✓ ~~~principal gives the agent expressed or actual authority to act on the former's behalf
expressed authority
✓ ~~~arises from specific statements made by the principal to the agent
actual authority
✓ ~~~includes expressed authority and implied authority
implied authority
✓ ~~~customarily given to an agent in an industry, trade, or profession
employer --> employee
✓ ~~~agent who works for pay and is subject to the control of the principal may enter into
contractual relationships on the latter's behalf
respondent superior
, ✓ ~~~imposes liability on a principle for torts committed by an agent employed by him or her
and subject to his or her control
employer --> independent contractor
✓ ~~~agent is hired but he principal to do a specific job but is not controlled with respect to:
-physical conduct
-details of work performance
determine whether an agent is an independent contractor by:
✓ ~~~-whether agent had distinct occupation
-whether agent supplied own tools
-whether agent was employed for specific time
-whether agent was paid hourly or on completion of job
-what degree of skill was required to do the job
agency through ratification by principal
✓ ~~~conditions for a ratification to be effective:
-principal must have full knowledge of agent's action
-existence of principal must be clear to 3rd part at time of agent's unauthorized act
principals duties to agent
✓ ~~~-duty of compensation
-duty of reimbursement & indemnification
-duty of cooperation
, -duty to provide safe working conditions
-duty of loyalty
duty of compensation
✓ ~~~implied that principal will compensate the agent for services rendered
-contingency fee
contingency fee
✓ ~~~agent's compensation that consists of a % of amount agent secured for principal in
business transaction
duty of reimbursement & indemnification
✓ ~~~indemnity: principal's obligation to reimburse agent for any losses agent incurs while
acting on principal's behalf
duty of cooperation
✓ ~~~principal must do nothing to interfere with reasonable conduct of agent as agreed
upon in an express or implied contract
duty to provide safe working conditions
✓ ~~~Employers who repeatedly violate standards set by the Occupational Safety and
Health Act (OSHA) may be fined or imprisoned or both
duty of loyalty
✓ ~~~-acting on behalf of one principal to avoid conflicts of interest
-communicating all material info to principal
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