by TheBusinessProfessor | Feb 23, 2025 | Agency Law
To what extent are principals liable for the torts committed by agents?An individual is always liable for her own conduct. Whenever an individual is held liable for the actions of another, this is known as vicarious liability. In the context of agency, the agent is...
by TheBusinessProfessor | Feb 23, 2025 | Agency Law
When and how does the agency relationship terminate?The establishment, duration, and termination of the agency relationship are generally governed by the agreement between the principal and agent. In the absence of an express agreement, several default rules apply...
by TheBusinessProfessor | Feb 23, 2025 | Agency Law
What is a frolic and detour? A frolic and detour is a general defense to vicarious tort liability. It states that the principal should not be liable for the tortious acts of the agent when the agent is acting outside the scope of her employment and for the benefit of...
by TheBusinessProfessor | Feb 23, 2025 | Agency Law
What are the duties of an agent? Agents generally have the following duties to the principal: Loyalty, Care, Obedience, and Accounting. What is an Agent’s Duty of Loyalty? An agent has the duty of loyalty to act for the principals advantage and not to act to...
by TheBusinessProfessor | Feb 23, 2025 | Agency Law
Why is it important to be classified as an employee or independent contractor? While both are independent contractors, and employees are agents of the principal. This distinction is important for determining a principal’s liability for the agent’s actions....
by TheBusinessProfessor | Feb 23, 2025 | Agency Law
To what extent is a principal bound in contract by the actions of the agent? A principal is generally bound to third parties pursuant to the contracts entered into by the agent on behalf of the principal. This means that the principal is responsible for any...
