LAW 6062 Study Guide - Final Guide: Electrotyping, Endangerment, Private Foundation
Document Summary
However, with actual authority the principal is solely liable; the agent is not liable. With apparent authority the agent can be liable, in addition to the principal. Knowing acceptance of a benefit of the transaction ratifies the act of entering into the transaction: the ratification doesn"t have to be communicated to the third-party. The standard is reasonableness: the agent"s duty of care has to be reasonable. We don"t want to incentivize the agent to act this way. Closely held: bayern: the agent has to give back everything they got that they shouldn"t have got as the result of the agency relationship. This creates the possibility that the principal will end up in a better position than they were originally in. This seems odd under a contracts law view. Burns; during her lunch break she drove to the frontier caf to get lunch. En route, she crashed into p: p can clearly sue her; she was negligent.
