When an agent acting within the scope of his or her authority?
When is an Agent Liable for Actions Taken for the Principal?Someone who commits a tort, even if on behalf of a principal, is liable for the tort. The rule is different for contracts. An agent acting within the scope of her authority to contract is not liable to third parties on contracts or obligations entered into on behalf of the principal. Show
Even if the agent exceeds her express authority, her implied authority may bind the principal to the agreement and relieve her from any contractual liability to the third party. The important point is that the agent must act on behalf of the principal and disclose that relationship to the third party. If the agent is acting on behalf of a principal, but fails to disclose her agency status, it may subject her to liability to the third party. In some cases, it may also serve to bind the principal once the agency relationship is determined.
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Discussion QuestionShould an agent who exceeds her express authority be liable to the principal? Why or why not? Should she be liable to the third-party? Why or why not? Practice QuestionAgnes is an agent of Emory Corp, a technology company that sells subscriptions to its cloud-based software. Agnes has the general title of manager, but has no express authority in her employment agreement. Agnes routinely negotiates sales agreements with large companies that are clients of Emory Corp. Agnes enters into an agreement with Tech, LLC that is far larger than any deal Agnes previously negotiated. The agreement is very poorly negotiated and it will cause a huge loss for Emory Corp. What is Emory Corps obligation? What are Agnes potential obligations and liabilities?
Academic Research(1) An that acts without authority or exceeds his authority is, failing ratification by the Principal, liable for damages that will place the third party in the same position as if the Agenthad acted with authority and not exceeded his authority. (2) However, the Agentis not liable if the third party knew or ought to have known that the Agenthad no authority or was exceeding its authority. journal article THE SCOPE OF AGENTS AUTHORITY AND POWERJournal of the Indian Law Institute Vol. 22, No. 3 (July-September 1980) , pp. 414-430 (17 pages) Published By: Indian Law Institute https://www.jstor.org/stable/43950704 Read and download Log in through your school or library Read Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support. We'll provide a PDF copy for your screen reader.With a personal account, you can read up to 100 articles each month for free. Get StartedAlready have an account? Log in Monthly Plan
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Journal Information Journal of the Indian Law Institute is a leading law journal pertaining to the field of law. It is published since 1958. It is published quarterly carrying research articles on topics of current importance. The journal is a very highly rated journal of international repute. Publisher Information Indian Law Institute is the publisher of Journal of the Indian Law Institute The Institute publishes various books, reports and studies of its research projects besides the publishing of JILI and ASIL. Rights & Usage This item is part of a JSTOR Collection. When an agent acting within the scope of his or her authority contracts with a third party disclosed principal is liable to the third party?Someone who commits a tort, even if on behalf of a principal, is liable for the tort. The rule is different for contracts. An agent acting within the scope of her authority to contract is not liable to third parties on contracts or obligations entered into on behalf of the principal.
What is the scope of the agent authority?What is the Scope of an Agent's Authority? The scope of an agent's authority will depend upon the agreement that is made between the agent and principal. Generally, there are two ways to determine the scope of the agent's authority, express or implied. An agent's authority may be expressly determined.
Which type of agent has authority that is limited in scope and time?What is a Limited Agent? A limited agent has a special purpose and limited authority to act on behalf of the principal. Unless specifically limited by the principal, actions done in furtherance of that purpose are within the scope of the agent's authority.
What happens when the agent exceeds his authority?When an agent does more than he is authorized to do, and when the part of what he does, which is within his authority, can be separated from the part which is beyond his authority, so much only of what he does as is within his authority is binding as between him and his principal.
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