Business Law: Agency & Partnership

What is actual implied authority in agency law?

Actual implied authority is the authority an agent reasonably believes they have as a result of the principal's actions, including the authority necessary to carry out express duties.

How is apparent authority created in an agency relationship?

Apparent authority is created when a principal's words or conduct cause a third party to reasonably believe that the principal has authorized the agent to act on their behalf.

What are the requirements for a principal to ratify an unauthorized act by an agent?

To ratify an unauthorized act, the principal must have knowledge of all material facts, accept the entire transaction, and have capacity to authorize the act at the time it was done and at ratification.

What are the three primary fiduciary duties an agent owes to a principal?

An agent owes the principal the duties of loyalty, care, and obedience.

Under the doctrine of respondeat superior, when is an employer liable for an employee's torts?

An employer is vicariously liable for an employee's torts committed within the scope of their employment.

In the context of scope of employment, what is the legal difference between a 'frolic' and a 'detour'?

A detour is a minor deviation from the employer's business where the employer remains liable, whereas a frolic is a substantial deviation for the employee's own purposes, relieving the employer of liability.

What is the general rule regarding a principal's liability for the torts of an independent contractor, and what is a major exception?

Generally, a principal is not liable for an independent contractor's torts, except when the work involves inherently dangerous activities or non-delegable duties.

What is the legal definition of a general partnership?

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit, whether or not they intended to form a partnership.

What is the nature of a general partner's liability for the debts and obligations of the partnership?

General partners are jointly and severally liable for all debts and obligations of the partnership.

Under the Revised Uniform Partnership Act (RUPA), what specific obligations comprise a partner's duty of loyalty?

A partner's duty of loyalty includes accounting for partnership benefits, refraining from dealing with the partnership as an adverse party, and refraining from competing with the partnership.