mkt100 Lecture 10: BLAW 3100 - Chapter 10 notes
Document Summary
The agent acts on behalf of the principal to create a contract between the principal and the 3rd party. This contract relationship between principal and 3rd parry is separate from the principal-agent relationship. The undisclosed principal - a situation where the agent did not tell the party who he was dealing for that he was not an agent. Tort liability: if agent is an employee, principal is vicariously liable for torts of the agent. If agent is an independent contractor principal is generally not vicariously liable except for theft, misrepresentation if your realter is driving too fast to show your house, and causes an accident you are not liable. The sole proprietor is an individual carrying business alone in business alone: must comply with all regulations, tax, employment obligations - It is the simplest business structure: he is personally liable for business debts and obligations. Liability is unlimited can go after business or personal assets.
