Exam 37: Third Persons in Agency

Daisy was the owner of Bloomers, a garden shop. On the recommendation of a friend she hired Gordon, who was just out of jail, to assist her but really did not interview him. Gladys purchased plants labeled "Basil" and used them in her cooking but her entire family became seriously ill and had to be hospitalized. In fact the plant was semi-poisonous and was mislabeled by Gordon. Who is liable for the customer's illness?

A third person dealing with the agent of a disclosed principal ordinarily intends to make a contract with the principal, not the agent.

Even after there is an effective ratification, the original action of an agent is still considered as unauthorized.

An agent's liability to a third person is not affected by the degree of the principal's disclosure.

Hiring an individual with a criminal record is conclusive proof that the employer is liable for the tort of negligent hiring.

An implied warranty arises when a person purports to act as an agent for a principal.

An agent is liable for harm caused to a third person as a result of the agents' fraudulent, intentional, or negligent acts.

An agent making a proper contract with a third person on behalf of a disclosed principal:

Tom Creighton hired Destroy, Inc., a demolition company, to level an old building on a busy downtown lot. Destroy, Inc. was given full rein to decide on the amount of explosives needed and the placement of the charges. Security for the site on the day of the explosion was contracted out to a private security firm. When the appointed day arrived, the building was brought down. However, the building fell in a slightly different direction than that anticipated by Destroy, Inc. Numerous pieces of adjoining property, both real and personal, were severely damaged. Creighton claims that the use of an independent contractor such as Destroy, Inc. has insulated him from liability. How do you respond to Creighton's claim?

Parol evidence is allowed to show whether an agent has signed in a representative or an individual capacity.

Different rules of law govern the vicarious liability of principals and employers.

When a disclosed principal authorizes an agent's transaction with a third person, the principal and the third person may each sue the other in the event of a breach of the contract.

The concept of imposing liability for the fault of another is known as __________ liability.

If an agent makes a properly authorized contract with a third person on behalf of a disclosed principal, the agent is personally liable on the contract.

In general, a principal is liable for crimes of the agent committed while acting within the scope of the agency, even if the principal did not authorize commission of the crimes.

In which of the following situations is the principal - and not the agent - liable to a third party for breach of contact?

John is an agent for Peabody. John tells Wanda (a third party) of Peabody's existence, but not its identity, therefore John is an agent for a(n) ______ principal. If John signs a contract with Wanda on behalf of Peabody, John is ______ on the contract.

In a simple contract made by an authorized agent on behalf of a disclosed principal, the third person may sue either the agent or the principal in the event of a breach.

The liability of an agent to a third person depends on the existence of authority and the manner of executing the contract.

Modern law holds that an employer is liable for an intentional tort committed by an employee for the purpose of furthering the employer's business.