MLC101 Lecture Notes - Lecture 7: Secret Profit, Fide, Independent Contractor
Agent = a(cid:374) age(cid:374)t is a pe(cid:396)so(cid:374) (cid:449)ho has ag(cid:396)eed to a(cid:272)t o(cid:374) the p(cid:396)i(cid:374)(cid:272)ipal(cid:859)s (cid:271)ehalf a(cid:374)d su(cid:271)je(cid:272)t to the p(cid:396)i(cid:374)(cid:272)ipal(cid:859)s (cid:272)o(cid:374)t(cid:396)ol i(cid:374) deali(cid:374)g (cid:449)ith a thi(cid:396)d pa(cid:396)t(cid:455). Actual authority = the authority actually conferred on the agent, either express or implied, by the principal. For example, the principal may instruct the agent (a stock broker) to enter into a contract to purchase million dolla(cid:396)s(cid:859) (cid:449)o(cid:396)th of shares. Apparent authority = the authority the agent appears to have, but which, in fact, they do not. The principal is responsible for the foreseeable consequences of the agent who acts outside of their actual authority but within his or her apparent authority. Using the same example as above, if the agent purchases shares worth . 3 million (not actual authority), the question is does the agent have the apparent authority to do this. Liable in tort = the principal may be liable in tort for the actions of their agent.