I. I. Agency
A. A. Intro & Background
B. B. Rights and Duties Between Principal and Agent
1. 1. Principal
2. 2. Agent
C. C. Vicarious Tort Liability
1. 1. Relationship – Control
2. 2. Activity – Scope of Employment
D. D. Contract Liability
1. 1. Actual Authority
2. 2. Apparent Authority
3. 3. Inherent Authority
E. E. Agent’s Fraudulent Acts
1. 1. Employer’s Liability
2. 2. Exculpatory Clause
F. F. The Undisclosed Principal
1. 1. Rights
2. 2. Liabilities
G. G. Agent’s Liability
1. 1. Authorized Transactions
2. 2. Unauthorized Transactions
H. H. Ratification
1. 1. Nature and Form
2. 2. Requirements
I. I. Termination of Authority
1. 1. Acts of Parties
2. 2. Operation of Law
3. 3. Notice of 3rd Parties
II. II. Partnership
A. A. Nature and Creation of Partnerships
1. 1. Nature
2. 2. Creation
3. 3. UPA & RUPA
B. B. Partners’ Property Rights and Creditors’ Rights – KEY
1. 1. Partner’s Property Rights
2. 2. Partnership Creditors
3. 3. Individual Partners Creditors
C. C. Dissolution and Termination
1. 1. Dissolution
a) a) Causes and Effect
b) b) Continuation of Business
2. 2. Termination
a) a) Winding Up and Liquidation
b) b) Termination
Agency Law
Nature – Enterprise Liability
Focus – Responsibility
1. 1. Relationship
eller relationships, no agency.
2. 2. Agency v. Debtor/Creditor – Simple lender, no agency.
3. 3. Agency v. Bailment – Control indicates agency.
4. 4. Agency v. Escrow – Control indicates agency
5. 5. Ambiguous Principal – See health insurance coverage cases.
Relationship: Principal v. Agent
Nature
1. 1. Fiduciary – Contractual
2. 2. Subject to Agreement – Occasionally formal; Performance K.
3. 3. Otherwise Implied – C/L; ERISA
Principal’s Duties
1. 1. To Indemnify
2. 2. To Compensate
3. 3. Duty of Care
4. 4. To Treat Fairly, and in Good Faith
Agent’s Duties – Biggest Area of Litigation
Real World Practice – Employer rarely sues employee, may sue agent.
1. 1. To Perform
a) a) With Reasonable Care
b) b) To Follow Instructions
2. 2. Duties of Loyalty – Must have Principal’s best interest at ALL times.
a) a) No Self-Dealing
b) b) Cannot Compete – During Relation (possibly after)
c) c) Cannot Preempt Opportunities
d) d) Duty to Disclose Conflicts
e) e) Judgmental
(1) (1) Can’t misuse trade secrets.
(2) (2) May use generally acquired knowledge.
3. To Indemnify if Loss Because of Breach – Rarely occurs
