Agency I. Relationship of principal and agent a. Creation of agency and scope of purpose i.

No extra personal acts may be delegated ii. Agency is consensual relationship iii. Capacity of agent doesnt matter b. Classification of agencies i. Disclosed principal (agent may be liable) ii. Partially disclosed principal (both A and P are liable) iii. Undisclosed principal (both A and P are liable) c. Types of authority i. General ii. Special (particular transaction) iii. Subagent d. Other legal relations i. Master-servant ii. Independent contractor e. Duties of an agent to a principal i. Obedience follow orders ii. Diligence exercise care iii. Inform notify principal of matters concerning subject matter iv. Fiduciary duties trust and confidence a. No conflict of interest b. Full disclosure c. No exploitation of information d. A cannot make a secret profit f. Duties of a principal to an agent i. Contract duties i. Contracting to employ agent doesnt guarantee opportunity to work ii. Compensate if required (reasonable) iii. Reimburse authorized expenses ii. Tort duties iv. Safe conditions of employment v. Workers compensation g. Termination of agency i. Act of parties a.Mutual agreement b.Fulfillment of purpose (real estate) c. Revocation of authority (P fires A) d.Revocation of agency ( A quits) ii. Operation of law a.Bankruptcy of P or A b.Death of P or A c. Incapacity of A d.Loss or destruction of subject matter e.Loss of qualification of P or A f. Disloyalty of A

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g.Change of Law h.Outbreak of war Irrevocable agencies a.Agency coupled with an interest

II. Relation of principal and agent to third party h. Relation between Principal and third party i. Contract liability of principal ii. Types of authority - Actual express: clearly stated - Actual implied: inferred from the words or conduct from P to A iii. Apparent Authority - Gas station example. Arises out of words or conduct. Upon termination of agency, actual authority ceases but apparent may continue until actual notice. iv. Ratification - Confirmation by a principal of a prior unauthorized act by another who is or purports to be his agent - Must occur before third party gives notice of withdrawal - P must manifest an intent to ratify i. Tort liability of the principal i. P is liable for authorized acts by A ii. P is liable for unauthorized acts by A within scope of agents employment RESPONDEAT SUPERIOR