A Reexamination of the Agency Doctrine of Election

28 Pages Posted: 3 Sep 2009

See all articles by Arnold Rochvarg

Arnold Rochvarg

University of Baltimore - School of Law

Mark Sargent

Villanova University School of Law

Date Written: May 1, 1982

Abstract

The Restatement (Second) of Agency and several states provide that a third party suing an undisclosed principal and his agent must elect to take judgment against one, releasing the other from further liability. In contrast, when the existence of a principal but not his identity is disclosed at the time of agreement, a court may enter judgment against both the partially disclosed principal and his agent, releasing neither until the judgment is satisfied. The authors examine the theories and case law supporting the election doctrine in the light of public policy favoring complete disclosure. The authors conclude that a rule of release upon satisfaction of judgment should be applied to undisclosed principals and their agents. In the context of a partially disclosed principal, however, courts should consider applying a rule of election to encourage full disclosure.

Keywords: Restatement (Second) of Agency, undisclosed principals, judgments, election doctrine, complete disclosure, rule of release, liability, agency

JEL Classification: K19, K29, K39, K49

Suggested Citation

Rochvarg, Arnold and Sargent, Mark A., A Reexamination of the Agency Doctrine of Election (May 1, 1982). University of Miami Law Review, Vol. 36, No. 3, 1982, University of Baltimore School of Law Legal Studies Research, Available at SSRN: https://ssrn.com/abstract=1467005 or http://dx.doi.org/10.2139/ssrn.1467005

Arnold Rochvarg (Contact Author)

University of Baltimore - School of Law ( email )

1420 N. Charles Street
Baltimore, MD 21218
United States

Mark A. Sargent

Villanova University School of Law ( email )

299 N. Spring Mill Road
Villanova, PA 19085
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
98
Abstract Views
951
Rank
500,217
PlumX Metrics