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Agency • Liability of Principal for Agent's Torts
AG#002
Legal Definition
Agency is established when one person (the principal) manifests an intention that another person (the agent) act on the principal's behalf and subject to their control. An agency relationship requires (1) capacity, (2) consent, and (3) control.
Plain English Explanation
An agency relationship is more than just people working together. It is a conscious decision by both parties to engage in a specific type of relationship where one party has control and the other party agrees to being controlled.
Hypothetical
Hypo 1: Sam owns a pizza parlor. One day, Sam's friend, Amy, comes in to buy a pizza. Sam asks Amy if she would watch the cash register for a couple minutes while he used the bathroom. Amy agreed. While Sam is in the restroom, a customer comes in and asks to order a pizza. Amy decides to try to make the customer's order and, as a result, causes a fire in the pizza oven. Result: No agency relationship existed. Yes, Sam asked Amy to do something for him, and yes Amy agreed to do something that benefited Sam, but favors do not necessarily rise to the level of an agency relationship.
Hypo 2: Same facts as Hypo 1, except this time Sam asks Amy to run his pizza parlor for a week while he goes on vacation. Amy agrees. Result: Now you have an agency relationship. It may still be a favor, but it is a conscious decision from Sam to ask Amy to do something, and a conscious decision from Amy to be controlled and do something for Sam.
Hypo 2: Same facts as Hypo 1, except this time Sam asks Amy to run his pizza parlor for a week while he goes on vacation. Amy agrees. Result: Now you have an agency relationship. It may still be a favor, but it is a conscious decision from Sam to ask Amy to do something, and a conscious decision from Amy to be controlled and do something for Sam.
Related Concepts
Generally, when are an agent's actions within the scope of a principal-agent relationship?
What is the difference between a frolic and a detour?
When are intentional torts considered within the scope of an agency relationship?
When is a borrowing principal liable for torts committed by a borrowed agent?
When is a principal liable for torts committed by an independent contractor?
When is a principal liable for torts committed by a sub-agent?
When is a principal vicariously liable for torts committed by its agent?
