Liability of Principals, Agents, and Independent Contractors
BYU Business Law, Accounting 241
Agent's Duty of Loyalty
A fiduciary duty owed by an agent not to act adversely to the interests of the principal
A rule that says an employer is liable for the tortious conduct of its employees or agents while they are acting within the scope of its authority.
Frolic and Detour
A situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.
Coming and Going Rule
A rule that says a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.
An errand or another act that a principal requests of an agent while the agent is on his or her own personal business.
A test that determines whether an agent's motivation in committing an intentional tort is to promote the principal's business; if so, the principal is liable for any injury caused by the tort.
A test that determines whether an agent committed an intentional tort within a work-related time or space; if so, the principal is liable for any injury caused by the agent's intentional tort.
A deceit in which an agent makes an untrue statement that he or she knows is not true.
Fully Disclosed Agency
An agency in which a contracting third party knows (1) that the agent is acting for a principal and (2) the identity of the principal.
Partially Disclosed Agency
An agency in which a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal.
An agency in which the contracting third party does not know of either existence of the agency or the principal's identity.
Implied Warranty of Authority
A warranty of an agent who enters into a contract on behalf of another party that he or she has the authority to do so.
A situation in which a principal accepts an agent's unauthorized contract.