agency
fiduciary relation that results from manifestation of conesent by one person to another that theo thershall act in his/her behalf and subject to his/her control, and consent by the other so to act.
principal-agent relationship: parties agree agent will ac
fiduciary
noun: person having duty created by his/her undertaking to act primarily for another's benefit in matters connected w/ undertaking
adj: relationship involves trust and confidence
agency relationships: employer-employee relationships
all employees who deal w/ third parties are agents
ex: salesperson
agency law can exist outside of employment law --> broader reach
agency law based on common law
employment law based on statutory law
agency relationships: employer-independent contractor relationships
independent contractor: person who contracts w/ another to do something for him but who is not controlled by the other nor subject to the other's right to control w/ respect to his physical conduct in performance of the undertaking.
An independent contrac
agency relationships: determination of employee status
is a worker an employee or independent contractor?
COURT CRITERIA used:
1. How much control does employer exercise over details of the work?
2. Is worker engaged in occupation/business distinct from that of employer?
3. Is work usually done under employer
agency relationships: employee status and "works for hire
any copyrighted work created y employee within scope of employment at request of the employer is a "work for hire" --> company owns copyright to work
independent contractors owns copyright UNLESS parties agree in writing work is a "work for hire" and work
formation of the agency relationship
voluntary consent and agreement by both parties, writing and consideration not required
agency relatinoship can be created for any legal purpose
can arise 4 ways:
1. agreement of the parties
2. ratification
3. estoppel
4. operation of law
agency by agreement
express or implied agreement that agent will act for the principal and that the principal agrees to have the agent so act.
-can be express written contract or oral agreement
-can also be implied by conduct
agency by ratification
a person who is not an agent (or is an agent acting outside scope of her authority) makes a contract on behalf of another (principal). If principal approves/affirms contract by word or action, an agency relationship is created by ratification.
agency by estoppel
when principal causes a third person to believe that another person is the principal's agent, and the third person acts to his detriment in reasonable reliance on the belief, the principal cannot deny the agency relationship.
Principal's actions have crea
agency by operation of law
agency relationship can exist in the absence of a formal agreement
ex: family relationships (spouses), emergency situations
agent's duties to the principal
1. performance: use reasonable diligence and skill in performing the work
-standarde of care = ordinary care unless agent claims special skills as otherwise
-gratuitous agents (w/o payment) have no contract so cannot e liable for breach of contract, only
principal's duties to agent
1. compensation: timely payment for services rendered UNLESS agency relationship is gratuitous
-if no agreed upon amount, principal owes agent customary compensation
2. reimbursement and indemnification: reimbursement of agent for funds disbursed at reque
exclusive agency
principal cannot compete with agent or appoint or allow another agent to compete
agent's rights and remedies against principal
agent has right to be compensated, reimbursed and indemnified, to have safe working environment, and not be interfered by principal.
TORT AND CONTRACT REMEDIES
-agent's breach of duty follows normal contract and tort remedies
DEMAND FOR AN ACCOUNTING
-age
principal's rights and remedies against the agent
principal has contract remedies for agent breach - principal also has tort remedies for agent's misrepresentation, negligence, deceit, libel, slander, or trespass
-may result in termination of agency
CONSTRUCTIVE TRUST
-an equitable trust imposed for reas