Agency Law-

What is a Principal ?

• A party who delegates authority to another party

What is an Agent?

– A party who agrees to act on behalf of another party

Duties of Principal to Agent

• Compensation

• Indemnification

• Cooperation

• Safety

Duties of Agent to Principal

• Loyalty

• Obedience

• Due Care

• Notification

• Accounting

Creation of the principal/agent relationship

• The key is the delegation of authority– express– incidental– implied– apparent– emergency– estoppel– ratification

Termination of the principal/agent relationship

• By agreement

• By events

• By operation of law

– regardless of how the relationship is terminated, NOTICE IS KEY

Liability for Contracts

• Issues– what authority does the agent have?

– What type of principal do we have?• Disclosed

• Partially Disclosed

• Undisclosed

Liability for Torts• Is the agent an independent contractor or an

employee?– Control is Key

• If the agent is an employee, was he acting within the scope of his authority?– Instructions– Detour/ Frolic– Intentional Torts/ Crimes