CHAPTER 25: AGENCY LIABILITY CONCEPTS

Learning Objectives:• Contract Liability

How Principals Become BoundTypes of Principals & Impact on Liability

• Tort Liability Tort Liability of Masters Tort Liability of Independent Contractors

Chapter 25 2

CHAPTER 25: AGENCY LIABILITY CONCEPTS

1. How Principals Become Bound to a Contract

a. Actual Authorityb. Apparent Authorityc. Ratification

Chapter 25 3

CONTRACT LIABILITY

2. Types of Principals & Impact on Liabilitya. Disclosed Principal

i. Liability to Agentsii. Liability to Third Parties

b. Undisclosed Principali. Liability to Agentsii. Liability to Third Parties

Chapter 25 4

CONTRACT LIABILITY

1. Introductiona. Concept Overview

i. Respondeat superiorii. Independent contractor

b. Joint and Several Liability

Chapter 25 5

TORT LIABILITY

2. Tort Liability of Mastersa. Doctrine of Respondeat Superior

i. Impact: Vicarious liability on employerii. Requirements:

I. Employment relationshipII. Tort occurred within the course of

employment

b. Exception: Frolicsc. Exception: Intentional Torts

Chapter 25 6

TORT LIABILITY

3. Tort Liability of Independent Contractors

a. Test for Determining IC statusb. General Rule: IC not liablec. Exceptions

Chapter 25 7

TORT LIABILITY

CHAPTER 25: AGENCY LIABILITY CONCEPTS