AFM231 Study Guide - Final Guide: Subrogation, Concurrent Estate, Caveat Emptor

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Chapter 12: Other Torts
Occupier : someone who has control over land or the buildings on that land , a business
conducting business in a building is an occupier even if they are only leasing
Occupier’s liability , occupier’s have liability to anyone entering the land or property,
determined by the classification that the person is ; trespasser , licensee , invitee or contractual
entrant
Contractual entrant : someone who has paid for the right to enter ( museum goers) , duty owed
to them by the occupier is to make sure premises are safe
Invitee : someone whose presence benefits the occupier ( customer at a store) , occupier has a
duty to warn of unusual danger
Licensee : someone permitted to enter for the benefit of the license , not necessarily giving a
benefit to occupier but you are not objecting to them being there , occupier has a duty to warm
them of unusual danger
Trespasser: someone who goes into the occupier’s land without invitation, presence is unknown
and objected by the occupier , occupier is liable for any act done with deliberate intention of
doing harm to the trespasser , owes duty of acting with common humanity towards trespasser
Tort of nuisance
Conflicts between neighbors due to land use is a common example, this tort allows you to
attain your right to enjoy the benefits of your land uninterrupted by the actions of others
In order to test , their actions must have interrupted with your enjoyment , and only
applicable if it is long term , must be significant and unreasonable
Tort of trespass to property or chattels
Protects you from wrongful interference; refers to trespassing / the act of coming onto
another’s property without express or implied consent , leaving an object on someone’s
property without their permission or having someone on your land that won’t leave when asked
to
This tort is actionable without proof of harm or damage , usually results in an injunction to not
allow that person on your property
False imprisonment
Detained without lawful justification , physically restraining someone or coercing them
psychologically to stay ,you must have reasonable grounds to have detained someone and proof
of the crime in order to have a defense
Assault and battery
Assault is the threat of imminent harm and battery is the actual physical contact that is harmful
or offensive
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Deceit : caused from misrepresentations ( fraudulent or said with reckless disregard), leading to
losses
Passing off : one person represents their goods as being those of someone else’s , to prove :
need to have the existence of goodwill within the product, a misrepresentation causing the
public to be deceived , and to have cause actual or potential damage to the plaintiff
Interference with contractual relations : someone inciting you to break an existing contract
with another party , can get damages and an injunction
Defamation : the utterance of a false statement that harms another’s reputation ( slander is
written , label is oral form) defense : if the statement is true or if statement is qualified
privilege : its relevant and not malicious, communicated to a party that has a legitimate interest
in knowing it , absolute privilege : freedom of speech or the comment is fair and there is no
malice and it is concerned with public interest and is a factually based opinion that could be held
by others
Injurious or malicious falsehood : statements about goods and services provided by a person ,
need to prove statement is false and was uttered with improper motive
Chapter 13: Agency Law
The relationship between 2 people that lets one ( that agent) affect the legal relationship of
another ( the principal ) , these contracts are as legally binding as if the principal had entered into
themselves
Done because the agent usually has more expertise than the principal , and is doing business on
their behalf
Law of agency is derived from common law and tort , can be entered into through contract or
conduct , if through a contract , the principal authorizes agent to act on their behalf in return for a
fee
Authority is what determines whether a contract exists between the principal and the third party ,
if the agent makes a contract within their apparent or actual authority the contract is legally
binding for the principal
Actual authority : written or oral granted by principal , can be express or implied ( needed to do
the job)
Apparent authority : ostensible authority that the third party would reasonably believe that the
agent has given the conduct of the principal
Agency by estoppel : the actions of the principal lead the third party to believe that an agency
relationship exists
The onus of telling the third party that an agency relationship is going to be terminated falls upon
the principal , as well as the limit of the agent’s authority , this helps the principal not to be bound
by contracts outside of the agents actual authority but with their apparent authority
Agency by ratification : a person represents themselves as another’s agent even though this is not
true , the relationship is created when the principal accepts the contract entered into on their
behalf , you are not liable for the contract because it was the agent’s misrepresentations that lead
to the contract , a contract can be ratified if ; the principal does it within a reasonable time , if
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they have the capacity to do so and if the agent identified the principal when entering into the
contract
Duties of an agent : they must perform in accordance with the principal’s instructions or what is
required within the industry , agent has a fiduciary relationship duty to the principal ( utmost good
faith) , cannot personally profit by virtue of your position , or have conflict of interests , also have
a duty for full disclosure , cannot use the principal’s resources for your own monetary gain
Duties of the principal : pay the agent , reimburse for sundry expenses, and assist the agent when
need be
Contract liability : principal is liable for contract if it is within apparent or actual authority , if the
outside party did not know the limit to the actual authority
If the agent acts without authority they can be liable for breach of warranty of authority to
outsiders ( no contract present between outsider and agent or agent and principal)
Agent can incur liability if they contract on behalf of an undisclosed principal , the outsiders don’t
know that an agency relationship exists , even so the principal is still liable for contract if the agent
was acting within apparent or actual authority
If agent represents themselves as the principal the agent is liable , the principal can sue for breach
of contract if the agent exceeds authority , agent is personally liable for any torts they committed
even if they were working for the principal , if the agent is acting within apparent or actual
authority then the principal is liable for any torts the agent committed
Chapter 14: Business forms and arrangements
Sole proprietorship: any obligation of the business is a personal obligation of the proprietor,
breach of contact = proprietor being sued , unlimited liability , profit sharing : all profits are the
proprietor’s, limited life span= lifespan of proprietor , quick and simple decision making , hard to
be good at everything , limited access to capital , personal taxes, the business is not transferable
Partnership : two or more people pooling their resources together , no legal existence , not legal
relationship , governed by partnership legislation , contract and agency law , each partner has
unlimited liability , joint liability : liability is shared but each person can be fully liable for the full
obligation , partners decide how profit is shared ( decide with partnership agreement , default is
equal distribution ) , decision making takes longer but better since two heads are better than
one, higher sources of capital that sole proprietorship, not easily transferable , a partnership
exists when 2 or more people are in business with a shared view of making profit , courts value
what the relationship looks like, not necessarily what is written , partners become one another’s
agents owing each other fiduciary duties, joint and several liability : you can collect in full from
one or parts from each partner, terminated when the venture that the partnership was created
for is over or when a partner leaves the partnership is dissolved( death , bankruptcy and insanity
are also reasons)
Limited partnership : a partnership where at least one partner has unlimited liability and the
others have limited ( only liable up to your contribution, not allowed to have a say in
management if you manage you become a general partner) requires a formal written agreement
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Document Summary

Occupier : someone who has control over land or the buildings on that land , a business conducting business in a building is an occupier even if they are only leasing. Occupier"s liability , occupier"s have liability to anyone entering the land or property, determined by the classification that the person is ; trespasser , licensee , invitee or contractual entrant. Contractual entrant : someone who has paid for the right to enter ( museum goers) , duty owed to them by the occupier is to make sure premises are safe. Invitee : someone whose presence benefits the occupier ( customer at a store) , occupier has a duty to warn of unusual danger. Conflicts between neighbors due to land use is a common example, this tort allows you to attain your right to enjoy the benefits of your land uninterrupted by the actions of others.

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