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Selected sections from the Restatement (Second) of Agency studied in a course about the law of Business Associations

1 agency

the fiduciary relation which results from the manifestaion of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act

2 master

a principal who employs an agent to perform service in his affairs and who controls or has the right to control the physical conduct of the other in the performance of the service

2 servant

an agent employed by a master to perform service in his affairs whose physical conduct in the performance of the service is controlled or is subject to the right to control by the master

independent contractor

a person who contracts with another to do something for him but how is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking. He may or may not be an agent.

all masters are

principals cmt.(a) to sec. 2

all servants are

agents cmt.(a) to sec. 2

not all independant contractors are


no servants are

independent contractors

3 general agent

an agent authorized to conduct a series of transaction involving a continuity of service

3 special agent

an agent authorized to conduct a single transaction or a series of transactions not involving continuity of service

4 the principal is a disclosed principal when

the other party to the transaction has notice that the agent is acting for a principal and of the pricipal's identity, at the time of the transaction conducted by an agent

4 the principal is a partially disclosed principal when

the other party has notice that the agent is or may be acting for a principal but has no notice of the pricipal's identity

4 the principal is an undisclosed principal when

the other party has no notice that the agent is action for a principal

7 Authority

the power of the agent to affect the legal relations of the pricipal by acts done in accordance with the pricipal's manifestions of consent to him

8 Apparent Authority

the power to affect the legal realtions of another person by transactions with third persons, professedly as agent for the other, arising form and in accordance with the other's manifestations to such third persons

8A Inherent Agency Power

the power of an agent which is derived not form authortiy, apparent authority or esstoppel, but solely form the agency relation

8B Estoppel

a person is liable to persons who have changed their positions becase of their belief that the transaction was entered into by or for him, if he intentionally or carelessy caused such a belief, or knowing of such a belief and that others might change their positions because of it, he did not take reasonable steps to noticy them of the facts

8B Change of Position

payment of money, expenditure of labor, suffering a loss or subjection to legal liablity

15 Minfestaions of Consent

an agency relation exists only if there has been a minfestion by the pricipal to the agent that the agent may act on his account, and consent by the agent so to act.

26 Creation of Authority

can be created by written or spoken words or ther conduct of the principal which, reasonaly interpreted, causes the agent to believe that the principal desires him so to act on the principal's account

27 Creation of Apparent Authority

created as to a third person by written or spoken word or any other conduct of the pricipal which, reasonably interpreted, causes the third person to believe that the principal consents to have the act done on his behalf by the person purporting to act for him

140 Liability Based Upon Agency Principles

may be based upon the fact that: the agent was authorized, the agent was apparently authorized; or the agent had the a power arising from the agency relation and not dependent upon authority or apparent authority

219 When the Master is Liable for the Torts of His Servants

while acting in the scope of their employment but not when acting outside the scope of their employment, unless the master intended the conduct or the consequences, or the master was negligent or reckless, or the conduct violated a non-delegable duty of the master, or the servant purported to act or to speak on behalf of the principal and there was reliance upon apparent authority, or he was aided in accomplishing the tort by the existence of the agency relation

220 Definition of a Servant

a person employed to perform services in the affairs of another and who with respect to the physical conduct in the performance of the services is subject to the other's control or right to control

220 (2) whether one is a servant or an independent contractor

control the master may exercise over the details of the work; whether or not the one employed is engaged in a distinct occupatoin or business; the kind of occupation (usually done as a servant or independent contractor); skill required; who supplies the instrumentalities, tools and the place of work; length of time employed; method of payment; whether the work is part of the regular business of the employer; whether the parties believe they are master and servant; whether the principal is or is not in business

228 Scope of Employment

if and only if: kind of conduct he is employed to perform; within the authorized time and space; by a purpose to serve the master, at least in part; and if force is intentionally used by the servant against another, the sue of force is not unexpletable by the master

230 Forbidden Acts

may be within the scope of employment

231 Criminal or Tortious Acts

may be within the scope of employment

377 Contractual Duties

A person who makes a contract with another to perform services as an agent for him is subject to a duty to act in accordance with his promise

379 Duty of Care and Skill

a paid agent is subject ot a duty to the principal to act with a standard care and with the skill which is standard in the locality for the kind of work which he in employed to perform and in addition, to exercise any special skill that he has

267 Reliance Upon Care or Skill of Apparent Servant or Other Agent

One who represents that another is his servant or other agent and thereby causes a third person justifiably to rely upon the care or skill of such apparent agent is subject to liability to the third person for harm caused by the lack of care or skill of the one appearing to be a servant or other agent as if he were such.

320 Libility of Disclosed Principal

agent for a disclosed principal does not become a party to the contract

321 Liability of Partially Disclosed Principal

a person purporting to make a contract with another for a partially disclosed principal is a party to the contract

322 Liability of Undisclosed Principal

agent for an undisclosed principal is a party to the contract

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