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Key Takeaway. A person is always liable for her own torts, so an agent who commits a tort is liable; if the tort was in the scope of employment the principal is liable too. Unless the principal put the agent up to committing the tort, the agent will have to reimburse the principal.
Agent owes the principal five duties: performance, notification, loyalty, obedience, and accounting. (631).
Similarly, if the agent or principal loses capacity to enter into an agency relationship, it is suspended or terminated. The agency terminates if its purpose becomes illegal. Even though authority has terminated, whether by action of the parties or operation of law, the principal may still be subject to liability.
A principal is vicariously liable for the tort of his agent committed within the course of his authority.
The principal is liable on an agent's contract only if the agent was authorized by the principal to make the contract. Such authority is express, implied, or apparent.
When an agent acts within the authority given to it by its principal, the principal is liable for the agent's actions. The principal will be held liable even if the specific act was not authorized by or known to the principal.
The principal will be liable for the employee's torts in two circumstances: first, if the principal was directly responsible, as in hiring a person the principal knew or should have known was incompetent or dangerous; second, if the employee committed the tort in the scope of business for the principal.
A principal can be held directly liable for their agent's tortious conduct when their agent is acting with actual or true authority on the principal's behalf.
A person is always liable for her own torts, so an agent who commits a tort is liable; if the tort was in the scope of employment the principal is liable too. Unless the principal put the agent up to committing the tort, the agent will have to reimburse the principal.