Terms Definitions &/or application Imposed where an agent commits a tort causing injury during the actual exercise of the authority. When an employer significantly changes the fundamental terms or conditions of employment without consent of the employee. Person representing another person in dealings with a 3d party. Limitations on authority are clearly understood by the Agent, actions of Principal lead the 3d to believe the Agent has full authority. When an employer fails to provide an employee with reasonable notice and or with an unreasonable cause. Must not make a profit at the expense of the principal Individual who passes authority to another individual to act on his/her behalf. The Principal cannot deny that the agent had authority A gas station attendant has this type of authority Test that considers hours worked to complete the job. Amount of notice that must be given in terminating an employment contract. Principal directly grants agent authority to act. Reason for an employee to terminate employment with cause