECAUSE THE CONTRACT INVOLVED THE CONVEYANCE OF LAND, THE EXPRESS AUTHORITY HAD TO BE IN WRITING. THEREFORE THE ORAL PRIVATE WHISPER DID NOT AUTHORISE TEH CONTRACT IN LAND AND THEREFORE NO LIABILITY FOR PRINCIPAL |
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Term
AGENCY
Q: WHAT CONSTITUTES ACTUAL EXPRESS AUTHORITY
MODEL EXAM ANSWER
AGENT CONTRACTED BOOKS |
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Definition
| THE PRINCIPAL WILL BE LIABLE ON ITS AUTHORISED CONTRACTS. IN THIS CASE, BECAUSE THE CONTRACT INVOLVED THE PURCHASE OF BOOKS, THE EXPRESS AUTHORITY DID NOT HAVE TO BE IN WRITING. THEREFORE THE ORAL PRIVATE WHISPER DID AUTHORISE THE AND THEREFORE THE PRINIPAL IS LIABLE. |
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Term
AGENCY
HOW CAN YOU REVOKE EXPRESS AUTHORITY |
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Definition
A) UNILATERAL ACT OF EITHER THE AGENT OR THE PRINCIPAL
B) THE DEATH OR INCAPACITY OF THE PRINCIPAL |
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Term
AGENCY
INDEPENDANT CONTRACTOR
DYNAMITE ON RAILROAD
WHAT IS LIABILITY OF PRINCIPAL |
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Definition
AS A GENERAL RULE THERE IS NO VICARIOUS LIABILITY FOR AN INDEPENDANT CONTRACTORS TORTS EXCEPT FOR TWO SITUATIONS
1. ULTRA HAZARDOUS ACTIVITY
2. ESTOPPEL
iN THIS CASE X WAS USING EXPOSIVE, IN A ULTRA HAZARDOUS ACTIVITY, AN TEH PRINCIPAL WILL BE VICARIOUSLY LIABLE. iN ADDITION, IF THE INDEPENDANT CONTRACTOR HAD HELD HIMSELF OUT TO BE A AGENT, THE PRINCIPAL WOULD BE 'STOPPED' FROM DENYING LIABILITY ON THIS GROUND |
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Term
AGENCY
WHAT IS THE SCOPE OF PRINCIPAL - AGENCY RELATIONSHIP
(NAME 4)
( EXAMINE THE TORTS WHERE, WHAT HOW ETC) |
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Definition
1. WAS TORTUOUS CONDUCT OF A KIND AGENT WAS HIRED TO PERFORM
2. DID TORT OCCUR ON THE JOB
A) WAS IT A DETOUR (LIABLE)
B) WAS IT A FROLIC - NO
3. DID AGENT INTEND TO BENEFIT PRINCIPAL
(PARTIAL BENEFIT SUFFICIENT NY)
4. ABC ALWAYS IN EMPLOYER/EMPLOYEE RELATIONSHIPS |
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Term
AGENCY
iNTENTIONAL TORTS ARE NOT WITHIN AGENCY UNLESS?
(3 REASONS)
BARMAN |
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Definition
1. SPECIFICALLY AUTHORISED BY PRINCIPAL
2. NATURAL FROM THE NATURE OF EMPLOYMENT
3. MOTIVATED BY DESIRE TO PLEASE THE PRINCIPAL |
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Term
AGENCY
WHAT IS THE 2 PART TEST IN AGENCY (LIABILITY)
PRINCIPAL WILL BE LIABLE FOR THE TORTS OF AN AGENT IF:
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Definition
1. A PRINCIPAL-AGENT RELATIONSHIP EXISTS +
2. THE TORT WAS COMMITTED BY THE AGENT WITHIN THE SCOPE OF THE RELATIONSHIP |
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Term
AGENCY
GIVE A MODEL ANSWER FOR THE TORT OF AN AGENT THAT WOULD/ WOULD NOT MAKE THE PRINCIPAL LIABLE |
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Definition
A PRINCIPAL WILL NOT BE LIABLE FOR THE TORTS COMMITTED BY ITS AGENT IN THE SCOPE OF AGENCY
iN THIS CASE THIS AGENT WAS ON A DETOUR / FROLIC BECAUSE (FACTS)....
THEREFORE THE PRINCIPAL WILL / WILL NOT BE VICARIOUS LIABLE FOR THIS TORT |
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Term
AGENCY
RATIFICATION
AUTHORITY CAN BE GRANTED AFTER A CONTRACT HAS BEEN ENTERED IF
(TWO ANSWERS)
EXCEPT (ONE ANSWER) |
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Definition
1. PRINCIPAL HAS KNOWLEDGE OF ALL THE MATERIAL FACTS OF THE CONTRACT AND
2. PRINCIPAL ACCEPTS ITS BENEFITS
EXCEPTION
CANNOT ALTER TERMS OF CONTRACT |
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Term
AGENCY
MODEL ANSWER FOR RATIFICATION
ANTIQUE BOXES (CAL / BOSTON)
LOVE ANTIQUES CAN TAKE ALL / TEN |
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Definition
| PRINCIPAL IS LIABLE ON AUTHORISED CONTRACTS. IN THIS CASE THERE WAS NO ACTUAL EXPRESS OR IMPLIED AUTHORITY TO BUY THE ANTIQUES, NOR IS THERE EVIDENCE OF APPARENT AUTHORITY TO BUY THE ANTIQUES. NONETHELESS PRINCIPAL ARGUABLY RATIFIES CONTRACT THROUGH KNOWLEDGE AND ACCEPTANCE OF ITS BENEFITS IF ALL - BUT IF ONLY TEN, THEN RATIFICATION NOT POSSIBLE IN NY. |
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Term
AGENCY
WHAT IS ACTUAL IMPLIED AUTHORITY?
(THREE REASONS) |
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Definition
AUTHORITY WHICH AGENT REASONABLY BELIEVES THE PRINCIPAL GAVE BECAUSE
A) NECESSITY (TO COMPLETE TASK GIVEN)
B) CUSTOM - IMPLIED AUTHORITY CUSTOMARILY PERFORMED BY AGENT IN THAT POSITION
C) PRIOR DEALINGS BETWEEN PRINCIPAL AND AGENT
(FROM PRIOR ACQUIESCENCE) |
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Term
AGENCY
WHAT IS APPARENT AUTHORITY
TWO PART TEST |
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Definition
1. PRINCIPAL 'CLOAKED' AGENT WITH APPEARANCE OF AUTHORITY.
2. THIRD PARTY REASONABLY RELIES ON APPEARANCE OF AUTHORITY |
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Term
AGENT
WHAT DUTIES DOES AGENT OWE TO PRINCIPAL |
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Definition
1. DUTY TO EXERCISE REASONABLE CARE.
2. DUTY TO OBEY REASONABLE INSTRUCTIONS.
3. DUTY OF LOYALTY
A) NO SELF DEALINGS
B) NO USURPING OF PRINCIPALS OPPORTUNITY
C) NO SECRET PROFITS
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Term
AGENCY
RULE OF LIABILITY ON CONTRACT IN AGENCY
(4) |
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Definition
1. IF NO AUTHORITY, AGENT LIABLE
2. IF NO AUTHORITY , P NOT LIABLE
3. IF AUTHORITY, P IS LIABLE
4. IF AUTHORITY, A IS NOT LIABLE
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