TAILIEUCHUNG - Lecture Dynamic business law - Chapter 34: Liability to third parties and termination

After studying this chapter you will be able to understand: Under what circumstances might a principal be held liable to a third party on a contract negotiated by an agent? Under what circumstances might a principal be held liable for the tortious behavior of its agent or independent contractor? How can an agency relationship be terminated? | Chapter 34 Liability to Third Parties and Termination Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 34: Liability to Third Parties and Termination 34- Authority of Agent and Liability of Principal Express Authority: Principal explicitly instructed agent to perform act Implied Authority: Relationship inferred from actions/conduct of parties; authority inferred from nature of relationship Apparent Authority and Estoppel: Third party reasonably believes (based on actions of principal) that agency relationship exists between principal and another individual If a principal explicitly instructs an agent to perform an act, the agent acts with “express” authority. “Implied” authority is a principal-agent relationship inferred from the actions or conduct of the parties; with implied authority, authority is inferred from the nature of the relationship. With “apparent” authority, a third party reasonably believes, based on the actions of the principal, that an agency relationship exists between the principal and another individual. 34- Contractual Liability of Principal and Agent For Authorized Agent Acts “Authorized” Acts: Agent acts within scope of agent’s authority; Classification of Principal: Must be classified as either disclosed, partially disclosed, or undisclosed Disclosed Principal—Agent not liable, principal liable Partially Disclosed Principal—Agent possibly liable, principal liable Undisclosed Principal—Agent liable, principal liable The contractual liability of a principal and an agent for authorized agency actions depends upon the extent to which the existence of the principal is disclosed. If an agent acts within the scope of his or her authority, the agent’s act is “authorized.” If the principal is disclosed in the course of an authorized agency action, the agent not liable, while the principal is liable; if the principal is .

• Kinh tế học
• Dynamic business law
• Business law
• Legal environment of business
• Business organizations
• Liability to third parties
• Authority of agent
• Lecture Dynamic business law
• Classification of law
• Criminal law
• Business crime
• Administrative law
• Administrative agency
• Constitutional law
• Constitutional principles
• Tort law
• Classification of torts
• Consumer law
• Consumer health
• Discrimination law
• Major federal administrative agencies Classification of law
• Major federal administrative agencies
• Contract law
• Classification of contracts
• Agency law
• Agency relationships
• Rules of consideration
• Forms of business organization
• Antitrust law
• Antitrust law rationale
• Legal system
• Subject matter jurisdiction
• Intellectual property
• Real property
• Reality of assent
• Undue influence
• Contracts in writing
• Statute of frauds
• Lease contracts
• Contract remedies
• Perfect tender
• Negotiable instruments
• Requirements for negotiability
• Signature liability
• Parties signing negotiable instrument
• Secured transactions
• Scope of security interest
• Characteristics of partnership
• Formation of partnership
• Characteristics of corporations
• Corporate powers