AYB205 Lecture Notes - Lecture 3: Independent Contractor, Secret Profit, Australian Securities Exchange
Document Summary
Questions for mid-semester exam are drawn from the slides. An agency involves three parties: the principal. Employers another person (the agent) to act on their behalf. Right to represent must give rise to an obligation: the agent. Authority to act can be made known: Impliedly or by conduct" which gives rise to an apparent" or ostensible" authority to act on behalf of the principal: the third party. An agency relationship usually arises from a contract: legal basis of an agency relationship usually subject to common law of contract. Some statute exists that modifies agency terms and conditions in certain industries, such as the property agents and motor dealers act 2000 (qld) Agency agreements, oral or written, would normally specify things such as: agency duration, agency remuneration, scope (and specific limits) on the agent"s authority. A reasonable person examining the conduct and actions of the parties would conclude that the agent was properly empowered to act.
