BUSINESS LAW I
Agency
Relationship of Principal and Agent to Third Parties

Principal and Agent Agent and Third Party Principal and Third Party
P vs. A A vs. P A vs. TP TP vs. A P vs. TP TP vs. P
Breach of the Agency Contract
(contractual)		 Breach of the Agency Contract
(contractual)		 Disclosed P
A vs TP = no suit		 Disclosed P
TP vs A = no suit		 Disclosed P
P vs TP = contract		 Disclosed P
TP vs A = no suit TP vs P = contract
Fiduciary Duties*
C = Care
O = Obedience
A = Accounting
L  = Loyalty          (Notice)

The remedies for breach are to discharge the agent, withhold compensation, injunction, damages, restitution and accounting.

Compensate
This is not a duty unless there is an express or implied agreement based on the facts.   The amount may be contractual but in absence of an agreement it is the amount usually paid in that locality for the service rendered.
Indemnify
for any loss Agent sustained in carrying out Principals lawful instructions.
Reimburse
Only if so specified by the agreement or necessity.

 Partially Disclosed P or Undisclosed
P
A vs. TP = contract
if P chooses not to sue

 

 Partially Disclosed P or Undisclosed
P
TP vs A = contract
if A reveals then Right of Election
TP vs. P = contract		 Partially Disclosed P or Undisclosed P
P vs TP = contract		 Partially Disclosed P or Undisclosed P
TP vs A = contract if A reveals then
TP vs P = contract
if TP exercises Right of Election
    Torts that the TP commits against the A Torts that the A commits against the TP (always liable for your own torts)   Torts that the A commits against the TP if
1. master
-servant
2. course and scope of authority
  P must provide safe working conditions.   Implied Warranty    
Agent warrants to the TP that a P exists and has contractual capacity and that the agent has authority for the acts to be performed.
In general, if an agent for a disclosed P does something unusual the TP cannot rely on the word of the agent and hold P liable.
In general an A for an undisclosed P will bind P to just about anything on disclosure since the TP believes that the A is the contracting party. However, the P can sue the agent for breach of the fiduciary duties.
*  Fiduciary means a relationship of Trust
Tort Liability is joint and several. Therefore, servant is liable with the master.
Contract liability is several.

Tort Liability (respondent superior)
a. Only applicable to the master-servant relationship including intentional torts which are committed within the course and scope of the agents authority.
b. P-A Tort liability only during contractual negotiations (fraud, etc.)
c. Course and scope
(1). time and space limits
(2). actuated by the purpose of serving the master
(3). of the same type act or incidental the job being performed