Ch. 09: Agency Liability to Third Parties and Termination – No. 7
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
Principals and agents are each liable for their own torts.
(1) the principal’s own tortious conduct resulted in the
(3) the agent committed an unauthorized tort, including an
Ch. 09: Agency Liability to Third Parties and Termination – No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
(2) the time, place, and purpose of the act;
(3) whether the act was one commonly performed by
agents on behalf of their principals;
(4) whether the act advanced the principal’s interest;
(5) whether the agent’s interests were involved;
Ch. 09: Agency Liability to Third Parties and Termination – No. 9
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
RESPONDEAT SUPERIOR: SPECIAL CASES
Travel Time: A principal generally is not liable for the acts
of an agent traveling to or from the principal’s place of
business or to or from a meal break, but is liable for the acts
of an agent traveling on the principal’s business.
Borrowed Servants: Who is liable for a tort committed by an
agent “on loan” to another master depends on who had
primary control over the agent at the time of the tort.
Crimes: As a general rule, a principal is not liable for an
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
LIABILITY FOR AN INDEPENDENT
CONTRACTOR’S TORTS
Exception: Unusually Hazardous Activities – An
employer is strictly liable for injuries caused by those
performing unusually hazardous activities (e.g., blasting,
using poison) on the employer’s behalf, regardless of
whether the person causing the injury is an employee or
Ch. 09: Agency Liability to Third Parties and Termination – No. 11
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TERMINATION BY THE PARTIES
Any of the following may terminate an agency:
(1) lapse of time,
(2) accomplishing the particular purpose for agency,
(3) the occurrence of a specific event,
third party who knows of the agency and (ii) the agent.
No particular form of notification is required, and the
principal’s notice to the agent (but not to third parties
with knowledge) may be either constructive or actual.
Ch. 09: Agency Liability to Third Parties and Termination – No. 12
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TERMINATION BY OPERATION OF LAW
the agent’s country.
Ch. 09: Agency Liability to Third Parties and Termination – No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
(2) the time, place, and purpose of the act;
(3) whether the act was one commonly performed by
agents on behalf of their principals;
(4) whether the act advanced the principal’s interest;
(5) whether the agent’s interests were involved;
Ch. 09: Agency Liability to Third Parties and Termination – No. 9
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
RESPONDEAT SUPERIOR: SPECIAL CASES
Travel Time: A principal generally is not liable for the acts
of an agent traveling to or from the principal’s place of
business or to or from a meal break, but is liable for the acts
of an agent traveling on the principal’s business.
Borrowed Servants: Who is liable for a tort committed by an
agent “on loan” to another master depends on who had
primary control over the agent at the time of the tort.
Crimes: As a general rule, a principal is not liable for an
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
LIABILITY FOR AN INDEPENDENT
CONTRACTOR’S TORTS
Exception: Unusually Hazardous Activities – An
employer is strictly liable for injuries caused by those
performing unusually hazardous activities (e.g., blasting,
using poison) on the employer’s behalf, regardless of
whether the person causing the injury is an employee or
Ch. 09: Agency Liability to Third Parties and Termination – No. 11
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TERMINATION BY THE PARTIES
Any of the following may terminate an agency:
(1) lapse of time,
(2) accomplishing the particular purpose for agency,
(3) the occurrence of a specific event,
third party who knows of the agency and (ii) the agent.
No particular form of notification is required, and the
principal’s notice to the agent (but not to third parties
with knowledge) may be either constructive or actual.
Ch. 09: Agency Liability to Third Parties and Termination – No. 12
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TERMINATION BY OPERATION OF LAW
the agent’s country.