Chapter 24 Liability of Principals and Agents to

Chapter 24 Liability of Principals and Agents to Third Parties Mc. Graw-Hill/Irwin Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

24 -2 Agent’s Authority to Bind Principal v. Actual § § Express- specifically described Implied– justifiable belief of agent, inherent agency v. Apparent § § Justifiable belief of a 3 rd party Duty of 3 rd persons to determine agent’s authority v. Ratification § § Requirements Effect

24 -3 Related Contractual Liability Issues v. Principal’s Liability for Agent’s Representation- Exculpatory Clauses v. Principal’s Liability for Notice/Payment to Agent Effect of Notice § Payments to Agent § Effects of Conflicts of Interest §

Principal’s Liability for Acts of Subagents v. Agent’s Authority to Appoint Subagents v. Agents May Have Employees 24 -4

24 -5 Contract Liability of Agent v. Unauthorized Actions- implied warranty of authority v. Nonexistent or Incompetent Principal v. Agreements by Agent to Assume Liability

24 -6 Agent Liability. Disclosed/Undisclosed Principal v. Disclosed Principal § Rights/Liabilities of Agent § Rights/Liabilities of Principal v. Undisclosed Principal § Rights/Liability of Agent § Rights/Liability of Principal v. Partially Disclosed Principal

Implied Warranty of Authority 24 -7

24 -8 Disclosed, Undisclosed, Partially Disclosed Agency

Liability for Torts and Crimes v. Respondeat Superior Time/Space limits of agency? § Incidental injury? § Agent motivated to benefit principal? § v. Direct Liability v. Criminal Liability 24 -9