Management and Organizational Studies 2275A/B Lecture Notes - Petty Cash, Sports Agent

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Agency: relationship between two persons that permits one person, agent, to affect legal relationships of another, principal (as binding on principal as if person directly entered them herself) Relationship essential to success of principal, who may not have expertise to handle matter. Almost every business transaction features agent (e. g. managers carry critical tasks for owner) Agent-principal relationship: how to be considered a, a"s duties and authority, p"s obligations. Outsider-principal: when is p liable to outsider, when is a liable to outsider. Law of agency: govern relationships in agency issues; derived largely from tort and contract law. Very little legislation, other than special statutes for insurance agents, etc. Relationships arise by contract between parties most often; other times by conduct. Agency by agreement: p authorize a to act on behalf, in return for some fee or other remuneration. Often occurs through contract created expressly and only for single purpose.