Legal Question in Business Law in Washington

need definition

Need definition for "common law agent" in context of owner/contractor relations, liens, design professional/owner relations


Asked on 5/14/99, 5:22 pm

1 Answer from Attorneys

Gary Preble Preble Law Firm, P.S.

Re: need definition

Try this site: http://www.dpg-law.com/main/02-morelaw/r-agency.html

As to WA law, here's a start, but your details may require different analysis.

Equipto Div. Aurora Equipment Co. v. Yarmouth, 83 Wn.App. 817, 820-23, 924 P.2d 405 (1996)

At common law, the liability of a person who purports to contract in the name of a principal can be governed by any one of several rules. First, a person who purports to contract in the name of a nonexistent or fictitious principal becomes liable on the contract, subject to exceptions not pertinent here. The rule is based on "an inference that a person intends to make a present contract with an existing person." Therefore, "the parties intend that the person signing as agent should be a party, unless there is some indication to the contrary." . . .

Second, a person who purports to contract in the name of a principal that exists but lacks capacity to contract may be liable on the contract, but only if he or she (a) affirmatively misrepresents the principal's capacity, or (b) knows or should know of the principal's lack of capacity, and the other contracting party does not. . . .

Third, a person who contracts in the name of a principal that exists and has capacity to contract is not liable on the contract so long as he or she fully or partially discloses the principal and has authority to contract.

Gary Preble

Olympia

360-943-6960

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Answered on 5/26/99, 10:49 pm


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