Employer- has potential liability under respondent superior, provides the tools/machines to do the work, provides the workplace, must withhold income taxes and pay, pay Soc Sec and Medicare, provides benefits such as paid holidays, sick leave, health insurance, retirement plans. The worker is entitled to unemployment compensation & minimum wage and overtime under federal or state statues.
Independent contractor – is hired to complete a task for someone else.
Agency at will- Terminable at any time by either party after notice, Wrongful discharge, Bad-faith discharge
Fullfillment of the Agency Purpose- completion of work terminates agency
Revocation- Principals revoke authority of agents to act on their behalf.
Renunciation- Agent notifies principal they quit
Operation of Law, Termination occurs automatically: Upon death of agent or principal, either party becomes insane, principal becomes bankrupt, agent becomes bankrupts, if bankruptcy affects the agency. If agency cannot be performed, if unforeseen events destroy the agency relationship, if a change in law makes agency illegal
Importance of Notice- Early termination by either party, except by operation of law, requires notice.
Actual or constructive notice may be acceptable.
Undisclosed principal- one whose existence and identity are unknown the the third party.
Unidentified princial- is one whose existence is known to the third party but whose identity is not.
Third party- If TP breaches contract TP can be sued by Agent and undisclosed Principal. Principal can sue if contract is assignable. Principal can arrange for Agent to sue in Agents name if contract not assignable or Principal wishes to keep identity a secret.
Lawsuit by the agent- agent may sue TP if it can be shown that agent had interest in contract. Agent can also sue if agent intends to be bound.
Disclosed principal exists and is competent. Agent is agent of the principal. Agent authorized to enter into contract for principal.
Ratification- Agent does something unauthorized and principal later approaches either by expressed statement or implied conduct.
Implied- Based on agents position or past dealings with third party. Given a title or position.
Incidental- Agent has authority to do acts reasonable and necessary to complete task.
Emergency- Allows agent to response to emergencies if principal cannnot be reached.
Apparent- Principal creates appearance agency exists or third party reasonably believes agent has broader powers than actually exist.
Estoppel- Prevents principal who misled third party from denying agents authority.
Criminal applies to employer depending on when agent commits a crime. Master criminally liable if: based on employer’s fault, employer directs/encourages agent to engage in criminal activity.
Contributory negligence- stops recovery, contributed to the negligence.
Comparative negligence- tries to compare to what degree the plaintiff contributed to his or her own injury.