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LSDefine

Simple English definitions for legal terms

agency

Read a random definition: issue pleading

A quick definition of agency:

Agency law is a set of rules that control the relationship between a person who acts on behalf of someone else (an agent) and the person they are acting for (the principal). When an agent is given permission to act for the principal, they have the authority to make agreements that are binding on the principal. There are two types of authority: express authority, which means the agent can do what the principal asks, and implied authority, which means the agent can do what the principal's behavior suggests they should do. If a third party believes the agent has authority to act on behalf of the principal, even if they don't, the principal can still be held responsible for the agent's actions. The principal is always responsible for the agent's actions while they are doing their job, but not for actions outside of their job unless it was a detour (allowed) or a frolic (not allowed).

A more thorough explanation:

Agency law is a set of rules that governs the relationship between agents and principals. An agent is someone who acts on behalf of another person, called the principal. The principal-agent relationship is created when the agent is given the authority to act for the principal.

There are two types of authority that an agent can have: express authority and implied authority.

  • Express authority: An agent has express authority to take any actions requested by the principal as well as authority to take any actions inherently necessary to accomplish those requests.
  • Implied authority: An agent has implied authority to take any action the principal’s conduct indicates the agent should do. Furthermore, failure by the principal to object to an agent’s prior actions may create implied authority to repeat those actions in the future. An agent does not have implied authority to do anything expressly prohibited by the principal.

For example, if a principal hires an agent to sell their car, the agent has express authority to negotiate the price and complete the sale. The agent also has implied authority to take actions necessary to complete the sale, such as showing the car to potential buyers and advertising the car.

In addition to actual authority, a principal may be bound by the actions of an agent if apparent authority existed.

  • Apparent authority: An agent has apparent authority when, despite no existing authority, a third party reasonably infers that someone is authorized to act on the principal’s behalf due to the conduct of the principal.

For example, if a principal allows an employee to wear a uniform with the company logo and interact with customers, a third party may reasonably infer that the employee has the authority to act on behalf of the company. In this case, the employee has apparent authority to make decisions on behalf of the company.

Additionally, principals can be held liable for the torts of their agents under the doctrine of vicarious liability.

  • Vicarious liability: A principal is always liable for torts committed while the agent completes their official responsibilities.

For example, if a delivery driver causes an accident while making a delivery for their employer, the employer is vicariously liable for any damages caused by the accident.

However, if the agent commits a tort outside of their official responsibilities, the liability of the principal depends on whether the agent’s tort occurred during a frolic or a detour.

  • Detour: A principal is liable for the detours of their agent.
  • Frolic: A principal is not liable for the frolics of their agent.

For example, if a delivery driver causes an accident while running a personal errand during their delivery route, the employer may be liable for the damages caused by the accident because it was a detour from their official responsibilities. However, if the driver causes an accident while joyriding in the delivery truck, the employer may not be liable because it was a frolic outside of their official responsibilities.

age of majority | agency shop

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General chat about the legal profession.
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ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
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