Agency

Question 1

🟦 Agency — Issue

Answer 1

Issue: Whether an agency relationship existed, whether the agent had authority to bind the principal, whether the principal is liable on a contract or tort, and whether the principal ratified the agent’s acts.

⭐ Micro-Conclusion: Work in order: (1) agency, (2) authority, (3) ratification, (4) contract liability, (5) tort liability.

Question 2

🟦 Agency Relationship — fill blanks: Agency exists when (1) the principal manifests _____, (2) the agent agrees to act on the principal’s _____, and (3) the principal has the right to _____ the agent.

Answer 2

An agency relationship exists when (1) the principal manifests ASSENT, (2) the agent agrees to act on the principal’s BEHALF, and (3) the principal has the right to CONTROL the agent.

⚠️ Bar Traps:
❌ Calling it “independent contractor” is not dispositive
❌ Assuming a written contract or formal title is required

⭐ Micro-Conclusion: If the principal has the right to control, agency exists.

Question 3

🟦 Actual Authority — fill blanks: Actual authority exists when the principal’s _____ cause the agent to reasonably believe they are authorized to _____.

Answer 3

An agent has ACTUAL authority when the principal’s MANIFESTATIONS cause the agent to reasonably believe they are authorized to ACT.

• Express: directly stated authority
• Implied: authority to do acts necessary to carry out express authority

⭐ Micro-Conclusion: If the agent reasonably believed they were authorized, actual authority exists.

Question 4

🟥 Actual Authority bar traps — Authority may be inferred from job title or prior course of dealing, but clear _____ still limit authority; discuss whether the principal previously _____ the conduct.

Answer 4

⚠️ Bar Traps:
❌ Forgetting implied authority (necessary/incidental acts)
❌ Ignoring prior course of dealing (principal previously allowed the conduct)
❌ Missing that the agent can exceed clear limits

⭐ Micro-Conclusion: Use the principal’s manifestations to the agent to define actual authority.

Question 5

🟦 Apparent Authority — fill blanks: Apparent authority exists when the principal’s manifestations to a _____ party cause the _____ party to reasonably believe the agent had authority.

Answer 5

An agent has APPARENT authority when the principal’s manifestations to a THIRD party cause the THIRD party to reasonably believe the agent had authority.

⭐ Micro-Conclusion: If the principal created the appearance of authority, the principal is bound.

Question 6

🟥 Apparent Authority trap — fill blanks: The belief belongs to the _____ party, but must be caused by the _____’s manifestations, not the agent’s _____.

Answer 6

Key clarification:
The belief belongs to the THIRD party, but it must be caused by the PRINCIPAL’s manifestations, not the agent’s STATEMENTS.

⚠️ Bar Traps:
❌ Agent lies about authority
❌ Third party relies only on agent’s words

⭐ Micro-Conclusion: No principal manifestation → no apparent authority.

Question 7

🟦 Ratification — fill blanks: Ratification occurs when the principal, with knowledge of _____ facts, affirms or accepts the _____ of the agent’s unauthorized act.

Answer 7

Ratification occurs when the principal, with knowledge of MATERIAL facts, affirms or accepts the BENEFITS of the agent’s unauthorized act.

⚠️ Bar Traps:
❌ Principal is silent after learning of the deal
❌ Principal accepts benefits

⭐ Micro-Conclusion: Knowledge + acceptance of benefits → ratification.

Question 8

🟥 Ratification nuance — fill blanks: Ratification requires actual or constructive _____; a principal cannot avoid ratification by deliberately remaining _____.

Answer 8

Ratification requires actual or constructive KNOWLEDGE. A principal cannot avoid ratification by deliberately remaining IGNORANT.

⭐ Micro-Conclusion: Willful blindness can still equal knowledge for ratification.

Question 9

🟦 Contract Liability — fill blanks: A principal is liable on contracts made by an agent acting with actual authority, apparent authority, or _____.

Answer 9

A principal is liable on contracts made by an agent acting with actual authority, apparent authority, or RATIFICATION.

⭐ Micro-Conclusion: If any one applies, the principal is bound.

Question 10

🟥 Undisclosed Principal — fill blanks: An undisclosed principal is liable if the agent acted with _____ authority, unless the contract excludes the principal or liability would unfairly _____ the third party.

Answer 10

Undisclosed principal rule:
An undisclosed principal is liable if the agent acted with ACTUAL authority, unless (1) the contract excludes the principal, or (2) liability would unfairly PREJUDICE the third party.

⭐ Micro-Conclusion: Undisclosed principal liability typically turns on actual authority.

Question 11

🟦 Tort Liability — Vicarious (Respondeat Superior) fill blanks: A principal is vicariously liable for torts committed by an _____ acting within the _____ of employment.

Answer 11

A principal is vicariously liable for torts committed by an EMPLOYEE acting within the SCOPE of employment.

⚠️ Bar Traps:
❌ Treating “independent contractor” label as controlling
❌ Missing intentional tort nuance (sometimes within scope)

⭐ Micro-Conclusion: Employee + scope → vicarious liability.

Question 12

🟥 Independent Contractor trap — Generally, a principal is not vicariously liable for torts of an independent contractor, so analyze whether the principal retained the right to _____ like an employer.

Answer 12

⚠️ Bar Trap:
Independent contractor labels are not dispositive; focus on CONTROL.

⭐ Micro-Conclusion: More control → more likely employee → possible vicarious liability.

Question 13

🟦 Tort Liability — Direct Liability

Answer 13

Direct liability applies where control, duty, or negligence is shown.

Examples:
• Non‑delegable duties: principal remains liable even if delegated
• Negligent hiring/supervision: principal liable if they knew or should have known of unfitness

⚠️ Bar Trap:
Foreseeability and knowledge are critical.

⭐ Micro-Conclusion: Even without respondeat superior, direct liability can attach.