LAW 3111H Chapter Notes - Chapter 20: Vicarious Liability, Independent Contractor
Chapter 20
Contract Liability of P
Types of P
• Disclosed P: principal whose existence and identity are known
• Unidentified (Partially Disclosed) P: Principal whose existence is known but whose
identity is not known
Authority: power of an agent to change the legal status of the P
• Actual authority: power conferred upon the A by actual consent manifested by the
P to the A
• Actual Express Authority: actual authority derived from written or spoken words of
the P communicated to the A
• Actual Implied Authority: actual authority inferred from words or conduct
manifested to the A by the P
• Apparent Authority: Power conferred upon the A by acts or conduct of the P that
reasonably lead a third party to believe that the A has such power
Delegation of Authority: is usually not permitted unless
actually or apparently authorized
by the P if the A is authorized to appoint other subagents, the acts of these subagents are
binding on the P as those of the A
Effects of Termination of Agency on Authority: ends actual authority
• Third Restatement: termination of actual authority does not by itself end any
apparent authority held by an agent; apparent authority ends when it is no longer
reasonable for the third party with whom an agent deals to believe that the A
continue to act w/ actual authority
RatificationL affirmation by one person of a prior unauthorized act that another has done
as her agent or as her purported agent
Fundamental Rules of Contractual Liability
• Disclosed P: is contractually bound w/ the 3rd party if the agent acts w/I her actual
or apparent authority in making the contract on the P`s behalf
• Partially Disclosed P: is contractually bound w/ the 3rd party if the agent acts within
her actual or apparent authority in making the contract on the P`s behalf
• Undisclosed P: is contractually bound w/ the third party if the agent acts within her
actual authority in making the contract on the P`s behalf
Tort Liability of P
Direct Liability of Principal: a principal is liable for his own tortious conduct
involving the use of agents
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Document Summary
Types of p: disclosed p: principal whose existence and identity are known, unidentified (partially disclosed) p: principal whose existence is known but whose identity is not known. Authority: power of an agent to change the legal status of the p: actual authority: power conferred upon the a by actual consent manifested by the. Delegation of authority: is usually not permitted unless actually or apparently authorized by the p if the a is authorized to appoint other subagents, the acts of these subagents are binding on the p as those of the a. Ratificationl affirmation by one person of a prior unauthorized act that another has done as her agent or as her purported agent. Authorized acts the principal is liable if he directed, participated in, or approved the criminal acts of his agents. Unauthorized acts the principal may be liable either for a criminal act of a managerial person or under liability without fault statutes.
