Exam 15: Liability of Principal and Agent; Termination of Agency

In agency,_____ authority is a situation in which an agent leads a third party to believe that the agent has authority to bind the principal,even where the agent lacks actual authority to bind the principal.

If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm,then the principal is liable.

Pete gave his agent chemical pesticides for use on a grove of fruit trees belonging to Lily.However,Pete made a mistake when giving his agent instructions about the application of the pesticides.If the fruit trees die or spoil due to this act,:

An agent directed by the principal to commit a tort does not remain liable for his own conduct and hence,is not obligated to repay the principal.

A principal is considered to be vicariously responsible for his/her agent's torts if:

An agent is not liable for torts of other agents unless he is personally at fault.

In which of the following cases would an agent be personally liable to the other party in a contract?

A principal can be held responsible for an agent whose authority has previously been terminated if the principal does not make the termination known to the parties who previously did business with the agent.This is known as _____ authority.

A principal can be held liable for actions by an agent that the principal had no knowledge of.

Unlike wives,children are not presumed at common law to be agents or extensions of the father.

In case of the use of automobiles,explain two approaches that impose tort liability on the owner of the automobile.

As long as an agent has authorization,either express or implied,she may bind the principal legally.